Primerica Pyramid Scheme – Scam or Legit MLM? Read This Review!

Are you looking for a Primerica MLM review? Is Primerica a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Primerica MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Primerica MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Primerica MLM.

To help you make a more informed decision, I have thoroughly researched the Primerica MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Primerica MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Primerica MLM that has enabled me to make a full-time passive income online.

What is Primerica MLM?

Primerica is a company that assists people with their financial situations. Its products include term life insurance, annuities, and financial investments. Term life insurance policies generated more than $808 billion in revenue for the company as of December 2019.

Primerica caters to people with middle-incomes, which it defines as homes earning between $30,000 and $100,000 per year. It is intended for family members who do not have insurance and wish to meet in person.

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What is MLM?

Before we get into Primerica MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Primerica MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

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What Products Does Primerica Offer?

Financial Needs Analysis

The Financial Needs Analysis (FNA) is a 100% marketing tool used by Primerica to identify “gaps” in your insurance and investment plan so that representatives can begin to look for places to sell.

Term Life Insurance

Primerica does have a good term life insurance product. Nonetheless, Primerica’s price for a simple term life insurance plan is up to 29 percent higher than the market average.


All investments and annuities on that side of your house are handled by Primerica’s financial investment sales department (PFS Investments Inc. dba Primerica Advisors).

Primerica has no ownership in this arrangement. Instead, it serves as a go-between for larger mutual funds and the insurance company.

Auto & Homeowners Insurance

Primerica Secure refers customers to Answer Financial to purchase auto and homeowners insurance. In other words, the business sent to Answer Financial by Primerica agents will pay them a small fee.

Long-Term Care Insurance

Long-term care insurance pays policyholders a daily amount for services such as bathing, dressing, and eating.

You can select from a variety of care options and benefits that allow you to get the services you require when and where you require them.

Primerica Debtwatchers™

Primerica has teamed up with Equifax to offer an online tool that helps you figure out how much debt you have and how to pay it off as one of their more recent products.

This program focuses heavily on debt accumulation and uses your Equifax credit report to assist you in developing a plan to get out of debt quickly.

Primerica Legal Protection Program

Primerica also sells Pre-Paid Legal Provider’s main product. Pre-Paid Legal/LegalShield is a company that provides basic legal services as a monthly membership and offers discounts to lawyers in their network.

ID Theft Defense

Another service provided by Primerica is ID Theft Defense. It is a product that functions similarly to LifeLock. Financial institutions have occasionally provided this type of service to their customers for free or at a reduced cost.

How Does Primerica MLM Work?

Let’s now discuss what it’s like to work at Primerica MLM and how the Primerica organization operates.

Primerica, like many large insurance advertising companies, does not provide paid insurance lead programs to entice people to buy their products.

Close friends, family, and business partners in your sphere of influence who are interested in buying (or selling) insurance constitute your warm market. These are the first people you should discuss your insurance policy with.

Your job is to contact them, set up a meeting, and present them with a plan, a product, or a job.

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Is Primerica A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Primerica, then, a pyramid scheme?

No. Primerica does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

What is the Primerica MLM’s Compensation Plan?

Primerica offers four main ways to earn a commission:

Sales Commissions on Insurance

You are compensated when you sell any type of financial plan.

Overrides on Downline’s Insurance

10% override commissions on sales generated by your downlines

Differentials from Downline’s Insurance Sales

You earn money by assisting your downlines in selling insurance.

Commission on Other Products

You can earn money by selling any other Primerica product.

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10 Reasons Why I Don’t Recommend Primerica MLM

1. The Good Reviews are Written by Primerica MLM’s Affiliates

You probably have found some other reviews of Primerica MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Primerica MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Primerica MLM.

2. Very Few People Can Make Money With Primerica

Success is difficult to achieve with an MLM company like Primerica.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Primerica MLM Are Reframed As Investments

Primerica MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Primerica MLM is a Cult

Why do people continue to work for Primerica if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Primerica Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Primerica. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Primerica Products are Overpriced

As with other MLMs, Primerica offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Primerica products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Primerica’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Primerica is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Primerica to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Primerica, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Primerica.

Primerica’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Primerica’s payouts to distributors, over 99 percent of Primerica distributors never make a profit.

9. Primerica Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Primerica is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Primerica put a lot of effort into recruiting. Eight out of ten ways to earn money with Primerica require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Primerica review.

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How Much Does It Cost To Join Primerica MLM?

It costs $99 to get started, which is a one-time fee. Then, in order to continue working as a Primerica recruiter, you must pay $25 per month.

You don’t have to pay extra or sell or buy a certain number of other products each month to stay active.

Primerica MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • MLM Opportunity at Low Prices
  • Excellent BBB rating
  • Extremely thorough screening
  • Primerica does not operate as a pyramid scheme.

Negative Feedbacks

  • Many complaints about the products
  • Primerica’s multi-level marketing plan has flaws.
  • Few success stories and a low success rate

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Is Primerica MLM a Scam?

I cannot say Primerica MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Primerica products? We already know that a majority of Primerica reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Primerica is by recruiting aggressively.

Also, Primerica blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Primerica MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

Final Verdict: Primerica MLM Review

Here comes the conclusion of my Primerica MLM review. Overall, I don’t recommend joining Primerica MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Primerica commission.

The worst part is that you practically have to ask your family and friends to join your Primerica business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of Primerica MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Primerica MLM.

My #1 recommended platform is called Wealthy Affiliate.

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You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Primerica MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

Wealthy Affiliate has a very simple pricing scheme. It has a free and premium membership. The premium membership only costs $49/month or $395/year.

If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.

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