Given current financial crises, joining a financial service company requires serious inquiry. This Primerica Company review will analyze present opportunities. Are its legs on shaky ground? Does today's financial climate offer a unique situation for a newcomer?
Background: Established in Duluth, Georgia in 1997 by Arthur L. Williams, Primerica is the largest U.S. financial service provider. At origination, the focus was insurance sales. The company created its first niche by convincing uninsured Americans that term life insurance was necessary. "Buy term and invest the difference" inspired insurance purchases for many middle incomers.
Success with the insurance market spurred expansion into other financial products: consolidation loans, debt solutions, mutual funds, mortgages and other insurance types.
In 1991, Primerica discarded its founder's name adopting its present moniker. Later the company became a Citigroup subsidiary, living under a larger corporate umbrella when Citigroup merged with the Travelers Group in 1998. (Travelers spun off in 2002.)
Until recently, Primerica's connection with Citigroup was an asset.
In mid-March, 2010, Primerica initiated an IPO of about 21 million shares, originally priced at $15/share. At the same time, a significant amount of shares were purchased by private investor, Warburg Pincus, LLC. This corporate restructuring is geared to supply cash for Citigroup to pay off federal loans.
Nonetheless, Primerica is standing strong. The Wall Street Journal cited 2009 profits at $495 million. Today the stock is trading at about $21/ share indicating favorable consumer perception.
Primerica Business Opportunity/Compensation:
Primerica is an independent sales force with over 100,000 representatives in the U.S., Canada and Spain. Start up cost is $199, reimbursed upon passing the first licensing exam. Commission on a term life insurance policy is 25%.
The network structure is a typical one. Commission rates vary depending on what step of the company ladder you rise to. Training and licensing can take time and vary per student. These credentials add credibility and can be considered real assets.
Agents are trained to tap their "warm market," friends, family and acquaintances. Reliance is heavy on personal referrals.
An agent must recruit other members to join the sales force, creating a downline. This can take time to accomplish, something to think about.
Training: Primerica coaching is well respected. Quality literature and presentations are its hallmarks.
There are 2 aspects of the training: the education to qualify for the various licenses and the education of recruiting. Primerica provides both but still focuses on 'old school' ways for recruiting.
Perhaps their next step will be implementation of an internet marketing program. Independent vendors have developed programs for Primerica. These may not be worthwhile without company endorsement.
The marketing world has exploded on the internet. Learning the tools to navigate the internet is a must!
Primerica Company Review : Thumbs up! Primerica offers a lucrative opportunity. Mastering internet marketing is key to making this opportunity real for newcomers.
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