Complaint Review: Primerica - San Diego California

I was called for an interview for a "Management Trainee" position. $199 later, I realized this was nothing more than a high pressure sales position. I wish I had been more prepared and informed about what I was getting involved in and I wish I had the following information that I'm sharing with you from http://pfswatch.20megsfree.com:

If you are in the process of being recruited by a Primerica "Personal Financial Analyst", here are some questions you should ask your recruiter, before you potentially waste your time and possibly endanger relationships with your friends and family.

Don't be afraid to ask these questions as part of your research before making a decision.

Ask them to answer these questions directly and to provide documentation to back up their claims.

Do not accept anecdotal answers. They have an obligation to give you straight answers, instead of answering your questions with another question (a commonly sales trick, known as "the porcupine").

Be sure to read everything you are presented with, especially the "IBA" or "Independent Business Application"! The "IBA" is a contract between you and the company. Like any business contract, you should always have a lawyer review it with you before you even consider signing it.

You may not get straight answers to these questions. You may even encounter hostility. Your recruiter may have been trained to answer questions with emotional anecdotal stories, or to evade difficult questions by changing the topic and asking you a different question. Be prepared!

"OPPORTUNITY" RELATED QUESTIONS:

Please show me your tax returns for each and every year you have been in PFS.

Some people think this is an unfair question.

If you are approached by someone who is soliciting you to join them in business, would you jump in without knowing exactly who they are, what their reputation is, and how they are doing themselves?

Don't be shy - protect yourself by asking the tough questions! Many people talk a "big game", but can't deliver!

If their tax returns look impressive - ask the following

How many people do you over-ride (through all generations), and what is their individual average annual income from earned commissions, net of chargebacks?

Demand a real average - not an "on track" number. A common tactic is to say "my team is on track to make $xxx,xxx".

If you are "fortunate" enough to run into a high-income earner (usually identified by the gaudy gold ring), find out how the average rep in their office is doing. You'll probably find that there are a LOT of people making next to nothing, with one person over-riding them and making a decent income.

What percentage of your company's total sales force earn the NET "six-figure incomes" that you say are possible in the business?

Hint: If they say more than 0.5%, they're lying.

How long does it take the average person to earn a six-figure income in this business, or is it true, as presented in the opportunity meeting disclaimers, that "only the super-achievers" can earn this kind of money?

It is a well known tactic among companies that aggressively recruit into pyramid-like sales structures to promote the "possibilities" and ignore the facts.

One should temper their enthusiasm (which is easily tweaked by people who are skilled at manipulation) with some common sense, and ask whether or not they are really suited to the type of business being proposed.

They might say "the average person doesn't make it here". If that's the case, take a look around the room - do the people around you look "above average"? Probably not - so why are they there?

What percentage of your total reported sales force earns over $50,000 NET income per year, free of charge-backs? Is this calculated on a calendar-year basis or on a rolling 12-month basis?

A common deception is to promote one's "best month". Example: You run into a guy who says "I make $4000 a month" when in reality, he's averaging about $500 a month net of expenses and had one GREAT month (by his/her standards) where he/she made one big sale. Consistency is the hallmark of a solid business, not "smoke and mirrors" presentations.

If I'm interested in becoming a financial planning professional, and I wanted to take courses to become an accredited financial planner (CFP, PFP) with a professional designation, would Primerica pay for these courses? Would Primerica encourage me to enroll in programs like the CFP, CLU, ChFC etc?

Will Primerica pay for any of my office expenses?

If I told you today that I was interested and wanted to learn more about the business, would you take me on 10 of your own personally-booked appointments (booked with contacts that you have personally generated, without my assistance) to see if I like the business?

Many recruiters recruit to make sales in your "warm market" (ie: to your friends and family) under the guise of "training". If your recruiter is really interested in teaching you, they won't use up your leads and exploit your personal relationships to make sales.

Would you do this without any obligation for me to provide you with a list of people I know?

Another common tactic is to tell an interested prospect that to get started, they have to be "coachable" and provide a list of everyone they know. Don't fall for this. (See "warm market" above...)

Would you do this without me paying $199 for an IBA, and without me providing you a list of my friends and relatives, also known as a "warm-market list"?

If I decide to join, will you train me by bringing me on your own personally-generated appointments, so that I can use my "warm market list" for myself when I am licensed?

Please show me your day-planner for the past 6 months and please show me your gross sales figures for the same period, including chargebacks.

If someone is offering to train you, doesn't it make sense to know whether or not they are successful themselves before they use you as a guinea pig?

Please show me your business-related expenses over the same period (ie: car, gas, food, etc), so that I can have a reasonable idea of what I can expect to spend to generate income.

You will find it costs a LOT more than $199 to "be in business".

How many Primerica agents quit each year, and how is this expressed as a percentage of the sales force?

Have them explain how each year can be a "record recruiting year", yet the absolute numbers of their sales force remain relatively static.

How does this compare to the industry at large?

Take the time to research this yourself. Life Insurance sales is a difficult business...you may find however that some companies have much better agent retention rates than others.

How can I become a Regional Vice-President without recruiting people to go and recruit more people?

Why should I show up to the same Amway-style "opportunity meeting" week after week?

HINT: It is taught that people are easier to control in a group setting.

Is this Multi-Level Marketing?

If they say it is NOT multi-level marketing, or use the famous "Do you like Multi-Level Marketing" script, they may be breaking Federal/State/and Provincial laws.

PS: "Network Marketing" is just another way of saying "Multi-Level Marketing".

One of your leaders has been quoted as saying that "The Secret of PFS is to keep 'em coming and going." Is it true that this business is often described by your leaders as "a numbers game"? Am I one of these numbers?

Isn't recruiting the real focus of your company?

If I become successful using your system, but decide that I would like to become truly independent and be able to offer my clients products from a variety of companies, will I be able to take my clients with me when I leave?

Are clients I develop "my clients" or are they owned by the company or my RVP?

Will Primerica pay me ongoing residual commissions for term life policies that I sell? When will these commissions be "vested" - ie: when will I earn them without having to pay them back if I ever leave the company? Or is it true that Primerica does not pay residuals?

Isn't it true that reps are taught that "People buy on emotion and justify with logic?". It seems that a lot of effort is expended on getting people emotional. Emotion aside, where is the logic?

Read the link titled "What's Wrong With Multi-Level Marketing" to see the "logic".

A common tactic of all MLM practicioners is to insult those who question them by calling them "losers" and "crybabies".

Ask yourself - why would someone get defensive about you asking the questions on these pages?

CONSUMER/PRODUCT RELATED QUESTIONS:

Why does Citibank offer VISA cards to customers who just consolidated their debt through Primerica with a $MART LOAN to get OUT of debt? Doesn't this seem hypocritical to you?

Many agents talk about the "mission" - to make people "financially independent". How credit cards help with that is beyond my comprehension.

If Cash-Surrender/Cash-Value/Whole-Life insurance is as bad as you say it is, why does Primerica indirectly make millions of dollars of profit from its sale each year, through their wholly-owned subsidiary, National Benefit Life, as reported in Best's Review?

PFS agents in New York state are licensed through National Benefit Life.

What percentage of your sales force are professional financial planners, ie: CFPs?

Why are there so few? Is there no value in becoming a certified professional?

According to your company website, (www.primerica.com), under "important disclosures" the FNA is "not a financial plan" and PFS reps are "not financial planners".

Do you let prospective customers know that you are not financial planners and that they should seek the advice of a professional planner if they wish to obtain a financial plan?

If "Buy Term and Invest the Difference" makes sense for most people, wouldn't people benefit most by buying the CHEAPEST term available from a top-rated company, and investing the difference?

Prepare yourself for the "price is only an issue in the absence of value" argument that your recruiter has probably been taught by his/her RVP. What value is there in an overpriced and non-convertible term life insurance product being sold by a captive agent who is unable to offer you a competitive choice, and who only has the most basic requirements to sell you that product?

What happens if the investments I'm making (while I'm "investing the difference") don't perform as well as I expect?

What happens if I decide when I'm older that I want to keep my life insurance to provide an estate for my children or grandchildren? Isn't it true that Primerica insurance policies become ridiculously expensive on an annual basis beyond the age of 70?

What can I convert my Primerica term life insurance policy to without a medical if I decide I want to keep my insurance after the initial term but won't be able to qualify medically for a new policy at current rates?

Many companies offer term insurance that is convertible to a permanent plan without having to undergo a medical. In the case of converting to a permanent term to 100 policy, one can enjoy protection until the day they die, and not get into the whole "cash value" debate.

Why would I re-finance my debt with you at a higher interest rate when I could go to an independent mortgage broker and get a lower rate and similar prepayment options?

Are you qualified to discuss and provide a written financial plan detailing advanced estate planning and taxation issues?

Is it true that "Personal Financial Analyst" is just a proprietary term developed by your company, and is not a professional designation?

I've heard many of your agents suggest that banks and insurance companies have been ripping off consumers for years. How do you explain the fact that your sister companies include a company that finances consumer debt at interest rates as high as 28.8 per cent (Citifinancial/ex-Associates) , a whole-life/cash value insurance company (Travelers and NBL), and one of the worlds largest banks (Citibank) who make BILLIONS from consumer debt each year?

Are you willing to put all of your answers in writing, and subject them to the scrutiny of Federal/State/Provincial regulators?

A. S.

San Diego, California

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