Is Primerica a Pyramid Scheme? What You Should Know

If you are looking to go out on your own and take advantage of the business opportunity that Primerica offers, there are some things that you should definitely know before you decide whether or not to dive into this business.

One of the many questions surrounding Primerica’s business model is whether or not it is a pyramid scheme. This is something that I will be addressing in this review along with a couple other important aspects of this business. The goal here is to help readers like you become more aware of what you might potentially get yourself into, good or bad.

primerica pyramid schemePrimerica Business Opportunity Review

  • Company: Primerica
  • Website:
  • Cost: $25/month + $99 licensing fee
  • Recommended?: More on this at the end

Just to be clear here, I am reviewing the business opportunity that Primerica offers and not their products.


Primerica has been around since 1977. The fact that they have been around this long makes them seem pretty legit.

They do business in the realm of financial planning services. Some of their core products include term life insurance, auto and home insurance, and legal protection.

Besides the products that they offer, they also have a business opportunity (which is the reason you are reading this). Their business model has a MLM structure, which means that members go out and recruit new members and can make money off of their efforts.

They are similar to AmeriPlan, which is also a mlm insurance company pretty much.

The Cost Of Business

The cost to start your own Primerica business and become an independent rep is $25/month plus a one time licensing fee of $99.

That really isn’t too bad when it comes to MLM’s. A lot of the time they will require you to make a massive startup purchase of their products that you will then have to sell.

Since Primerica is in the business of selling insurances and legal help, there are no tangible products to buy. The downside to this is that since the insurance sector is regulated, you will have to get licensed according to laws where you live.

The Compensation Plan

Getting paid is the whole point of this right? For most people it is.

With Primerica there are 2 ways to make money. You can make commissions from the products that you sell to consumers, or you can make money from the products that people beneath you sell to consumers.

Since Primerica has a mlm structure, this means that you can make money off of the people that you recruit in beneath you on your “team”.

Their structure goes 11 levels deep. That’s a heck of a lot. The image to the right has 3 levels to it. Imagine 11.

This means that you can get paid from your recruits’ recruits’ recruits’ recruits’ recruits’ recruits’ recruits’ recruits’ recruits’ recruits’ recruits (confusing I know). The money from way down beneath you will trickle up and into your commissions.

You earn a 10% override from the people that you recruit, and with each level beneath you that percentage decreases, yet with each level there are typically more people, so it can still be a lot of money total.

Your Rank Has A Lot To Do With How Much You Can Make

There are 6 ranks within Primerica, as you can see to the right. Every one will start out as a Representative when they begin.

When you start out you will make just 25% commissions on the products you sell to customers. But there is the potential to make up to 90% if you move up to the top.

Is This a Pyramid Scheme?

So is Primerica a Pyramid Scheme???

The difference between a legitimate MLM and an illegal pyramid scheme can be blurry at times.

A pyramid scheme in its purest form will not have any products. Its entire revenue will solely rely on people buying into the scheme. And this buy-in money will then be distributed to those that are ranked higher up on the pyramid.

However, just because a business has products does not mean that it isn’t a pyramid scheme. In fact, most pyramid schemes do sell products to try to disguise themselves as legitimate mlm’s.

What you have to look at with Primerica is how much their revenue relies on product sales to the general public vs membership buy in fees.

I think it is pretty clear that Primerica is not a pyramid scheme. Its members may be pushed to go out and recruit, yet they are not recruiting for commissions from membership fees, they are recruiting so that they can get money from the products that their recruits sell to the public.

Product sales to the general public are the main focus when it comes to the revenue that Primerica brings in, and for this reason I say they are legitimate.

Just Because They Are Legit Doesn’t Mean This Is a Good Opportunity

What you need to know is that it is NOT as easy as it may seem to make good money with a mlm like this one.

The overwhelming majority of people who become representatives end up making very little money. This is pretty clear from their latest income disclosure that was made public on their website, which showed that in 2014 the average income for a rep was $6,030 (source: Primerica). And that is for the entire year.

That is really low, I mean REALLY low. Compare that to McDonald’s whose part-time employees average more per year.

The fact of the matter is that if you want to make good money with Primerica you are going to have to be a recruiting machine. You are going to have to be constantly recruiting new members in, because with a business like this there is going to be a high turnover rate.

You are only going to make good money with a large base beneath you on the mlm pyramid commission structure. Build up that base by recruiting like crazy and you can make a lot with this 11 tiered commission structure.

Final Thoughts, Do I Recommend Primerica?

I don’t particularly care for MLM’s because I am not a great salesperson. But all in all I do think that Primerica is a pretty good MLM and that is why it has lasted so long. The bottom line is that they do provide good services and they are legitimate.

But if I were you I wouldn’t be looking to get into the Primerica business. They have been around too long and the market is pretty saturated. If you want to make good money in MLM’s it is best to jump on board when they just start out.

Just know that for pretty much any MLM you are going to want to be a recruitment machine, an absolute animal when it comes to recruiting. The money is all in the recruitment.

If you are like me and are just not the salesperson type, or you want another option for making money with your own business, you should read my post on how I make a living working online (link below). I work for myself and its a pretty awesome career. In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.

–> How I Make a Living Online & How You Can Too

Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂

About the author


My name is Kyle and I am the owner of Earn Beast. I created this website to explore the various ways of earning and mainly focus on teaching others how they can make money online. To learn how I make a full-time income online, Click Here

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