Welcome to my article on the Primerica commission structure and pay plan breakdown.
I wanted to give you a breakdown of the compensation plan structure so that you can have a better idea of how to make money with Primerica.
The reason that I wanted to do this was that I’ve been in the industry for many years now, and I totally understand how confusing some of the compensation plans can be to understand including Primerica’s commission structure… or the compensation plan on what most people understand it to be named.
I also wanted to take the time to briefly cover the Primerica company and go over what products they have as well to make this a little bit more of a complete overview.
I know some of you are very excited to get started, and some of you might already have joined Primerica and just want to learn a bit more on how to make money with Primerica, and that is my entire reason for creating this article.
So I hope I can help some people, and for those that some parts of the commission structure were not clear to understand, hopefully with my explanation, it can clear some things up for you.
So let get started.
What Is Primerica
Primerica is an MLM company.
An MLM company can be a company that is geared and grown toward the sales of their product through its distributors.
The main concept of an MLM company is for the distributors to do all the advertising for the company to make sales.
Almost no MLM company that I know of does the majority of their sales through media advertising the traditional way with BeachBody being the exception.
The main and traditional way to do this type of marketing for the company is through word of mouth.
A new way of marketing would be through the Internet with Internet marketing and Network Marketing combination.
This type of marketing has been a total game changer for me in my business over the years.
I have included resources at the end of this article if you would like to learn more about how to earn money through Internet Marketing that would interest you.
The Primerica Opportunity Video
Primerica Company Quick Overview
Primerica, Inc. is an insurance and financial services company.
Primerica was spun off from its former parent company Citi through an initial public offering on April 1, 2010.
It is a financial services marketing organization in North America with approximately 120,000 independent representatives, including 22,000 Financial Industry Regulatory Authority (FINRA) Series 6 licensed through Primerica’s securities broker-dealer affiliate PFS Investments, Inc. in the United States, and through PFSL Investments Canada Ltd. in Canada.
The company focuses on the sale of term life insurance, as well as providing other financial products and services including mutual funds, annuities, segregated funds, managed accounts, long-term care insurance, pre-paid legal services, auto insurance, home insurance, credit monitoring and debt management plans.
The company has more than 4.3 million life insurance clients and over 2 million client investment accounts.
Quick Look Into The Primerica Products
Here is a quick run-down of the products of what Primerica has:
- Term Life Insurance
- Debt Consolidation Loans
- Primerica DebtWatchers
- Mutual Fund Investments in both US and Canada
- Auto & Homeowners Insurance
- Variable Annuities
- Segregated Funds
- Long-Term Care Insurance
- Pre-Paid Legal Services
Primerica Compensation Plan
So we all understand that Primerica is an MLM company, and all MLM companies have certain types of commission structures.
The Primerica commission structured in a unilevel type of pay plan.
What this means is that all of your customers and referrals will be on your first level.
Now with that out of the way, let’s get into how they pay you.
The way that Primerica is set up to earn the bigger commissions, and is expected with the fact that you will be selling insurance, you will need to be licensed in order to become part of the bigger payouts of the commissions that you can receive.
Although you can still make commissions with Primerica, you will be severely limited to what percentage level that you can make, and also limited to the services you can actually sell.
So after you get licensed to sell insurance, you are still starting at the first level which is the Representative level of the Primerica commission structure.
With the life insurance service is concerned that can be sold with Primerica, the middle of the road premium plans are at the $1000 level.
At the Representative level that you start out at, your commission is limited to 25% of that $1000. So at the Representative level, you will earn $250 per sale.
When you are dealing with the debt elimination loans, which is called the SMART loan within Primerica’s service list, the average of the size of the loan varies, and it also various through states as well.
For example, you offer the SMART debt consolidation service and sell a mortgage and some credit card debts and get approval for a total loan amount of $200,000.
At the Representative level, your commission for your level is capped at 0.312%.
So if you do the math you will get paid $624.00.
Also, the same rate is also in place, at the Representative level the commission rate is also the same.
When you sell a Mutual Fund investment, the commissions are a bit tricky to figure out, and the investments don’t pay out that much up front.
The part of the commission structure that Primerica offers you is small, but the thing is, you will get paid off your customers investment forever.
With that said, let’s say you helped someone to invest $10,000.
The dealer would get paid 4.5%, out of the 4.5% that the dealer gets paid, you will earn 30% of that which if you do the math comes out to $135.
But the thing is that most people don’t have that much to invest, and the minimum that someone can invest is $25, so with the dealer percentage taken into account and the %30 percentage that you would make from the dealer payout, you will make .38 per month.
Primerica doesn’t pay out until you reach $25 then they will cut you a check, so it will take a few months before Primerica cuts you that check.
So being at the Representative level will pay out commissions, you really want to strive to get to the higher levels.
The level that you will want to get to is District Leader as fast as you can.
District Leaders get paid a higher percentage per sale.
For example, for life insurance you get paid 50%, loans will pay you 0.442% on loans, and 35% of that 35% that the dealer gets.
At the District Leader position, you will also get to override your teammates.
An override is basically the difference between your sales level and his/her sales level.
So this happens when you are at District Leader level, and your teammate is at the Representative level.
When they make a sale you get paid also.
So let’s say your teammate that is at the Representative level make a sale for $250, you will also make $250.
This of course only happens when your teammate is at the Representative level and you’re at the District Leader position.
If both of you are District Leaders, then this override will not apply, and they will get the full $500.
So that was a Commission plan breakdown with the information that I was able to find from their website and also from consulting Reps from the Primerica company.
Primerica Commission Breakdown
So the best way to build this type of commission plan is to continue to recruit new members and teach them how to recruit new members and how to train their new members to maximize your earnings and the pay plan.
All of your members will be on your first level, and there will be no benefit from spillover with this type of pay structure either.
This type of pay structure has been tested to be a great pay plan, but for those that can recruit and get customers.
The more you sponsor, you the more your team can duplicate your efforts, you can qualify for higher levels in the compensation plan which equals in higher percentage payouts that you can see in the charts section below.
When you get to certain income earnings from Primerica, they will even award you with special achievement rings which are also nice.
One more factor is that you will need to be licensed to sell some of the services that Primerica offers and it will also be done to move up in rank as well.
Video Of How To Get Started In Primerica
I know it was a rough video but she really explained it well on how the new person would get started as a Primerica rep so that you can position yourself to start earning money before you get licensed.
I would highly recommend getting your licenses as soon as you can, because if you start getting customers, you are leaving a lot of money on the table as a non-licensed rep.
Primerica Commission Structure Charts
In this section, I’ve included some charts for a visual representation of the Primerica’s commission structure to help understand it better.
Primerica Pay Structure Chart
- Your Personal Referrals = Blue
- 2nd, 3rd generation and Beyond Team Members = Dark Green
As you can see in my Primerica commission plan breakdown, this commission structure is styles in a unlilevel type of MLM pay plan.
As you can see in this chart, the higher you are in rank the company will grant you a higher commission percentage per sale made.
Primerica Pay Structure Recap
In this section, I am going to recap on everything that has been discussed.
So first of all, Primerica is a solid MLM company that you can make an excellent part-time or full-time income with.
Primerica has a unilevel styled pay plan.
The Primerica products consist of several service type products that you can find in any typical Insurance company like MetLife, Farmers, and Liberty Mutual which includes services like term life, auto, and home insurance. Although legal services are not really typical of the other mainstream companies.
The company is solid and is also included in the better business bureau.
The compensation plan is straightforward but has its requirements that must be met in order to make more money with how Primerica’s commission structure is laid out and is just like any other MLM pay plan. The commission structure is also very strong, solid, and can pay very well.
And finally, I have included charts and images that help with visually understanding certain aspects of the compensation plan.
The Cost To Join Primerica
And finally, if you feel like this would be the perfect opportunity for you to join, then like any other MLM opportunity, there is always some type of ongoing subscription cost.
The cost to join Primerica is $99, plus $25 on an ongoing subscription fee for the online support system.
Canada has a slight extra cost to join which is $103.95, and for the ongoing monthly subscription fee, that would be $28 per month for the online support system.
For those asking about the what is the online support system and what do you get?
Simply put, it’s an online website that is password protected that you get access to when you subscribe to it.
It includes marketing material, video clips from all the company broadcasts with other related company news, that will also include training from the top leaders and some other information that pertains to help you earn more with Primerica.
**Important Note: With Primerica, you have to really take care of how you advertise this business online. They have VERY STRICT guidelines on what you can and what you can’t do online as far as advertising directly for their company.
So take care, when you want to advertise online for this company, because they will terminate you if you don’t follow their rules.
With that said, many MLM companies that are in the spotlight usually has these type of guidelines in place and many newer companies don’t care so much in their first year or 2 just to get things going as far as sales, but I will guarantee you that those restrictions will be enforced shortly after they see that their company will be growing into next level status as far as sales is concerned.
This is why I don’t really join these types of companies anymore.
I love my multiple income streams, it’s just a better business model for long-term more stable success in my opinion.
Conclusion on the Primerica Pay Plan
To be honest, statistics show that unless you have an existing list of builders, you will have to recruit over 100 people to find just 2 builders that will help duplicate your efforts.
And with any old-school tactic, you will eventually run out of people to talk to that is on your list.
So many people think that they will use the Internet to help find more people to introduce them to your opportunity.
But with Primerica and other big companies, you will not be able to do this effectively due to their strict rules against advertising online.
So for this to work you must lead with a front-end offer.
You can find a great recommended front end offer below.
Working the opportunity side of Primerica is only 1 way to earn money online or from home.
With what opportunities that are available, there are many other ways to make money from home that you have at your disposal.
With that said, Primerica could work out to be the perfect fit for you.
I know plenty of times where a person with no experience went into a company not knowing what to do besides the basics, followed some sound advice and then got to work where it paid out big time for them.
Now, success didn’t just fall into their lap, we all had to put a lot of time and effort into the business.
But when you keep going and keep motivated and inspired at what is possible then there is no reason for you not to succeed with the Primerica compensation plan.
I personally started out in Network Marketing and have built huge teams in several companies through the power of Internet Marketing and if you were to ask me where you should start, or what would be a good opportunity to have the most success with I would suggest choosing a company that has a product that is going to generate interest and sales for several years in the future, something that people need now, and what people need many years from now that people would buy and has really great income potential.
That is why before getting started with anything, you should really check out my #1 recommended resource below.
And if you decide to join the Primerica company and become happy with it, great, I really hope you do great, but if you decide that you want to learn how to get more people to see your opportunity, to earn more money of course, then you will really want to check out my resource below..
What I am sharing below is also NOT in competition with any MLM company, and provides all the tools and training for you to start generating traffic, leads and sales for Primerica, PLUS an additional income stream which is always a smart business decision.
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Also, I hoped this article helped you out in understanding the commission structure better.