Wednesday, July 1, 2009

Misconception about Primerica

There are a lot of Primerica haters out there. Either they hate the products or they hate the business model(recruiting techniques/initial payment). This post will highlight the services part of the business.(The business model will come in part 2 soon)

The Products/Services

Does Primerica promote the right concepts. Yes. Buy Term and Invest the Difference is a must for 100% of the time. You must have a stable retirement fund via 401k, IRA's, Investments if you want to have a comfortable retirement. You should go after the higher rate of return instead of the low rate of return that banks offer if you want to build your wealth. Consolidating your debt is a better choice than not. ARM loans and Interest Only are the worst decision a home buyer can make. They tell you not to have an aggressive portfolio to reduce the risk.

But Does Primerica sell the best products in the that market? No. They do not have the cheapest term insurance. They do not have the least-loaded mutual funds. Their Smart Loan isn't the best alternative. And that is mainly why people hate Primerica's services. Because they are not the best. Primerica does not say they have the cheapest alternative for the client. Primerica just tells the client "if we can provide something that is better than what you are currently doing will you be interested?". They never say "if we can provide you with the cheapest and best there is, are you interested?".

People tend to forget Primerica is a MARKETING company. Plain and simple. They have to MARKET the products and services of the companies they contract with(Van Kaampen, Legg Mason, Primerica Life Ins). That DOES NOT MEAN they market the best and cheapest products for their clients. They just have to market the products that their contracted to market, like any marketing firm does, and market them like they are the best so people will buy them and the company and its contracted clients will survive.

However, it is Primerica's mission not to promote the services that are bad alternatives for consumers, such as Cash Value Insurance, ARM loans, and Interest Only Loans. Primerica does not even sell these and never will.

So if you are hating on Primerica because they market their products as the best then you have to really look at everything around you and start complaining and get on the wambulance (, if you have no idea what I mean)

For example, Nike portrays their running shoes as the best. Are the the best? Obviously not. If you actually bought a pair of them, you'll know. They break pretty easily and do not provide the comfort needed to run. But they charge $100+ for these shoes. Sneakers cost maybe $5 to make. Furthermore, other alternatives have better running shoes for cheaper. So why does Nike portray them as the best? Obviously so people will buy their shoes. If they started telling people they are not the best, their shoes won't sell. So Nike is lying to you! Go complain Nike is a scam if you think Primerica is a scam.

You must hate on your car. Your car is probably does not have the best value/performance + comfort + reliabilty. You must hate on your cell phone company because it is not the best value for what you get. You must hate on your sunglasses and your shirts and your socks ETC. ETC. ETC.

You only got these products because one someone referred you to it, you saw a commercial and got convinced, or you haven't tried anything else to know the difference.
Getting back to my point. Primerica is only doing what Primerica should be doing, which is marketing their products like they are the best. That's what any good marketing company / campaign should do if they want their clients and themselves to stay in business and be happy.

You think the company that does ads for Nike put in their Nike commercials that Nike isn't the best running shoe. No. Because they need to get paid and do what their contract tells them to do, which is promote Nike is the Best.

To summarize the point of this post, Primerica is a marketing company that markets the services that they are contracted to. It would be awesome if they did have the best and cheapest services, but who does? The answer is no one.

Using Primerica For Yourself

Everyone has something to say about Primerica. There are supporters, there are haters, and there are the people who just don't care but give their two cents in anyway. Whatever the case, it isn't about what Primerica is about or whether it is good or bad, it is about how can you use Primerica to your advantage (I'm not talking about making trillions of dollars from Primerica if thats what you think this blog is about). It's about looking at the bigger picture.

People's biggest mistake is not taking advantage of what is right in front of them. They don't take advantage of what is outside the box because they are so focused on what is inside the box. What I mean by that is Primerica supporters are looking at it as changing their lives and others by selling financial services, building their primerics business, and not having to do the 9-5. Primerica haters are looking at it as a scam, a pyramid, a financial services company that doesn't do the best for their clients. If both sides just looked at the bigger picture, we'd all be friends.

Ill just get straight to the point. Here's the secret that most people don't take advantage of in these scenarios because they do not think outside the box:

Networking. yes, that simple. IN ORDER TO SUCCEED IN LIFE OR GET WHERE TO WANT TO GO, YOU MUST NETWORK WITH AS MANY PEOPLE AS YOU CAN. In order to get into a particular company, you must meet with someone in that company. To move up in the corporate ladder you have to network and rub shoulders with the big boys or else they won't even know who you are. Ever hear the phrase, "everone is connected by 6 degrees of separation". Well, Primerica has 100,000+ licensed reps, thats not even including the thousands that are apart of Primerica but are not licensed. Also, you have clients that you also interact with apart of that "network". You are in contact with a huge network with so many backgrounds and so many different careers its ridiculous, where one connection can always lead you to another. If you don't meet someone that will get you ahead, you must be a mime or a mute. Everyone in Primerica is very positive and will always welcome you as a friend immediately from the day they meet you. It is your job now to befriend them as well and find out how this person can help you get where you want to be.

I'll give you examples:
My friend is a DJ and he is trying to break into the party planning business. He joins for just only $100 and $25 a month(optional). Now he is in contact with so many people that usually have family shindigs, both primerica reps and clients, that he can book a gig everyweekend charging $500-$1000 a gig, depending on the occassion. so tell me who won here? Primerica taking his $25, or him making $2000 from the people he met from Primerica?

I will now give you my example. I am in the process of getting my advertising and media company off the ground and I have met many people in Primerica that either ended up doing projects for me, became clients, or became investors in creating advertising campaigns for them. I have even used the people I recruited into Primerica as a foundation base for my own company. The great thing is that I know how they work and how hard they work because I seen them work in Primerica. If I were to interview a whole bunch of people I did not know to run an ad campaign, I would probably have a whole bunch of slackers on my hands (Why? because most people just bs and lie about themselves during interviews. Im guilty of it and I know your guilty of it).

Another example would be trying to find a job in your field. I assure you will find someone that will introduce you to someone that can get you into the doors of a place you want to work. If you are a nurse, you might meet someone that also works in a hospital that can get you in. or if you are an accountant, you might meet someone that knows a recruiter from the Big 4. Connections get you places. That's why linked in, facebook, fraternities, sororities etc are so important and popular.

So don't think of Primerica as Primerica. Think of Primerica as a huge network that can get you ahead. If you just use them, you won't be so bitter that they are using you. If you say you don't have to join Primerica to get a network, then I want you to tell me how else you can find a network this big that immediately becomes your warm market, aka friends, for your other plans in life, whatever that is. Even if you only stay a year, I bet you meet enough people for you to be on your way to whatever it is you are trying to do in your life, whether it is starting a company, like me and my friend, or just getting a job in your field.