|
 Post in Forums
Create a Profile
Upload Pictures
|
Keep a Journal
Meet Friends
It's FREE!
|
|
Sign Up!
|
Forum Index > Business & Finance > Starting a Business
|
alljive
Ogler
20627 points
32/NA/trondheim, Norway
Join Date: Jan 2006 | hey, scroll down for the short version.
This is from a website called ripoffreport:
ESSAY QUESTION
Give your opinion on the following statement(s);applying your informed financial analysis:
Economic Analysis:
The efficient market hypothesis suggests (and I paraphrase) that prices and/or returns in a particular market (more commonly the financial market) already reflect all known information and therefore display the collective benefits of all current investors and future prospects. This means (literally) that it is impossible to outperform a market by using information the market already knows, except through luck and/or inside trading information;whether you enter the market now or in the future.
[Source: the writings of Eugene Fama, "The Foundations of Finance" and "The Theory of Finance". Eugene Fama was a 2003 candidate for the Nobel Peace Prize in Finance/Economics]
Result:
Using this hypothesis, this would suggest that Primerica will always have 5% of the reps in their company making over $50-100K and the remainder making significantly less. Acknowledging insider trading is illegal, this would further suggest that the only way to excel to the top 5%, you have to be lucky or do something illegal and/or unethical.
Question:
Applying this well-known economic hypothesis to Primerica's system, how does a Primerica representative (current and future) outperform current members of the financial industry, as well as, seasoned members of Primerica using the same or similar information?
Argumentative analysis:
It has been proven that Primerica has a ;boilerplate' system, IT WILL NEVER CHANGE. Therefore, current and future reps are [and will be] exposed to the same system (information) meaning the returns in this specific market (system) are already exhausted. This guarantees the company will always consist of, for lack of better words, 5% winners and 95% losers (based on the current number of people making at or in excess of $50-100K/year divided by the total amount of representatives).
The efficient markets theory (in relationship to the hypothesis) further suggests market factors will naturally adjust to cause the system to remain consistent. In an effort to circumvent Primerica's system, one would have to operate illegally and unethically.
You can also apply this theory to the financial products Primerica is selling and claiming greater returns. An analysis of Primerica's financial products as it relates to the efficient markets hypothesis (and theory) will be completed once a Primerica representative submits their answers to the test.
BONUS QUESTION
Can you break down the promotion process, in detail? Be sure to explain how a representative can receive two 48% raises in their first 60-90 days using the ;accelerated management program'. Does this raise consist of your ;up-line' receiving a lower commission in addition to your recruits, or does this suggest that the raise comes solely from your recruits which means they (your recruits) are making only 4%?
Short version:
it seems, from rudimentary searches on the web, that there are a lof of people calling primerica a pyramid scam.
From what little I've read so far I can suggest only one sane thing:
Don't give them any money.
They are unlikely to give YOU any.
I'm the seventh chesspiece.I'm the secret member of every organisation,even those that do not exist. |  | | Edited: April 15, 2006 @ 01:46 |  |
|
|
alljive
Ogler
20627 points
32/NA/trondheim, Norway
Join Date: Jan 2006 | Well, according to primerica themselves they basically sell financial plans to the middle market. Meaning you and me. Way for "normal people" to manage their economy more efficiently.
Warning, the following will include math and some long words.
It would be VERY interesting reading for anyone considering a career with this company.
On www.primericabusinessopportunity.com , it asks the question, "Is this "Opportunity" for real?" The answer to that (copied straight from the website) is:
Absolutely!
In 2004 alone, Primerica paid $573 million in commissions to its part-time and full-time sales force."
Let's look at this realistically!
Average Salary:
Primerica paid only $573 million dollars in commissions. If you take the average, not adjusting for differences in salary, Primerica employees make an average $5,730 per year (found by dividing $573M by the number of reps).
Actual Salary:
Dave Derbin gave me a pamphlet of the break down in commissions for Primerica. This was how it was presented:
Total number of Primerica employees is 100,000.
At least 5,000 employees made over $50-100K in 2004.
4,171 (actual number) of 5,000 made around $50-100K (average it to 75K)
40 of 5,000 made at least $1,000,000
The rest between $150K-1M (we won't even need to use these people in this equation)
The Shocking Computation:
Take 4,171 x $75,000 = $312,825,000 in commissions paid
Take 40 x $1,000,000 = $40,000,000 in commissions paid
Total commissions paid = $352,825,000 in commissions paid to only 4,211 of the representatives currently employed with Primerica.
That leaves $220,175,000 in commissions to be paid out to 95,789 representatives of Primerica.
Divide the $220,175,000 by the number of reps left (95,789) and they made an astonishing $2,298.54 per year.
*Please note: If I account for the number of reps that make between $150K-1M that would lower that number significantly, actually making it a negative number. That means either Primerica is lying about how many people are making this kind of money, or they are lying about how much commissions they paid out. I chose both!
(btw: this was also from the same site.)
I'm the seventh chesspiece.I'm the secret member of every organisation,even those that do not exist. | | | | Edited: April 15, 2006 @ 02:01 | |
|
|
Lili
Monk
35477 points
26/F/Sunshine Land, California
Join Date: Apr 2005 | Well, First of all, Primerica is not an "internet company". They are the largest of several divisions of Citigroup, I'm sure most of you have heard of Citigroup, right? Would a company as huge and mainstream as Citigroup go out of it's way to purchase and suppport a Pyramid scheme? Hardly. Second of all, a pyrimid scheme is one in which the company's main source of income is from recruitment fees, and not from any actual products, or if they do have products, those products are vastly overpriced. On the contrary, Primerica's financial products and services (which are actually Citigroups financial services) serve to help people pay less in monthly payments, and get them out of debt faster, and having to pay much less interest in the long run than they were before, as well as help them save for retirement, which right now is a major problem due to social security dying out like it is. One of their services is a completely FREE financial needs analysis, which you'll find costs you a minimum of several hundred dollars at any other finacial institution. The only costs associated with working for Primerica have to do with paying for the state licensing that is necessary in order to sell financial products, and the company actually pays most of those fees for you, meaning they LOSE money on new reps, not make any. So nix the pyrimid scheme idea.
As for the pay thing, most people start working for Primerica part-time, meanting they keep their full time jobs, and do Primerica appointments in their spare time. Some people find it isn't something they want to do full time, and so they stop doing it. If a person actually puts any real time into it, they will get paid conciderably more, it's up to you and how much time you want to put into it. So that doesn't surprise me. All of the people I know who are doing it as their job are making several thousand dollars a month. Those who don't put any time or effort into it will not make any money, pretty simple.
Anyways, it seems I got my answer, only unfortunately, the reputation seems to be based on quite a bit of misinformation, which is too bad.
 | | | | Edited: April 16, 2006 @ 05:02 | |
|
|
cinnamin
Über Master Debater
9878 points
26/F/houston, Texas
Join Date: Nov 2005 | lili said:
Well, First of all, Primerica is not an "internet company". They are the largest of several divisions of Citigroup, I'm sure most of you have heard of Citigroup, right? Would a company as huge and mainstream as Citigroup go out of it's way to purchase and suppport a Pyramid scheme? Hardly. Second of all, a pyrimid scheme is one in which the company's main source of income is from recruitment fees, and not from any actual products, or if they do have products, those products are vastly overpriced. On the contrary, Primerica's financial products and services (which are actually Citigroups financial services) serve to help people pay less in monthly payments, and get them out of debt faster, and having to pay much less interest in the long run than they were before, as well as help them save for retirement, which right now is a major problem due to social security dying out like it is. One of their services is a completely FREE financial needs analysis, which you'll find costs you a minimum of several hundred dollars at any other finacial institution. The only costs associated with working for Primerica have to do with paying for the state licensing that is necessary in order to sell financial products, and the company actually pays most of those fees for you, meaning they LOSE money on new reps, not make any. So nix the pyrimid scheme idea.
As for the pay thing, most people start working for Primerica part-time, meanting they keep their full time jobs, and do Primerica appointments in their spare time. Some people find it isn't something they want to do full time, and so they stop doing it. If a person actually puts any real time into it, they will get paid conciderably more, it's up to you and how much time you want to put into it. So that doesn't surprise me. All of the people I know who are doing it as their job are making several thousand dollars a month. Those who don't put any time or effort into it will not make any money, pretty simple.
Anyways, it seems I got my answer, only unfortunately, the reputation seems to be based on quite a bit of misinformation, which is too bad.
I have a friend who works there, and they give little parties trying to recrute people so they can make money off them. You wil see, most people make squat. Citi group is a good company but primaerica is the inly independednt one they have. It is a pyramid scheme.
You can turn painful situations around through laughter. If you can find humor in anything, even poverty, you can survive it.
Bill Cosby | | | |
Top
|
Apr 15, 2006 @ 01:23:42
Unfortunately, that does not in any way tell the reader what it actually IS. Is it a business that promises you they can help you start your own business? Or is it like that typing thing that promises if you pay them money they will teach you to type and then pay you to type stuff on the internet?
