Wednesday, July 25, 2007

15 Characteristics of an Ideal Business

This excerpt is taking from the book "ABC's of Making Money" by Dr. Denis Cauvier and Alan Lysaght. The authors said that there's only one company that has all 15 characteristics and that is Primerica Financial Services.

1. Sell to masses.
At Primerica, our market is infinite.

2. Fulfill a fundamental need for many people.
Primerica provides financial services. Everybody has a need for what they do. Kids need college funds, families need to get out of debt and save money, old adults need a way to preserve their savings as long as possible.

3. Be low risk.
Primerica agents don't have any risk. There is no quota and there is no time table. If agents want to take off from work, they can and nothing will happen to their business. Only thing they have to worry about is keeping their license active, which isn't a problem at all since agents know what to do to renew their licenses.

4. Provide the opportunity for ongoing passive income.
At Primerica, agents can make passive income 2 ways. First way is by recruiting and making overrides. Second way is getting a securities license and get paid on securities business forever.

5. Require a low staff component.
At Primerica, you don't need to hire any employees. You can run the entire business by yourself because there is already 2000+ employees at the home office to help you process your paperwork.

6. Have a stable, growing, long term demand.
Financial services is going to be in high demand for a very long time because many people are in a financial mess.

7. Have a low overhead cost.
At Primerica, there is no overhead cost since you don't need to buy any equipment. The only incurring cost you may have is traveling and communication service such as GoSolo.

8. Have a low startup cost.
At Primerica, it only cost $199 to startup.

9. Have a unique quality, making it difficult for competitors to copy.
While there is many other financial companies out there, they only do parts of what Primerica can do. Primerica does it all! They do financial planning, life insurance, mortgages, debt elimination, investments, retirement plans, college plans, prepaid legal, long term care, and auto and homeowner's insurance.

10. Have a positive cash flow and low inventory cost.
Even though it cost $199 to startup at Primerica, you can make all that money back by doing business with one client. As for inventory, your only inventory is purchasing brochures, which is optional and they cost as little as 5 cents each.

11. Have a high profit margin and rate of return.
You can make profits if you get to work. There over 50 people who makes 7 figures in a matter of 10-25+ years. There are over 1000 people making 6 figures as well.

12. Have minimal government regulation.
Primerica is a very regulated industry, but they have very little or any government agents interfering with daily business activities. Why? Its because Primerica agents follow the rules and laws.

13. Be portable.
At Primerica, you can move or open your business anywhere in your country.

14. Be fun, challenging, and satisfying for the business owner.
At Primerica, it is fun because you are hanging out with people who wants to be financially independent. It is challenging because you face skepticism and objections. It is satisfying when you realize that what you do helps people.

15. Provide an opportunity to uncover other money making multiple sources of income.
At Primerica, you can use your money to do other things. There are several people who use the money they make at Primerica to purchase real estate. One person bought a shopping mall, some condos, and other properties and make money from that.

Friday, July 13, 2007

Why Primerica is the best business opportunity

1) Low overhead cost. Only $99 needed to start this business.
2) No rent.
3) No equipment to buy other than a pen and a notepad.
4) No salary or wages to deal with. All paychecks are handled by the company.
5) No status quotas to meet.
6) Great way to earn some extra income.
7) No need to quit your full time job.
8) You create your own schedule.
9) No boss. Only coaches and mentors to help you build.
10) You are allowed to recruit people.
11) You can earn passive and residual income.
12) You can make overrides.
13) We have a huge market. No one is helping middle income families, which represents 95% of the American population.
14) Financial education.
15) Unlimited income potential
16) Tax benefits
17) Company trips
18) Equal opportunity.
19) Company support system.
20) You have ownership.

Wednesday, July 11, 2007

Some misconceptions about Primerica

Here are some of the misconceptions that some people say about Primerica. You have to know that most of the hatred that people have against Primerica are agents from other companies. Primerica teaches clients about keeping life insurance and savings separate. By keeping them separate, this lower the cost for life insurance and increases the rate of return on the savings. Other companies rather bundle life insurance and savings together. By bundling them together, the premiums are higher and the rate of return on the savings is very low. Who you think the client is going to side with? Primerica or these other companies? Primerica because the client sees more value by keeping life insurance and savings separate. So this is one of the main reasons you may see things on the internet or hear bad things because nobody likes having Primerica taking their clients away.

Here are some of things I read online. Keep in mind the internet is not regulated and anyone can post whatever they want. If you want the truth about Primerica, go to the company directly and get your answers from there.

1) Primerica is a scam. I've been in this company since August 2004. There is nothing about Primerica that makes it a scam. I have a state life insurance license and a state mortgage license. I have a federal securities license. If Primerica was a scam, the state and federal government would not issue these licenses. Primerica been in business since 1977. After 30 plus years, do you truly think Primerica is still a scam?

2) Its a pyramid. Frankly, I don't understand what a pyramid is. Most people who say its a pyramid can't even explain it themselves. What is a pyramid??? It is one of those Egyptian things? Its not a pyramid. Its a business opportunity. In a pyramid, you are usually stuck at one level and the chance of you moving to the top is very slim. At Primerica, its an upside-down pyramid. In the beginning, you make very little or no money. As you gain more experience and put more effort into it, your income is unlimited. You can make as much money as you want. At a job, isn't there a salary cap limit? You may be the best employee in your department, but you are still getting paid the same as the worst employee in your department. The only difference is you have a better chance of keeping your job while the worst employee may get fired. At Primerica, the more experience you have, the more money you can make. If you work really hard and build a large team, you can earn more money than your upline. The fact that you are able to make more money than the person who recruited you proves that Primerica is not a pyramid. At a job, are you able to a higher salary than your boss? Of course not. Because your salary is base on position, not on the person. At Primerica, your income is base on how hard your work.

3) Its a pyramid scheme. The only reason why someone would think that is because they saw the $199 and didn't understand it. They either think its a job opportunity and no one should be paying a fee to get a job OR the recruiter will earn commission on the $199. This is not a job opportunity, but a business opportunity. There is a difference between the two. A job is where you build someone's else business. A business opportunity is where you get to build your own business. The $199 that people see is the state licensing fee. While the actual cost of the state license is more than $199 (about $100-$300 more), Primerica pays the difference. If you want to build a business, you have to show your commitment that you are serious about building your business and Primerica will show its commitment to you by giving you the best support system they have. So no one in the company is making profits off the $199. The company is actually making a loss by paying most of the licensing fee for you.

4) Primerica products are expensive. If you were the client, you wouldn't be saying that. But an agent from another company will. I don't see how Primerica products are expensive. If they were expensive, how would anyone afford it? If you comparing life insurance, I think Primerica's term insurance is competitive to the rest of the industry. Is it the cheapest? I don't know. There are so many life insurance companies out there. But when you compare term insurance to cash value life insurance, term insurance is the cheapest. When comparing term insurance to term insurance, you have to compare the type of term insurance is it. Are they both the same level term? Or is one just an annual renewable term and the other is a level term? What happens at the end of the term? What features does the term policy has? What are the riders attached to it?

If you are comparing loans, there is no way that other companies can compete against Primerica. Primerica loans are customize debt solution loans that show clients on how to get out of debt sooner and for less money. If you take a few years off your debt, this would save you thousands of dollars on interest payment. You go ahead and try to find other companies that will do this for you. They rather keep you in debt for the full length of the loan rather than have you pay it off sooner.

5) Primerica's mutual funds suck. First of all, Primerica doesn't own any mutual funds. Primerica markets mutual funds for other companies such as Legg Mason Partners, Fidelity Advisor, Van Kampen, Pioneer, AIM, American Funds, Alliancebernstein, MFS, Oppenheimer, Putnam, and Franklin/Templeton. Majority of the mutual funds offered by these companies are rated 4-5 stars by Morningstar. Saying Primerica's mutual funds suck is really saying, "all these mutual fund companies suck." If you think so, then you shouldn't be investing at all. But I'll tell you this, all wealthy people invest their money. They don't keep lots of money in the bank account.

6) Primerica got sued. In the beginning, Primerica was called A.L. Williams. We were only able to sell 20 year term insurance. Since the company was replacing cash value life insurance policies, almost every single life insurance company were suing A.L. Williams. No one likes having their clients taken away by another company. These companies even made death threats to Art Williams. That's how bad it was in the beginning. In the 1990s, many life insurance companies got sued by the United States Government from deceiving and lying to consumers about cash value life insurance. Being sued by the government is worse than being sued by another company. Many life insurance companies haven't been able to recover from these fines, so they either closed or merged with other life insurance companies or another life insurance company bought them out. Other companies pay off the fines by selling shares to its current policy holders. If a company says it will give dividends, then you know that company was sued by the United States Government. As for Primerica, they were not affected by the ruling because we sell term insurance 100% of the time.

7) Primerica was fined by the SEC. There was just one incident where 4 agents in the same office were involved in a Ponzi Scheme from 1991-1994. They were selling unregistered securities (investments not offered by Primerica), which is completely prohibited by Primerica. Primerica has failed to supervise and resolve complaints against these agents, so the SEC fined the company in 1998. Since then, Primerica has made lots of improvements in supervision and constantly keeping agents informed about the rules and regulations.

To make sure all securities licensed representatives follow SEC laws and regulations, Primerica holds annual compliance meetings. If representative fails to attend the meeting, he/she would lose his license. Primerica even sends quarterly newsletters reminding agents some of the rules and regulations and puts updates and notices on website.

In the past 4 years, Primerica has the received the Dalbar Service Award for its top notch customer service in mutual funds. Dalbar, Inc. is a client service rating organization focused on raising the standards of customer satisfaction and quality in the financial services industry. Dalbar develops ratings for: Mutual funds, brokers/dealers, life insurance, and more. Would you rather do business with a company that has the best customer service or a company that puts you on hold or transfer you to some tech guy in India? Primerica's customer service are all located in the United States. The company has made its number one priority to resolve all issues and concerns as soon as possible. I even call them a few times and within a few minutes, all my concerns were resolved.

8) Primerica rips people off. I don't know how that is even possible. Would you rather pay $2000/year for a whole life insurance or just $1000/year with Primerica's 30 year term insurance? Would you rather be in debt for the next 30+ years or be in debt for just 20 years with Primerica's SMART loan? Would you rather pay 2% annual fees on your mutual fund or just 1% with most of mutual funds offered through Primerica? Would you rather go on with life without any financial plan or get a free financial need analysis at Primerica? Did you see anything here that can rip people off? I didn't and I've been doing this for many years. Its those other companies that actually rips people off. Primerica goes in and helps the client save money and build wealth. Other companies focuses on making profits. If they advertise, they spread the cost of it to its consumers. Primerica has not spent a single cent on advertisement, that's why the company is able to keep it costs to the minimum.

9) Majority of Primerica's agents don't know anything about finance. In the beginning, most of them don't. That's why there is a system in place to help train these agents. When a new agent goes out in the field to see a client, he/she always bring a field trainer. The field trainer does all the work, while the new agent watch and learn. Eventually, the new agent will become experienced enough to go see clients on his own and soon be qualified to become a field trainer. Most of the offices hold weekly training to help agents learn about the different types of financial products out there and learn how to build a business. At Primerica, you don't need a college degree. A college degree doesn't mean anything in real life. It just shows you are willing to work hard to earn more money. But if you are not experienced, most companies won't even hire you. When someone says Primerica agents are not educated or not fit to work in the financial industry, the truth is we actually know more than 95% of the population. We know everything about life insurance. We know everything about mortgages. We know everything about mutual funds. We know everything about how money works and how you can have money work for you rather against you. The average person doesn't know any of this stuff. Other agents from other companies can't even comprehend half the stuff what a Primerica agent can do.

In closing, people can say whatever they want about Primerica. Some people been saying bad things about the company for over 30 years. But you know what? None of these things affect Primerica. In fact, it made the company even stronger. Where does the competition stand? While all our other competitors have gone stagnant or losing their sales force, Primerica continues to grow its sales force and build a larger client base. Primerica is a strong financial company and is in position to dominate the financial industry. There is no other company that can match what Primerica can do. They are able to do parts of what we do, but they don't fully do everything for their client.

Tuesday, July 10, 2007

My first opportunity meeting at Primerica

It was August 2004 when I first saw the business opportunity at Primerica. It was a Saturday morning at 9AM. I got there at 8:30AM. Keep in mind, I had no clue what is going on. I just wanted a job to earn some money. I did not know that this was a business opportunity. All I know was that Primerica is a member of Citigroup and who wouldn't want to work for this gigantic company? I was 22 years old at the time and just graduated from college.

So the meeting started at 9AM. First speaker talked a little bit about Primerica. Primerica has over 100,000 representatives and been in business since 1977. They have over 6 million clients in USA, Puerto Rico, Canada, Spain, and UK. They are a member of Citigroup. Citigroup is listed on the NYSE as symbol "C". They are one of the DJIA companies. Citigroup has more than $1 trillion in assets and been ranked #1 in the Forbes Global 2000.

Then the next speaker talked about some financial concepts. Remember, I was 22 years old at the time and none of the stuff they talked about made sense to me. I don't know debt was. All I know that its bad to have and the only way to get rid of it is to pay it off. The speaker talked about the Rule of 72, which I was familiar with, but didn't know how to apply it in real life. The Rule of 72 is a mathematical formula that tells you how long it will take for your money to double given the interest rate. For example, if you get a 3% interest, it would take 24 years for your money to double. With 12% interest, it will take 6 years. How you get 12%? Simple, you invest your money into mutual funds. At that time, I had very little understanding of mutual funds. The only thing I knew about mutual funds was that it invests in many different companies. Then the speaker talked about how money works and the power of compound interest. Then he talked a little bit about life insurance, which I didn't pay any attention to.

Then another speaker came in and was tying in those financial concepts with their products. He talked about life insurance, the debt solution, and the financial needs analysis. None of it made any sense to me. I was 22 years old and single and none of this stuff did not relate to me. I don't have a family. I only have a student loan debt. And I wasn't too sure about investing.

And finally, there was one more speaker. He did a brief recap and talked about compensation and the business opportunity. This is the part that got me excited about Primerica. I joined Primerica because of the overrides and ownership. An override is the difference between my sales level and my downline's sales level. Then there was something about the $199 I didn't quite understand. They say its for the state licensing fee and the background check. I'm like, "huh?"

I knew nothing about business or know the cost of starting one because I'm not exposed to it. Most of us are taught to graduate from high school, go to college, and get a good job. Is there really such a thing as a "good job?" You work so hard to get an hourly wage, which the government taxes you on. You take home what's ever is left over and then you pay your bills. You have a boss that keeps telling you to do stuff and you may or may not like it. You have to wake up the exact same time every Mon-Fri. You eat lunch at the same time and you leave at the same time. You try everything to impress your boss because you think you will get promoted that way (sometimes it works, but most of the time, you are stuck at the same position). You may get an average salary increase of 3%, which may excite you, but really, its not even keeping up with inflation. The longer you stay at that job, the more experienced you are, but you will soon become a big liability for the company. Your salary increases over time and if your company provides health insurance, the cost of those premiums goes up as well. If you worked at the company for 20+ years, you know you are going to be replaced by someone younger and less experienced than you. Then what are you going to do after that? You are too old to work for any other corporation, so you have to work at a low end job such as Walmart, McDonald's, and so on.

I look at my parents, brother and sisters, and my relatives. They all have a job and none of them are happy about what they do. They complain about their pay, about their co-workers, about their boss, about the commute, and bunch of other stuff. I'm like, "shit, I don't want that kind of life style." They are so negative in life. So that's why I joined Primerica because I want freedom and be able to enjoy my life.

In my next blog, I will talk about some of the things people told me and what I read online about Primerica.