If you have been in the Network Marketing/MLM realm long enough, you will hear about Financial Services companies WFG (World Financial Group), PrePaid Legal Services and Primerica. Although these are great companies, in a bad economy dealing with financial services is very challenging.
Here is the companies' profile:
Primerica Financial Services Inc.
$2.2 billion
Country: United States
The largest financial services marketing organization in North America, Primerica provides financial products and services, including term life insurance, mutual funds, variable annuities, loans, long-term care insurance and legal services to 6 million clients.
Wholesale Corporate Revenue: $2.2 billion
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Financial services
Markets: 5
Distributors: 100,000 (licensed)
Employees: 2,000
Headquarters: Duluth, Ga.
Year Founded: 1977
Stock Symbol: C—NYSE
The way we break it down is by these 3 criteria: Industry, Company & Products.
Industry: Financial Services
PROS: Financial Industry
CONS: Financial Industry
Although the financial industry can be very lucrative, the US (it's main Market) is in a Recession! How can you expect to become successful when the 95% of people are cutting down on expenses. Massive unemployment, downsizing, pay-cuts also contribute to less spending on luxury services.
Company: Stable? Is the Timing right?
Primerica was founded in 1977. Is this Market saturated? The answer is yes. When you are looking for the right opportunity, you want to make sure and see....Is there still opportunity?
The Graph below is an example of how important Timing is in a company. Primerica is already in the Final Stability Phase. It's already a Billion dollar company, which is a great thing....for them...but not for you.
There are four stages of growth in a company.
The first stage is called Formulation. This is where the company starts and many have a very difficult time of getting off the ground.
During the second stage-Concentration, a capital investment is usually needed to keep the company growing. It is a very tumultuous stage to get through.
Which is why most companies never get to the 3rd stage: momentum.
When a company hits $50M a year, approximately $4M a month, it enters into the Momentum Stage, the most exciting stage of a company’s growth.
The beginning of Momentum is called the Tipping Point. Some examples of companies that have hit the tipping point are Nike, Reebok, Calvin Klein Jeans, Federal Express, AOL. Momentum is a 3-5 year period of time that happens only once during the lifecycle of a company. It is when the company grows from $50M per year to a ½ billion or more.
The fourth stage of growth is called Stability. This is when the company’s growth continues but levels off. So as you can see now is the time to act on this opportunity.
Recent News: Primerica getting "pumped" and "dumped" by Citigroup.
“Over the past few weeks, Pandit has been told to simplify the company’s structure and raise capital come what may,” a Citi insider said on Friday.
With Citi’s shares languishing 75 per cent below their value a year ago, an equity issue would be a hard sell and could fatally undermine investors’ confidence in the company.
Mr Pandit, who has pledged to move $400bn of unwanted and toxic assets off Citi’s balance sheet, has tried to dispose of some underperforming businesses such as Primerica – an insurance marketing agency – but without success.
http://www.ft.com/cms/s/0/726be14a-deab-11dd-9464-000077b07658.html?nclick_check=1
Products: Financial Services. Is it sustainable?
15 ways to slash spending in Retirement
This includes insurance and Mutual Funds.
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