People Helping People Review [For Agents Thinking Of Joining]
last updated on July 22, 2021
Are you looking for more information on an insurance sales career with the People Helping People Agency (PHP)?
Has a People Helping People Agency recruiter described his opinion of the company, but you’d like to do your own due diligence?
Perhaps you’re skeptical.
You may wonder if PHP is a scam or pyramid scheme, and wonder if it’s legit.
If you’re looking for the truth about the People Helping People Agency, then you have found the right article!
My job today is to provide an “insider’s” perspective on all the inner workings of the People Helping People Agency.
I want you to have ALL of the facts, and become aware of what the opportunity really is like.
Bottom line, my hope is that you’ll gather enough information from this article to decide if PHP agency is right for you or not.
So let’s begin.
PS: Check out my insurance sales jobs reviews of other agencies for more information.
NOTE: Are you an aspiring or new insurance agent looking for more insight on how the insurance sales industry works? Check out my free New Insurance Agent Resource Guide to help answer many of your questions (as well as ones you didn’t know you had!).
Overview
About The People Helping People Agency
The People Helping People Agency was started by Patrick Bet-David in 2009 in Northridge, California, after working for World Financial Group for many years.
Since then, over 12,000 people have become licensed agents with People Helping People, and over 200,000 families have been served through PHP promoted insurance products.
People Helping People is partnered with well-known insurance carriers such as:
- National Life Group,
- American National,
- American General,
- Mutual Of Omaha,
- Global Atlantic,
- and more.
About Patrick Bet-David
Mr. Bet-David is an interesting personality.
He runs a multi-million person subscription YouTube channel called Valuetainment, and served in the 101st Airborne prior to starting his insurance sales business.
As a boy, he immigrated to America from war-torn Iran and understands first-hand what rags-to-riches really means.
You can learn more about Patrick Bet-David here.
Market Specialization
The People Helping People Agency targets what’s known as the middle markets for insurance-based financial planning.
There are different target markets that an agent can focus on.
For example, an agent may target the low-income senior market to sell products like final expense or Medicare Advantage.
Or maybe an upper-income markets the sell more advanced life insurance products like annuities and retirement planning.
The middle market People Helping People Agency targets consist of folks making middle-class incomes.
Compared to wealthier markets, middle markets don’t receive as much attention despite being the largest market of life insurance sales opportunity.
This is where PHP has made its stake.
They provide basic insurance-based financial planning services focusing on:
- Term insurance,
- Index universal life insurance, and,
- Fixed indexed annuities.
Why Agents Partner With PHP Agency
In PHP’s Agent Opportunity brochure, they describe several reasons why agents choose to partner with People Helping People:
- Being Your Own Boss. Entrepreneurship and control of your income is heavily promoted as a core PHP Agency value.
- Multicultural. People Helping People Agency has a focus being a place for multicultural agents to go and work.
- Vesting: Shorter vesting period on new business than the competition (I’ll discuss what this means a little later).
Is PHP A Scam?
One thing that many brand new agents worry about is whether or not their insurance sales opportunity is a scam, pyramid scheme, or oriented towards a multi-level marketing (MLM) culture instead of a traditional work environment.
First, I’ll address the thought some of you might have…
Is the People Helping People agency a scam?
Bottom line, despite its multi-level marketing hierarchy (I’ll talk more about this briefly), People Helping People is definitely not a scam.
In fact, PHP is a legitimate financial services company helping hundreds of thousands of people across the country.
Now, let me review the question of the MLM structure of the People Helping People Agency.
The truth is this…
The entire insurance business is structured on a hierarchical basis, much like a traditional multi-level marketing company looks like.
Producers in your downline allow you to make what’s called an override, which is a percentage of each sale the agent closes.
With enough consistently-producing agents, having a downline is a very lucrative opportunity.
When I consult with insurance agents about their multi-level marketing concerns, their issue isn’t necessarily the structure of the company…
The issue is with the culture of the company.
Here’s how I mean…
Agents who express concern in the culture of an insurance organization are concerned that the organization may place too much importance on recruiting, instead of training competent and effective insurance agents.
Maybe you fit into this profile. Maybe you don’t.
But there are some agents who just flat out don’t want to recruit and just want to sell.
How Important Is Recruiting With The PHP Agency?
Review the People Helping People compensation and promotional guidelines here.
As you navigate the document, it becomes clear that career advancements require focused effort on recruiting a downline.
For example, you must recruit 3 direct business partners to advance to the Level 2 commission, and have 15 base recruits and one direct associate to advance to Level 3 commissions.
In a moment, I’ll give you my opinion on what you should consider… IF you ONLY want to sell, not recruit.
More on this shortly.
Lead Programs
While PHP agency does not offer life insurance leads for sale, they do teach you how to develop your own leads from your sphere of influence using what’s called the “Project 100” method.
What Is The Project 100 Method?
Project 100 involves you meeting with your manager and devising a list of as many friends, family members, and former business associates.
These connections become your pool of prospects to meet with and discuss opportunities to help with insurance-based planning.
Here are some of the benefits of the Project 100:
- No Cold Calling. Traditional no-cost prospecting systems require you to approach residences and businesses cold. And anyone who has experience knocking on doors will tell you it is brutal at times.
- Higher Sales Conversion: Friends and family buy more often than purchased insurance leads or cold-calling.
- No Cost. Insurance lead programs can cost thousands of dollars a month. The Project 100 method costs nothing beyond your time time employ.
- Referral-Based Marketing. Any insurance agent will tell you that referrals are the best leads. Referrals buy more and refer more. The Project 100 method allows you to base ALL of your prospecting efforts on generating referrals.
Since the Project 100 method is a list of people you already know, you are prospecting your “warm market.”
Basically, your connections will have more willingness to meet with you to see what you’re offering.
Plus, your warm market refers more often than cold-prospecting business.
This is a basic explanation of Project 100. There’s more to it that your People Helping People agency manager will teach you.
Typically, you are taught the business on your Project 100 with your manager riding along with you to demonstrate the sales presentation.
Commissions
Let’s shift gears from prospecting methods to compensation.
First and foremost, the People Helping People Agency is a 100% commission based opportunity, contingent upon you writing business and training other agents to do the same.
There is no draw, wage, or salary.
As the old saying goes, “You eat what you kill!”
Follow this link to see People Helping People’s updated commission schedule.
How To Increase Commissions With The PHP Agency
At the core of PHP’s commission advancement is downline agency development.
In other words, personal production alone several limits your ability to advance your commission percentage relative to other agency opportunities like mine that more highly value personal production from the beginning.
For example, commission starts at 30% for new recruits.
To increase your commission at all levels above starting commission, you must recruit more and more agents into your hierarchy.
Author’s Opinions
Now that I’ve laid out a basic understanding of what the People Helping People agency is about, I am going to lay out my opinions and criticisms of the People Helping People Agency in this section.
My “bias” is for showing you the entire picture, and bringing up potential concerns to consider more thoroughly before joining.
Let’s begin…
People Helping People Agency Commission Is Low For The Personal Producer
In my research of different insurance sales organizations, one common theme is that the recruitment-focused organizations start commission lower relative to other agency opportunities.
This is the case with People Helping People.
Starting commission levels with the PHP agency is 30%. Other organizations start agents out at 55% to 70%.
Even further, producer-oriented agencies like mine that focus on teaching the craft of selling insurance start agents out on most contracts at 100% or better.
Why is this such a big deal?
Because, the LOWER your commission level, the less money you earn. And the less money you earn, the harder it is to stay profitable.
Commission Example
Here’s how I mean.
Two agents make the same sale.
It is a $2000 annual premium indexed universal life sale.
One agent has a 30% commission. The other has a 70%.
The agent on a 30% commission makes $600 first year income, but the agent with a 70% commission makes $1400.
That’s an $800 difference in payout!
And if said agents made 50 sales the entire year, the agent with a 70% contract makes $40,000 MORE commission than the agent with a 30% contract.
Then Again, Commission Isn’t Everything
Low commission insurance sales opportunities will suggest that looking at commission on its own without measuring other value-added benefits like training, support, and lead generation is faulty thinking.
I tend to agree.
You shouldn’t choose to pass on the PHP opportunity because of commission levels alone.
Evaluate the training and support your recruiter provides. Ask them about their insurance sales experience.
Ask for a ride-along opportunity to judge the business before going through the process of licensing and appointment.
As suggested, take the whole package into consideration before jumping into the People Helping People Agency.
Get Comfortable Selling Friends And Family
With PHP’s lower start commission levels, it does not make sense to involve yourself in any purchased lead program.
You simply do not have the margins to make good money while covering your costs.
So that leaves the Project 100 as your only prospecting strategy.
Which means you MUST talk with friends, family members, and business associates about insurance.
And not just insurance, either. People Helping People wants you recruiting new agents from this same Project 100 list.
So if you want commission level increases, sell not only insurance policies but also recruit your sphere of influence.
Don’t Do It If You’re Not Comfortable
If you’re like me, you do not like the idea of doing business with friends and family.
Sure, there are some advantages. Friends and family buy and refer more often.
But, in many cases, pursuing your sphere of influence for either insurance sales or career opportunities will burn many bridges.
While I am sure some agents can navigate this concern, I never wanted to pursue my warm market immediately because
- I had no experience and didn’t want to sell them a product that was inappropriate, and,
- Business dealings with friends and family gone wrong can permanently damage relationships.
At the Duford household, we separate business from pleasure.
Unless a family member pursues me for help, I do not solicit them for sales or joining my agency.
Again, this is a personal preference. You may have total confidence and no concern following the Project 100 method.
If that’s the case, then PHP’s prospecting teaching will fit right in.
If it isn’t, you may want to consider other insurance sales opportunities based around purchased leads.
Some Start-Up Costs For People Helping People
People Helping People has start-up costs. Please note this is subject to change if PHP changes its guidelines.
First, there is a $250 initial fee for new agents getting appointed.
Second, you must also purchase errors and omissions insurance for approximately $500.
Third, expect your upline to encourage you to attend PHP’s massive annual conference.
Travel, accommodations, and entry range approximately $200 to $1000.
Vesting
Vesting is defined as when agent ownership of his book of business takes place.
Ideally, the sooner you own your book of business, the better. Why?
Because if you quit prematurely before your book is vested, you will lose all future commission payouts.
Ouch!
And while there are organizations that require 10 years of service to fully appoint (they incrementally increase vesting year over year), the People Helping people agency shortens that to only 1 year of service before 100% vesting occurs.
Vesting Is Unnecessary
Yes, 1 year vesting is better than 10 year vesting, but my complaint is, why even require an agent to spend time to vest?
Many organizations like mine vest 100% immediately upon appointment. In other words, any business you write is YOUR business.
Whether or not you work with my organization, you continue to receive your contractual commissions.
Added, if you are bringing in prospects through referral methods, is it right to say that the agent should not own that business outright?
I can understand if the company is funneling leads to the agent, sure.
But not when the agent is doing the heavy lifting of finding qualified prospects.
About Me
When I first began investigating selling insurance, I discovered a truism of the business I want to share with you now…
You MUST vet any organization or individual trying to impact your perspective towards a company or insurance sales career path.
Why?
Because bias runs rampant in this business.
You want guarantees that anyone influencing you has your best interests at heart.
And this vetting process includes vetting me!
Because of that, I will explain my career selling insurance since 2011.
That way you know my perspective and I reveal what are my interests and motivations.
My Career
I started selling final expense insurance in 2011.
I jumped into the insurance business because my first business in personal training was on the ropes.
Basically, I got into insurance out of pure desperation.
Nobody was hiring at this point during The Great Recession, and insurance sales was my only option.
Thankfully, I found a great opportunity in the business.
I did very well initially, but failed out 12 months into the business due to my own poor mindset and lack of discipline.
At that point, I went back to work for a Fortune 500 company.
And what I learned throughout my tenure was that the difficulties of the insurance business FAR outweighed the difficulties of working for someone else.
So I planned my escape!
And within 12 months, I quit my job, and was back into selling final expense full-time.
Thankfully, I’ve never returned to working in a “real job!”
By 2013, building my own agency became important to me, so I started my national insurance agency to recruit and train agents to become top producers.
I’m happy to report I’ve been extremely successful in building my agency and helping many agents to success across the country.
I’m also an author of 3 best selling insurance sales books, and operate a popular YouTube insurance sales and marketing channel.
I’ve also added more sales and marketing systems in addition to final expense sales, which include:
Question Of Bias
After reading my bio, you may ask yourself,
“What bias do you have that I should be aware of?”
First of all, my goal is to grow into a personal “center of influence” on all-thing insurance sales and marketing.
So, building and keeping my integrity intact is of utmost concern to my long-term success.
What this means is this:
I am ALWAYS biased to providing more information (both good AND bad) to agents investigating insurance sales opportunities.
Obviously, there is the potential for personal gain writing review articles like this.
These articles will eventually rank in Google Search, and people researching the PHP agency will discover my opportunities to sell insurance nationally.
And yes, some will decide to work with me.
Helping Without Expectation Of Anything In Return
However, despite the opportunity for personal gain, the amount is fractional relative to the whole.
If anything, the vast majority reading will either skip out on the People Helping People Agency’s opportunity because they determine it’s not for them.
Or end up joining as my review has boosted their confidence in the organization and provided a better perspective on what to expect with the People Helping People agency.
Bottom line is this…
What you do with the information I’m showing you today is totally up to you.
There’s many reasons why agents fail out of the insurance business.
And working for the wrong agency is a common reason for premature quitting.
To summarize, yes, I AM biased.
But… helping agents out long-term without expectation of anything in return is paramount.
And giving away your time and effort always results in positive outcomes in business and in life.
How To Quit People Helping People (PHP)
There are many reasons you may want to quit People Helping People, for example, you ran out of money to invest in leads, you ran out of prospects to sell to, or you simply found that the business of selling insurance wasn’t a good fit for you.
The good news is, quitting People Helping People is easy.
Here’s how to do it.
First, start by doing your due diligence and find another insurance agency to work for. We recommend you review our Free Agent Resource Guide here for tips on finding a quality insurance agency to join.
Once you find a new agency or carrier to join, you can go ahead and switch your affiliations.
You should keep in mind that as an insurance agent, you are licensed by the state and not by the company. No insurance agency can prevent you from stopping your affiliation with it and doing business with another organization.
You may need to cancel the affiliation with People Helping People. The termination usually needs to be filed within a 30 day window, however canceling affiliation is not always mandatory.
To become properly appointed with the new insurance carrier or agency, you simply complete contracting with the new insurance carrier.
Typically, the window for companies to process affiliations is very short, with most companies approving insurance agent carrier appointments within 1 to 2 weeks on average.
Bottom line, quitting People Helping People is no big deal. Simply find another organization that’s better suited to your insurance sales career goals, submit contracting through the new organization, and within the next few weeks, you’re good to go and can stop doing business with People Helping People.
Companies Like People Helping People (PHP)
Let’s take a look at some insurance agencies and companies similar to People Helping People (PHP) in case you’re interested in doing a comparison.
Symmetry
Symmetry Financial Group is an insurance marketing organization based out of Swannanoa, North Carolina.
SFG specializes in several life insurance markets, primarily the mortgage protection insurance market. The company also offers final expense insurance, a type of whole life insurance designed to cover medical bills and funeral expenses after the policyholder’s passing.
Bankers Life
Bankers Life was established in 1879 in Chicago, Illinois. The company is a subsidiary of CNO Financial Group.
Bankers Life offers life insurance, long-term care, annuities, Medicare (Supplements, Advantage Plans, Part D prescription drug coverage), critical illness insurance, as well as vision and dental plans. It targets the senior market, typically people age 60 and older who are near retirement.
American Income Life (AIL)
American Income Life, a wholly owned subsidiary of Globe Life Insurance, is a major provider of supplemental life insurance. The company was founded in 1951 and is headquartered in Waco, Texas.
American Income Life’s core markets are labor unions, credit unions, and associations for insurance solicitation. Its insurance products include life insurance and supplemental health.
New York Life
New York Life, established in 1845, is the largest mutual life insurance company in the country. It offers premium life insurance, long-term care insurance, retirement income insurance, and investment plans, including annuities, mutual funds, and ETF saving plans.
USHEALTH Advisors
USHEALTH Advisors is a wholly-owned national sales and distribution subsidiary of USHEALTH Group, one of the largest employers of health insurance agents in the United States.
USHEALTH offers individual health coverage plans and a number of related supplementary products. It specializes in marketing innovative and affordable health coverage plans. The company is focused on providing healthcare solutions to individuals and families, as well as self-employed and small business owners.
Equis
Equis is a marketing organization for independent insurance agents and agency builders.
Its main product is mortgage protection life insurance, designed to reduce or eliminate the threat of foreclosure or eviction if the insured passes unexpectedly. The company also offers final expense, living benefits, and indexed universal life insurance products.
Freedom Equity Group
Freedom Equity Group, based in Arroyo Grande, California, is an independent marketing organization (IMO) that contracts with insurance companies to promote and distribute a range of life insurance products.
Freedom Equity Group focuses on selling life insurance and annuities. Its main product is indexed universal life insurance, a form of permanent coverage that provides a cash value in addition to life insurance.
Conclusion
In review, the People Helping People Agency is a great opportunity for the right agent.
Those joining the PHP agency must have a desire to build an agency, and be completely confident in prospecting your warm market for sales and recruits.
However, if anything rubs you the wrong way, I’d recommend evaluating other insurance sales opportunities.
There are plenty of fish in the sea, and finding the right fit is paramount to your success.
Thank you so much for reading my article! I do hope you got value out of the content.
To continue your due diligence of the People Helping People agency opportunity, I have included a few more resources below to consider:
- Here’s the PHP Opportunity Brochure highlighting the benefits of working with the company.
- Negative reviews of the People Helping People Agency are found on Reddit, here on Yelp and here on YouTube.
- Positive reviews of PHP are found here on Indeed and here on YouTube.
- This article on BehindMLM.com explains the People Helping People Agency hierarchy system in great detail.
- Want to learn more about how to sell insurance with my national agency? Review how my sales and marketing systems work here. And read up on my many Agent Success Stories.
21 Comments
Barry
thanks David, after reading this I am definitely NOT going with PHP. It has been offered and I'm going to refuse.
Miguel
Thank you David, I guess I'm the right guy for PHP and ready to build my business and help people!
David Duford
Glad to help =)
tel
I have heard of PHP before and it 'upfront' fees, someone recruited a busy mom who was not as successful at lost recount, this reminds I will have to contact her and see how things are going….. thanks Dave
David Duford
Great! Thanks for letting us know. Feel free to provide any context that you find out.
Mike
This is a pyramid scheme, the only reason it gets around the law…like others, is that its a pyramid scheme with a product attached to it. This is a scam and anyone falling for this should go back to school to get some sense.
David Duford
Not defending PHP, but can describe why it's a scam relative to other insurance sales organizations?
Naomi
Hi David, I enjoyed your review on this organization. I already know about the PHP organization and the founder Patrick Bet David. Every company has a story behind the reason it was created just as Warren Buffet has his reason for starting his own organization. PHP has a certain structure in the way it operates. I have experience working with so many Multi level marketing organizations it all depends on the individual goal and expectation. For those who want to challenge themselves and push their personal limits there is intense personal growth. I mean intense because there are activities that allow an individual to evaluate themselves in every aspect of their life to be able to better themselves on every level. If your a person that does not like to challenge yourself or grow then PHP may not be for you. Personal evaluation and growth is not an easy thing that many dare not venture into. For anyone who knows Tony Robbins the Motivational Speaker, Mentor Coach, Entrepreneur, knows that Tony Robbins strongly believes in cultivating and developing every facet of your life in order to have a happy healthy balanced life and he believes we need to grow by challenging ourselves to break out of old habits, thought patterns and actions.
Something that is unheard of in any company or organization that is offered at PHP is the opportunity to build and brand your very own company within a company unheard of anywhere in any industry.
One can have something that is truly 💯 yours. We as people are born taught to have an employee worker mindset to work for or under someone else, so many times the thought of having your very own company is beyond our wildest imagination. However now many people are breaking out of employee positions and going into business for themselves. In this ever fluctuating and unsteady employee industry people are liberating themselves from jobs that crumble, liberating themselves from a boss, becoming independent contractors for example going into Lyft, Uber, Instacart, Grub Hub ect., where they have the flexibility to work their own hours when and how they want. If there is an organization out there that offers the option of building having your very own company brand while building within a company I am not aware of this but it's a"fantastic concept and I applaud and admire those organizations. Those are the organizations that want people to go off and build for themselves who in turn teach others to build for themselves to have their own enterprise. Majority of organizations want to train people to work for them for as long as the company needs them.
David on another note I have been in the senior services industry for some years and find that many seniors have "Supplement Medicare plans" and "Advantage Plans" they don't need if they already have a supplement plan which limit seniors from maximizing their full medicare benefits. Many seniors have friends or agents that through time gain trust then convince seniors that an "Advantage Plan" would help or benefit them when it's really benefiting the insurance agent with a very nice heafty commission check. Having been in the senior services industry for a few years I can say it has been tough to find honest, ethical, moral and trustworthy individuals to provide sound advice to those seniors that are truly needing the benefit of having an Advantage plan since they are missing supplemental coverage and truly need to connect to a Medicare supplement plan. I would love to learn about Medicare supplement and Advantage plans. Thank you for posting this review. Sincerely, Naomi
David Duford
Thanks for the nice words – just shot you an email =).
Steve Antkowiak
Hi David
What a refreshing read!
I have been investigating re-entering the insurance business after starting into it right out of college.
Specific life experiences have caused me to consider working a specific segment of which I am passionate about their specific insurance needs. I am a fan of Patrick Bet-David and love his enthusiasm and when he learned his business, it became something for me to investigate. I actually like the down line or MLM approach for this segment, but want to help people with product more than I want to recruit. (Although I am very open to “soft” recruitment) and like you, I don’t like to solicit family/friends/professional contacts (although my segment has the potential to benefit from the friends part of this and with that I am comfortable because they may (depending on age) have the same needs).
All this to say, if you wouldn’t mind, I would love to have a conversation with you —not one of your agents — but you. Please reach out via email if you will do me that favor.
Thanks again for your refreshing approach.
David Duford
You're certainly welcome – I emailed you some info over.
sarah
Ummm yeah. So after being at PHP for 6+ months and now being at a REAL agency I can tell you some pitfalls you did not highlight and some pros as well. First of all while it isn't what is commonly described as a pyramid scheme their highly MLM model faces some of the same issues. Only the top top managers make money. You WILL pay a fee not only for "joining" which is a red flag in and of itself but also for your license, fingerprints etc. And THEN you will also pay for the "book of the month", the PHP University classes, "Big Event" tickets (usually pushed at you in four and ten packs of 1200 to 3000 bucks) and all the other merchandise you are "required" to read, have on hand in order to be considered "coachable" and not ridiculed by your upline and sidelines (Company Blueprint, Pat's book, etc). You will also pay for the CRM, your E&O Insurance (through PHP of course) and have to pay a "plug in" to even be able to work at one of the offices even if that means you're at a communal desk in the middle of a basketball court warehouse. Believe me I spent well over $3000 on these items AND sponsoring people onto my team only to STILL make no money over the course of these 6+ months.
In addition to that you will not own your book of business (read the agent agreement) and it takes WEEKS to get policies placed, if at all.
Now that being said they have a very positive culture, it's all very rah rah rah and positive even while you're sitting there broke and destitute they want you being "positive". You will dance and sing and clap for others winning even as you're not. A manager can have ONE good month in 10 years and use that success as a way to recruit you and everyone else you talk to. The self development programs are very good and you'll buy and read some very good material. In the meantime, be ready to be asked to "beat this or that team", "come through for your upline", give up your strongest "leg (team)" so you can be promoted to management only to then have NO ONE on your team as you've now reached this "high" level and have to start over again. AND to work six-seven days a week and holidays and have meeting after meeting on how to recruit your 80 year old grandma just so you can increase your commission levels to get commissions on policies that are very rarely put enforce.
You will work with some excellent carriers and gain experience if you push for it otherwise you'll just be "coached" to recruit and the money will come through internal consumption so get ready for your friends and family to start ignoring you as you beg them to join your "business". And also get ready for PHP to call your friends and family until the end of time because they will keep that "Top 25" list that you make in their database long after you've gone.
Just saying, I been there and there are several better places to go if you really want to make money and own a business that isn't modeled after making money off you and everyone you bring onboard.
David Duford
Thanks for sharing, Sarah =)
Brenda M Hickey
Thanks Sarah for your words. I was considering PHP but after my guts and your words made me realized I should not join them.
sarah
Hi Brenda: You're welcome. The "idea" is great but the execution and business model are not. That being said life insurance is HIGHLY lucrative and there are lots of great companies to join! Do your research and NEVER pay a fee to work somewhere. 🙂 Try to find a place where you can be a broker (not captive agent). Best of luck.
Jay
You post how the company makes their money by hiring more people, the diagram you put in the post is literally the diagram of a pyramid scam. MLM is literally a scam. Every pyramid scheme has some bullshit product, nobody is gonna buy. 99% of the profits made are from everyone paying to "work" for thr scam.
You can try to spin it anyway you like. But as the old saying goes. You can polish a turd, but it's still a turd.
David Duford
MLM is not by definition illegal.
However, MLMs can have cult-like cultures and sell subpar products, for sure.
Likewise, there are MLMs more favored towards the independent agent. It's the agent's job to do the research before jumping in with both feet.
Pyramid schemes are scams and illegal, and basically how you describe them.
Sonia Serrano
Hello David! I love your articles, I’m a new agent trying to find the right company to work for and your articles are so helpful! I was wondering if you know anything about Family First Life?
David Duford
Thanks – regarding reviewing Family First Life, make sure you review the entire commission grid they provide, and vet the person actually responsible for training and coaching you. And as for any agency, ALWAYS compare what you are offered with alternatives to get a better, more balanced perspective on what really "good" means.
Ola
Hi Sarah and David;
Thanks for your comment along with David's explanation. I have been approached to work with PHP and even signed up and pushed to recruit friends and family which makes me feel uncomfortable as I do not want to mess up my relationship with them, the agent that recruited me was actually my friend and in a matter of less than a week, we had a big unnecessary fight because I expressed my views on the culture of the company and asked for clarity on how to actually grow, appropriate training, answered questions, help in securing clients etc. I felt it was weird to pay to work with a company ($199), also for your license (could be discounted), pay an annual fee etc, but I was told that you own you own business so it was an investment, but the compensation at 30% as a trainee is very low (I believe it goes up to 120% based on more licensed recruits, points and writing several policies) and you don't make anything until you get licensed and then bring in 3 extra new policies and recruit new agent and help them get licensed (@ 30% level commission, you bring in 3 new recruits, get them licensed, submit 3 policies since you aren't licensed yet and 3000 points, but you don't make any money, but @40% after you get licensed, then you write a policy and start getting 40% of the annual premium, but you have to find more clients on your own again). As much as I would love to work with a company and have my own business selling the right and necessary financial products to clients, I was wondering if you can give me a list of companies that are better than PHP and also pros and cons in comparison.
Thanks
Best
Ola
Monica
So, sir,.how much did PHP pay you to write these LIES about how wonderful their agency is?!
Allow me to explain why I say this, please-
In the Fall of 2021 it became painfully apparent to me that financially, my 2 boys & I were doomed. I had been selling products on EBay & Postmark for about 1.5 years. (I was selling on these websites so that I could work from home & be w my special needs boys.) I was making a few bucks, but not enough to pay the rent. I decided I had to make a change for the better. Long story short, I somehow decided that I should go into life insurance sales. Supposedly, it had the potential to make some decent money & I could do it from home(or so I was lead to believe). I studied my butt off & after 3 attempts, I finally passed Pa's Life Insurance Exam, which in effect, made me a life insurance agent. I stumbled upon a woman, Melissa’,on LinkedIn, who worked for PHP. Melissa & I spoke online a few times. She told me how WoNdErFuL her job was-how she was able to make a positive impact on other's lives while making her family's financial situation better. I already had my Pa Life Insurance Licence, plus I had picked up a life insurance licence for Ohio along the way. She said having these licences already was half the battle! If I joined PHP, I would have her as my mentor. She would help me navigate my way to where she was. The only catch was that it was $200 to sign up. She said that the money was for an app, called Bamboo, that was exclusive to PHP agents & was chock full of info that would make their job easier. I hesitated. Here I am a single mom, getting a meesely $200 every other week for child support, receiving food assistance & government health. $200 was A LOT for me to gamble with. But she assured me that it was a investment in myself & my family's future & that I'd make that $200 over 10x in the near future. So, I signed up w her. She was so friendly & eager to answer my millions of questions. At one point of time, I had to sign a contract. In it, I read that the $200 was refundable ONLY DURING MY 1ST 3 days of being signed up. That made me a little leery. But, I'm the type of person who's either all in, or totally out. I was already ‘all in', so I continued forward. There were videos for me to watch to train me, & zoom meetings to attend. Melissa kept in touch. Then, the 3 days were over, & I didn't hear very much from Melissa. Time went on. I'd call & talk to her & tell her that I needed some sort of direction-like where do I even start & what do I do? She said not to worry, that she’d help w that. Well, she never did. I tried learning as much as I could on my own from the Bamboo App. But, many of the links didn't do anything. Literally, they did NOTHING. Months pass. One of her higher ups contacts me & tells me congrats for passing my life insurance exam. I was furious. These people didn't give a sh*t about me! They didnt even have on record that I was licenced in Pa & Ohio the day I signed up?! So, I wrote this woman the following reply, ‘Umm… I already have my license. 2 actually. I'm licensed in Pa & Ohio as of spring 2022. Thank you for reaching out to me. The last time Melissa personally had contact with me was June 29th. On that date, she had set an appt to call me to get me rolling. She never called. Im at the point where I have mixed feelings. I INVESTED $200 into PHP. With that investment, I got access to a website, Bamboo, that has many links that don't take you anywhere & videos that won't play. When Melissa first brought me on board, she was all gun ho about my giving her contacts to reach out to. It seems that when she realized that my contacts weren't biting the bait, I was of no use to her. Yes, I receive the occasional group text about zoom meetings & such. But that's pretty much the contact she's had with me. Besides the $200, I have spent many hours studying & passing my test. My thing is, I'm the type of person that needs step by step instructions-help me walk through the process once or twice, answer my questions & I'll be good to rock & roll. I would love to speak with someone that will actually help me get rolling with instruction & direction, unlike Melissa. And why haven't I reached out to Melissa? Because I figured if she was sincerely interested in my being productive on her team, she'd reach out to me. I guess I got my answer to that-actions speak louder than words….Again, thank you for contacting me & I look forward to speaking to you or whoever is actually willing to assist me.' After this, I missed 1 whole call from Melissa. That's it. I haven't heard from any PHP person to this day.
So, as you can see, this experience is why I feel that I was duped & PHP is a scam. I don't know how Melissa sleeps at night, knowing that she took $200 from a single mom of 2 special needs kids, through the way of lies & false promises. It makes my blood boil to think that she's out there, feeding this bs to other innocent people, & suckering them out of their money, too. I find my comfort in the fact that God'll let karma get her in this, life or the next….. Let's see her try to scam her way outta that one!