American Income Life - Pyramid scheme/MLM scam, stay far away | Glassdoor

Employee Review

Employee Review

Helpful (61)

"Pyramid scheme/MLM scam, stay far away"

StarStarStarStarStar
  • Work/Life Balance
  • Culture & Values
  • Career Opportunities
  • Comp & Benefits
  • Senior Management
Former Employee - Life Insurance Agent in Fresno, CA
Former Employee - Life Insurance Agent in Fresno, CA
Doesn't Recommend
Negative Outlook
Disapproves of CEO

I worked at American Income Life full-time (Less than a year)

Pros

Free coffee, air conditioning, free life lessons on the pitfalls of a 1099 job. Learning how to recognize employment scams for future avoidance.

Cons

Lots.

For anyone thinking of working here, they should really understand how the company works before you get yourself involved with them.

American income is an MLM (multi level marketing) scam that uses insurance sales as a cover, probably for legality reasons and the optics of legitimacy. You will be lied to constantly here from the time you walk into the door to the day you eventually quit.

This is a 100% commission insurance sales job complete with cold calling and door to door sales on the surface but don't expect to make anything for a long time if you just decide to go down this route. Renewals don't kick in for an entire year and even then they will be low. The leads are cold and most will be angry. Some will be so ignorant or stupid they will probably buy from you. You have to sell them overpriced whole life though or the infamous 10 year term that acts like a ticking time bomb. Here's some fun facts about AIL's products: All of their term insurance can be converted into whole life! Great until another agent comes in after you've sold a term product, converts your policies into whole life and takes your renewals and steals your sale.

The insurance side of AIL is largely a waste of time and money though, if you really want to make anything here you need to become a great liar and start recruiting. The company's compensation model is based off recruiting as many people as possible, similar to a cattle call. You make money off their sales (a "down line") and money off of their recruits. You want to try and make your down lines as large and deep as possible. Sound familiar? Probably if you know anything about how companies like Avon and Amway work. It's the same model they use at AIL, recruiting is compensated better than actually selling anything, which is technically a pyramid scheme. Your managers will push recruiting harder than anything to reinforce this, as most of the young people they hire aren't from a generation familiar with how companies like Amway operated. Oh and the constant high burnout and turnover rate is because you stop getting increased commission from your recruits after 6 months so it's more profitable to just drop them and hire on the next batch of suckers.

Advice to Management

Hire some good lawyers, you've been forced to payout lawsuits before, and it's only a matter of time before you get more dropped on you by some poor victim of your scam. "Mandatory" meetings for your 1099 employees and micromanaging their every move is eventually going to bring your gravy train crashing to a halt.

Other Employee Reviews

Other Employee Reviews

  1. "Agent"

    StarStarStarStarStar
    • Work/Life Balance
    • Culture & Values
    • Career Opportunities
    • Comp & Benefits
    • Senior Management
    Former Employee - Life and Health Insurance Agent in Spring Valley, CA
    Former Employee - Life and Health Insurance Agent in Spring Valley, CA
    Doesn't Recommend
    Negative Outlook
    No opinion of CEO

    I worked at American Income Life full-time (Less than a year)

    Pros

    No cap income and residuals

    Cons

    non-paid training and support, little training and support, must work their expressed hours to have success but then they tell you it is your own business and you can work your own hours...High contridiction

    Advice to Management

    Don't put people out for their hours of training until all paper work is in ready to go


  2. Helpful (2)

    "Mixed Feelings"

    StarStarStarStarStar
    • Work/Life Balance
    • Culture & Values
    • Career Opportunities
    • Comp & Benefits
    • Senior Management
    Current Employee - Anonymous Employee
    Current Employee - Anonymous Employee
    Doesn't Recommend
    Approves of CEO

    Pros

    Great income potential. Leads are already given to the agent. Set your own schedule. No cold-calling. There's always people that are pushing you to strive for the best. Get paid trips IF you do well and qualify. Flexibility. Once again, great income POTENTIAL.

    Cons

    Going to unsafe neighborhoods since one has to go to people's houses. Management are ALWAYS going to tell you that they are looking for leadership people just to not scare people away about taking the job since every person that is hired means $$$ for the person that hired. Compensation only, so this would honestly not be a great job for a person with young kids since even though you make your own schedule, it takes a lot of time because management is always going to push you to fill your 10am-8pm. Oh, and lots of driving without getting paid for at least gas. Oh, and AIL basically only does Whole Life because they push you to not sell Term-Life, and by the way, products are EXTREMELY expensive.

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