Prime Meridian Enterprises Review: Motor & life insurance policies

Prime Meridian Enterprises provide no information on their website about who owns or runs the business.

The Prime Meridian Enterprises website domain (“pme.co.za”) was registered on September 8th, 2007. “WA Networks” is listed as the owner, with an address in Gauteng, South Africa also provided.

On their website Prime Meridian Enterprises advise the company is “an authorised Financial Services Provider”.

A search of the provided FSP registration number reveals a local address in Bryanston and two “key individuals”; Dane Matthews and Daryl Mulder.

I wasn’t able to find any additional information on these individuals.

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

Prime Meridian Enterprises Products

Prime Meridian Enterprises market car and life insurance premiums.

  • Prime MotorAssist – roadside assist, minor dent & scratch protection and mechanical & electrical component warranty, retails at R49 ZAR a month ($3.70 USD)
  • Prime MotorThrift – protection for natural fire & disaster, theft or hijacking, accidental write-off and 3rd party liability (covers up to R500,000 ZAR), retails at R150 ZAR a month ($11.30 USD)
  • Prime Motor Covergrow – same as Prime MotorThrift but also “contributed in part or full to repairs”, retails at R149 ZAR a month ($11.23 USD)
  • Prime Living CoverGrow – covers unexpected death due to permanent disability & diagnoses of terminal illness and accident protection, retails at R99 ZAR a month ($7.45 USD)
  • Prime Living Legacy – same as CoverGrow but includes optional retrenchment & extended family protection as well as honourable unveiling benefit, retails at R95 ZAR a month ($7.15 USD)

There’s a bit of an overlap between Prime Meridian Enterprises insurance options, however full comparisons are available on the company’s website.

The Prime Meridian Enterprises Compensation Plan

Prime Meridian Enterprises affiliates are paid to sell the company’s insurance plans.

How much a Prime Meridian Enterprises affiliate earns per insurance plan sold is determined by how much is paid in premiums:

  • R99 ZAR a month customer premium = R10 ZAR commission (75 cents USD)
  • R100 to 149 ZAR a month customer premium = R12.50 ZAR commission (94 cents USD)
  • R150 to 199 ZAR a month customer premium = R17.50 ZAR commission ($1.30 USD)
  • R200 to 249 ZAR a month customer premium = R22.50 ZAR commission ($1.70 USD)
  • R250 to 299 ZAR a month customer premium = R27.50 ZAR commission ($2.05 USD)
  • R300 to 349 ZAR a month customer premium = R32.50 ZAR commission ($2.45 USD)
  • R350 to 399 ZAR a month customer premium = R37.50 ZAR commission ($2.80 USD)
  • R400 to 449 ZAR a month customer premium = R42.50 ZAR commission ($3.20 USD)
  • R450 to 499 ZAR a month customer premium = R47.50 ZAR commission ($3.60 USD)
  • R500 to 599 ZAR a month customer premium = R55 ZAR commission ($4.15 USD)
  • R600 to 699 ZAR a month customer premium = R65 ZAR commission ($4.90 USD)
  • R700 to 799 ZAR a month customer premium = R75 ZAR commission ($5.65 USD)
  • R800 to 899 ZAR a month customer premium = R85 ZAR commission ($6.40 USD)
  • R900 to 999 ZAR a month customer premium = R95 ZAR commission ($7.15 USD)
  • R1000 to 1499 ZAR a month customer premium = R125 ZAR commission ($9.40 USD)
  • R1500 to 1999 ZAR a month customer premium = R175 ZAR commission ($13.15 USD)
  • R2000 to 2999 ZAR a month customer premium = R250 ZAR commission ($18.80 USD)

Direct and residual commissions (see below) are paid monthly for the life of the customer’s insurance policy.

Residual Commissions

Prime Meridian Enterprises pay residual commission on downline sales of premiums down three levels of recruitment (unilevel):

  • level 1 (personally recruited affiliates) – 50% commission
  • level 2 – 25% commission
  • level 3 – 12.5% commission

These percentages correspond to direct commission rates based on monthly customer premium fees.

Quarterly Growth Bonus

Prime Meridian Enterprises reward affiliates who increase their commissions quarter on quarter with a Quarterly Growth Bonus.

  • increased quarter earnings of R250 ZAR = R500 ZAR bonus ($37.60 USD)
  • increased quarter earnings of R500 ZAR = R1000 ZAR bonus ($75.25 USD)
  • increased quarter earnings of R750 ZAR = R1500 ZAR bonus ($112.90 USD)
  • increased quarter earnings of R1000 ZAR = R2000 ZAR bonus ($150.50 USD)
  • increased quarter earnings of R1250 ZAR = R2500 ZAR bonus ($188.15 USD)
  • increased quarter earnings of R1750 ZAR = R3500 ZAR bonus ($263.40 USD)
  • increased quarter earnings of R2500 ZAR = R5000 ZAR bonus ($376.30 USD)
  • increased quarter earnings of R3500 ZAR = R7000 ZAR bonus ($526.85 USD)
  • increased quarter earnings of R5,000 ZAR = R10,000 ZAR bonus ($752.65 USD)

Joining Prime Meridian Enterprises

Prime Meridian Enterprises affiliate membership is free.

Conclusion

Prime Meridian Enterprises’ insurance offerings are targeted at low-income earners.

The company claims it’s motor insurance products are

designed for people who cannot afford OR who are struggling to afford or maintain comprehensive insurance.

Similarly, Prime Meridian Direct market their life insurance plans as “cheap life insurance available now”.

That’s not necessarily a bad thing, but reduced premiums target a specific market and as an affiliate you might have trouble accommodating those that want deeper and/or more flexible coverage.

That said Prime Meridian Enterprises premiums are appropriately priced and appear to be decent value for money (nothing struck me as outrageously expensive).

Still, as with any insurance policy you’d do well to shop around and compare with what the local competition are offering.

One thing I feel Prime Meridian Enterprises suffers greatly from is “faceless corporation” syndrome. MLM is about networking and connections, with company owner(s) being a big part of that.

Being a faceless corporation MLM company is not a beneficial environment or culture for affiliates to feel part of.

Moving onto the compensation plan, Prime Meridian Enterprises’ commission payments are tied to premium payments and nothing else.

The quarterly bonus was a nice touch, hopefully encouraging affiliates to increase premium sales each quarter and collect a 200% bonus on the increase.

Ideally the majority of Prime Meridian Enterprises premium holders would be retail customers, however there’s nothing in the plan to encourage or ensure this.

It’s possible a Prime Meridian affiliate could sign up and bundle the income opportunity to edge out competition on the insurance premiums.

This would see the company operate as a pyramid scheme, however with no affiliate fee to sign up or monthly volume quotas, I believe an unlikely scenario.

Other than personal and family protection for a Prime Meridian Enterprises affiliate, retailing to build a business makes sense.

Along the way recruitment will inevitable take place, but so long as there’s a healthy mix of retail maintained there’s no issues.

Good luck!

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