Is PFA a Pyramid Scheme?

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What is a Pyramid Scheme?

According to the FTC, a pyramid scheme has a few telltale signs that distinguish it from legitimate independent marketing organizations:

  • Income is based mainly on the number of people you recruit, and the money those new recruits pay to join the company — not on the sales of products to consumers.
  • You’re required to purchase lots of company inventory to get started and to continue with the company.
  • You’re forced to buy other “company products” you don’t need or necessarily want - just to stay in good standing with the company.
  • A Pyramid Scheme is an illegal “business” model.

PFA does not meet any of the aforementioned criteria. Licensed associates are paid only when financial products are sold; simply recruiting others to the company does not result in compensation. The one-time technology fee PFA collects upon sign-up provides the associate with access to PFA's exclusive tracking software and allows the agent to plug into a powerful community of associates. This technology fee is fully refundable in the first 10 days. At no time are associates required to purchase any products or services (except for those required for state licensure).

How do PFA associates make money?

PFA associates are in business for themselves but never by themselves.

It is important to note that independent associates cannot make money at PFA without first obtaining the proper state insurance license and getting appointed with an insurance carrier; even then, a product must be sold in order for a commission to be earned. The act of recruiting someone to PFA does not result in compensation to an associate.

PFA has partnered with top insurance carriers in the country to help distribute life and annuity products to the public. The turnkey business platform allows for independent associates to grow their own business through the distribution of financial products. PFA never collects premiums for life insurance policies, and independent associates are paid commissions on the sale of insurance and annuities products.

Still Have Questions?

If you’re still confused about who PFA is, what we do, and what we stand for, feel free to reach out to us on our website via our live company chat. If you are trying to reach us outside of business hours, please email us with any questions you may have.

About PFA

At Premier Financial Alliance, we tell a different story in the financial services industry. Our focus is on protecting the dreams of the most underserved sector of the country: Middle America. We disrupt the status quo in financial services through life insurance you don't have to die to use. We do our business by six guiding principles: Leadership, Integrity, Passion, Impact, Diversity, and Simplicity. 

Learn more at

Due to a lack of understanding about PFA’s business model and success in the industry, some critics have asked an important question: Is PFA a pyramid scheme?