Is World Financial Group a scam or a genuine money making opportunity? This MLM company in the finance market has been all the buzz, but is it worth it? Does anyone actually make any money?
Let’s take a closer look and uncover the truth…
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Company Name: World Financial Group
Owner: Transamerica
Price To Join: $100 to start
My Rating: 2.5/10
~ World Financial Group Reviews ~
What Is World Financial Group?
This company was originally founded by Hubert Humphrey in 1991 after he left another successful finance company in the MLM niche called Primerica. The company’s headquarters is in Atlanta, Georgia.
Also simplified to the letters WFG, World Financial Group sells products in the finance sector, such as insurance and investments. Not only can people take advantage of their services, they can also join the business as an independent rep and make some money in the process. Along with this, WFG has a commissions and bonus structure in place that uses the multi level marketing (MLM) method.
The products and business opportunity are available in the United States, Canada and Puerto Rico.
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The Products
As this review is more focused on the business opportunity side of the WFG opportunity, I won’t delve heavily into the products. I’ll just touch on what’s on offer in brief so you have a general idea.
Let’s first be clear. WFG doesn’t have its own financial products. They simply represent other existing companies and recruit members into their MLM matrix to promote and sell these products.
A snippet of the companies they represent are:
- Prudential
- Pacific Life
- Ivari
- Industrial Alliance
A selection of some of the financial products they promote are:
- Mutual Funds
- Debt Relief
- Investment Trusts
- Retirement Planning
- Life Insurance
- Business Solutions
- Disability Insurance
- College Saving Plans
The MLM Business Opportunity
In my opinion just about all MLM platforms are a one-sided affair that’s all in favour of the actual company and those at the very top, and not the army of distributors they all amass. It’s because of all these advantages that so many businesses adopt the multi level marketing system in the first place.
The company gets a free workforce running around, madly promoting them and their products. Sure, there are bonuses and commissions up for grabs, but they don’t have to pay wages, save enormous amounts of money on advertising, and actually reduce their own workload astronomically.
MLM companies also usually charge a fee for people to be eligible to become a distributor, as well as often forcing its members to purchase the bulk of the products. Along with this they sell the dream and the fact that you can own your own business, but in reality only those at the very top are living the dream, and no one owns their own business in multi level marketing.
You are simply paying for the right to become a sales rep for them and nothing more. The company owns and controls just about everything. Click below for a much fairer way to make money online.
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The World Financial Group Compensation Plan
Your initial rank when you first join the opportunity is “Training Associate”. From there, as you recruit more people and increase monthly sales volume, you can advance up the WFG ranks and have the chance to earn more.
There are a number of ways you can earn, as is typical of all MLM structures, and some of these are:
- Direct sales
- Agency income
- Expansion income
- Bonuses
At the direct sales/retail level, you earn a 30% mark up on the wholesale price of the products.
However, the real money is not in selling these financial products at a retail level. It’s in the recruiting. It’s building downlines and having your team working for you where you can start to earn the bigger money, move up the ranks, earn more bonuses and enjoy residual commissions.
Recruiting is the toughest part of all, though. It’s not easy in the slightest. That’s why so few people ever make it past first base in MLM ventures. In fact, some 95% of people fail, and most of the reason for that is a lack of recruits to grow their downlines.
The ranks you can aim for include:
- Training Associate
- Associate
- Senior Associate
- Marketing Director
- Senior Marketing Director
- Executive Marketing Director
Compensation plans for MLM are always a little complex, so I’ve included a link to their official PDF.
Is World Financial Group An Illegal Pyramid Scheme?
This one is a little harder to define. An illegal pyramid scheme is what’s known as a naked pyramid. What this means is that the entire scheme relies solely on recruitment and the new injection of money from those recruits to survive. It also means the company running the scheme has no products of any tangible value.
Now while World Financial Group does offer real finance products, they are not their own products. The company also relies very heavily on recruitment to stay afloat.
While I wouldn’t wholeheartedly classify WFG as a naked pyramid scheme, it’s definitely more borderline than most MLM businesses.
Target Audience
MLM ventures appeal to those people that want to make money where they feel like they own their own business. The attraction of MLM is you don’t have to have your own products or services or start anything totally from the ground up.
What I Like
- It’s something different to the multitude of health and wellness MLM ventures that exist today
- The company has been around since 1991
What I Don’t Like
- If you do some research on the internet there are loads and loads of complaints about this company
- MLM is a notoriously hard way to make any real income
- You annoy the hell out of everyone you know
- This one is definitely all about recruitment, and that’s a really hard thing to do in this niche
- WFG doesn’t have any of its own products
- You need to study and get a license to legally sell these products, and that will make recruitment that much tougher
How Much Does World Financial Group Cost?
It costs a $100 joining fee for the right to become a representative of World Financial Group. You also need to become fully licensed to be eligible to sell these financial products. This involves study materials, training and exams, all of which will cost you money.
You will also need to pay for various licenses, depending on exactly which financial products you want to sell. The cost of joining this venture could skyrocket before you’ve even had a chance to make any cash.
Is World Financial Group a Scam?
I wouldn’t say it’s a total scam or anything like that, but from the perspective of doing this as a money making venture, I’d really suggest giving it a miss. I don’t like MLM anyway, but if you had your heart set on doing something within the MLM structure, there are far better, cheaper and more interesting companies you could join up with.
Forget MLM – Make Serious Money With Affiliate Marketing Instead
I much prefer affiliate marketing over multi level marketing. To me there really is no comparison. Affiliate marketing is way simpler, better and overall more profitable. Let’s quickly take a glance at just some of the advantages affiliate marketing has over MLM:
-
Be your own boss and own your own business
- Work your own hours, online from home
- Travel whenever you want
- Spend more time with family and loved ones
- For the most part there is no recruiting
- No joining fees or buying products
- No direct selling
- Earn residual and passive income
- Create multiple sources of income
That’s just a mere fraction of the many advantages to affiliate marketing. It’s definitely well worth doing and it’s how I make my fulltime income.
Of course, being shown how to do it right helps shortcut the process and gives you a far better chance of success.
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Darren Burton
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