World Financial Group is a Scam: True or False

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Are you thinking of working for the World financial group as a financial advisor, or have you run into folks who concluded that the World Financial Group is a scam? Even if you are just curious and want to find out about the company, you are in the right place.

 I will work with you through the company, its structure and products, and how to join as an associate. After reading this review, you will ascertain if it is a viable option for you for business or an investment opportunity. 

World Financial Group is a scam – False

world financial group products
World Financial Group

The world financial group is not a scam. It is a company that trades in financial products and uses the multi-level marketing model to grow its business. As of 2019, the company has increased its associate network to over 42,000 members, paid out more than $700 million in commission to its associates.

 As such, it is evident that it is not a scam. What we must find out is the business structure of this company and how difficult it will be to make money from investing in such a company. Before we begin this journey, let us see the history of WFG.

History of World Financial Group (WFG)

World Financial Group started in 1991, about 30 years back, when Hubert Humphrey left Primerica. It was then known as Alexander International, which changed to World Marketing Alliance.  

The company used the multi-level marketing model for financial products. It was a business model Humprey designed at Primerica, which he then called the Business Format System. He developed this marketing model and expanded the World Marketing Alliance (WMA). 

He expanded the company to other locations with his creative marketing skills, including Canada and Mexico. As of 2000, when the company had its first convention in Las Vegas, it had more than 2,000 associates in attendance. 

This growth process has not been smooth. The company has had its share of fines and penalties from several regulatory bodies between 1991 and 2000. I believe it must be due to its practices and business model. Aegon finally bought it and renamed it World Financial Group in 2001. 

When Aegon came on board, they declared the implementation of a strict control and compliance procedure to ensure that their day-to-day operation continues smoothly with little or no issue. 

Aegon has grown to over 42,000 associates with more than 3,500 offices in the United States alone. The company is situated in a suburb of Atlanta – Johns Creek. They do not less than $150 million in sales, while their agents make commissions from their sales and sales of those they recruit, which reveals the multi-level marketing model of the company.  

And they are known to provide investment funds and retirement accounts amidst the multiple financial services they offer. With this said, you can see why I fault the statement that Financial World Group is a scam. 

Products of World Financial Group

Let me establish a fact first, WFG does not sell tangible or physical products. They sell financial products and are intangible; they include car insurance, annuities, life insurances, investment accounts, and lots more. Worth mentioning is that their agents also sell products from other partners. In a nutshell, their product line is very complicated and tricky. 

The sales of financial products that are MLM-based are very different from nutritional or health products MLM like Vida Divina or forever living products. Selling WFG products will be much more of the traditional marketing method, and it is going to involve in-person discussions. 

Although some agents harness the power of Facebook and other social media to generate leads, they still do in-person marketing to convert these leads to sales. There is always a need to make much information available to their clients before the conversion can be achieved. As such, the agents themselves must spend a lot of time in training to gain expertise with the products they sell. 

These products are not a good fit for everybody. They are very much unlike Mary Kay or Vida Divina Tea, so the agents always search for a specialized audience. 

The World Financial Group Recruitment Procedure 

The World Financial

Group DOES NOT hire agents or associates by itself. The system is built on a recruitment process where one agent recruits others. It is purely the multi-level marketing (MLM) process. 

On joining WFG as an agent, you have to pass a licensing exam and get on a fast track by recruiting three new members and starting three training sales within your first 30 days. Although the model is an aggressive marketing training, it triggers suspicion in my head. 

The agents are left with no option but to buy the products and make an aggressive sale to friends and family. Thus, many of the so-called sales are from its agents; this is a typical characteristic of a multi-level marketing business model. For me, it is a red flag, making WFG a no-go area. You will see this in their diagrams reflecting their model. 

World Financial Group
World Financial Group Model

How Much Can You Can you Earn As a World Financial Group Agent 

Like I said earlier, as an agent, you earn a commission when you make a sale or when agents you recruited make a sale. Let us ignore the odds with MLMs and the various negative tags around WFG. Let me give you another reason why WFG will not be a good business for you to join. 

If you have a contract level of 100%, you will earn 100 percent of the first year of the contract you signed. It is very much unlike my number one recommendation for you – Affiliate Marketing. I get involved majorly in high ticket affiliate programs with recurring commissions, like Wealthy Affiliate. Such programs naturally have products that keep your referral, and you continue to earn as long as your referral remains in the program. 

Cost of Joining World Financial Group 

You will need a sum of $100 to join the World Financial Group. To get the products, you will need between $500 and $1,000 for the products to be licensed to you. Do not forget that there is a rigorous registration process, and you need to pass several examinations to get started. 

Apart from this initial cost, other associated costs include $30 for a lifetime license and investment adviser costing $125. 

Apart from this high initial cost, the multi-level Marketing model of WFG is another red flag. 

Why I won’t Join MLMs 

There are various MLM businesses around the globe, from drinks, health and wellness, skincare products, and lots more. Below are reasons why I think you should avoid this product 

  1. They are challenging to climb to the top. Only a few, in fact, those who start first only make the bulk of the cash. 
  2. They always emphasize recruiting others more than solving the needs of customers. 
  3. While products like drinks and skincare can be harmless, investment products need to be taken with much caution, and you need properly schooled agents to push them out. 
  4. MLM is characterized by pressure and sales to friends and family. I avoid friends and family involved in MLM. 
  5. The story in selling MLM is always the same – Recruit three people and gain hundreds of people working for you in the chain. We know it is all lies. 

World Financial Group is A Scam – Conclusion

It is a legitimate company that operates based on the multi-level marketing business structure. The World Financial Group is not a Scam. I must appreciate that the quality of their system is impressive but breaking through with their business strategy is difficult. I will not recommend it for any body as a business model. 

But I disagree with their claim on spreading financial intelligence to people who needs it. The package with which they want to extend financial intelligence is expensive. Rather than share the knowledge, their agents see it as a money making opportunity. This is why a lot of folks who do not succeed with the system claim that world financial group is a scam. 

My number one Recommendation 

I worked in the finance industry for more than eleven (11) years and I have also gotten involved in multi-level marketing. I was made to think that Multi-level marketing was my winning ticket of getting out of the rat race. I was in this circle of struggle until I found the real way to create wealth, both passive and active. 

Precisely in 2020, I discovered a training platform that I joined for free. Yes, I joined for free. It offered step-by-step training that taught me how to start my own business online. It is ideal for both newbie and experienced hands. I joined, knowing nothing. 

I joined for free, knowing nothing they thought of me, and provided all the tools I needed to help me get started with this website. 

How They Helped Me Start Earning Online

The business I was introduced to is called Affiliate Marketing. It is a business model where you make money selling other people’s products to those who might need the product. The good thing about this model is that you do not need to start with $100, and you do not need to make payment for any product. 

That sounds interesting; another good news is that you can work from the convenience of your home. You do not need to go about marketing to friends and family. Also, you can start right now and learn Affiliate Marketing for free from Wealthy Affiliate. 

Wealthy affiliate is not just a training centre but a community of affiliate marketers taking the lead in affiliate marketing and blogging. You can join for free and see if it works for you. Click here to join wealthy affiliate for free

12 thoughts on “World Financial Group is a Scam: True or False”

  1. I can see that World Financial Group is indeed not a scam, but it is MLM and I have found that I am just not good with a MLM program.  I can’t sell or get anyone to join, or anything like that.  Definitly looks like something that you could make money at, but I would need a sort of personal trainer to figure out how to be successful with something like this.

  2. I worked for a MLM company, so know that it is almost impossible to make money with them if you are not continuously recruiting and building your downline. There is more emphasis being placed on recruiting, than on selling. 

    I am curious to know if World Financial Group is registered with the financial authorities to be selling financial products? The fact that they were previously fined for irregularities, makes me want to stay away from them. Thanks for the warning, they might not be a scam, but use the dubious MLM business model. 

    • Great, thanks for a share of your experience. How I pray other folks will read this. WFG is not a scam but they use the mlm model of business, that makes it another rat race for those who joins late 

  3. Thanks for your World Financial Group review. It appears to be legitimate, but I personally don’t like MLM business models. However, at the bottom of your review, you mention a program called Wealthy Affiliate. I clicked on the link, and found that that is a program I can get behind. I see that you can sign up for free and you get a lot of training, even with the free version. I’d rather a business model like Wealthy Affiliate over the World Financial Group.  What’s your opinion? Do you like Wealthy Affiliate better?

    • Yes Shalisha, 

      I love Wealthy Affiliate and it is my number one recommendation when starting an online business or any form of digital marketing. They have a standard training that you can take advantage of and they have very good tools to help you get started 

  4. I am always wary of MLM schemes even though I know that there are good and bad ones out there as there are with every walk of life. It seems that you have investigated some of their pros and cons but it’s always difficult with these things to know the real truth until you are involved too deeply sometimes. That’s where reviews like yours can help save people from getting sucked into a dream that may or may not prove lucrative. 

    • That is the whole essences of the review – to help save people from scam and difficult online business models. WFG is not a scam, it is a legit business but it is difficult to promote. this is where affiliate marketing and blogging comes in play 

  5. MLM is definitely Not for everyone. I still feel that some people just has that “It” factor to make MLM work. And to be honest women tend to have the most success in it. When I was with Beachbody 95% of all the awards went to women and there is an actual psychological aspect to that. With affiliate marketing every one is on the same playing and Wealthy Affiliate is a game changer.

    • I appreciate the way you shared your experience. Everyone cannot do well with mlm. Its a food for those at the top 

  6. This blog is really good in the sense talk about a competition in MLM by saying what it does, its pros and its cons and how Wealthy Affiliate (WA) really is the winner to choose from the competition! This is kind of 3rd or 4th blog, that I got hit with the pyramid selling business and the form here is called Business Format System or World Financial Group! It is legit because it provides earnings but its foundations are on pyramid business model of high recruitments; and stiff conditions to grow to the top, because top receives higher commissions! Well done! I’m looking forward to understand more such MLM, which are legit and run with pyramid selling in the backdrop! This for sure tells people how WA is different, free and affordable and becomes a carrier over a period of time! Thanks for providing the opportunity to comment on the blog! Have great times! 

  7. I have been looking to invest in the stock market, I want to find some index funds because I believe they are safer than stocks. Please correct me if I am wrong.

    I do not have lots of experience with the stock market and would need a financial advisor to help me but to find an advisor who has your interest in mind can be hard at times.

    I would be interested in an investment account so I can save for retirement. 

    It is a great idea that new recruits have to pass a licensing exam so they do know the ins and outs of the company and then can give more accurate information to the customer.

    The fees are reasonable and I would get the investment advice for $125 dollars.

    I have learned a lot from your article



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