World Financial Group is a Scam: True or False

By | January 4, 2022

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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

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