Is World Financial Group Scam?-My Honest Opinion
Have you heard about the World Financial Group? You probably heard about it from someone or have been spammed about it in social media. Now, you’re here on this page because it sparked an interest in you. Well, you’ve come to the right page.
Today’s topic is about the World Financial Group’s legitimacy. Some bonus information is about the company’s profile, how it works, how can you earn from it, and the advantages and disadvantages of joining them.
The World Financial Group Company Profile
The World Financial Group is your typical MLM or multi-level marketing type of company. Like any MLM company, it sells either a product, a service, or both. In the case of the World Financial Group, it sells financial services.
Some of its services are mentioned below (for a more comprehensive list, please see the “How Does It Work” subhead):
- Mutual Funds
- Life Insurance
They sell these services through their distributors, which increases in time through downlines and new memberships.
The World Financial Group is mainly operating in the United States, South America, and later in Canada.
The World Financial Group came from two insurance companies, namely; Transamerica and Aegon. In its earlier years, the World Financial Group was called as World Marketing Alliance or WMA. The company was the brainchild of Huber Humphrey, by the way.
In its first year, the World Financial Group opened big. It has over a thousand potential distributors and at least 500 employees all housed in their own building.
Although sure, the company experienced success already in its infancy, and it wasn’t immune to allegations and controversies. In the same year, it was established, a state fined them at least $100,000. In the year 2000, the World Financial Group was fined again at $125,000. All these fines are a mix of problems with lost money in unregistered investments and various complaints from at least 900 people. Yes, what a nightmare, but they emerged from all those trials eventually.
The year 2013 was their booming time. In the United States alone, they have at least 3,500 offices scattered in different states. Not to mention the number of offices they have in Canada and Puerto Rico.
How Does It Work?
First, let’s talk about the range of products and services that World Financial Group has:
- Financial Analysis
- Investing Advisories
- Educational Funding
- Solutions for Businesses
- Group Insurance
- Mutual Funds
- Insurance for Disability
- Insurance for Illness
- Life Insurance
How much do you need to shell out to join the World Financial Group? Don’t be surprised, but it is quite costly.
All in all, you are sure to lay down $500 up to $1000. The cost is to cover for licenses, materials for examination, examination fees, registration, and other miscellaneous costs. To be a member alone, you have to pay upfront at least $100. The $100 is called an “administrative fee” or a “joining fee.”
The World Financial Group mostly recruits students, especially those that are about to leave high school and college. Once you are recruited in their circle, you are called an “associate.”
As an official associate, you have the opportunity to sell the services that World Financial Group offers. Associates can create downlines or members that can sell World Financial Group’s services too. These downline members can then create their own downline and so on.
How Do You Make Money With World Financial Group?
Through selling World Financial Group’s services, your commission can go as high as 65% for each sale. In the World Financial Group MLM world, there are two types of distributors. These two types of distributors are called dedicated and non-dedicated. What’s the difference between the two?
A dedicated member of the World Financial Group vows to sell the services that only World Financial Group offers. The non-dedicated member can sell other products and services other than the World Financial Groups.
What’s critical about the two, though, is the compensation package and the benefits. The dedicated members of the World Financial Group have a much higher compensation package and benefits.
Like a typical MLM company, World Financial Group has rankings too. Each ranking has certain requirements to observe and a certain percentage in commission. Of course, the higher your ranking, the higher will your commission get.
1. Training Associate:
- The commission is at 25%
- The standard to qualify for the rank: In 30 days, you have to make three sales and three new recruits.
- The commission is at 35%
- The standard to qualify for the rank: You need to have three associates, five licensed associates within the team. In 3 months, you and your team need to generate 40,000 points.
3. Marketing Director:
- The commission is at 50%
- The standard to qualify for the rank: You need to have ten associates, six licensed associates, and three legs of personal recruits. In 3 months, your team and you need to gather 75,000 points. The cash flow of $35,000 in a year is needed.
4. Senior Marketing Director:
- The commission is at 65%
- The standard to qualify for the rank: 3 recruits and all of them should be SMD. In a year, your team and you should have rolling points of at least 750,000.
What Are The Things That You’ll Like About World Financial Group?
- They have a very clear compensation plan: This is what’s great about the World Financial Group. Their compensation plan, rankings, incentives, bonuses are all well-thought of. This feature attracts a lot of new recruits.
- Their qualifications for each ranking are quite reasonable: The qualifications needed for you to step up to a higher rank is quite reasonable. This is especially if you add up the fact that their products are more about insurance.
- They have comprehensive products and services: As a distributor, you will have a huge chance of generating sales due to the various services of the World Financial Group.
What Are The Things That You’ll Not Like About World Financial Group?
- They target young people to sell their products and services: Most MLM companies target the inexperienced young adults. Why? They are the ones who are easy to lure. This strategy looks good if you are only looking to grow a number for your own downlines. There are a lot of inconveniences to this strategy. For example, these are inexperienced marketers. Meaning, it’s most likely that they’ll have a lot of limitations in their selling strategies. Some end up selling to their family members only.
- Sometimes, they overhype their financial services and products: This applies to any company at least, but MLM companies are often exaggerated in their promise of sudden wealth. This is what’s inconvenient about MLM companies, they don’t want their reputation stale but do things to tarnish it anyway.
- Their membership fee is expensive: $100 and up is pretty expensive if you’ll ask me. This is expensive, especially if your target market is students who most likely didn’t save up yet.
- Those recruits at the bottom don’t really earn that much: Since it is an MLM company, most often than not, those at the top of the rankings are going to earn the bigger portion of the pie. While the downlines at the bottom scramble on the small pieces of crumbs.
- The company has a weird way of allocating money from their insurance sales: The World Financial Group recruits get as high as 65%. This leaves 35% on the company, the affiliates of the company, and the actual insurance money of the customer. 65% is too high for a commission. 35% divided into different bodies is ridiculous. What would the actual insurance money get? 1%? If that’s the case, that is pretty unfair.
Is World Financial Group Scam?-My Honest Opinion
It’s hard to tell if the World Financial Group is a scam or not, but there are some anecdotes about its unstableness. Allow me to narrate to you some activities that made me a skeptic of the World Financial Group.
First, they have a sort of unethical way of recruiting people in their circle. Although most of these unethical recruitments might not be World Financial Group’s fault, it is still the company’s job to monitor their members. For example, some of their members are staging fake interviews just to get recruits faster.
Second, they usually target fresh graduates for recruitment without minding any skillset or capability. This sometimes shows that all the company wants is to recruit and recruit only. This leaves a bad impression to the general public. If your products are good enough, why rely on recruitment to generate sales?
Third, the World Financial Group is an MLM company. Which means you run with the risk of being identified as a scammer. We all know the horror stories of people who have been scammed by MLM. It’s so rampant that people can’t help but associate MLM for a scam.
My take on this is simple. If you don’t want the risk that an MLM company entails, then don’t invest in one. There are a lot of business opportunities out there that would love to open up to you. For example, you can invest in a safer business venture like affiliate marketing or in an online business.
The most important thing is, to think first before investing. If you are a young adult, it is all the more important to research something that somebody is offering you.
Thank you for reading up until the end. I hope all the best for you in all your business ventures. Good luck!