Recently, if you’ve read my review on World Financial Group, you would have seen a lot of people making comments there. Some good, some not so good. In fact some claimed the company is a scam altogether.
In this article I want to prove to you that it’s not a scam but also address why it might seem like a scam to some. The reason I’m doing this is because I’ve personally worked with the company for four and a half years and not one time did feel like it was some sort of scam.
Why People Believe WFG Is A Scam
WFG does not pay you to recruit.
First off, World Financial Group is a recruiting company. Everything is based off of this idea. In fact, they recruit nearly 10,000 people a month. That’s a lot to keep track of. Of those 10,000 recruits, 10% of them will only get licensed, and of those that get licensed only 10% of those will make it to the 5 year mark.
Why is this?
Generally speaking there is a high turnover rate in this business, especially if your only working on commission, which they are. This means you only get paid when you deliver. This means you have to sell to clients and if you can’t do that you won’t make any money.
By recruiting people it allows someone to break into other warm markets. I did this all the time and I can tell you this, it is much easier than cold calling or sending mailers. Don’t get me wrong the other two option work but they don’t deliver nearly as good results.
WFG is not a pyramid scheme.
Secondly, a lot of people are under the belief that the large amount of recruiting they do is considered a pyramid scheme. So in order to prove that it isn’t I will define a pyramid scheme. Here is what Wikipedia says:
A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered. Pyramid schemes are a form of fraud.
One, WFG does charge a fee to get started, but it is not in any way ever paid to any person in the company, much less the people who recruited them. The fee actually goes to the corporate headquarters to get them set up in the system, do background checks and start up materials.
World Financial Group is also a business opportunity, which requires an investment to get involved. Think about it this way if you were to start your own McDonald’s Franchise you would have to pay them just too even carries the McDonald’s name.
Two, under the definition of a pyramid scheme it also says that you don’t actually deliver any product or service. World Financial Group has been selling life insurance and securities products for years. They also give consolations and investment advice. Need I say more.
WFG reps have licenses.
Third, in order to get paid by WFG you must have a license. While I worked with the company I had a life and health license and a series 6, and 63 licenses to deal with securities like mutual funds.
These licenses were the only way I could get a paycheck, not through recruiting or some other bull crap lie.
WFG works with large financial institutions.
Finally, World Financial Group is in business with financial companies like Transamerica, Western Reserve Life, Prudential, American Funds, and the list could go on and on but I think you get my point.
These companies would not be in business with WFG if it were some pyramid scheme trying to rip people off.
One Last Thing To Think About
One last thing I want you to think about before I end this article and that is no one can know everything that is going on inside WFG at one time or another. This also goes with all the other financial institutions.
Even with all the government regulators, quarterly interviews, regulatory compliance meetings, and even up line over sight of all trades it’s always possible to miss something. There is always a bad apple somewhere, and it’s these people who make the company look bad.
Think of all the bad things you’ve heard about Wal-Mart or McDonald’s. Great things happen every day within these companies but when just one bad thing happens everyone remembers it like the plague.
WFG is no different, they have helped family after family from falling it financial ruins, but then there’s that one agent who messes up and that’s what everyone remembers, when in reality that has nothing do with the company and is just a onetime indecent.
I know I will catch a lot of flak for saying this but unless you’ve been there and helped families from falling into the financial abyss I don’t think you have any room to talk. I’ve been there and done it and now there are a hand full of families that I’ve helped that will be better off now all because I took the time to give them a call and ask if they needed help.
I can’t think of better way to help people. So before you say World Financial Group is a scam take a step back and think before you speak. You are talking about real American families who are working to support their families and help others.
Chris
{ 5 comments… read them below or add one }
I am currently being trained at WFG. I have gone into the field with my trainer and have met families who needed help. The quality of training is excellent because I get lots of individual attention. I can truly say people who work for WFG really do care.
I’m glad you’re giving it a shot. WFG can be a very rewarding career if you stick with it. Most people never get as far as you are because they are scared to take risk and you are doing that which is why you will have higher odds of being successful. Good Luck!
No REPUTABLE company would have you pay for a background check.
Ever.
That should be your first warning sign.
WFG does not charge for a background check, they charge the $100 fee because it is a business opportunity not a job. When you sign up with WFG you are starting your own business. That is why they charge a fee.
In the article, you referred to WFG charging for background checks, but in your comment, you said that they don’t charge for background checks. That seems funny to me.
Anyways, WFG falls under the same base category as other MLM (multi-level marketing). I think it’s really hard to argue that point. There is nothing wrong with MLM; It is not a scam. However, the truth is that these companies will give you vague details about what you are going to be doing, oftentimes lie about certain things in the recruiting process, and definitely over stretch the amount of money that you will be making.
I had my own experience with WFG a couple of years ago. There is potential in groups like this, don’t get me wrong. It just involved time and effort that I was unable to give (my recruiter asked me to drop out of college, for instance). She did seem really concerned about the state in which most families finances were in, so I felt as if she genuinely cared.
Moral of the story is it’s really up to you. Just know what you are getting into before you pay that $100 bucks.