World Financial Group Scams

If you’ve read my article on the World Financial Group Scams you would have learned why people think this real opportunity my be perceived as a scam in some peoples eyes. So in this article I thought I would go a little bit deeper and cover one of the real reasons why some people believe this company is a scam. In this article I’m going to cover the true reason that has helped WFG survive and become a financial giant, recruiting.

The Model Of The Business

Recruiting is the life blood of World Financial Group. Every company has a method to their marketing and with WFG it’s recruiting. In fact this financial giant recruits around 10,000 people each and every month alone making it one of the biggest growing financial firms around.

However in order to join WFG you will have to pay a fee of $100 and pass a background check. This is where things can become a bit confusing for some. Some believe it’s used to pay other reps for hiring new potential reps but this isn’t true.

Their are two main reasons for this fee, first off it cover the administration to get you signed up with the company, and give you a code number. However secondly and most importantly it’s used to create a boundary so only those that are serious about this opportunity will pay the fee. To prove my point I recruited an individual once and he was excited about joining the company but when it came down to putting his money where his mouth was and taking action he couldn’t do it. On top of that if they let everyone join for free you would have so many tire kickers who would join and quit before they even got started.

Why Recruit

So now that we know the type of marketing method they use you might be wondering why doesn’t this company just market their products like any other company out there? The reason for this has to do with the warm market approach.

Think about it if you were selling something would you rather make a 100 cold calls everyday and get a 100 no’s, or would you rather call up your buddy you’ve known since high school and show him a few ideas you’ve been working with. Personally, I recommend the second option.

However let’s take it one step further, with warm market recruiting if I call up my best friend say George, and we get together and he joins up with me and we go over and talk to one of his best friends, Billy, it makes it a lot easier for someone to break into someone elses warm market this way.

On top that this method of marketing is also a lot cheaper. Think about it, in order to make cold call you would have to buy a list of names, or market through billboards, or radio and TV ads. This method of marketing is very expensive and can cost thousands in marketing dollars, whereas recruiting cost are next to nothing.

Why People Believe This Is A Scam

However their is an extreme side to this as well. The down side to this and why people believe the World Financial Group Scam is real is because their are a few bad apple in the bunch. The truth is while working in the company I’ve seen this several times were people will recruit others just to get into their warm market and then once they’ve taken all they can they move on to the next person. This is a rather crude tactic and I would suggest avoiding people like this.

In the end if someone does ask to show you this opportunity take the time to check it out, you may surprise yourself. However look for successful people within WFG to help you. Finding a successful role model within WFG will give you a definite advantage and will help you from falling victim to those that want nothing more but to take advantage of you.

Questions? Leave a comment below.

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.

World Finance Group Scam: Why People Believe This Is A Scam