The year was 2006. At least I think it was. Do you expect me to remember that far back?
First, a little background about the company in question, World Financial Group. I’m going to abbreviate the name of this company to WFG, since there’s no way I’m typing that out 52 more times for this post. Anyhoo, the company is basically a pyramid scheme masquerading as a financial services company. That blanket statement is a little unfair, but is basically true.
WFG is wholly owned by Aegon, a large Dutch insurance/investment company. The company employs a bunch of independent sales reps, who each operate their own office, if their basement counts as an office. The sales reps are able to sell a bunch of different mutual funds and life insurance products from Aegon. Much like regular mutual fund salespeople, they’re paid one of two ways- either from sales charges (front end loads on mutual funds for new customers) and trailer fees (part of the management fees paid by current customers).
The company’s big push though, is in recruiting new reps, where the pyramid part of the scheme shows up. If an existing rep recruits a new rep, that rep gets a percentage of the new person’s income. If that new person recruits someone underneath them, the pyramid becomes two levels deep, and the original person at the top gets a smaller residual from the newest rep. Obviously, you want as many people underneath you as possible. I’m going to refrain from making a “that’s what she said” joke. Except I didn’t.
Back to my story. I worked with a guy who was quite interested in investments. We would spend break time together discussing various financial topics. It was nice to spend time talking to someone who wasn’t a financial moron. After a while, he quit the grocery store we both worked at, determined to find his future in financial services.
A few months later, he contacted me. He knew I had a couple of bucks to invest, and he had some great stuff that his company offered. I wasn’t really interested, since I have a pretty big hate on for mutual funds. He offered to buy lunch though, knowing my weakness for free food. Combine that with my friendship with the guy, and I was willing to give this a shot.
I show up for lunch, and quickly the meeting turns away from my investments and towards my future plans. He laid on the compliments pretty heavily, even saying I had the greatest financial mind he’d ever met. I responded, telling him he clearly needed to meet more people. I was confused, why was he kissing my ass so aggressively?
Quickly, he dropped the bombshell. He wanted me to come work for WFG. He was making all sorts of money, the job was awesome, blah, blah, blah. He mentioned how I could do it part-time, while keeping my job at the grocery store. At that point, it hit me. WFG was Primerica junior. Besides, who’s gonna trust their investments to some guy still working at a grocery store?
Flashback inside the flashback time: When I was 18, I thought I wanted to become a stockbroker. Somehow, I found out about a Primerica meeting in my area. I went, got excited about the whole concept for about 20 minutes, then quickly saw through it. All Primerica cared about was getting more people in the pyramid. Apparently you were basically fired if you didn’t recruit aggressively. It was obvious, even to 18 year old me, that the reps that worked for Primerica were the bottom of the ladder of the financial services industry.
Back to the lunch meeting. I was intrigued, so I let him finish his spiel. This is where it kind of got weird.
He outlined WFG’s big bold plan for their clients. If you bought into the plan, you’d never pay off your mortgage. You’d get a giant line of credit for a mortgage, just paying the interest on it every month. You’d then take the money that would be going to principle and investing it. Since the stock market traditionally does better than the real estate market, the argument was that you’d be better off, long term, if you funneled all your excess capital into the market.
There’s just a couple of flaws with the plan though. The stock market is prone to the occasional 30% drop. We’ve seen a couple of them over the past decade alone. This would be especially painful for someone who held close to all of their portfolio as stocks. And the other flaw is, how does the mortgage get paid if you’re only paying interest? Most people look forward to paying off their mortgage. They value the freedom that brings.
WFG agents love this plan, and I’m sure the one that came up with it got an extra hearty slap on the back. The more money the client invests in their funds, the more that rep will make in fees. The plan has just enough plausibility to make it believable. The numbers might even make sense. Most people though, will choose to pay down their mortgage, and rightfully so. Besides, most people don’t have the discipline to stick to the plan past the first major stock market correction.
After that, the lunch meeting turned into a pretty hard sell job. He was all about telling me how successful I’d be. I’d be making tons of money in no time. Never was there any mention of the pyramid scheme. Gee, I wonder why that was? I fairly quickly (and politely, cause at least I pretend to be a nice guy) told him that I wasn’t interested. It seemed like a pretty poor way to sell mutual funds, a product that I wouldn’t want to sell in the first place. So saying no was a pretty easy choice.
Yeah, that was kind of an anticlimactic end to that story. Does anyone have an experience with WFG that was a little more exciting?
I remember WFG and I think my wife’s uncle was involved (and tried to pitch it to my father in-law). Of course, this guy is involved in every pyramid scam out there…he tried to get me to invest in ATM machines in Spain of all places, saying they don’t have ATM’s in Europe like we do here. Umm, I’ll give that a pass.
Anyway, you’ve got me curious about what ever happened to his WFG exploits. I’ll find out and report back, hopefully with an exciting tale.
Did you ever find out what happened? I’m literally waiting on pins and needles over here.
WFG is legit.
WFG is copartners with transamerica and Aegon is their owner. becuz the company doesnt pay for marketing like other large companies they pay an average merketing amount to the company for helping a family or person and an associate of theirs gets paid a percentage based off of their position in the company, becuase you have the option of starting people with the company you just et paid a higher percentage it has nothing to do with a percetage of your associates paycheck. their is about 17 ways of getting paid wtih the company and we get paid 8 times a month. so before you guys start assuming you know about company research it with an open mind, not thinking you already know what it’s about cuz obviously you dont. your grocery store job is more of a pyriumid then world financial group. it’s a lot easier for me to get to my bosses positition the you get to yours. they deal with a lot more then just mutial funds and annuities, even more then life insurance.
they truely help middle class families figure out how the rich stay rich and how they manage their money. on top of that they provide a great career plan for associates, they are helping the ecomony in so many ways and i’m blessed to say im apart of the company!
It would be easier to take you seriously without all the obvious typos.
Bwahahahahahahaha!!!!
MFG is legit.
I have been with the company a month now and already the decision to work as an associate part time have benefit me and my family financially. Unless you investigate for yourself, it will be impossible to think outside of the box when you trust on another mans opinion.
I read pyramid scheme as a big misunderstanding as there are many people worldwide who make a good dollar by helping others do the same through the MLM scheme. The groups in North America are small compared to many other countries. We in North America are pretty closed minded about ways of earning an income. People in other lands are far more open to options other than job (HEHE Just Over Broke in many cases HEHE) If they have a legitimate product that is used and/or sold there is nothing illegal about the business.
I you think it is a scheme then possibly some learning about the business idea is in order. Take a look at ACN, Shaklee, Amway, Melaleuca. Even huge corporate organizations like IBM use networking to move their product. AH!!! maybe there is something legitimate to learn about in MLM stuff
I believe it was Anthony Robbins who understands business a bit better than most people who studied the MLM system and called it Franchising Squared A pretty good comment from a pretty smart open minded guy
Wikipedia says:
World Financial Group (WFG) is a financial services marketing organization based in Johns Creek, Georgia that markets investment, insurance, and various other financial products through a network of associates in the United States and Canada. It is a wholly owned subsidiary of AEGON.[1] Although WFG is publicly referred to as a Network Marketing company, the company has released several illustrations describing it as a unique hybrid business model utilizing aspects of network or “referral marketing,” franchising, and corporate business models.
No experience with this. Though, I thwarted a really annoying HR person for a so-so firm. Still a joke of a firm, so whatever.
I find this kind of system interesting though. First, because I’ve heard jokes about Primerica but didn’t realize it was a MLM. Second, because it would seem to me that having reps chase other reps would be pretty counterproductive. I mean, at the end of the day they make money by selling investments to investors, why make people spend so much time recruiting for more salespeople?
I think the reason is because they know that their model is pretty bad at selling investments, so they try to recruit people in the hopes that the can find someone good. Also, I’m sure the company wants to expand too.
You’re all a bunch of clueless folks full of opinions and hear-say. As soon as you’ve found out that these schemes go contrary to JOB mentality, you label them as scams. You would rather kiss ass 8 hours a day on someone else’s terms rather than polish your own asses and be rather proud of it.
Uhh… Have you read the rest of my blog? Obviously not.
Employees will always be employees, wondering if they’re gonna have a paycheck tomorrow. If one doesn’t understand WFG, then he or she must be the one who is always be crying about the economy and depending on the government. Hahaha!
Licompratix, why are you getting so upset and defensive? Chill out. Is it because you work for WFG?
By the way, there are plenty of people who know how to run their own business, be their own boss, but have integrity in what they do and hold a high standard of expertise and excellency in what they do. And some of those very people look at WFG and disapprove. So don’t say it’s “clueless folks full of opinions and hear-say”. Some of these people have more letters behind their name, own more property, have run more businesses, and have bigger bank accounts than the person that you report to. They certainly aren’t clueless dumb folk. When those kinds of people talk, I would listen.
Where does ethics and substance come into WFG’s business model. No one is labeling WFG as a scam, just a flawed business model which provides no goods or services to society. The end game doesn’t look too good for WFG if they can’t recruit young and gullible folk. Without the added theatrics of minor investment products, you are left with a pyramid scheme. All you have to be proud of is your title as an “opportunity salesman” which is just as comparable to a telemarketer, because in essence, thats all WFG agents are.
Thank you.. We still need people to bag our groceries man so let them think this way lol
If you dont have big goals and dreams ? you will work for someone that dose lol have fun.
I was really hoping for some sort of pity the fool reference.
If you work for WFG, you make money by selling financial products and by recruiting people because the more people you get underneath you, when they make money off what they sell, you get commission on that.
It’s not even the whole “pyramid” business model they have that bothers me. It’s that they have no consistency with the “expertise” that they’re SUPPOSED to have as “financial advisors”. WFG hires anybody who can walk and blow bubble gum at the same time (because the more recruits you get under you, the more money you can make). Their “financial advisors” are not required to all achieve a certain level of education or or to maintain it. There’s no standard set that’s consistent through out the whole organization. A lot of their advisors don’t even know what schooling they should have under their belt to advise people on their finances and financial planning.
I went to school in finance and I’m halfway through my education and certification. I had a financial planning presentation in school where my instructor invited financial planners and advisors and managers from all the big financial firms and banks to be our live audience, to question us, to critique us, and grade us. My instructor wasn’t familiar with WFG but someone he knew introduced a guy from WFG to my instructor. So my instructor had WFG come to our class presentations. There was one moment where, as the current group up at the front presenting was answering questions they were grilled with by advisors from Investors Group, from Freedom 55, from RBC, and others, one of the girls from WFG decided to throw in a question. I’ll never forget how the room was stunned. I don’t remember the question anymore as it was two years ago but the WFG girl asks her question, I think it was something about “why did you decide to recommend Critical Illness when Life Insurance….” something or other. And the group up there gave her an answer that was correct, and shamed her for asking the question. All the others in the room looked at her in silent chuckle I could tell. She should have kept her mouth closed but she decided to open it and ask a question that she clearly thought was a good question to grill the group up at the front.
In short, WFG reps come in all shades as ANYONE can get hired. And within their company, no required level of education or knowledge about the products they’re selling exists. None of them understand financial planning in its entirety and they’re mostly driven and pushed to bring in new recruits rather than KNOW what the heck they’re doing when it comes to doing your financial planning.
No required level of education or knowledge about the products they’re selling exist? This is not True!!
An associate of MFG must attend financial classes and take an exam to become license.
Without being license an Associate will make NO MONEY…
learn before you speak..
The point of that was to say you don’t need any PROPER education to make money.
The money you earn is not hard-earned money but rather money you have taken from friends/families who you have recruited. This does not take any academic knowledge nor does it do any good to the society.
Sure, you may earn money but that’s the end of it. You did not discover anything that may change the face of the earth or help another human being through your work. Now that is some unethical earnings. This is why we call WFG a pyramid “company.”
If you want money, go ahead but you’ll soon find yourself to be disrespected in the society.
WFG associates sell mostly insurance and retirement plans. Without making sales there will be no revenue, as there is no commission for getting new recruits unless the recruits make sales.
Insurance and retirement plans are a service to society – as such I see no reason to disrespect WFG associates.
WFG is kind of like any other business in the sense that the larger and stronger your team, the more everyone benefits.
This guy sounds like he broke some kind of WFG secret code! Funny when people talk about what they don’t understand.
[...] Ever had an experience with Primerica or World Financial Group? Many people think both companies are nothing but a scam, while others have had great success. Go check out my story about my experience with WFG. [...]
I was into WFG for about 1 month. Even went to the convention in Vegas. The Comvemtion of Champions as it was called is nothing more than a rah ah for the big shots. Than there is a day of how WFG made me a millionaire. All stories sound the same. Working in so bad job and recruited be WFG for ther own besiness. 2012 the mission is to “help” 100000 families in 100 days. Forbes Mag. had as ad in the July issue. What isn’t told is to help one familiy you might have to bother 80 people to get one in. To get you name in the Oct issue you have to get 30 families to join or Hlp. Think about it that is 2400 people to get the 30. Yes I had dreams of my own business when I joined. Why do you think the CEOs and VPs want you to do this? Because THEY want more money. Every year 60% drop out. You might think but 40%stay. WFG wants you to stay for 5 years. How many make the money they say you could after 5 years. not many. If you can stand being rejected be you family and friends go ahead and join. When I was in Vegas Nobady talked about anything else. Just WFG. It could be a cultish kind of way to live. But it is not for me.
I was invited to the WFG seminar one day by a friend of mine . I was a little bit skeptical when i met my friend’s friend ; when they explained to me about the whole process of what they are doing . I went there and attended the meeting . One award thing i found out is , before they initiate their ceremony , they greeted all the new comers in ” GOOD MORNING ” , i have no idea why they say ” Good Morning ” but instead they should have greeted Good Evening since it was 8 PM . I am so positive that i was a pretty Good observer . Fist , i thought it was a mistake . I also found out the Pyramid symbol which is weird . So i was more intrigue to find out their back ground and their intention for this recruiting people so aggressively and more like they are trying to brain wash and convince you as soon as you are in their seminar . The woman who gave us a presentation was basically a house made . She is from Philippine . I like the fact that she is being honest about her life and career . But when i asked her Business card , she inclined me that she don’t have one but then later the gentle man next to her seemed to be approved by his eyes contact . Then she came up to me and handed me her business card with a smile . I looked at her business Card and it said – marketing director . I was pretty much impressed but i wonder why this is obviously inconsistent in a way she claimed and presented as how her previous job unable her to make money but unlike the privileges she gained when she join WFG . I Just wanted to give you a glimpse , it just don’t really make sense . Be careful guys !! I know that we all are trying to find ways for our better future with the same concept of making money behind that and apply to make it reality but instead you will end up quitting your career and finally stuck in the pyramid cycle . Go there for yourself , and you will find out what it is .
Lol… MassMutual tried to recruit me, who is WFG…. how about that huh?
[...] Aside: Go check out that time I was “recruited” by World Financial Group. [...]
Here’s my story….Got invited to the WFG Convention in Vegas!!!! Though I was told it was going to be a life-changing event, my suspicions lingered. Just like many companies they have testimonials…these people seemed to have been in REALLY bad places before coming to WFG. But if we all think about it..most AMERICANS ARE, they’re just in DENIAL!!!We witness it on TV all the time!!!!
-Spending down on a 401K to maintain expenses! – Suze Orman Show
-Mortgaging a home that worth less than what your paying! – HGTV Real Estate Intervention
-Holding onto a small-business that’s Tanking! – Restaurant Imposssible/ Hotel Impossible
-Crappy Job/ No $$$ to send your kids to College! – Dirty Jobs
The guy who started this Blog is working at a GROCERY STORE for goodness sake??? Are we for real! We’re judging a company who’s purpose is to HELP ALL AGES SAVE FOR RETIREMENT? Grocery stores don’t offer you a 401K…if you ask me you should have opened up a policy and INVESTED in YOUR FUTURE vs. WAITING for SOCIAL SECURITY to send you a check, Moron!!!
{Our issue in America is complaining and judging those that want to do something about their financial troubles and thinking it’s okay just to have intellectual conversations about stocks & finance while we force ourselves that we love our MISERABLE JOBS. We aspire so bad to reach that level of success and professionalism, that we’re willing to judge those on their way to the top (who merely CHANGED the way they think). While we take our lunch break at the Grocery Store to blog about our opinions via cell, then clock back into work and ask PAPER or PLASTIC!!!!}
Thanks for the crazy Joanne.
To Joanne T.
Many on this blog who have supported WFG have made the statement “get the facts before you talk” and I think that standard applies to all of us.
Shaw’s Supermarkets started its 401 (k) in 1975
Market Basket has a plan originated in 1990
If you are in the financial services industry you know how to research Form 5500 filings and you will find many grocery store/supermarkets that offer 401(k)s.
I do not support ANYONE disparaging an individual or firm that is earning an honest living.
And no, I do not work for a supermarket or any other retail company, but I am glad that many people do, or shopping would be impossible for me.
I could not be happy working the hours or handling the demands of being a surgeon. And many have “God complexes” about their work. But that does not mean that what they do is less important or not as good as what I do.
We should ALL have a little more respect for our working neighbors.
Of course, you know (or should know) that no one can sell any financial product in this country without being licensed/approved by the Department of Insurance, SEC, NASD and/or the FTC. Therefore, if WFG is a pyramid, then where does the pyramid scheme really lie? McDonalds, Jack-in-the-Box, grocery stores, etc. — all have to have some sort of approval/licenses to do business in this country and those countries abroad. Agents (all alike) are paid as 1099 (with privileges afforded to business owners), rather than W-2 (without). WFG only sale to people who want to buy, and recruit the ones who want to take charge of their own destinies. Who has mastered and/or shares the wealth building concepts to middle-class america (how money really works)? It is not taught in any educational institution (public or private) in this country. The last I saw “too big to fail” companies took our monies without a vote from any one of us, and then taxed us on top of that. Please comment (if you can) on from where did Warren Buffet learn the concept of wealth building while you continue to research/criticize WFG. Bottom-line, after the smoke clears, “how much of your hard earned money (either by 1099 or W2)) can you really keep?” By-the-way, in what position are you (grocer) skeptics on the food chain?
I’m trying to find the company that produces the most million dollar earners.
So far from what I’ve found.
Primerica is in the lead!
The most seven figure incomes earners and six figure as well.
Has anyone else done any research?
Please let me know and share…………
I confused. I want to know the true. What is going in this world.
This is wrong and this person doesnt unstand wfg.you dont have to recruit it is up to you and you dont invest to money you turn it over money mannager and name brand companies and they started wfg because of the promblems with primeamerica.why is transamerica merged with them this year if they are so bad.only a looser would write this garbage.
Here will be my experience at WFG. Sorry if this is too long. I have currently been applied as a business partner in the WFG program through an introduction from a long time used to be friend of mine. After a few messages he has sent me this information and these are the exact words used. “Mm well its not only geared toward finance majors. Ur gonna hear the corporate overview of the company. Meeting the ceo and many branch managers. I cant give specifics via phone talk or text. Its best if u come for yourself. If u dont like this job. I can recommend u to my temp agency to get u a nice paying job.” These words came out after saying he has a job lead but there is no job that I am applying for. This conversation started in December 16th and he finally gave the company name on December 20th. When I asked him is this a career event? he did not answer. I looked up WFG and all the reviews written but decided to trust my long-term friendship. After the first meeting in December 22, and after watching the corporate overview, they wanted me to set up an interview within 48 hours. Me and one other person I brought made the interview to be December 23 at 10:00 am. We were there 15 minutes early but the main person who was interviewing us came 10 minutes late and the friend that invited me came 40 minutes late. He was either acting or was really mad at the friend that invited me for being late. At the end of the interview, we were told we needed to sign up and no questions were asked if we really wanted to join. Now in this signing up process, he asked for my social security number. Yes it was an information needed to sign up but this is private information. I was not smart enough at the time to confine that information and I am regretting this right now. Paying a $100 fee for first becoming a business partner was required and this was not such a problem because yes there are companies that do this without doing a fraud to the individual. And at the end of the interview I asked “How will we find clients?”. He said “We’ll help you through that”. I told the friend that invited me after the sign up that I will not recruit any of my friends. He said that “that is not the point”. After the sign up, I attended another meeting and I was shocked to understand the end of my friendship with the person that invited me. I will not reveal what I have learned there because I am trying to sound as neutral as I can about this event and I am afraid on how current WFG workers may react towards this. When I asked about getting clients or license first, the answer was “Worry that later cause we will take you step by step at a time”. I am currently trying to get my account terminated from this company as soon as possible but I do not no how since this company does not “fire” anybody unless they are doing any illegal activities. If anybody knows how, please write the procedure down for me. Not saying this company is fraud, its just my experience there was not really amazing and I don’t want my personal information in the hands of the company I am not planning to work for.
Jake,
It seems like WFG and the sales side of the financial industry may not be a good fit for you. First, working at any financial company as an advisor/broker/associate/etc is a sales job…often times paid via commission only. And since newbies have no experience dealing with any other people in that capacity, they are often trained to prospect their “warm “market for leads…simply put, sell to friends and family. However, you are new and do not wish to experiment and gain your experience making mistakes with the financial well-being of those close to you.
WFG is not a scam…those of you who’ve experienced it through new associates are simply dealing with people who do not have enough experience and think their job is only “recruit new associates”. That is not required, but like any business, you will do so to expand into other people’s networks. Every company does that…call it recruiting (every branch of the military, Avon, Amway, all banks, sports industry scouting, etc) or advertising (I won’t assume that anyone reading this blog lives under a rock and can’t create their own mental list of companies’ need to advertise). As with any other mostly independent company, your experience is sometimes only as good as the manager/mentor/associates who are in charge of smoothing out your experience through the process. Oftentimes, as in the case of WFG, the company is too big to ensure that everyone is having the model experience. And the process is sometimes outside your comfort zone because you are new to that type of work experience. The hard part is that it’s not a job that pays you a salary…you have to create that yourself…you own the store…find the customer/client to buy your services since they are out there buying from someone else. However, you need to hone your skills…sales skills, product knowledge, and the art of human psychology. Think of some of your doctors/dentists/chiropractors/lawyers/etc who are in a private practice…same thing. Get license, get experience, take more continuing ed classes to always be learning new procedures and laws, etc, rent an office, etc, convince clients from other practitioners to come to them because they feel their service/skills are better. If you saw some of your classmates advertise their medical or law practice, would you use their service? Some of them you would and some NO…because you remember they were goofballs in class! All industries have goofballs! But some of your classmates were brilliant and you’ll gladly give them a try and stay with them unless they make constant errors and you find a more capable practitioner to give your business. The same process is going on at WFG. Some associates are working in unfamiliar terrain and don’t understand the financial industry or the products…and not all the products are created equal or meet all your needs. Then you have individuals who are only in it for themselves and look for the quick buck approach…those are the ones you should avoid like the plague!
My only agenda was to advise you to resign by submitting a letter of resignation. It’s that simple! However, if you do not attend meetings or partake in any of the events, make any sales (which you can only do and get paid for if you’ve passed your exam and are actually licensed), then you naturally fall off their grid through an “Inactive” status. But the letter of resignation is best if you were assigned an associate code, etc. Good Luck:-)
If anyone else in the NY/NJ area wants to understand this industry from a well informed point of view and wish to consider it as a viable business model, send me an email at NAExpansion@Gmail.com. And good luck to those who are constantly seeking, asking questions, and are forever curious till they find a good fit for their life’s goal and are able to pursue it with integrity.
Mr. Anonymous,
it is very nice reading your post. On Feb.1, 2013, I attended a WFG convention in Santa Clara, CA. What I have learned most about during the 3-day event is recruiting people instead of products. Post 16 by Nick Kett has said something I am really concerned about. Could you share some details on what Nick has brought up? Your thoughts are greatly appreciated.
Well put Anonymous!! Excellent!!
Google for yourself the WFG:
Agents from this company said that their objective is to help families to be financial independent. They push people(future members) to get the full insurance – members are full life insured at the same time they have cash value for them to use during their retirement. But the truth that cash value(they/agents call it savings) is not their by the time members need it, as oppositely described by their agents. The life ins. products they usually sell is an ART (your premium is increasing yearly w/ same face value) but members are paying same amount of premium monthly thru the whole process EXCEPT that the increasing/additional amount from your premium is DEDUCTED from your cash value. But the agents ARE NOT telling those info to their members, maybe it’s either they really don’t know the product or they just PUSH their members for them to make money. So goodluck for those currently WFG members.
You had a pretty bad experience, that’s the danger of recruiting people who only care about their pockets, not the client. We call them money monsters… There are different teams that stand for what is right. I would suggest to shop around for a good team. WFG is a great company that screens people, doesn’t mean an occasional bad sheep doesn’t get in. Hard to survive in the company if you are lousy dishonest person though. I believe these are the ones that quit and then complain.
WFG inspires people to do great things with their lives, and like anyone starting a business, of course they go to family and friends first… If you have not been with the company for at least 3 months, you shouldn’t be talking about it…
Good light-hearted humor. While it is possible to make a ton of money in any MLM company (WFG, Amway, FHTM etc), WFG and Primerica are considerably riskier given that live savings is more than a few crappy bottles of shampoo and make-up.
ALL the MLM companies are a good case study for research. I liked your post.
This is perhaps the most inaccurate and slanderous review of any company ever. Hopefully, nobody would base serious financial or career decisions on a review from this blog alone. Especially, when the motto at the top states, “It does not matter who is right or wrong”. I do not want to waste too much of my time here but let me clear up a few facts.
First, you are correct in stating that calling WFG a pyramid scheme is “unfair” because it is. For a clear definition of pyramid scheme please go to this link. http://www.fbi.gov/scams-safety/fraud .
Second, I personally know at least 10 WFG agents in my office that have no recruits at all but make $200k per year in personal production of various financial products only when they are suitable and affordable for the client.
Third, I clearly understand the bad reputation MLM or network marketing organizations get. Although I do not agree that WFG is a true MLM it does have similar elements. The fact is that I can recruit exactly 100k people into my “scheme” as you call it but if they do not actually open accounts with clients then I do not make any money. You do not get paid for “recruiting” you paid for TRAINING people. Which was the exact same way my Regional Supervisor got compensated at Edward Jones, and the same way upper level broker dealer managers get paid at every other broker-dealer that is licensed by FINRA, or any state insurance department. So why chose WFG? Because they are one of the few companies that does not put a cap on how many training managers they have. If you want to make big bucks $25-85k per month as a financial services company upper level manager then go out “into the field” on a daily basis to build, grow, teach, and develop your team.
Most importantly, I have never met a World Financial Group rep who would advise you to take an interest only loan. Your “friend” was not follow concepts they learned at WFG. Our leaders such as Lijoy Thomas, Arlex Flores, Victor Salvador, Manh Le, and many more would have shown you how to make so much money that you can pay off your mortgage sooner and then pay cash for another house after you have protection>debt management>emergency fund>investments.
I have wasted enough field training time on this blog. Hopefully you publish my comments so that others will hear the true concepts behind WFG.
Oh, I also forgot to add that because WFG is open to any body that can pass a pretty stringent background test, you may get people who do not have their heart in the right place. The bottom line is that you have to be smart yourself and ask yourself “does this make sense”. Read a few actual books. Call state and federal regulators to ask about the individual you are doing business with. See if they have any complaints or judgements against them.
The openness of our system also allows people that are great at what they do (albeit they may be terrible at spelling or grammar) to become the CEO of their own large empire while helping a large number of families along the way.
James Adams, your comments are also well put and well-taken! WFG is a great business and its financial strategies are truly valuable for families!!! Just my personal experience.
I am sorry but in my typing rage I forget two more things. WFG DOES NOT OFFER ANY PROPRIETARY FINANCIAL PRODUCTS, so when you say they push their mutual funds, that is totally wrong. We represent 146 of the top financial companies including Fidelity Investments, Goldman Sachs, Pacific Life, Western Reserve Life, Nation Wide.
Also, as far as the team building goes think about this. If you were broke and struggling and somebody took you under their wing to train you as a financial professional for very little money and a whole lot of time but in return you were able to generate six figure income in personal production, is it worth it?
If you were able to train another person the same way do you think you should do it for free or get paid a little something?
If you could build a solid agency by yourself and get paid to train others is it worth it?
Ok, wow first of all “I Love World Financial Group.” Why, well let me tell you. I have a friend who is a partner is a successful New York Life office in the Midwest. When I got my license and told him what I was doing, he tried to recruit me. I went to his office just to visit. New York Life is an Insurance and Investment Company know nationwide. My reason for using New York Life (NYL) as an example is because it is one of World Financial Group’s (WFG) competitors.
NYL is a traditional business model. In my friends career, he was a successful producer, then he went in to recruiting and training. In NYL model, you cannot be a producer and a recruiter/trainer. You have to do one first, then do the other. But you cannot do both at the same time. Also, to become a broker, you have to go out and litterally start your own office from scratch. At WFG, the first tier of it’s business model is quite simple. You can become a producer and develop your own book of business. the 2nd tier model is that you can recruit people “WHO ARE FIT FOR THE BUSINESS PREFERRABLY” and train them to do the same as you are doing (Becoming a financial professional). The 3rd tier of the business model is that you can develop brokers underneath you and still get paid bonus overrides from them. Let me tell you, YOU CAN BUILD A HUGE WFG FINANCIAL BUSINESS if you listen to what I am saying here. Unfortunately people come in (Who are not wired for business to begin with) and sign and die. Several reason cause this. I don’t have time to list them here. But the problem is that those who don’t have a desire to help people with their financial situation or build a successful business with lots of work ethic, should not even join. Why, the odds are you will sign and die, then your gonna blog negatively about the company when it was your own efforts who made you fail. Sorry for the reality.
But on the other hand, if your desiring to help people, motivated to build a successful business, and desire the financial industry then plant your flag here in WFG. It is the best hybrid business model out there. Because you can simultaneously build the 3 tiers of business I was talking about and set yourself on a path to financial Independence.
I have been with WFG for three years and learn from the best the industry has to offer. If your checking out WFG and what they are about. Please don’t read these blogs of people who aren’t successful with WFG. Contact the person who invited you to WFG and get back with them and get started. It will change your life if your serious. Check out the links below. I love this business…
(links removed)
So far I see a lot of comments from recruited individuals that have created wealth for themselves off of the backs of what I would call “victims”.
Your typical investor in a product from WFG or Prime America is someone that lacks financial knowledge. They are typically recruited by networking. At parties, weddings, family gatherings, by word of mouth.
Anyone showing glimmer of financial knowledge and asks questions is immediately asked… “Hey how would you like to make some money”? I have actually experienced this.
Lets take an actual live example.
Recruit recent immigrant at family party. Victim has very little financial knowledge, is trusting, and does not really understand the numbers scrawled in front of her. She has little money, there is no discussion of what type of funds and best diversification is best for her.
She is advised to leverage 20 k in a loan arranged by same person at a high interest rate. All of the funds are put in one fund. (Asset builder III) a fund with a front load charge, a 2.27% MER, and DSC’s for 8 years starting at 5.75% and slowly decending year after year essentially locking you up in this dog of a fund for at least 5 years before you can make some kind of break from that unsuitable product.
Any of you so called self proclaimed fund managers can stand up and with a clear conscience say this is the correct way to “help” a person save for their retirement really are lying to protect your income stream or blinded badly by your own BS. This type of investment model is based on greed not a partnership between investor and client. One person drives his BMW the other takes the bus in retirement. Can you guess which one takes the bus. Or do you need a hint.
I’d like to start by saying I completely understand why people can be led to think WFG is some sort of “pyramid”. When I was first introduced to the company, I was skeptical myself because of previous companies that had tried to recruit me and I also did not like the idea of being in sales because of previous sales positions I did find success with. However, I started part time because it was my mom that had asked me to help her start a business within WFG. So I began attending training sessions twice a week, trying to figure out how to tell her it was a waste of time and complaining about waking up early on Saturdays. After I finally got my license, I realized there was no scam at all. What I found out is that the real scam was my full time JOB that was not providing me any clear paths to being promoted. There’s constant politics and management power trips and someone else dictating your schedule, income, and ultimately the future of your family should the company be sold or go under. This does not just apply to my previous employers, I’m sure many can agree this is typical for employees to deal with at a job.
What people aren’t properly communicated up front is that WFG is not a JOB, this is a business opportunity. If you aren’t ambitious and a hard worker, then you are not likely to start your own business/ be successful at it. This means that the opportunity is not for everyone, but is open to those that can pass a background check and get licensed with their state for the products the choose to offer.
Yes, we have plenty of recruiters in WFG. However, we do not get paid a cent off of the fees associated with an agent’s background check and license study material. We get paid for the training and development, and the time we spent coaching our new agents further down the road, when they are done training and become independent agents. The atmosphere when everyone is working in each other’s favor constantly is amazing! And beyond our constant training, WFG’s Mission is to help families achieve financial independence. Until you see the difference we actually make for the many families we’ve been able to help as a whole, you can’t see how funny it is to think this is some sort of scam.
Now because we do not require experience prior to joining, those in training may take some time to learn the proper way to introduce the business or even the products, and they may get asked questions they can’t quite answer or are very vague, and this can cause people to assume this is a scam. I can attest that each person learns at a different pace and this company is great at working with you, but not everyone’s heart is in the right place (not just in WFG) and some people are only in it for the money. So if the person training you tries to force products that don’t make sense for you financially, I would try a different leader. You can find a different atmosphere or culture in different offices, depending on the leadership.
I’ve been in the business about a year now and have learned so much not just about finance but about people and their needs. Before I started in this company I thought I was happy where I was, but truly I was just comfortable and had no clear direction for my future, nor was I saving for it! I’m so grateful that my mom dragged me down to hear a presentation and set me on this path. I was raised in the middle class and now have an actual way out, a way to provide for my family, and help mentor others to do the same.
I do feel bad for those that had bad experiences with WFG. In the future when someone invites you to an open house/ presentation, please remember this is a REAL business opportunity, not some 9-5. Please be open minded and willing to change. Success is normally found outside of your comfort zone.
Re : AB
You just wrote 40 lines of one of the longest no fact based non answer again.(more like a “testimonial”) Do you actually write these or have a PR team that just cut’s and pastes nonsense like that for WFG?
Again a recruiter proclaiming how well off they are because they take advantage of the people who are just trying to invest that don’t realize they are in a product not suitable for them.
“Mission to help families” ? WTF ? WFG… Go to a real school, get a valid financial education, then maybe you too can realize how wrong you are.
RE: PAUL
EASY PAUL…RELAX! DON’T GET ALL WORKED UP. WE DON’T WANT YOU TO HAVE A HEART ATTACK OF SOME SORT. THIS IS JUST A BLOG. BY THE WAY, “SARCASM IS A SIGN OF A WEAK MIND AND CURSING IS A SIGN OF LACKING EDUCATION”.
Hi Ed
Wow another non answer… What else would we expect?
I love your last line in your reply. It speaks volumes without me having to explain why.
For a minute I thought I was reading about a religious cult…. Indoctrination is the word of the day…
“Lacking education”? Thank you , after 53 comments I needed a good laugh. Bottom line i don’t have money to invest, my father suffers from diabetes I often find myself asking what can I do to help?… Obviously 9-5 won’t cut it ,so is WFG a good company to invest ? I’m willing to sit thru training and meeting, and put my heart in it… Is WFG the right choice?
I used to work for WFG. I’ll be as clear and concise as possible.
Pros:
If you are already grounded in finances or stock, & have a considerable list of connections (people willing to work with you and people who are looking to purchase life insurance) then WFG would be wonderful for you. You really COULD make money, and a lot of it.
Because WFG’s pose is that you are owning your own business, I didn’t have argument to the $100 fee in the beginning. If you’re doing business with someone, put your own in. It technically is an investment, so no problem. No matter what you do or who you may work for in life, some things involved with the company you are just going to have to pay for: WFG is no worse. You pay for events, lunches, etc, all of which are optional (but are very highly pushed to keep company loyalty and oo-rah high, say for your wide-eyed new recruits looking to learn.)
WFG DOES require some education and licensing, but it’s like this: To start, you have to earn a Life Agent’s license through the state, and for those of you who know, that’s the absolute bottom rung of the pole vault. You can do fine on that alone. As you progress in the company however and want to sell different products, you will have to earn various licenses to do so. All licensing by the way is via the state, not the company, so this is not of profit to them. For the more juvenile argument, I don’t have an issue “paying so much money,” because if I see the need to become a licensed professional at something and be taken seriously, I’m going to do it… Not that I’m calling WFG associates “licensed professionals.” Anyhow, you’d do the same with any other work/career, so set that aside.
“You get paid what you’re worth in this company.” This is true, but to an extent. It’s more like, “You get paid for what you’re willing to sacrifice for this company.”
WFG teaches about various asset vehicles (GIULS, etc) & their connection to the financial follies of the now-retiring “Baby Boomer” generation, as well as the current negative fluctuation of the economy. These things I find (mostly) true and can be used to your advantage if you don’t run away as a potential customer at all the scary terminology. Those factors set aside, it could still be beneficial.
Concluding the positives, WFG is really a legitimate opportunity for a *select group of people.* My biggest issue with the company is their means of operation in a variety of faucets, which leads me to the…
Cons:
As I said, WFG is great but only for a select group of people. As some have explained before me here, more than half of the company’s “associates” are only with them for about a year until they finally leave and their “personal investment” to the company has not gotten them much except mental exhaustion, confusion, and guilt. Without wanting to sound like one easily scared, the company really is mostly fueled off of “HOO-RAH!” Clapping, awards, praise, events. This is presented to you as a positive: “Did you ever get recognition at your job for the things you did? You do here!” All the figureheads of the company emphasize the need for competition, and they’ll do this by touting your emotional threads- becoming a “legacy” in your family, being a strong, independent woman, being that go-getter dad that financially humps his way into dominance among the rest of the group… And slowly they paint a picture for you of what “Success” is, and that you need to chase after it or your life is a miserable, dissolute failure. They’ll appeal to all people: black sheep who want to prove their past wrong, single mothers, or they’ll dangle the future of your children/parents/grandparents in your face. “Don’t you want the best for them? Don’t you??” This is to no exaggeration or hyper-focused bias on my part. The company depends on guilt very heavily, and they openly admit it.
From the audio they make you listen to, to the written instructions, the meetings, and anything else, the basis for a majority of it is vindictive psychology. You are taught to use this when talking to friends, family, searching for prospects, and even talking to your coworkers. From the beginning interview those emotional threads are pulled HARD after having spilled your deepest desires to your prospector, and they will be used against you any time you doubt the company. You are also instructed to do this as your main means of operation. Quips and comebacks, conversational string pulling. “It doesn’t matter what you say, just that you give them an answer. Return to establishing a time to meet. They won’t even think about it.” That is taken right from the audio instructions. At the biweekly meetings, the head of (my) office would say, “Just keep talking big. People will have no choice but to go for it. You gotta look and sound the part. Get them there and ‘let the chips fall where they may.’”
So with eager/desperate new associates continually circulating through the company, their heads freshly filled with all their life’s ambitions and desires, it’s THESE PEOPLE that make up most of the company at all times. Their friends and family are called, and are given the bait that “John needs help. We need to sit down with John since he’s new to us. You’ll help John, won’t you?” They filter these people through the same process (the instruction manual uses the words “filter” and “process” frequently.) Each new associate pays/invests $100 to join, & must also purchase insurance that is direct to their company. Hold onto that.
“It’s all about numbers” is a common mantra and function in the company. Their given is that ultimately 1 out of every 10 people you send through the “pre-interview,” the “mo-zone,” and the “final interview” will join. Even less of them will continue working with the company. Think of the money the company is receiving in the meantime- the initial $100, and the monthly payments. So you can see where the emphasis of “new prospects” and “building your team” comes from- not to keep them, but to cash in on the firstfruits.
Unless you are of the select group I mentioned earlier having great connections already, you make a hefty list of family and friends. “Anybody, it doesn’t matter. Even if you barely know them.” To get you through the embarrassment, you’re taught by the figureheads that all your best friends will be met through WFG. Anybody who doesn’t join WFG “just doesn’t know better,” and are approached as something like the damned. It’s critical to hang out with WFG people. Stay away from people who don’t like WFG. If they’re not with WFG, don’t talk to them. Your life is WFG. You need to stay motivated, right? Cut off your friends and family. They’re your enemy, now. (This btw is not exaggerated colorful humor or bitterness. THIS IS WHAT THE COMPANY TEACHES.)
So now you have to start “building your business.” As you can see, this would be easy for the established. But for the average Joe or Jane if your family and friends haven’t bit the hook, you resort to prospecting- getting numbers or email addresses from complete and total strangers. You need to “hone your skill” in small talk. “Nice shoes,” “Thanks, they were cheap,” “We all need to save money,” “Yes, especially after my son’s surgery,” “Oh really?” “We’re having trouble with the bills.” BINGO, we’ve got a live one. Then you bring them around to a “business opportunity,” and get a contact… You have to do this at least ten times a day to get any bread on your plate. This is what you are taught you need to do all the time… So think about that.
Over time you build a team. Your overheads make money on how well you do (reasonably,) and the same goes for the people you are over. At this time, you are taught to drill all the same things into your team that were drilled into you. You must get them to events, give continual pep talks, remind them of all their aspirations in life. “Selling the Dream,” as WFG calls it. “We aren’t a money business- we’re a people business.” In the beginning it is suggested that WFG can be a vehicle to “get you to your dreams,” even if you don’t continue working with the company. But later on: “See the success you’re having? Why don’t you just stay with the company? It has everything you need. You’re helping people and are making more than that career you initially wanted would be making. It’s more beneficial to stay with us.”
After however long it takes you- a few months to a few years- you realize that this isn’t really the saving-the-world company that it claimed to be. You realize you’re not cut out for this. It’s not that you’re not trying, or that you’re lazy. You’ve actually made WFG your life by now, but the mechanical odds the company spiels to you aren’t working out, so you feel like a failure. They maintain the guilt and commitment to the company with, “If you do it right, you won’t fail,” “You get paid what you’re worth,” and the like. Within that though is the flaw that not all people are the same- this is the wobbling cog in WFG employees reasoning, yet an advantage the company has. It won’t work out for everyone and they know this, so it doesn’t hurt to take your money in the meantime.
When you finally make the decision to leave the company, the people who convinced you and themselves that they were your friends ostracize you. You left. You’re the enemy, now. You’ve given up, you’re weak, you’ll NEVER fulfill all your hopes and dreams. You don’t see the dream. You’re ignorant. Fill in the blank.
So you are now left a rusted and broken company tool. These people who struggle make up most of the company… In other words, the base of, oh, let’s say, a pyramid. I did not want to throw out the term “Pyramid Scheme” in the beginning because it makes people defensive, or it looks like you’re crying WOLF! But that’s the truth of the matter. Joe or Jane makes the base for the pyramid… And who makes the most money at the top? People who were cut out for it… And convinced you that you were, too. Once more, this is for that “select group of people” I mentioned. The common theme in nearly all of WFG’s business is taking advantage of the average person.
Ultimately, over guise titles like “Financial Advisers”, WFG associates are sales people. They are there to SELL you something, whether that be insurance, or something more profitable… the dream of success. WFG is a very wicked double-edged sword.
“Enter At Your Own Risk.”
Very helpful, Thanks.
definitely a very helpful comment, best one/seems to be the most neutral one I’ve read on here
very good informations thanks for your honesty.
Thank you for the information I wish I would have read this before I went in. I went because a friend told me they were going to help her with her financials. I mentioned I wanted to find some financial advice.even though I especially said I wouldn’t want to sell anything or refer any one unless I could see what they can do for me they persisted and now they have my credit card info my social insurance number and my license number. They told me that I could take the class and if I like it I could continue and become an associate. They charged my credit card and will not refund the money. I need the postal code in order to complain to the BBB and I had to call Canada Post to find out the address is not in the system. They said they would help me not to use credit cards any more and they charged my credit card??? They move so fast as they give you the info that it was not until I walked out of the office that I realised that they had my personal info. I told them I did not want to go to the first class to please not charge my credit card but I was told it was to late. I went to the class but all it was a bunch of people telling how much money they make and how they quite their jobs because they are doing so well at least WFG. They would not let me find info about them. If you or your friends are invited by these place please don’t go. You may think you ate strong but believe these people can get to you so fast. They took advantage of the fact that I am currently with out a job.
“Anyhoo, the company is basically a pyramid scheme masquerading as a financial services company. That blanket statement is a little unfair, but is basically true.”
I already stopped reading after the first paragraph.
Already there is a flaw in your logic.
First off, a “Pyramid Scheme” is by definition fraudulent and illegal – http://dictionary.reference.com/browse/pyramid+scheme
If that were the case, WFG would be shut down by now, yet they’ve been in business and still remains so. Whatever your belief or opinion is on the company, calling it what it isn’t is slander/libel. Due your diligent research on the company and really know what you’re talking about before you post an article.
Ladies and gentlemen, don’t believe everything you read, especially on the internet!
Hey Ryan,
I would put your comment at the front of the line of ones to ignore. Every post from a WFG supporter is not supported by any facts. It’s clearly window dressing (or threats) to hide a business which only is a benefit to a small select group and detrimental to a much larger group. If you are a go getter “type A” person who has no regard for others best interests, you will do well, otherwise you will show a negative return and experience from your investment.
I applaud the two people above you who clearly have posted based on their experience and are trying to warn others from making the same mistakes. You have no sympathy or regret for that at all. Very classy!