Is World Financial Group a Scam Pyramid Scheme? Exposed!

Are you looking for a World Financial Group MLM review? Is World Financial Group a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about World Financial Group MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through World Financial Group MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like World Financial Group MLM.

To help you make a more informed decision, I have thoroughly researched the World Financial Group MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with World Financial Group MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to World Financial Group MLM that has enabled me to make a full-time passive income online.

What is World Financial Group MLM?

World Financial Group is a company that sells financial planning services. The company sells savings, insurance, and retirement products through its associates, who must usually pass a licensing test for the country in which they live.

The company was founded in 2001 by Aegon, an insurance company. Aegon sold WFG to Transamerica, another insurance company, in 2008. The company operates in Canada, the United States, and Puerto Rico.

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What is MLM?

Before we discuss World Financial Group MLM, I’d like to define MLM and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies and network marketing companies.

You are not paid a salary by an MLM company.

Instead of selling products, you make money by recruiting others to join your company. You get a cut of their sales and new recruits if you hire someone and they start making money.

There are numerous components to this (hence multi-level).

Think about a triangle. If the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people below you are called your “downline,” and you are their “upline”).

You can earn $1,100 if you hire ten people to work for you.

Even if your MLM company has a large number of products, most people prefer to recruit others in order to earn a passive income from them for the rest of their lives. If they sold a product, they would only receive a one-time commission.

Because money flows to the top, people at the top of the triangle make the most money, while people at the bottom make the least.

A person who works for a company like World Financial Group MLM wants as many people as possible in their “downline” so that they can earn a lot of passive income.

How Does World Financial Group MLM Work?

World Financial Group’s associates business model is known as Multi-Level Marketing, or MLM. After you’ve been hired by WFG and passed all of your licensing exams, you’ll need to find new coworkers.

When you join WFG, you’ll be told to make a “quick start.” You should bring in three new members and watch three training sales in your first 30 days with the company.

You’ll get a percentage of the commissions from any products your associates buy for themselves or sell to others. 

WFG employees account for a large portion of the company’s sales. It’s a classic MLM business model, which should be a huge red flag for anyone thinking about working for WFG.

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Is World Financial Group A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is World Financial Group, then, a pyramid scheme?

No. World Financial Group does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

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What is the World Financial Group MLM’s Compensation Plan?

You will only be paid a commission if you sell something at WFG or if the associates you refer buy or sell WFG products.

Consider the WFG contract levels, which show how much you can earn in commissions for services such as life insurance.

If your contract level is 100%, you will receive 100% of the commissions for the first year on top of your commission structure.

A WFG Associate contract level is only 36%, a Marketing Director contract level is 51%, and a Senior Marketing Director contract level is 64%.

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10 Reasons Why I Don’t Recommend World Financial Group MLM

1. The Good Reviews are Written by World Financial Group MLM’s Affiliates

You probably have found some other reviews of World Financial Group MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join World Financial Group MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of World Financial Group MLM.

2. Very Few People Can Make Money With World Financial Group

Success is difficult to achieve with an MLM company like World Financial Group.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From World Financial Group MLM Are Reframed As Investments

World Financial Group MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. World Financial Group MLM is a Cult

Why do people continue to work for World Financial Group if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase World Financial Group Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like World Financial Group. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. World Financial Group Products are Overpriced

As with other MLMs, World Financial Group offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell World Financial Group products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. World Financial Group’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like World Financial Group is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider World Financial Group to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

World Financial Group, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting World Financial Group.

World Financial Group’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to World Financial Group’s payouts to distributors, over 99 percent of World Financial Group distributors never make a profit.

9. World Financial Group Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

World Financial Group is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like World Financial Group put a lot of effort into recruiting. Eight out of ten ways to earn money with World Financial Group require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this World Financial Group review.

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World Financial Group MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • WFG has a high sales volume, implying that their marketing and sales system works, and you’ll be trained on how they do it.

Negative Feedbacks

  • There has been talk of putting a lot of pressure on others to work for you.
  • Making a lot of money with an MLM strategy is difficult because only a small percentage of members are successful in the long run.
  • If you try to sell your family and friends too hard, you may lose their friendship.
  • If a WFG employee tries to sell you a product with a high commission that isn’t necessarily right for you, there may be a conflict of interest.

Is World Financial Group MLM a Scam?

I cannot say World Financial Group MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling World Financial Group products? We already know that a majority of World Financial Group reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from World Financial Group is by recruiting aggressively.

Also, World Financial Group blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider World Financial Group MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

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Final Verdict: World Financial Group MLM Review

Here comes the conclusion of my World Financial Group MLM review. Overall, I don’t recommend joining World Financial Group MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your World Financial Group commission.

The worst part is that you practically have to ask your family and friends to join your World Financial Group business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of World Financial Group MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than World Financial Group MLM.

My #1 recommended platform is called Wealthy Affiliate.

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You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

World Financial Group MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

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