World Financial Group Scam: Pyramid Scheme or MLM? [Review]

If you’re on the hunt for an online income opportunity, chances are you’ve come across World Financial Group. But with so many programs out there, it’s hard to know which ones are legit and which ones are scams. That’s why I’ve taken the time to review World Financial Group for you.

Maybe you heard about World Financial Group from a friend or family member, and you’re curious to know if it’s worth your time and money. As an online entrepreneur, I’ve reviewed hundreds of programs like World Financial Group over the years.

Let me start by saying that I’m not affiliated with World Financial Group in any way, which means I’m not being paid to write this review. That means you can trust that I’ll give you an honest and unbiased opinion.

If you’re looking for the best alternative to World Financial Group, stay tuned because I’ll share my personal recommendation at the end of this review.

In the meantime, let’s dive into the details of World Financial Group and what you can expect if you decide to join.

What is World Financial Group?

World Financial Group is a company that can help you plan your financial future. They offer various services, such as savings, insurance, and retirement products through their associates. These associates are licensed professionals who can help you make informed financial decisions that fit your needs.

The company was founded in 2001 by Aegon, a well-known insurance company. However, in 2008, Aegon sold WFG to Transamerica, another reputable insurance company. Since then, WFG has been providing financial planning services across Canada, the United States, and Puerto Rico.

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Is World Financial Group an MLM?

Yes,  World Financial Group is an MLM company. Multilevel marketing (MLM) companies, also called direct sales or network marketing companies, are businesses where you’re not paid a salary by the company. Instead, you earn money by recruiting others to join the company. You then receive a percentage of their sales and new recruits, creating a multi-level commission structure.

In an MLM, your downline is the term for the people you’ve recruited, while your upline refers to the person who recruited you. The goal is to grow your downline as much as possible, creating a pyramid-like structure where those at the top make the most money, and those at the bottom make the least.

World Financial Group operates on this model. If you join the company, your primary goal will be to recruit others and grow your downline so you can earn passive income from their sales for the rest of your life. Even if the company has many products, most people in MLMs focus on recruiting others since they can earn more from their downline than from product sales.

In the case of World Financial Group, if you recruit ten people to work for you, you can earn up to $1,100. However, it’s essential to note that MLMs can be controversial since the focus on recruitment can lead to a pyramid scheme.

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Is World Financial Group A Pyramid Scheme?

No, World Financial Group is not a pyramid scheme. Unlike pyramid schemes, World Financial Group doesn’t promise its members money or services in exchange for enrolling others. Pyramid schemes are notorious for being unsustainable and a scam because they rely on the recruitment of new members to generate revenue.

In a pyramid scheme, people are required to pay a fee to join the organization, and the organization rewards them with a portion of the funds raised from each additional member they recruit. The directors of the organization receive a portion of these payments, and the scam is profitable for them regardless of whether they do any work. Pyramid schemes almost never sell valuable goods or services, and their only source of revenue is from recruiting new members and soliciting more money from current members.

On the other hand, World Financial Group is a legitimate financial services provider that offers a range of financial products to its customers. Members of World Financial Group can make money by selling these products, without relying solely on recruitment. The company doesn’t require members to pay a fee to join, and there’s no emphasis on recruiting new members to make money.

Unlike a pyramid scheme, where people at the top of the pyramid usually make money, while those at the bottom usually lose money, World Financial Group provides a level playing field for all its members. Members can make money through selling financial products, and there’s no limit on how much they can earn.

Watch the short video below to learn more:

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How Does World Financial Group Work?

If you’re considering joining World Financial Group (WFG), it’s important to understand their business model. WFG operates using a Multi-Level Marketing (MLM) strategy. This means that as an associate, you’ll earn commissions not only from your own sales but also from the sales of your team.

Once you’re hired by WFG and have passed all licensing exams, you’ll be tasked with recruiting new team members. WFG will encourage you to make a “quick start” by bringing in at least three new associates and watching three training sessions in your first 30 days.

As a WFG associate, you’ll receive a percentage of the commissions from any products your team members buy or sell. However, it’s worth noting that a significant portion of WFG’s sales come from their own employees. This is a classic MLM business model, which may raise concerns for some potential employees.

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World Financial Group’s Compensation Plan

To start, at WFG, you only make a commission if you sell something or if the associates you refer buy or sell WFG products. That means the more you sell or the more associates you bring in, the more you can potentially earn.

Now, let’s talk about the WFG contract levels. These levels determine how much commission you can earn for services such as life insurance. If your contract level is 100%, you’ll receive 100% of the commissions for the first year, on top of your commission structure.

However, it’s important to note that not all contract levels are created equal. For example, a WFG Associate contract level is only 36%, while a Marketing Director contract level is 51%, and a Senior Marketing Director contract level is 64%. So, the higher your contract level, the higher your commission potential.

That’s a brief overview of the WFG compensation plan. If you’re interested in learning more, reach out to a WFG representative for additional details.

Is World Financial Group a Scam?

No, World Financial Group is not a scam. According to the Oxford Living Dictionary, a scam is an act of fraud or a dishonest scheme, and this is not the case with World Financial Group.

However, it’s worth noting that not everyone who joins World Financial Group makes money. In fact, the majority of World Financial Group representatives don’t earn any money. But if you put in a lot of effort, it is possible to make money by selling their products. Some successful representatives make a lot of money, but usually by recruiting aggressively.

One issue with World Financial Group is that their marketing claims can be misleading or even irresponsible. This has led some people to view World Financial Group as a scam.

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Reasons Why I Don’t Recommend World Financial Group

World Financial Group is a multi-level marketing (MLM) company that promises financial freedom and opportunities to make money. However, before you join, there are several reasons why you should reconsider.

Biased Reviews by Affiliates

Most of the positive reviews you read about World Financial Group are likely written by its affiliates who receive commissions for recruiting new members. These reviews are biased and not trustworthy. Instead, look for reviews written by non-affiliates.

Difficult to Make Money

Success with MLMs like World Financial Group is rare. The majority of MLM members lose money due to sales quotas and the pressure to recruit new members. You may end up losing a significant amount of money before making any profit.

Reframing Losses as Investments

World Financial Group’s uplines often try to reframe financial losses as investments, which is misleading. You are unlikely to get your money back, and the return on investment is negative in most cases.

Cult-like Company Culture

MLMs like World Financial Group have a cult-like company culture that discourages critical thinking and isolates members from family and friends. Those who leave the company are labeled as failures, and representatives are not allowed to contact them.

Buying Products Yourself

If you don’t have a large network, you may need to purchase World Financial Group products yourself each month. This is a losing proposition in the long run.

Overpriced Products

World Financial Group’s products are overpriced, making it difficult to sell them compared to other brands that offer similar products at lower prices. This is why most people who join MLMs only focus on recruiting new members.

Bad Reputation

MLMs like World Financial Group have a bad reputation due to their skewed distribution of commissions, with the majority of profits going to the top tier while those at the bottom do not break even.

Exaggerated Income Claims

World Financial Group, like any other MLM, makes exaggerated income claims that are not achievable for most members.

Recruiting is Necessary to Succeed

World Financial Group puts a lot of emphasis on recruiting new members, with eight out of ten ways to earn money requiring recruitment. If you don’t recruit, you are likely to lose money.

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Pros and Cons of Joining World Financial Group MLM

If you’re considering joining World Financial Group (WFG) MLM, there are a few things you should know. Here are some pros and cons to help you make an informed decision:


  • WFG has a high sales volume, which indicates that their marketing and sales system is effective. By joining, you’ll have the opportunity to learn and be trained on their strategies.


  • There have been reports of WFG members putting pressure on others to work for them. Be aware that this kind of behavior is not acceptable and should not be tolerated.
  • MLM strategies can be challenging to make a lot of money from in the long run, as only a small percentage of members achieve significant success.
  • Selling too hard to family and friends could damage your relationships, so it’s important to be mindful of this and approach the situation sensitively.
  • If a WFG employee tries to sell you a product with a high commission that may not be suitable for your needs, be cautious. There could be a conflict of interest, and you should always make sure that any product or service you purchase is genuinely beneficial to you.

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Final Verdict

After evaluating World Financial Group thoroughly, I have come to a conclusion – I don’t recommend joining WFG to make money. The initial stage can be challenging when you’re trying to find prospects and recruiters to add to your commission. But the worst part is that you have to rely on your family and friends to join your business, which can be quite awkward and uncomfortable.

And to add to that, your upline will constantly pressure you into buying Business Support Material, which can add up to your expenses, even when you’re struggling to recruit people. Unfortunately, the statistics confirm that 99% of people who join MLMs break even or end up losing money, according to a case study on the FTC’s website.

I believe people who join these MLM-type businesses often feel pressured to succeed, and that’s one of the reasons why they leave. Hence, if you’re looking to make money and have a flexible schedule, I suggest considering starting your own online business. This way, you can choose what you want to promote, and you won’t have someone telling you what you must promote.

Let me tell you more in the next section.

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Is There a Better Way to Make Money Online?

If you’re starting out with your online business and looking for a solid platform to help you succeed, you might want to avoid World Financial Group. Instead, I highly recommend Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform that provides everything you need to build your affiliate marketing business from scratch. You’ll get access to top-notch web hosting, keyword research tools, community support, comprehensive training, writing tools, and other software to help you succeed step-by-step.

You can sign up for a free account and get started with affiliate marketing right away without paying anything. If you love the platform, you can upgrade to a premium membership to unlock everything it has to offer. The best part? There are no upsells afterwards.

You may read our article about the difference between MLM and affiliate marketing.

But you’re probably wondering, how much can you actually earn with Wealthy Affiliate? Well, there are many success stories to inspire you. For example, a 21-year old student from Wealthy Affiliate was able to earn $7,395 in just one week. That’s over $1k a day!

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate Testimonial

Wealthy Affiliate has been around for 15 years and has more than a million members, so you know it’s a popular and reputable platform. To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Joining Wealthy Affiliate is easy with their simple pricing scheme. You can sign up for a free starter membership without even needing to provide your credit card information. As a starter member, you’ll get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and access to the keyword tool. All of this is completely free, with no time limit.

If you’re serious about building a successful online business, I strongly recommend you check out Wealthy Affiliate. Register a free account and see for yourself how this platform can help you achieve your dreams.

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