World Financial Group MLM Review: Legitimate or Scam?
World Financial Group is a financial and insurance services company that operates through a multi-level marketing (MLM) business model. If you’re thinking of joining World Financial Group as an agent, then you’ll want to read our comprehensive review before making any decisions. In this review, we’ll take a look at who founded World Financial Group, what products it offers, how to join the company as an agent, the company’s compensation plan, whether World Financial Group has faced any complaints or lawsuits, what we like about the company and what we don’t like, and alternatives to World Financial Group.
History of World Financial Group
World Financial Group was founded in 2001 by Hubert Humphrey, John Paul DeJoria, and Steve Marley. World Financial Group is a subsidiary of Transamerica, which is itself a subsidiary of Aegon. World Financial Group was created as a way to provide financial services to under-served markets. The company’s goal is to help people achieve financial security and independence through products like life insurance, investments, and mortgages.
Humphrey, World Financial Group’s CEO, has a background in insurance and investments. He began his career as an insurance agent with New York Life Insurance Company. He then founded his own insurance agency, which he sold to Primerica in 1999. After the September 11th attacks, Humphrey became interested in helping people who were under-insured or had no insurance at all. This led him to co-found World Financial Group.
DeJoria is the co-founder of John Paul Mitchell Systems and Patron tequila. He is a self-made billionaire who started out selling shampoo door-to-door. He is also a philanthropist and has been involved in a number of charitable organizations.
Marley is World Financial Group’s CFO and has a background in accounting and finance. He began his career as an auditor with PricewaterhouseCoopers. He then worked as a financial analyst for GE Capital before joining World Financial Group.
Products offered by World Financial Group
World Financial Group offers a wide range of financial and insurance products, including life insurance, investment products, mortgages, and more. The company also offers services like financial planning and tax preparation.
- Life insurance: World Financial Group offers several different types of life insurance, including term life insurance, whole life insurance, and universal life insurance.
- Investment products: World Financial Group offers a variety of investment products, including mutual funds, annuities, and exchange-traded funds (ETFs).
- Mortgages: World Financial Group offers both home purchase loans and refinance loans.
- Financial planning: World Financial Group offers financial planning services to help you achieve your financial goals.
- Tax preparation: World Financial Group can help you prepare your taxes and maximize your tax refund.
How does World Financial Group work?
World Financial Group operates through a multi-level marketing (MLM) business model. That means that the company's agents earn commissions not only on the products they sell, but also on the products sold by the agents they recruit. World Financial Group calls this its "infinite banking" concept.
The company has a tiered commission structure, which pays higher commissions to agents who recruit more agents. World Financial Group also offers bonuses and incentives to its top-performing agents.
The World Financial Group compensation plan has three tiers:
- Associate: Agents at the associate level earn a commission on the products they sell. They also earn a small override commission on the sales of agents they recruit.
- Manager: Managers earn a higher commission on the products they sell and a larger override commission on the sales of agents they recruit. In addition, they earn bonuses and overrides on the sales of agents recruited by their recruits.
- Director: Directors earn the highest commissions on the products they sell and the largest override commission on the sales of agents they recruit. They also earn bonuses and overrides on the sales of agents recruited by their recruits, as well as access to World Financial Group’s luxury car program.
Who can join World Financial Group?
To become a World Financial Group agent, you must be at least 18 years old and have a high school diploma or equivalent. You must also pass a background check and be willing to complete the company’s training program. The training program is called WFG University and it is offered online. After completing the training program, you will be able to take the state insurance exam and become licensed to sell World Financial Group’s products. World Financial Group does not require its agents to have any prior experience in the financial industry.
Is World Financial Group a legitimate MLM company?
World Financial Group is a legitimate company that offers financial and insurance products. The company operates through a multi-level marketing (MLM) business model, which means that its agents earn commissions not only on the products they sell, but also on the products sold by the agents they recruit. World Financial Group is a member of the Direct Selling Association (DSA) and is a registered investment adviser with the Securities and Exchange Commission (SEC).
The DSA is a trade association that promotes ethical business practices in the direct selling industry. Members of the DSA are required to adhere to a code of ethics, which includes a commitment to make only truthful claims about their products and business opportunity.
Under a pyramid scheme, however, participants only make money by recruiting new members into the scheme. World Financial Group is not a pyramid scheme because its agents earn commissions on the products they sell, not just on the recruitment of new members.
Has the company faced an complaints or lawsuits?
World Financial Group has been the subject of a number of complaints and lawsuits. The most common complaints allege that the company is a pyramid scheme, that its agents are not properly trained, and that its products are overpriced. World Financial Group has denied all of these allegations and has not been found liable in any court of law.
What we like about World Financial Group
There are a few things we like about World Financial Group.
- It offers a wide range of financial and insurance products.
- It has a tiered commission structure that pays higher commissions to agents who recruit more agents.
- It offers bonuses and incentives to its top-performing agents.
What we don’t like about World Financial Group
There are a few things we don’t like about World Financial Group.
- The company’s training program, WFG University, is only available online.
- Agents must be willing to complete the company’s training program and pass the state insurance exam to become licensed to sell World Financial Group’s products.
- World Financial Group does not offer a refund policy for its products.
Alternatives to World Financial Group
If you’re interested in joining a direct selling company that offers financial and insurance products, there are a few alternatives to World Financial Group.
- Primerica is a direct selling company that offers life insurance, investment products, and auto and home insurance.
- Ameriprise is a direct selling company that offers financial planning services and investment products.
Both Primerica and Ameriprise are members of the Direct Selling Association (DSA) and are registered investment advisers with the Securities and Exchange Commission (SEC).
Our verdict
World Financial Group is a legitimate MLM company that offers financial and insurance products. The company has been in business for over 20 years and is a member of the Direct Selling Association (DSA) and is registered with the Securities and Exchange Commission (SEC). World Financial Group has faced a number of complaints and lawsuits, but has denied all allegations and has not been found liable in any court of law. There are a few things we like about World Financial Group, including its wide range of products and tiered commission structure. However, there are a few things we don’t like about the company, including its lack of refund policy and online-only training program. If you’re interested in joining a direct selling company that offers financial and insurance products, there are a few alternatives to World Financial Group.
Research is important
Before joining any direct selling company, we recommend doing your own research to make sure it’s a good fit for you. An important source of information for MLM companies and the variety of online money-making opportunities is I Buy I Review. We review these companies and courses and offer our unbiased opinions on if we think they’re legitimate or a waste of your time and investment.
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