Some say World Financial Group is a legit company, while others say it is a pyramid scheme.

Everyone, it seems, has an opinion. Luckily, we did our research to provide you with unbiased information.

Continue reading for some facts to base your opinions on. 

What is the World Financial Group?

World Financial Group (WFG) sells a wide range of investment, financial, and insurance products using a multi-level marketing business model. The company has a presence in Canada, the United States, and Puerto Rico. 

Transamerica, a subsidiary of Aegon, owns WFG. Both Aegon and Transamerica are legitimate and reputable insurance companies. 

Through its network comprising more than 60,000 licensed professionals, WFG offers the following products:

• Property and casualty insurance products
• Term & Whole Life insurance products
• Annuities
• Investment products
• Mutual funds
• College funding solutions
• Estate preservation solutions
• Business strategies
• Recruitment strategies

WFG does not have its own insurance, investment, and financial products. Instead, it works with a large number of product provider companies, including insurance and financial services-related companies, unit investment trusts, and mutual funds. For example, WFG promotes the products of over 300 product provider companies in the US and over 60 providers in Canada. 

WFG works with many prominent insurance and financial companies in both the US and Canada, including:

• BMO
• Ivari
• Equitable Life of Canada
• iA Financial Group
• Transamerica
• Everest
• Pacific Life
• Crump
• Nationwide

WFG associates or agents promote and sell products of partner companies in exchange for a commission on each sale. Sales commission is not fixed; instead, it varies depending on your level. 

The company typically recruits fresh college graduates and people with high school diplomas. However, before an associate can start selling insurance, they must obtain the necessary insurance licenses. 

Key Takeaways

• World Financial Group is a legit company with a business model based on multilevel marketing
• WFG promotes and sells the products of partner companies; it doesn’t have any products of its own
• WFG associates must pass the insurance license exams for the country they live in
• WFG associates earn a commission on their sales, as well as on the sales made by associates under them
• You have to pay a $100 non-refundable registration fee at the time of joining World Financial Group

Recruitment Process at WFG

WFG is a typical MLM company, which means agents are encouraged to generate direct sales by promoting products and services through networking. More importantly, they are also incentivized to recruit new associates. 

After you join World Financial Group and pass the necessary licensing exams, you can earn money in two ways. 

• You receive a commission on each product and service you sell
• You receive a percentage of your recruits’ total sales

At WFG, new recruits must pay a non-refundable $100 registration fee on joining. 

World Financial Group categorizes its associates into four levels: 

1. Training Associate Level: Everyone who joins WFG starts at this level, which comes with a 25% commission split. You must hire three recruits and make three sales within the first 30 days of your joining. You will earn a commission on your sales and the products that your associates buy themselves or sell to others.
2. Associate Level: After you hire three recruits, you will move to an Associate Level, where you will work on a 35% commission split. 
3. Marketing Director: Once you have 25 associates working under you, you will become a Marketing Director. At this point, you will be earning a commission of 50%.
4. Senior Marketing Director: The last level is a Senior Marketing Director, achieved when you have 100 people working under you. This level comes with a 65% commission split. 

Regardless of your level, you will earn a percentage of the commission generated by associates working under you. This percentage increases with each level. 

Pros and Cons of WFG

One can earn money by becoming a World Financial Group associate, but it is not as easy as some people think. Knowing the pros and cons of the WFG business model can help you determine if it is right for you. 

Pros: 

• You only need to pass the insurance license exam for your province to start selling insurance and recruiting new associates
• The company offers comprehensive training to help you understand what it takes to be successful

Cons:

• The commission rate is much lower than what independent agents earn (independent agents typically receive 60-80% commission on 1^st year premium whereas WFG training associates work on a 25% commission split)
• To start making really good money, you must recruit a lot of people; for example, to reach the highest level of Senior Marketing Director, you need to hire 100 people
• Selling to those closest to you could spoil your relationships

Is World Financial Group a scam?

In the literal sense of the word, World Financial Group is not a scam. WFG sells genuine financial and insurance products and is approved and regulated by the financial governing bodies of the countries in which it is active. As you may know, the financial industry is one of the most heavily regulated sectors in industrialized countries all over the world. The main purpose of these regulations is to maintain consumer protection, prevent financial scams and crimes, and maintain stability. 

WFG has been active since 2001. There is no way it would have survived so long if it were a scam or a pyramid scheme. If you are worried that WFG will take your money as a customer and give nothing in return, you can rest easy on that count. WFG is not a pyramid scheme.

It sells genuine savings, insurance, and retirement products through its associates, who have to pass the insurance license exams for the country they live in. If you join WFG as an associate, you will have the opportunity to earn an income after you get the necessary license(s).

The reason why many people wonder if it is a scam is due to its aggressive sales tactics for acquiring its customers. WFG follows the MLM business model for hiring associates, who are encouraged to do direct selling through networking. 

After you join WFG and get your insurance license, you will have to recruit new associates to be able to earn money. It is this tactic of emphasizing heavily on recruiting rather than on promoting sales that makes some people see WFG as a scheme or scam. But as said before, that isn’t the case.  

Here are some additional reasons why WFG is legitimate:

1. Parent Company

WFG is owned by Transamerica — a subsidiary of Aegon. Both Aegon and Transamerica are legitimate and reputable insurance companies. 

2. Partner Companies

While WFG does not have any products of its own, it promotes and sells products of legitimate companies in Canada and the US. The list includes names such as Ivari, BMO, Equitable Life of Canada, iA Financial Group, Pacific Life, Everest, Crump, and Transamerica.

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3. Legit Products

As a customer when you do business with WFG, you receive genuine products. This is not the case with pyramid schemes. 

4. Earn Income

As a WFG associate, you have hundreds of financial and insurance products you can sell for a good commission. 

Having said all this, if you are thinking of becoming a WFG associate, there are a few things you should keep in mind: 

• There’s a high pressure to recruit new WFG agents. Because WFG focuses more on recruiting associates than on promoting products, you might be under a lot of pressure to recruit others. 
• As a WFG associate, you can only sell products of the partner companies. 
• There is a $100 non-refundable joining or registration fee. If you decide to quit, you will not receive the registration fee.
• While WFG organizes regular meetings to help its associates improve their networking and marketing skills, to join them you will have to pay a non-refundable fee.

World Financial Group (WFG) Alternatives

WFG offers a chance to create a full-time business or make extra money on the side, but it may not be for everyone. Its MLM business model may put off many people, since to earn a sizeable commission you must first recruit a lot of agents.

Recruiting new agents can take time a lot of time and require exceptional networking and persuasion skills. If MLM is not your cup of tea, consider these alternatives for generating passive income or replacing a full-time job. 

Become an independent insurance agent

If making a living selling insurance appeals to you, how about becoming an independent agent? That way you could focus on what you love best — helping people achieve their personal and financial goals — rather than having to constantly recruit new associates to earn a handsome pay cheque every month. 

Being an independent life insurance agent has many perks such as: 

• Greater options translate into happier, loyal customers. By not being confined to insurance products of a few companies, you will be better able to offer clients solutions that truly work for them. 
• Professional flexibility. As an independent agent, you will be your own boss and can choose when and how often you want to work. 
• Open to diverse education backgrounds. To become an insurance agent, you require just a high school diploma or some college education. You don’t require any specific advanced degree to enter this field. However, you will need to obtain a license to sell insurance products in your province, a process that could vary from province to province.  

DIY Investing

Investing offers the best opportunities to earn money while sleeping, though you may need a substantial upfront investment to generate meaningful returns. Other important things to keep in mind are: 

• First, build a strong financial base 
• Start with a plan and revisit it often
• Set ground rules based on your financial goals, risk tolerance, and investment time horizon
• Diversify your portfolio

Peer-to-Peer Lending

Another option for generating passive income is peer-to-peer landing. It works exactly like it sounds: You lend money to a borrower through platforms such as goPeer. You will then earn monthly interest as the borrower pays back the principal amount. 

If you are thinking of becoming a peer-to-peer lender, below are some tips to help you generate smart returns:

• Research before you invest
• Start slow by lending small amounts of money
• Know how much risk you are willing to take
• Diversify your loans

Conclusion

World Financial Group is a legitimate company that sells genuine insurance, investment, and financial products and services. However, it has no products of its own; instead, it promotes products and services of other reputable companies. 

So, can you make money by becoming a WFG associate? Yes, you can — but it is not that simple. WFG follows a MLM business model, meaning the emphasis is more on recruiting new associates than on selling insurance. 

The more people you recruit, the more you will earn. While this may look easy on paper, it is anything but. Convincing people who do not know a thing about insurance to become agents is more challenging than selling insurance products to those who already have a need for them. 

If you want to make a career selling insurance, going solo might be a better option. Independent agents earn considerably more commission than WFG associates. Consider a career at Dundas Life. We're an independent brokerage that offers leads, technology, and training for motivated insurance brokers in the industry. Book a call with us to learn more today.

Frequently Asked Questions

What are the good things people are saying about WFG?

“Working with this company has truly been a great experience. They provided me with the all the training and guidance I needed to become a successful life insurance agent with the company.” (Anonymous) 

“I had a great experience working WFG. They are highly professional and genuinely dedicated to helping others. The mission of promoting financial independence is their top priority — not earning commission.” (Anonymous)

“I love the freedom to decide how much and when I work. I find great satisfaction in the wide range of financial products that we offer to our clients. Rather than simply selling, I feel that I am genuinely making a positive impact and helping improve people's lives.” (Anonymous)

How much do World Financial Group associates get paid?

WFG associates do not earn a fixed salary. Instead, they earn a commission on every product or service they sell and a percentage of the total sales generated by those working under them. 

WFG has four categories for its associates:

• First up is the Training Associate Level. At this level, you earn a 25% commission.
• After you recruit three members, you will be promoted to the next level, called the Associate Level. Your commission percentage will increase to 35%
• To become a Managing Director, which is the third level in WFG’s hierarchy chain, you need to have 25 associates under you. A managing director earns a 50% commission. 
• The last level is that of a Senior Managing Director, which comes with a 65% commission split and is given to those who have 100 people working under them.