Is WFG a Scam? || WFG Review [Continued]

<< == Back to the Beginning of this Article

MLM business model – legit or scam?

MLM Pyramid Scheme

As I mentioned at the beginning of this article, the MLM business model of WFG was my strongest argument against joining the company. I carefully researched all the pros and cons of MLM businesses. Below, I am going to share with you the results of my investigation and my conclusions.

Kyle, a co-founder of Wealthy Affiliate, and a person whose opinion I respect, writes on his blog regarding MLM:
“Also, when you PAY for something you are instantly going to defend your purchase.”
Please note that at the time of writing this review, I only paid to WFG $100.00 membership fee, which covers my background check, WFG internal study materials, and other administrative expenses. I paid for it with an attitude that it goes towards my personal financial education with the company. The value I received back has already outgrown the price several times. I can’t be blamed for “defending my investment”.

What does MLM mean for a client?

Cartoon drawing of a happy family

If your goals are to learn financial literacy or pursue further financial education and/ or purchase products that best fit your and your family’s needs, then you become a WFG client. MLM business structure of the company should not be your concern because it does not affect clients in any negative way.

The positive outcome of working with WFG associate is that while you are working with one knowledgeable and properly licensed individual (I am raising my hand – I hope you’ll choose me, Julia! 🙂 ), there is a whole team of professionals standing behind the back of this individual. In our Massachusetts office, each team feels like an extended family, and all teams together – like a group of warm friends. I believe that clients get this feeling in any WFG branch because WFG philosophy is that their main purpose is to help clients and each other, and they are financially motivated in doing so.

Should your associate need help in answering your question, the team will come to the rescue. Should your associate move away, retire, get sick or die, another team member will take over your support. Most likely, you’ll get to know a few other team members soon after becoming a WFG client.

What does MLM mean for a business partner?

If your goal is to become an Independent Insurance Producer and WFG associate, then you’ll become a business partner to the member who referred you (me – Julia, if you use this opportunity) and to the whole team in my branch or my recommended branch if you are in another state of the US or in Canada.

WFG is NOT a SCAM. If you are considering the possibility of becoming a partner, please >>read this article<< to find out how to distinguish between a scam and a legit MLM business.

World Financial Group is a legitimate business. It can be trusted. Working with WFG has its pros and cons. I don’t suggest that this work is for everybody. I’ll go over all the details and you decide for yourself whether this is something you’d like to do.

World Financial Group Income Streams

First, let’s look into why I am telling you that the World Financial Group is a legitimate MLM business.

~ WFG has been around for over 25 years; the headquarters office locations in the United States and Canada are verified and well known (see Company Overview above)

~ WFG sells a variety of quality products. In the United States, Insurance products are strictly regulated by state law, and market investment products require FINRA licenses and regulated by Federal law. WFG acts in compliance with all Federal and State regulations, its associates are properly licensed.

~ Prices of the products sold by WFG associates are the same as prices of the same products sold by other distributors.

~ WFG members and partners are NOT obligated to buy any of Transamerica or any other financial products offered by the company for its clients.

~ Multi-level structure of distribution of the earned commission is clearly defined and documented. It is available to every member at any point of time.

~ After the initial $100.00 membership fee, WFG associate never pays anything to the organization out of pocket.

~ WFG never promises its potential partner an easy work and/or quick money. The team always makes clear to the freshly joining members that selling insurance is hard work; it requires evenings and weekend time because most potential clients work during the business hours. At the same time, while you have to coordinate your meeting time with your clients and be flexible to accommodate their needs, your word is still the last one – so, you can make the meeting more or less convenient for yourself.

~ Once licensed, there are no obligations to WFG. You just got yourself another professional occupation. You are more than welcomed to stay with your team and work as a WFG associate, but you don’t have to. There are multiple opportunities to work as an independent Insurance Producer and be appointed by companies other than Transamerica.

Your steps in becoming an Insurance Agent and WFG business partner.

  1. Contact me, Julia, to become a member.
  2. Pay a $100.00 membership fee.
  3. I will connect you with an associate in your local WFG office. I will always be your helper. Should any issues arise, I’ll be covering your back. For Massachusetts partners, I and my “upline” mentors will be your direct supporters and mentors.
  4. Start learning finances, products available on the market and business partners strategy by attending seminars in your local WFG office, participating in online webinars and learning independently at your own pace using WFG archives of the financial literacy training materials.
  5. In the US, prepare yourself for the Life and Health Insurance State Exams. In Canada, complete the Life Licence Qualification Program (LLQP) pre­licensing course.
  6. Pass the examination.
  7. Buy your license, purchase Errors and Omissions (E & O) professional Insurance and pay an appointment fee. None of this money goes to WFG, these are regular expenses of an insurance agent. Altogether these fees are under $500.00

Congratulations! You are now officially my business partner and a WFG associate! You’d still need to make several sales in a field together with me or other WFG associate. But as soon as you feel comfortable, you can start selling life or long-term care insurance on your own.

WFG Terminology: rolling time, points

Brief Illustration of the WFG Hierarchy and Compensation Plan

A Base Shop includes: 

  • The Training Associates
  • Associates
  • Marketing Directors
  • Senior Marketing Director

You start as a Training Associate at a 25% contract level.
In order to move one level up and become an associate, you’d need to make 3 sales and recruit 3 partners within any sequential (rolling) 30 days (3:3:30)

Associate contract level is 35%.
The promotion requirements are: 3 direct associates through the personal recruits, 5 life licensed associates in your team and 40,000 net points in 3 rolling months

Marketing Director (MD) is the first level of management. The contract level is 50%. Annual income is $60,000 – $100,000.
Requirements for promotion are 10 associates in your team, 6 of whom must be life licensed, 3 branches of personal recruits (legs), one of which must be MD level, 75,000 net points within 3 months rolling time. Also, there must be $35,000 in cash flow within 12 rolling months or $20,000 – within 6 rolling months.

WFG Terminology: net points, base shop, leg

Senior Marketing Director (SMD) contract level is 65%. Annual income is $100,000 – $240,000.
The requirements to move on to the executive management are as follows: 3 direct recruits – all SMDs and either 500,000 net points in 6 rolling months or 750,000 net points in 12 rolling months.

Executive management:

  • Executive Marketing Director (EMD): Annual income is $250,000 – $500,000.
  • CEO Marketing Director (CEO MD): Average annual income is $812,000
  • Executive Vice Chairman (EVC): Average annual income is… the sky’s the limit 🙂

Personal insights

Smiley Face, Thumbs Up


  • What I like the best about WFG and the group of people I’ve met is that there is no pressure. They do remind and encourage you to take the next step, but they don’t do it in an aggressive and pushy manner. There is no time constraint on anything. You can be a member for several years without making the next step. You can participate in many company’s events and learn, or you may lie low and do nothing until you feel like you are ready.
  • Low non-recurring membership enrollment fee.
  • The financial literacy you achieve at WFG empowers you with a knowledgeable approach to building your own financial future.
  • Great variety of high-quality financial products to meet the financial needs of every family.
  • Ability to create your own business at a low starting cost in a rewarding field of helping individuals and families to plan their financial security by educating them and offering financial solutions.
  • With WFG you’d be able to build a business of your own, but not on your own. You have strong supporters “upline” because aside from human kindness and team partnership, they have a mercantile interest in your success: in order for them to move up to the next level, they need to bring you up first.
  • Another benefit of starting your business with WFG is that you don’t have a sales quota like most other insurance companies set for their agents as a requirement. WFG offers great rewards in the promotion when you make more sales and recruit more partners. Such rewards serve as monetary encouragement for growing your business faster. However, if you’d like to have some supplemental income to your other earnings and move with your comfortable pace, that is totally fine too. You can work as much or as little as you want, create your own schedule and love your boss.
  • And now, the most important benefit of being a WFG associate… Are you ready? Drum-roll, please!!!
Earning Passive Income for retirement

Today, you work very hard to move up in the hierarchy of MLM levels. Tomorrow, when you decide to retire, the team you’ve created will still be there – working and growing. Perhaps, you won’t earn as much as you used to while you were active, but your passive stream could be a very good addition to your retirement income.


  • Of course, the sharing of your earned sales commission doesn’t feel fair when you are at the bottom level. But, remember that without this option, there wouldn’t be a passive income in the future. And if you think about a corporate world: isn’t it the same there? When you are a junior employee, recently hired, you earn the most modest salary while making rich all those above you in the seniority and management lines?
  • From my personal point of view, the most negative aspect and absolutely unacceptable to my nature is that a WFG associate must advertise his/her business non-stop, everywhere, every time, to family members, friends and everyone (s)he meets. If you think about it, this quality is not exclusive to WFG: every insurance agent or a salesperson, who is on commission or runs his own business, must do so in order to find more clients and broaden their sales. There are many people whose personalities naturally fit the need, and they don’t perceive as annoying to others.
Sad Bee - cartoon drawing

I want to enjoy my leisure time. I want to enjoy my friends and family, and I want them to enjoy my company. I don’t want to annoy them.
I love helping others. I love teaching what I know well. But, I have no desire to seek people who need my help in their financial decisionmaking. Seeking means asking everybody until I come across the one who is actually interested. No, definitely not my call! That’s the reason I didn’t become an active associate up until now. What has changed? Why am I more open to doing it now? Because I joined another company – Wealthy Affiliate, which taught me how to market my business online. In this review, I am sharing my expertise with the whole world. It’s up to my visitor – you – to decide whether you are interested or not. If you read this far – you must be interested and will contact me. Otherwise, you’d just leave after reading headers – no offense from either side. By the way, if your personalities are like mine, I can also explain to you what is involved in Internet Marketing, help you create your own website or even manage one for you.

  • The balance in training between actual financial literacy, financial solutions and recruiting strategies is often leaning towards the last one. Please remember that while facts in this review are solid and verified, all subjective moments are certainly based on my personal opinion. Since I’ve been more interested in financial education than in hiring tactics, this disbalance in training might be nothing more than my imagination.
  • Business dress code in the office and in a field while meeting with clients. And again, this is my personal view. I am a business-casual dress type of person. Suits feel uncomfortable to me. I believe that professional appearance doesn’t always require a suit jacket.

My Conclusion: two platforms together create one perfect solution.

After 3 years of observing WFG and fighting with my own prejudice about MLMs as a business model, I am confident that the World Financial Group is not a scam. I didn’t change my mind on a tendency for MLMs to be a scam, but exceptions do exist. World Financial Group is a legitimate business. If everything you read so far about the company, fits one or more of your interests, then I encourage you to join in as a member, become a client, or simply get your free personal financial planning advice.

You don’t need to be a member in order to request a one-on-one personal or online meeting and receive a free analysis of your financial situation with advice for improvement and better planning for the future.

As I explained earlier, my biggest problem with the commission-based sales face-to-face is to find the interested “face”. Since I don’t want to hustle everybody in my surroundings, I believe that I could spread the information via Internet Marketing. In my opinion, collaboration with both Wealthy Affiliate (WA) and World Financial Group (WFG) can generate the best result. These are my two recommended solutions for starting your own business; they should complement each other. Using the WA platform, I promote WFG. At the same time, WA helps me create yet another stream of income, including passive income in the future.

Additional disclaimer: at the time of writing this review, I’ve been watching WFG for almost 3 years, paid one-time $100.00 membership fee, attended several seminars and webinars, purchased a Transamerica financial product (became a client), made friends at WFG, passed Life and Health Insurance Producer Massachusetts State examination. But, I have NOT been working for or with WFG, have not been appointed by Transamerica, did not receive any money from WFG or Transamerica, and I don’t represent either company in this review. While my participation in several WFG meetings allows me to make a judgment of the validity of the public materials I googled and used in this review, I haven’t used any knowledge or documentation from the password-protected WFG portal.  At this time, I invite you to contact me and together start our business with WFG using my established connections with licensed WFG associates and management.

  • For your FREE personal financial analysis and advice on financial planning,
  • To join WFG and learn financial literacy in order to knowledgeably plan your financial future,
    ~ AND/ OR ~
  • To become an insurance producer and a WFG associate

If you click this button above, you can send me a private message via email. However, if you prefer to comment or ask a public question, please use the “Comment” area below. Thank you!

References: World Financial Group Official Website USA/ Canada,, World Financial Group YouTube channel, Compensation guidelines ( world-financial-group-compensation-plan.pdf file was removed from this location after the publication of this post:; WFG Presentations

Update on April 11, 2019:

I keep myself accountable for this review. I am still in touch with my friends from WFG. Contact me, and I’ll help you get aboard if you wish. I purchased a valuable financial product from WFG and am their client. Even my Massachusetts Life and Health Insurance Producer license is not expired yet. However, I am not actively involved with WFG as an associate. I found another way of helping people with their needs, including financial struggles, which correlates better with my personalities. I joined Wealthy Affiliate where I’ve learned to create my own website and tune it for Search Engine Optimization to enable people who seek solutions in the areas of my expertise to find me and my business. If you have doubts similar to mine…

>>> Click here to learn more about Wealthy Affiliate (WA) <<<

You May Also Like

Add a Comment

Your email address will not be published. Required fields are marked *