World Financial Group claim that they are financial planners and their goal is helping families have a better financial future. Is it the truth? What are they really doing? I joined the group and paid $100 background check fee (the actual cost is less than $50). Believe it or not, please keep reading to the end.
WFG is a Multilevel Marketing (MLM) company, and their essential goal is to sell their overpriced products, most importantly, their life insurance policy. You may ask: why? They are holding financial classes, and they are teaching people financial concepts, aren't they? Yes, they are, but these are the covers of their essential goal.
Ask the members (except the "new employees") in WFG: how many of you did NOT buy any product from WFG? They will tell you that most employees in other companies buy their own products as well. That's true. Now ask them the second question: How many products are sold to non-members? If the products themselves are good and the prices are reasonable, most of the products should be sold to non-members easily, then why bother to make someone a member, and then sell him/her the products? They will tell you: we are teaching them financial concepts, and we are helping them as group members. Keep reading.
Now let's talk about "overpriced". Hey, what are NOT overpriced these days? A TV may cost the manufacture only $200, and then you buy it for $1000 from a retail store. Is it overpriced? Well, you need to look around: check the price in other retail stores. If they are selling it for the similar price, then it should not be considered overpriced.
Then how can I say that the products sold by WFG are overpriced? Did I compare with other companies products? Yes, I did, but most importantly, look at the commissions in WFG. If you buy a life insurance policy from WFG, how much commission can you earn (yes, you earn a little money for the policy you buy)? And how much can your upline earn for just this sale? And your uplines upline, etc? Where do these commissions come from? Your pocket! Now you understand, dont you? Hmm, wait a minute. My boss also earns some money for the work I do, doesnt him? Keep reading, you will find the answer soon enough.
Now WFG has some overpriced products, and they want to sell them. How? If someone wants to sell you a $1500 TV which you found out that the other guy sell for only $1000, will you buy it? NO WAY! So here is the wonderful part of Multilevel Marketing companies: they sell you a HOPE! See, here is the structure of the company (Pyramid Scheme), and how much and how easily can you earn money by selling the products! Then you believe: hmm, at least give it a try. At least you dont need to buy the products that will be sold to your customers, right? Then you joined them, then they asked you to attend the classes, and then they came to your home to give you a personal financial strategy presentation, and then, YOU BOUGHT THE LIFE INSURANCE!!! (its required: how can you persuade your customers if you dont buy it for yourself.)
You say: hey, I actually need life insurance, and the product they sold me is not bad at all! Ask yourself this: did I compare the same or similar products by other companies before I buy it? Did I ask a professional (not the professional in WFG) before I buy it? Now you understand, right? You bought the HOPE they sold to you! They distracted your attention, from the product and the price, to the potential money you may earn in the future.
You may say: well, perhaps I paid a little too much for the life insurance, but I will earn more in the future, which will compensate it. Really? Ask the leader in your group: how many years did you work for this company? Or find someone who worked for many years, for example, 5. Then do a math by yourself: if he/she recruited 3 persons in the first month (which is the most basic requirement), and then their downlines do the same thing. After 5 years, how many people are in his/her group? Dont do the calculation by yourself, do it by a scientific calculator: its huge. And compare the actual people in the group now. That is how likely you can succeed. Or do another math: WFG was founded in 2001. If the first person recruited 3 persons in the first month, etc., how many people should be in the company now? How many times is the number as many as the total population on the Earth?
Hmm, it sounds not good. But you only bought a life insurance, right? You only overpaid probably $20 a month, not a big deal. Hey, EVERY month! How many months do you have in your rest of your life? How much totally did you overpaid? This is another wonderful part of WFG: they dont let you pay thousands of dollars at a time, which may make you skeptical. They overcharge you just a little every month, but in the rest of your life! A few years later, things will be changed, so do life insurance policies by other companies, then you will never have a chance to compare and find out you were overpaid. Wow, such a great strategy!
Another attractive merit they might tell you is that you dont have to work in the future and you still have income if you build your downline. This is the point: the commissions come from sales, and the sales are one-time deal. If no new people buy the products, the whole team will be starving. Well, if everyone believes the HOPE they are selling, they should have new sales forever, right? Not true. First, the population on the Earth is limited, and can be consumed in very short time. Second, look at your team leader. If he/she has been doing this for so many years, his/her downline should be able to feed him/her. Its time to retire! Why is he/she talking to you?! Now you know why many Multilevel Marketing companies are illegal: if no one joins, then no income. And you understand why your boss earns money from your work but its still a healthy business: your company doesnt have to hire new people in order to have revenue.
Let me tell you one more thing: you didnt only overpay for the products if you are working for them, you will also lose many intangible valuable things, such as friendships. Suppose you talk to 50 people you know, and half of them join the group. Consider the success rate is so low, only about 1 out of them will earn enough money which they think is worth their time, effort and again, their friendships. Then your 24 friends joining the group will hate you, and the 25 friends not joining the group will think you are annoying. Not to mention the time and effort you waste on thinking all day how to approach people, and the effort to come back to normal life if you want to quit some day.
As a conclusion, let me summarize the common features of Multilevel Marketing companies:
1. They emphasize on the money you can earn in the future, not the products they try to sell you.
2. Most of the buyers are group members.
3. They push you to buy their products. They dont give you enough time or freedom to compare their products with other companies products.
4. Most of their income is from recruiting. If no more people join the group, the group will collapse.
Some links that might be helpful:
Multi-level Marketing on Wikipedia
World Financial Group on Wikipedia
MLM Watch
Checklist to Evaluate Multi-Level Marketing (MLM) Programs that may be Pyramid Schemes
What's Wrong With Multi-Level Marketing?
World Financial Group on usacomplaints.com (http://usacomplaints.com/searchresults.Asp? Q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search! &q5=World Financial Group&Search=Search)
World Financial Group on Scam.com
More World Financial Group Scam Lies
Is There a World Financial Group Scam?
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