First Investors Corp is not a scam, but the business model is horrible.
The Company mainly deals with proprietary products, and a handful from other Companies (maybe 5). The business model is to constantly hire and have interviews each week since the drop out rate is so high. Will focus on new college grads with no experience elsware in the industry. If you have industry experience you probably wont get hired since you are already familier with the industry, and they wont be able to train/brainwash you with their model. If you look around you will not see many veterans around the office. The ones that are there stay, because there the big fish in the little pond. The business model is to hire college grads get their friends and family to invest in their proprietary products, throw you against the wall and see if you stick. If you dont stick your accounts will be inherited by your mentor. No risk and all reward for them.
During the interview they will say you can make many dollars... Dont believe the hype, chances are the person doing the presentation isnt topping 60K since they probably just started a year or two earlier. Ask around and see what the tenures are of the people in the office and the person doing the interview, chances are its under 3 years.
They say you are 1099 but then control your weekly schedule, you will be required to attend their meetings and be working on Saturdays. They will also try to control your social life with outside functions. They have ridiculouse amounts of meetings, all geared toward training you to buy into their philosophy. You will be working long hours targeting the 403b market. Expect to work over 60 hrs a week. Payout grid is comparable to a Wirehouse but products/services cant compare to a Wire.
This is a mutual fund company and selling their mutual funds is what is expected of you. They have maybe 5 funds to choose from and thats it!
They also have a life insurance side with expensive products compared to the rest of the insurance industry.
Do your research if you just graduated look at some other companies that will start you with a salery while your in training, many of them do.
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