Is World Financial Group A Pyramid Scheme Or A Scam?

If that’s what you want to learn, I believe you are in the right place!

To start with, I’d like to congratulate you for taking the time to research this product and business opportunity before joining it.

I hope you do this before purchasing any seemingly good product or opportunity.

That’s the only way to avoid scams my friend and find a legitimate method of making money online.

World Financial Group Review Summary

Product Name: World Financial Group (WFG)


Price: $100

Recommended: YES/NO


World Financial Group (WFG) is an insurance company that founded in 1991 by Hubert Humphrey. The company focuses a lot at recruiting, and they will train you to sell products and recruit other people, and the people you recruit have to recruit other people. With that said, it’s hard to make money with them, and I believe that you can find a better alternative.

 I want to inform you that I’m not associated with this company; therefore, my review will remain unbiased as always.

Even If I were, I would write an unbiased and honest review.

Let’s begin our review about World Financial Group…

What Is World Financial Group

World Financial Group (WFG) is an insurance company and planning services and other financial products like the ones that you will read in the WFG product(s) section.

The company was founded in 1991 by Hubert Humphrey.

Hubert Humphrey was also involved in another popular company called Primerica, and the truth is that we already created a post about the company.

The system that they mostly use is MLM and WFG is own by Transamerica. They operate at the United States, Puerto Rico and Canada.

I have to mention here that based on the research I’ve made Transamerica looks a legit insurance company.

On the other side, many people called WFG a scam because of the practices they use to sell you the products.

I’m not saying that WFG is a scam from the start since we can’t trust some opinions because not everything is for everyone. Does that make sense?

So, back to our main point. WFG wants you to achieve your financial dreams by being a person that wants to sell the products and create a team by adding other members (the MLM system I mentioned above) in the exact same system.

I see people call WFG a network marketing company also because they want to teach you financial stuff that you can use in your life.

So, can we say at this point that they basically make you a salesperson that tries to sell the exact same product like the one you bought/joined?

We will see more about this later on.

In the end, I want to explain it again with a few words about the operation of the MLM system.

You need to understand that when we talk about MLM’s and you are involved in one; you are a customer too.

I believe that’s how MLM’s operate, and that is why the companies make money even up to this day.

So, what you have to do first is to join the company (buy the products) and then promote its products and make money.

I’m not a huge fan of MLM’s if you ask me because I prefer better ways to make money (online) and basically I prefer to own a business than being a salesperson in one of them.

And that’s what I’m doing for over 2 years now, and I can show you how to do the same. (skip to the end if you’re interested)

How Τhe World Financial Group Works

I believe that we explained a few things above about how the company works, but trust me we just scratched the surface.

Like I said, to join, you have to buy the products and pay the $100 fee. This is basically your membership.

First, you need to find a sponsor (If I’m not wrong) and then your sponsor will “connect” your membership with the WFG office.

Then the training begins!

You will have to attend seminars and training that your local WFG office will provide for you.

You will have to give some exams in order to get qualified.

If you are in the United States, the exam name is Life and Health Insurance State.

And if you are from Canada, they call it Life Licence Qualification Program.

When you’ve done with this, you will have to obviously pay for the license and some typical Insurance agent fees in order to receive it. This will cost you approximately $300-$500.

I guess the price of $100 sees less now that you’ve learned the license price right?

I don’t think I can blame the company for this since that’s how things work.

WFG focuses a lot on recruiting new; therefore, you need to set yourself in a mentality that you will recruit people fast. Let me explain.

If you decide to join them, you will need to recruit 3 new people to join as you did.

Remember that you have to do this in the first 30 days of the moment you receive your license or to be more precise, from the moment you became a WFG Associate.

Most people at this point believe that World Financial Group is a pyramid scheme because pyramid schemes focus ONLY on recruiting and not in the product selling.

That’s a difference between MLM’s and pyramid scheme.

MLM’s will focus on selling products too.
We can’t call World Financial Group a pyramid scheme (at least at this point) since they have a few products like their services.

If you manage to recruit these three people in the first 30 days as an associate, then you will be part of the 3-3-30 club (I’ll explain in a moment)

Being a part of this group means that you actually succeeded (let’s call it ->) your trial.

Things are getting a bit confusing at this point so bare with me.

The next step is to see a sales presentation that will change your mindset and make you believe that to be successful your new recruit(s) must repeat your process and make sales as you did and find new people to join the company.

This will basically mean that other people will make sales and you will get paid also. Also, that means that you will make money on autopilot, right?

Lastly, the 3-3-30 means that you should recruit 3 people and then they will have to recruit 3 and goes on.

I believe the 30 is because of the first 30 days that they give you in order to be a part of the group.

Let me explain a bit more about the “pyramid.”
Let’s take our own example.

You recruit 5 people in the first 30 days or whatever. Then these 5 people recruit 5 people each (because that’s what they told them to do).

That means you have 25 associates and you earn residual income while they make sales.

Basically, you make money from your entire team.

The layers will keep going, and your team will grow based on that.

That’s when the things start to look like a pyramid scheme, in my opinion.

World Financial Group Products

At WFG, you can find a few products or services and not only the “recruiting system, as mentioned above.”

Let’s see a few of the products:

Insurance Protection

Retirement Strategies

Long-term Care Insurance

Business Solutions

Legacy Strategies


At this point, I want to mention that WFG is not the owner of the products.

And you want to read it again, I understand.

As I mentioned earlier, WFG is owned by Transamerica and basically TransAmerica “provides” the services through WFG.

Transamerica is a legit business and their insurances and the products, in general, are fine and solid, but the truth is they are a bit more expensive than their competitors.

After some research, I found out that WFG represents other companies also and sell their products.

A few of them are:


Voya Financial


and others…

This is why people believe that is a pyramid scheme. They don’t even sell their own products, and they focus on recruiting mostly.

I don’t want to see me like I’m defending them, but at least they sell products even if they focus on recruiting.

I get it nowadays recruiting = pyramid scheme, but that’s not always the case.

You see if a company has a very profitable product and promote it and make even more money, what do you think they will do?

They will promote this product even more.

If a product makes a huge profit that means more money for the company, and I’ve never meant a company that hates money or profit.

With that said, I don’t like the recruiting after recruiting system either and what can I say… It’s not something that I want to do in my life until I die.

I prefer to own my own business or find a way to create something like (and I did. You literally read what I wrote inside my website) an online business.

Yeah, nowadays the online marketing world is huge, and I can help you with that. Just skip at the end of this post.

World Financial Group Pricing

I already mentioned it if you read it above but yeah the fee is $100 if you want to join them.

Obviously, it’s not only $100.

I’m not saying that WFG has hidden payments or upsells, I’m saying that you will have to spend more money for things like your license which can cost up to $500, your study materials and if you decide to sell different products you will also need a different license.

Yeap. Simple as that!

World Financial Group Compensation Plan

Before I explain you the compensation plan, I want to inform you that it took me some-time to understand it and I have to mention that it’s not the most complicated plan I’ve ever seen.

I’m telling you this because I’ve read other complicated compensation plan like IBUUMERANG’.

MLM’s usually have a very complicated compensation plan, and I can’t understand the reason.

I’ve said ‘compensation plan too many times already, so let’s start explaining it.
I’ll try to keep it simple. In case you want to see a video about the compensation plan

I found this video of the World Financial Group Midwest Agency and Rich Thawley explains everything there… It’s more than 1 hour long so yeah.
Unfortunately, I couldn’t find an updated video. (The date of the video is 12/31/2016)

In case you want to read a few things about the compensation plan they will be below the video.

First of all, the compensation plan looks like this:

When you join, you will join as a training associate that you will learn what I explained above.

Then as an associate, you will earn 35% of the earnings.

In order to achieve it, you need to have 3 personal recruits, 5 life licensed associates in your team and 40.000 net points.

Marketing Directors earn 50% commissions.

To get qualified, you need 10 associates in your team, 3 personal recruits. 

Also, you must have $35.000 as a cash flow in 12 months or $20.000 within 6 months (doesn’t have to be in the first 6 months…just 6 rolling months.)

Senior Marketing Director earns 65% commissions.

You need 3 direct recruits and either 500.000 net points 6 months or 750.000 in 12 rolling months.

You can see the compensation plan here.

Can You Actually Make Money?

You know I should continue from the compensation plan and maybe even explain the “make money part” in that section but, I decided to separate them.

So before we begin, I want you to understand a few things.

I’ll begin by saying the 2 main ways to make money is to sell the products and/or recruit others and earn commissions.

Let’s admit at this point that most money will come from recruiting people and make money while your recruits, recruit others also.

Secondly, I want you to understand the 6 levels you can get qualified for at WFG.

The training Associate
The Associate
The Senior Associate
The Marketing director
The Senior Marketing Director
The Executive Marketing Director

Obviously, the higher your rank, the better the money you will receive.

I hope that you already understood that you start from the bottom and the final rank is the Executive Marketing Director.

You have to understand that the company makes money while people recruit others, and that’s the reason they focus so much on that.

I already explained the part with the sponsor and how to join the company, but something I want to say is that the people that will recruit you they also make money when you make money. Just remember that.

With that said, I can’t tell you exactly how much money you can make because that will depend on you and only you.

I can tell you though that creating an income is possible even if it’s hard to achieve it.

I would recommend you though to see it as a side hustle and not as a full time-income because 98% of the people fail with MLM’s and they lose their money.


The Pros

  • You have a chance to make money
  • The company was found in 1991 and still operates.
  • A+ Rating on the BBB site
  • It’s Not The Usual MLM products.

The Cons

  • The winner here is the company and the people that recruited you.
  • If you can’t recruit you will fail
  • They don’t own any products
  • You don’t have a business that you own.
  • Bad Reputation Online therefore hard to sell

Who Is World Financial Group Meant For (And Not For)

I’ll begin with the people that shouldn’t join at WFG because I believe that it’s 95% of them.

First of all, If you are bad at recruiting, selling, marketing stay away from that. You will waste time and money.

Secondly, I believe that you can find better options out there.

Thirdly, statistically speaking (writing) 97% fail at MLM system(s). Only a few people make money from that, and the winner is only the company.

Now, even though I believe that you can find something better I have to mention

That if you can sell life insurances and you are good at selling, marketing, and recruit others fast, then you have a good possibility to make money.

Let me tell you a few Ugly Truths that I found, and I will reveal them to you now…

Are You Tired Of Scams?

Yeah, me too! I can show you a legit way to create your online business. Not get quick rich schemes, not a simple online job that will pay you cents, none of those things. I’m about to show you how to create an online business that you will own!!!

Ugly Truths Revealed

1. WFG Reputation Is Bad!

Let’s be real. Just because of the recruiting part people want to avoid WFG and believe that it’s a scam and a pyramid scheme.

Do you know the worst part? If people say those things for the company, how I’m supposed to recruit others?

That’s what makes me worry about the Company and I think that you must have a good reputation online, because guess what? Everyone has access to the internet and can read the complaints.

As you can see you can find many complaints if you search a little bit.

2. You Don’t Own A Business!

You know this is bad to say it, but yeah, you are a salesperson. It’s not bad as a job or anything, but if you believe that you have a business or own something, you’re wrong.

You have to understand that what you do is like an “employee” will do for any business. The only difference here is that you have the possibility to make more money!

So yeah, you don’t own anything!

3. They Have Legal Issues!

This is serious and a huge red flag!

World Financial Group had legal issues which dropped the credibility of the company to the bottom!

Let me explain to you a few things.

Based on the research I’ve made, World Group Securities is the broker-dealer affiliate of WFG.

WGS and one of the brokers were fined for $150.000 in 2006 by Missouri’s commissioner for selling unsuitable products to older people.

If you think that that was the first time you’re wrong.

WGS was also fined for $50.000 in 2004 because they failed to supervise its representatives in the State of Utah.

I don’t want to go further with this, but I want to inform you that there were more legal issues.

Is World Financial Group A Pyramid Scheme

You know, you can’t call World Financial Group a pyramid scheme nor a scam.
If you knew the Amway case back in 1979, then you know FTC said that Amway is not a pyramid scheme, but they found their “earning claims” was a bit exaggerated.

Based on that, I can’t call WFG a pyramid scheme. You can always have your opinion, but I have to stay with the facts.

I’m not saying that I like that kind of system nor MLM’s.

The truth is that you can have an MLM company or something close to a pyramid scheme and actually have a legal business.

Not everything is illegal.

Careful, not every company is legit, and I want you to stay safe and search as you do now before you join or give your money at anything.

An illegal Pyramid Scheme should be something like:

You recruit people, and you make them pay $ 1000’s, and then you make them recruit people, and they pay $ 1000’s, and it goes on and on.

If that company has anything else to sell and only does that, then it’s probably an illegal company and a pure pyramid scheme.

The reason that the cash flow comes only from recruiting and nothing more.

There is a small difference between MLM’s and pyramid scheme.

Also, I reviewed recently another company with a few similarities. Their name is iBuumerang

Is World Financial Group A Scam

I don’t believe it’s a scam. The company was founded 30 years ago as I said previously and they are known for their insurance and financial services.

That means the product(s) are of high quality and I’m can’t say the opposite.

However, based on my research, I can’t recommend you this company and say “Hey join them they are the best.”

I’m not a fan of MLM’s, and I don’t think I will like them unless I found something very good that will convince me that they worth trying.

If I do, I promise I’ll write about it!

The reasons I don’t recommend the company is simple:

A bad reputation online makes it very difficult to recruit others (but not impossible to do so)

I can’t also recommend it as a “full-time income” career unless you can recruit many people and the people you recruit actually do some work and they recruit their people.

Now, If you are passionate about the “insurance” niche, yeah, go ahead and join them.

If you are a master of selling them and recruit others, then yeah it will probably work for you, but that also means that you are the 1-5% of the people.

I believe there are better alternatives to make money.

How I Make Money Online

If you want to create something that you actually own, and make money, you probably want to read what I’ll tell you now.

I started my business at 21 years old. It’s not the easiest thing for me, but after some hard work and with the right training, I managed to create my business.

In fact, you look at it right now.

The platform I’ve found gave me all the tools and a step by step training and showed me how to create what you see right now.

So, If you are interested, I’m here to help you and show you how to create your online business today.

So tell me,

If you have any questions or thoughts whether World Financial Group is a Pyramid Scheme or anything else, then please leave them in the comment section.

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