Shopping for life insurance, you have a lot of options to explore, whether its the breadth of insurance companies or the variety of products they sell. When it comes to dealing with a multi-level management company like World Financial Group, it pays to be aware of their heavy emphasis on recruitment over all else. This way you don’t find yourself roped into an unexpected business opportunity when all you wanted was a solid life insurance policy.
What WFG Actually Sells
On their website, World Financial Group markets itself as a resource dedicated to providing middle class, everyday people with the tools and savings vehicles to protect themselves and their families for the future.
They offer this security through policies sold in partnership with the insurance company, Transamerica.
The Transamerica backed products WFG sells include:
- Insurance Protection
- Retirement Strategies
- Legacy Strategies
- Long-Term Care Insurance
- Business Solutions
The products offered are life insurance policies, investment vehicles for retirement solutions, mutual funds, and group insurance/benefits plans for businesses. WFG serves as a boilerplate outlet for Transamerica to sell its variety of services. As an insurance provider, Transamerica is rated highly, but even selling generally reputable products may not take away from World Financial Group’s otherwise unsavory reputation.
Is Transamerica Life Insurance Affordable?
Regardless of the prevailing opinion behind World Financial Group, Transamerica is a legitimate company who offers a solid life insurance product to the marketplace. However, Transamerica’s term life insurance product can be 25%+ more expensive when compared to other competitors, as seen below.
| 20 Year Term (Medical Exam Required) | 30 Year Term (Medical Exam Required) | |
| BannerLife | $14.85 | $22.84 |
| Protective | $15.08 | $25.51 |
| AIG American General | $16.93 | $24.45 |
| Transamerica | $19.09 | $25.89 |
Rates above are an example only. Rates shown are for a 44-year-old, non-smoker male in California in perfect health for $100,000 policies requiring a health exam.
Emphasis on Recruitment
In World Financial Group’s System Manual, the word “sell” is used pretty sparingly, 14 times to be exact.
Instead, WFG uses its nearly 60 pages to detail its intricate system for recruitment.
While it may seem like WFG aims to sell Transamerica policies, it places a much higher emphasis on the need to recruit people to sell those policies instead. In both their systems and leadership manuals their guiding principles are the Law of Averages, that a mass of recruits performing at the average level will help “superstars” stand out, and the Law of High Numbers, a high volume of recruits increases your chances for success and helps you find the best. Essentially, it’s a numbers game, where they want to find high performers and get the most from them while having a strong base of average performers.
This may account for the varying quality in agents that some online reviews from customers identify. An emphasis on bringing people on and a revolving door of agents and associates certainly leaves room for a knowledge gap about the company’s policies and products.
Along these lines, World Financial Group doesn’t require their recruits to buy policies to become part of WFG. But, this also doesn’t take into account the $100 administrative fee that must be paid in order to get their educational materials (as noted in their Napkin Pitch video) and learn WFG’s very specific selling strategies.
They also work under the assumption that many recruits ultimately won’t work out. This explains the heavy emphasis on consistent cycles of recruitment which assures they’ll constantly have new recruits coming into the fold.
Picking Up the Pace
Joining WFG is also framed as a being as low of a commitment as possible. They sell it as the kind of “opportunity” you can do part-time until it starts to finally pay dividends. Their manuals encourage members to frame it as a way to achieve dreams of achieving the lifestyle you’ve always wanted, a common tactic when it comes to an MLM.
With dollar signs in your eyes, they then try and get you to recruit three more people within 72 hours. In a perfect world, this would allow them to grow exponentially. They call this process taprooting. This is where higher level associates encourage high performing new recruits to dig three or four layers deep, ideally creating a lucrative upline of revenue.
They also refer to this taprooting process as the “3-3-30 Strategy.” This boils down to a trainee bringing on three new recruits and either observing or making three sales over the course of 30 days. It facilitates what they call a “Fast Start,” which hooks new recruits early on, helping to establish their own leg before they have time to question it.
Their system is all about building up momentum so associates will keep going, selling policies and hoping to eventually start seeing more and more of the commissions, if they can create the upline.
Pitfalls of Operating as an MLM
World Financial Group’s structure as an MLM means that as more people join, it’s harder to actually turn a profit. It’s a cycle that only works when there are constantly people down the line ponying up their own money in hopes of making more, instead of lining the pockets of everyone above them.
Implementing what is known as “network marketing,” your success in an MLM hinges on the need to recruit people who will, in turn, recruit people who will also recruit people. It may sound like a foolproof plan to some, but it’s pretty difficult to keep people motivated when they aren’t actually turning the kind of profits they were promised when they joined.
It’s one of the biggest pitfalls you run into working for an MLM, whether it’s WFG or Primerica. This accounts for WFG’s noted high levels of turnover and means more recruiting is necessary for those who actually want to keep making money.
Why Does WFG Have Such A Bad Reputation Online?
This all brings us to why World Financial Group has such a negative reputation online, even if they are backed by Transamerica’s generally reputable insurance policies and financial solutions.
Their intense recruiting tactic and high levels of turnover contribute to this less stellar reputation. This, coupled with a number of testimonials from former associates, corroborate that the atmosphere is far more focused on recruiting and even bring to light the notion that most associates aren’t set up to succeed. One Glassdoor review, in particular, noted that associates don’t get any part of their commissions until they are licensed, yet WFG notes that less than half the associates they bring in ultimately get licensed. This means that those commissions just go directly up the line instead of to the person who made the actual sale.
Ultimately, there’s nothing wrong going with the Transamerica policies and financial vehicles World Financial Group is selling. Instead, it’s important to be aware of the sales and recruiting tactics their many agents utilize, not to mention the varying levels of knowledge they actually have when it comes to the policies they’re selling.
Licensed (*note*) WFG agents are able to select from a wide variety of insurance companies, including Nationwide, Prudential, Pacific Life, American General, Jackson Life and a whole library of them through Crump, all of whom partner with WFG, some of whom have policies specifically modified for WFG’s core customer. Transamerica is not the only provider. In short, we can shop the industry for the policy with the best fit AND the best price.
WFG agents are licensed exactly as are any in the industry and take exactly the same state and federal tests to gain Life, Health, securities and assets-under-management licenses. They are subject to exactly the same compliance regulations and suitability standards as every other insurance agent, and securities are required to be handled according to FINRA regulations and agents are required in this case to be registered with FINRA exactly as any other agent.
Agents may vary in experience in knowledge, and this is true of any insurance agent anywhere. At WFG, however, there are other agents committed to his/her training and there are almost always other agents working with him/her who have the knowledge he may need to support a client.
True Blue Life Insurance’s “article” misplaces or neglects this information. They may not have noted that WFG is the #1 broker for female agents in the US and that we are in the top 1% of over 4000 brokers in the US with over 42,000 *licensed* agents.
What True Blue does get right is that most people who start with WFG don’t stay with the program; sometimes financial services just aren’t for them, for whatever reason.
We offer training and the opportunity, a proven system and outstanding financial products from highly recognized companies. We show them how to build their own business and grow it. We show them how to manage people and their organizations (including working with new recruits) and they find that there are probably 11 ways to get paid by the company beyond simple commissions and fees.
Along the way, the path toward building a business beyond simply being an agent involves far less personal expense and complicatin than what would be involved in opening a McDonalds franchise, gas station, software firm, etc., while providing a LOT more return for hard work. As with any business, recruiting people to work with you and learning which will thrive and which will not is vital in growing the business. Providing the opportunity without the out-of-pocket expenses of salary, office space, etc., in doing so, is unique.
And finally, even True Blue Life Insurance will agree that the market is under served. More than 60% of families *know* that they need life insurance, but have no idea how much or what kind. Most make mistakes when it comes to finances, mistakes that could have been avoided had they talked to a knowledgeable financial services provider. Most have no idea what kind of financial products are on the market or what they have access to. Most put off financial decisions until it’s too late. The more agents we have out there, the better. Our agents look like the families they serve, because they often ARE the families we serve. Some agents want/need an additional part time income, some want to build whole businesses, and some develop from one to the other over time.
True Blue sees WFG as a competitor and seeks to denigrate it, as if there were a paucity of customers and commissions available. WFG, on the other hand, intends to leave no family behind. There are a lot of people who need financial knowedge and help. We’ll encourage folks like True Blue to join in the fight to get everyone taken care of, and we’ll never say anything bad about them as long as they’re competent and fair.
My WFG advisor has been a blessing for me and my family!! We have learnt so much about money, investing and life insurances – what is a good product for us and what is something that we should never consider – it really truly teaches us about Finances that is not taught by any other company out there!!! I have been a client and now am interested in becoming an advisor and teaching especially the younger generation about the financial industry. I have never paid my advisor and yes I have sent a lot of family and friends to my advisor. I have dealt with other company’s insurance advisors and NO ONE has ever educated me on how each product works for me. And with my WFG advisor – it wasn’t about him making the sale – but wanting me to get educated about which produce maybe best for me and my family – WFG does not own any products of their own – like other companies such as Primerica. WFG is a distributor of the 77 of the a+ Financial/Insurance companies in North America! Yes they recruit folks in the business – but who doesn’t to grow in their business – take and example of all insurance firms and another good example is real estate brokerage companies. They all do – but my question to folks interested in insurance or investment products – is have you been educated about how the financial industry and which of the product works the best way for your family. I would rather get recruited to LEARN about the industry and product rather than blindly buy a product and not knowing the pros and cons of that product and make a informed decision. I have learnt so much by just being a client of WFG but investing in products from IA, Empire Life, RBC, BOM. Prior to WFG I had purchased products from Sun life and Primerica – guess what – ZERO education and OWN products only neither had products from a vast market of top companies in financial & insurance industry!!!
They are not advisors. Perhaps financial strategists, but not advisors. Right there your ignorance of finance reveals itself. They are salesmen. Very few of them are licensed in securities… The big wigs like Guillermo Haro had there securities licensed revoked for predatory practices. They mostly hustle IULs. Highest commission for agents. variable universal life? variable annuities? IRA, roths 401k or IRA? nope, Securities license. A true advisor will have Series6/7 and 63, in addition to health and life insurance..WFG can sell real products from reputable providers…They do not take a needs based approach… They prefer IUL’s… A retirement vehicle… NOT an investment…And it is only a viable option for families/indiviuals who make significant income, like 250/300k a year. Not a product ideal for the middle class with under 120/100k a year income/household income… You cant max fund a IUL making that much per year to fund a retirement. They focus on recruiting and duplication of system more than they do products. And the variety of products they can offer they dont train on at all. WFG is legitimate. but they suck. They prey of ignorance of customers and recruits.
Actually we aren’t salesman… we are broker dealers for these companies, and we are educators. You have shown your ignorance by pretending to know what we are without a clue.
WFG has some components that look like a MLM, but it is not a true MLM. It is set up like many insurance agencies out there. Is there a heavy emphasis on recruiting and building a team? Yes. Is there a heavy emphasis on “warm” sales (as opposed to cold calling)? Yes. Do they “sell a dream” to people just starting out without really going into the nitty gritty reality – well, yes, they do.
They also sell very real products, to very real people, who otherwise are completely oblivious to how they can make their money and insurance work for them, rather than the other way around. Do new associates tend to think this is a “get rich quick, tit for tat” kind of gig? Unfortunately, yes – however, someone who is willing to stick with it, put in the effort and time (and realizes that they are self-employed, meaning, they have to be self motivated), can certainly make a living doing this.
Also, the financial education they help guide is invaluable – for $100 and your time, a recruit can learn more about finances and investing in a matter of months than most people do in a lifetime. And that education is guided by millionaires who’ve made their own way, and understand the reality of making it happen.
SLA is NOT even remotely Close. Sorry you feel that way. I have been in board about 3 months, had nothing but great experiences, met great people and have gotten all my commissions from the sales I have been involved with. $2300 to date. That’s not a lot. But that is for about 15-20 hours at most of my time. That’s over $100/hr. Where else can you make that kind of money, no stress, helping others and their families, and yourself. Love it! My other job requires a lot of me. I haven’t had the time to out in much more. Can’t wait until I do and am able to leave the corporate grind behind. So, sadly, you must’ve gotten in with a bad bunch if any of what you say is true. Sorry to hear.
I agree with some replies here however I just wanted to point out that this article comes from a competing insurance company and who prefers to bash on another company instead of figuring out how to uplift his own.
Unbelievably it appears that TRUE BLUE life insurance’s CEO and Founder has found this to be the best way to promote his company. SHOUT OUT to Brian Greenberg wooohoo
Just so you understand here, I’m neither a client or agent of WFG or its partners just a citizen who prefers to have healthy competition in a world market. You should maybe think over your ethics 🙂
Ouch.
Love this! Well said!
I paid $100 to be Associated with WFG, I spend a little money that I have to getting licenses. I was working at a Large Tech company in an entry level position making only $35K salary. I have a family and it was very hard living paycheck to paycheck in NY.
There are many rules and strict regulations to be able to do this business specially in NY, I was part-time for about 6 months, and that year I made $45K in income from WFG.
I see many people don’t do that the first year, and also a few do much more than that.
There are many things that you have to learn and know about it; the learning curve depends on how fast of a learner you are. Your success will depend largely on you and your efforts. However, I discovered that starting with the right people / office; being ethical, caring, and experienced, do influence a lot on how motivated you can be to put your best effort that is needed.
There is a great opportunity to create a career in financial services with WFG. Althought this is not for everybody, I’m glad that someone like me; very educated but super shy could actually make it happen in business and finance for only $100.
My 5 stars is because WFG changed my life. It improved my financial situation and my quality of life. I developed a career as a financial professional in saving, insurance, and investments. It maximized the time I could spend with my family; being together with my wife and enjoying our son’s most important childhoot moments that I will never forget. Althought nothing is perfect, overall the people that I’ve met have overwhelmed me with joy and gratitude.
I wish that –whether you are considering this as a platform to develop a career, or you are just passing by– that you get what you are looking for and be happy with it.
Actually WFG is an MLM. I was told that by WFG Agents who tried to recruit me in. I was also told about the $100 and was told that I need to come up with 20 Referrals to give to them to talk to. They also work to do a Financial Needs Assessment first on you to get you to buy insurance through them and tell you that your current is not as good. They quote a higher priced insurance policy and then ask for the referrals. You don’t get commission from the policy you buy and your list of people go to them and you get nothing in return. That’s before you even get in the door.
With WFG you technically do no own your own business, you are a WFG Associate/Agent selling their products as they are a captive Company meaning when you sign up with them, you are selling what they offer. You can not go to any other insurance companies and contract with them to sell for them.
Thank God I did my research because I want to get my insurance license but not be stuck to one company and I want to be able to start my own Insurance Agency, not fall under someone else as their Agent. I am working on my license now and I look forward to building my own business and have a Non-Captive Company who I will be working with to build my own business, no recruiting required and I am my own company. They just provide over 100 Highly rated insurance carries to choose from when deciding who I wish to work with not who I have to work with.
I was previously with Primerica a few years ago and they are like WFG, a captive company, high on recruits even though some will say we don’t require recruiting. Just wait til after they push you to get another policy and bring you in. I left Primerica because of the pushiness and making you feel you are obligated to be at all meetings and have an issue if you did not show up. I got calls after call telling me I had to be at a sales meeting that was for people who had a potential recruit to bring in.
With researching, I will never get roped in like that again. I am glad I took the time out and learned the differences before deciding to go with WFG.
God Bless.
Captive means you can only sell one company. WFG gives you access to Transamerica, Pacific Life, Nationwide and then through Crump you have around 10 more companies.
Captive means if you move to other companies you can not take the costumers that you brought in, like an example, your family. Get a better mlm company, just saying.
WFG wouldn’t work if YOU do not go to work. $100 background check membership fee isn’t going to get you rich. If you are complaining about $100, you probably didn’t do much or you cannot handle rejections. It is no different from people want to get fit, they purchase a membership and go to gym couple times, and complain the equipment isn’t that great, or trainer isn’t that amazing. Bottom line, it takes time and work. Most people like the idea of become successful, but do not want to do the work. People come into this platform expecting make quick money and easy work. Complainers find other people’s faults and fail to exam themselves. If you have common sense, use your own judgement. Do not just read opinions online. Everyone has an opinion and WHO do you listen to? Losers or winners? I come to this platform thinking, if one person did it, maybe it is not me. But if so many become successful, why not me? It might not fit for everything, that doesn’t mean company is bad. Everything big has controversial. Google “amazon lawsuit” “BMW lawsuit” “Is Jesus Chris real?” “Is Tesla safe?” what’s difference from google “Is WFG a scam?” You will find everything you are looking for. Google “world financial group” “Aegon too big to fail” Find WFG/Transamerica from SEC and see how well this company does compare to Morgan Stanley, Citigroup.
By the way in this article it says Transamerica Term is more expensive that most other term, YES! HOWEVER, ONLY partially TRUE. There are two version of term. The one showed about is term with LIVING BENEFIT. With a few $ more, you can paid when you get critical illness, chronical illness, not just when you DIE. Are you willing to pay a few dollar more to get those coverage? If not, good news is WFG is a broker dealer, they sell above those cheaper ones too. In fact, there are even cheaper ones than the one listed above. Think about it 🙂 There are many articles out there seems legit, but only partially true 🙂
Ok, lots of partially true information on the internet. Come find out on your own with your own eye and your own wisdom. Don’t just read some post and let your own opportunity pass right by. Best of luck!
This is incorrect. WFG is not an MLM. Sure, you my have to recruit but nobody makes money off of recruiting people like an MLM does. The reason why you have to recruit, is to build the business. Just like churches recruit or the military recruits. You have to build in order to achieve. We do not make money off of a family. When we help a family- say using Transamerica- Transamerica pays us. We don’t take anything from the person we are helping. That is an MLM.
Actually it is not an MLM and if WFG agents told you that, then you might want to find another team that will properly train you. Also just because someone says something doesn’t make it true. It is not an MLM. It has similarities to an MLM, but it is not. ALL insurance companies recruit agents. Anyone who thinks otherwise is brainwashed, ignorant, or dumb.
They are whack as it is. Their ways of recruiting and selling is to get family first…? Seriously? whack. Every time I went to their meetings they just say the same crap over and over again. Nothing new. wasted 8 hours of my life at their “convention training” or whatever it was supposed to be. Its not like they are trying to sell affordable insurance neither.
In the second to last paragraph you mentioned the Glassdoor review, that “associates don’t get any part of their commissions until they are licensed…”, that’s because the finance industry is highly regulated. I’m fact, WFG and Transamerica is regulated by the SEC and FINRA, which means any associate transacting life insurance, or any financial product without a license is ILLEGAL.
So if an associate comes on board, and chooses not to get licensed, then they cannot possibly receive that commission.
Absolutely agree. Many people treat WFG like a get rich quick scheme and get frustrated then leave when they find that it’s a legitimate business that requires actual work.
Straight up M!! If you don’t want to work. Don’t bother! You still have to work. You just set your own hours. Your work is helping families, not making widgets or whatever. Your work is talking to people about bettering their lives, not slaving to make money for the MAN! It’s making money for your family and the others you are helping. It’s not for everyone. I agree. But it’s not a scam nor a scheme. God bless and good luck.
WFG is not an MLM. Yes, they do recruit people who are interested in owning their own business, but it isn’t required. Many agents have clients and team members. The difference between WFG and other financial institutions is that there is an educational platform. For $100, you can take financial classes with their agents and leaders in the company. It also allows a person to even learn from product providers like Transamerica, Nationwide, Pacific Life, Fidelity, and One America just to name a few. For $100, their clients can learn about products and financial strategies that can help them create their own portfolio without the help of any financial advisor. So, they prefer to have educated clients who know what they want and that they don’t have hard sell to their clients. When people are educated, it helps everyone and education is a powerful thing!