Third Party World Financial Group Review – Don’t Join Until You Read This Article!

As a network marketer, with almost 10 years of financial services experience, I’m often approached by World Financial Group representatives to take a look at their business. And, while I never became a WFG rep myself, I did do quite a bit of research on how they started, what they sell, how what their track record has been. If you’re looking into the World Financial Group business opportunity, don’t join… at least, not until you read this review. In this short article review, I will highlight WFG’s background, the various services they market, their pay plan and, whether or not WFG is a scam.

World Financial Group, formerly known as World Marketing Alliance (WMA), is headquartered in Duluth, Georgia and was originally founded by Hubert Humphrey in 1991. Before starting WMA, Humphrey was the #1 Producer for A.L. Williams, now known as Primerica. After Art Williams sold his company to Sandy Weill and The Travelers Group, Humphrey decided it was time to start his own company.

Today, Hubert Humphrey is no longer part of the company and WFG is now a wholly owned subsidiary of Aegon, one of the world’s largest life insurance and pension groups, and a strong provider of investment products. WFG markets various financial services, including life insurance, investments and mortgage products though a multilevel marketing model. Several of World Financial Group’s industry partners include some big names including, Pacific Life, TransAmerica, John Hancock and Hartford Life.

As of this writing, the company has a sales force of 85,000 life insurance licensed representatives, and is doing business in the United States and Canada. It’s rumored that the company recruits close to 10,000 new associates every single month, which is pretty impressive for a financial services-based direct sales company.

To join the company, there is a start-up cost of $100 ($125 in Canada) plus any licensing costs that the state in which you live charges. Give or take, it will probably total anywhere between $500-$1,000 for all your licenses, and about 20-40 hours of licensing time. Unlike other network marketing companies that allow you to make money the minute you join, WFG requires it’s reps to get licensed before they can get paid. And, while this might look like a negative point to some people, keep in mind that because you’re dealing with financial products, you must be licensed. The cool thing is that, once you do get licensed, you can make some big commissions for simply writing sales.

Another aspect of WFG’s compensation plan is that while there is a licensing requirement, and it will take a little longer to train people because you’re dealing with financial products that may get complicated, you only need a handful of producers to make a good income. For example, you can potentially make a multiple six-figure annual income with just 25 active reps.Obviously, you will need to bring in a lot more than 25 people to get 25 people producing, especially because only a small percentage of recruits will get licnesed, and from those that get licensed, only a handful will actually produce. Even still… building 25 producers, who sell 2 or 3 products monthly, is a lot more do-able than building a team of 15,000 to 20,000 reps.

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Drawbacks Of Financial Accounting

Accounting is not at all free from some accompanying limitations. In fact, financial accounting permits some alternative treatments as well. Bookkeeping is generally based on the concepts usually referred to as ‘generally accepted principles’. But there exist more than one principle for the efficient treatment of any one of the items to take place. This permits alternative treatments with in the big framework of generally accepted financial principles. Financial accounting, sometimes, does not provide one with the essential timely information. Actually, it is not at all a limitation when high powered software applications are used to maintain online and concurrent accounts, where the balance sheet will be made available in an instant.

Financial accounting systems are designed in such a way as to supply information in the form of statements called balance sheets and profit and loss accounts, generally for a period of one year. So the information received is said to be of historical interest only, and only the post-mortem analysis of the past figures can be conducted. The whole business requires information given at the right time, at frequent intervals, in order for the management team to plan and take corrective actions. As the tradition goes, financial accounting method is not supposed to bring in relevant financial information in a time interval less than one year. Now, with the advent of computerized accounting soft wares, monthly profit and loss account figures can be known and this will help overcome the existing limitations.

Some are of the opinion that financial accounting statements and reports get influenced by personal judgments. The ‘convention of objectivity’ is respected all over the world in accounting; but, to maintain records of certain events excellent estimates have to be made, which requires informed and intelligent personal judgment. One cannot expect accuracy when it comes to future estimates; and, as a result, objectivity suffers. Financial accounting sometimes ignores some of the very important non-monetary information. But, the interesting fact is that financial accounting does not consider these transactions as something that is non- monetary in nature. As for reference, the intensity and extent of competition faced by the company in business, the latest technical innovations possessed by the organization, the loyalty and efficiency factor of the employees, etc. are some of the important matters the management of the business would get highly interested.

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