World Financial Group is a company that works through network marketing. Network marketing is followed by most multi-level marketing companies today. The company aims to provide solutions to realize the financial dream of their affiliates and members. They also instruct and guide people every day to understand the basic financial concepts they would need to succeed in life. In actuality, the associates or members receive commission from the sale of various products and services for financial planning. The services are categorized into three main areas, namely: savings, protection and retirement.
Being a Financial Planner
Financial planners are required to obtain professional licenses in order to sell various financial plans and products. This is also true for the associates of the World Financial Group. The license requires you to pass a professional exam in order to be recognized. However, you can choose to be an unlicensed associate to avoid the professional exam. Being unlicensed only grants you the ability to sell the products, but on a referral basis. Referral basis means that you can search and prospect for new clients yourself, but the actual final sale of the financial services and products will be conducted by the licensed financial planner in your team.
How Does the Business Work?
The business follows the standard framework and structure of multi-level marketing (MLM). The company does not use any standard model for business. Like most MLM companies, associates are encouraged to recruit more members into their teams so that their business will continue working. In fact, majority of the focus of the company goes into the recruitment strategies and techniques rather than providing the actual financial guidance to their clients. There is little effort to promote their products and services to those who actually need these. More members and clients mean more commissions for the recruiters and even more for those at the top of the organization.
Once you join World Financial Group as an associate, you will be asked to be a part of the ‘fast start.’ A fast start means that you have to bring in 3 other personal recruits and attend 3 sales trainings within 1 month of your membership with World Financial Group. The training requires you to allot a certain portion of your time, which is quite difficult for those who have jobs and others responsibilities. The recruitment part is always the hardest. Being new to the whole recruitment thing makes it difficult to convince someone else to join your team. If you ever manage to complete the fast start requirement, you will then be a member of the ‘3-3-30 club.’ This is a special group within the World Financial Group. This challenge is deemed with utmost importance within the company. According to the company’s business manual, doing the fast start is one of the critical areas of growing your business. The idea is that the bigger your team is, the bigger your commissions and income will be. And the faster you do this thing, the better your business will be. The main earning factor of the business is the recruitment. 3-3-30 means that your 3 new recruits will then bring in 3 more recruits each and the cycle will go on to build your team. Again, the company promotes recruiting to realize the financial goals of the members, paying little attention to the actual financial concepts and planning that they sell to people.
Why Focusing on Recruitment?
World Financial Group focuses on recruitment because this is where their profits come from. Before joining the company as an associate, I was required to complete a financial needs analysis online. After the analysis, I was offered the financial plan that they said would best suit my needs. They didn’t ask for a fee upfront though. The one who brought me into the company, my sponsor, showed me various financial investment and insurance products that I had to obtain for securing my future. Later on, I realized that he got a commission on the products that I signed up for as a new recruit. The company says in their business manual that they do not force their members and associates to buy a financial product. But they also say that we must trust their ‘working’ program. So basically, we should do as we’re told by our sponsors who came before us.
Aim at Duplication
Different sponsors conduct training and coaching sessions for us. In these sessions, we are instructed to duplicate the system in order for us to be successful in the business. This means that we need to do what they are doing now and our recruits should do the same as well. This also includes purchasing World Financial Group products for ourselves. Although you can earn from the selling of the financial plans and products, more attention is given to the recruitment side. There are greater commissions for the sponsors in recruiting members for the organization than in selling the products.
Recruit or Risk the Business
Recruitment is the main emphasis of the business manuals and sales trainings. We need to focus on the recruitment of new associates to achieve the “fast starts.” This needs to be done in order to maximize the growth of the whole network. However, what they fail to say us is that we need to recruit fast because the organization needs to replace those people who are dropping out of the network. If the rate of the drop out is greater than the rate of the recruitment of new people, the network will crumble. The products have no capability to provide enough revenue to the associates. Therefore, recruitment is a must for all the associates.
In order to promote and encourage more recruitment effort from the associates, there are numerous concepts that the sponsors give everyone in the network. For example, one concept says ‘you must always recruit consistently and continuously in order for you to be successful in the business.’ Another is that ‘a member is only considered as an associate if they have been successful in recruiting at least one other person in the business’. This is because if they recruit some people, they are less likely to drop out of the business. This is called tap rooting, which is also a recruitment mentality that is considered as aggressive. They also reiterate that you need to be fast in the business. This is because they do not want you to lose the fresh momentum from your joining. If you take more than 30 days to recruit your first 3 members, you will neither be considered as an asset to them nor to the network. This speed also hinders recruits to make a neutral assessment of the business and learning opportunities provided by the company. This is because the reality of the business is not what they have promised in the first place.
Recruit to Replace Quitters
World Financial Group actually knows that a large part of the organization will drop out of the network sooner or later. They are bound to maintain a sufficient number of members in the network to keep their compensation plans afloat and continue making profit. That is why they have to pound their members into maximum recruitment techniques and strategies. The bad management and business practices of companies like this make others wary of such network marketing businesses. This is the reason why network marketing has such a bad taste to the mouths of prospective members. It will continue to be like this if these practices are continued for long.
What’s wrong in Multi-Level Marketing?
The whole framework is built around the foundation of the realization of financial dreams. It sells you your dreams. It convinces you that you can achieve your dreams using this particular opportunity. World Financial Group does not really sell you financial products, it sells you an opportunity to realize your dreams by recruiting others like you. Though you can earn from the selling of the financial products, you will make more with recruitment. This is the reason why the opportunity to realize the dream is tackled more than the actual benefits of the financial products and services.
The massive recruitment pressure and the lack of actual financial product orientation and selling drove me away from World Financial Group. I have found a better alternative to join- Digital Altitude. They offer a healthy business practice as well as great compensation. Digital Altitude rewards those who fulfill the company’s mission along with those who are able to recruit others as well. I am not pressured to recruit people and I am happy selling the products to others because they actually work.
If you are deciding to become a serious financial planner, it is a good way to be part of a company which sells them. You will not be able to learn much of the technical aspects of the financial instruments because even the sponsors and those who came before them don’t know a single thing about their own products. The recruitment process is also unhealthy and pushes more prospects than it attracts. Overall, the business opportunity is focused on recruitment. Even the compensation greatly rewards those who can convince others to join, not those people who have been able to help others through the use of the financial products the company offers.
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