Is World Financial Group (WFG) an MLM? Clarifying the Model

WFG operates insurance agencies in the US and Canada. While multi-level marketing organizations are generally legal to operate, WFG’s businesses are insurance agencies. WFG has been helping individuals, families and business owners from diverse backgrounds prepare for sound financial futures for over 20 years.

What is an Insurance Agency?

Insurance agencies and MLM organizations generally both involve selling products or services and optional team building. However, unlike a typical MLM organization where income is dependent on the ability to resell an inventory of products purchased from the MLM company, WFG agents — like most life insurance agents — earn sales commissions from the sale of life insurance and annuities issued by licensed and regulated third-party insurance companies. WFG agents do not purchase products or services for inventory or resale.

How Does an Insurance Agency Work?

WFG is similar in some ways to how a real estate business works. Real estate agents are licensed and work under the brokerage brand or a co-brand and can be independent business owners. They build their own client relationships and earn a commission when they sell a home, and they are supported with resources from the brokerage, which receives in exchange fees and/or a portion of the commission paid for the sale.

Onboarding and licensing

WFG trainees begin their journey by engaging with pre-licensing education providers that offer industry training for a fee. This helps equip trainees to earn their insurance licenses, a prerequisite for offering insurance products. Upon licensure, agents can start building their business with support from the WFG community.

Independent business

Agents operate independent businesses, allowing them to manage their schedules, client relationships, and business growth strategies. This autonomy fosters an entrepreneurial spirit, enabling agents to tailor their approaches to meet the unique needs of clients.

Financial products offered

WFG agents provide a diverse range of insurance products through strategic relationships WFG has with some of the most well-known providers and carriers in the industry. You can learn more about the products and services available on the WFG platformhere.

Compensation structure

Agents earn income through commissions on the insurance products they sell. Additionally, they have the opportunity to build teams and earn override commissions from the business generated by agents they’ve recruited. This dual-income potential rewards both individual performance and leadership development.

Training, technology and resources

WFG offers training and support to its agents and trainees. Even before becoming licensed, trainees who have paid their fee have access to experienced training platforms to learn the essentials of building an insurance business. Post-licensure, agents have access for a fee to a suite of resources, including:

• WFG 365: A mobile app that provides business analytics, commission tracking and performance insights.
  
   
• MyWFG: An exclusive portal offering access to business reports, company updates and regulatory guidance.
  
   
• Marketing Tools: A variety of pre-approved emails, social media posts and customizable agent pages to help agents promote their services effectively.
   

You can learn more about the WFG’s agent and trainee resources and related fees here.

Regulatory Oversight and Client Protections

As licensed professionals, WFG agents are subject to laws and regulations designed to ensure ethical and compliant operations. Clients benefit from these protections, including transparency in product offerings, adherence to industry standards, and access to licensed agents.

How Can I Learn More About World Financial Group?

If you're thinking about joining WFG, here are some questions to ask yourself:

• Am I Interested in Financial Education and Insurance?: WFG is centered around providing financial education and selling insurance products. Ensure this aligns with your interests and career goals.
  
   
• Do I Have the Necessary Licenses?: Selling insurance products requires specific licenses. Consider whether you're willing to invest the time and effort to obtain them.
  
   
• Am I Comfortable with a Commission-Based Income?: Income at WFG is commission-based, meaning earnings are tied to sales performance. Assess whether this compensation structure suits your financial needs. Many agents start out part-time and transition to full-time after establishing a solid client base or team.
  
   
• Am I Ready to Build a Network?: While recruitment isn't required, WFG is designed to support agents who want to build a team and doing so could enhance earning potential. Consider if you're prepared to mentor and lead others.

Hear From Agents

Agents have shared their experiences building independent businesses, utilizing WFG’s training and helping clients achieve financial security. Read agent testimonials here.

Hear From Clients

Clients highlight how working with WFG agents has helped them protect their families, plan for retirement and achieve long-term financial goals. Read client success stories here.