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Understanding WFG’s Revenue Model: How Does WFG Generate Income?

Publish on : March 3, 2024

how does wfg make money


The Ultimate Guide to How World Financial Group (WFG) Makes Money

World Financial Group (WFG) is a multi-level marketing company that operates in the financial industry. It provides a range of financial services such as life insurance, retirement planning, and investment products. Like any other business, the aim of WFG is to make money. However, the question remains, how does WFG make money? In this comprehensive guide, we will delve into the sources of WFG’s revenue, their business model, and the controversies surrounding their operations.

What is World Financial Group (WFG)?

WFG was founded in 1991 by Hubert Humphrey with headquarters in Johns Creek, Georgia. It is a subsidiary of Transamerica, a prominent financial services company. The company operates through a network marketing model, where independent associates sell the company’s products and services. WFG has a presence in the United States, Canada, and Puerto Rico. They offer financial education and products to middle-income families who have been traditionally underserved by the financial industry.

The Multi-Level Marketing Business Model

Like other multi-level marketing (MLM) companies, WFG relies on network marketing to generate revenue. Network marketing is a sales model where independent distributors earn money by recruiting other distributors and selling products. WFG’s associates are not employees but independent contractors who earn commissions based on sales. They also earn bonuses by recruiting new associates and building a downline network. This business model has attracted some criticism over the years, with some calling it a pyramid scheme. However, WFG maintains that they operate legally, and their business model is built on ethical practices.

Sources of WFG’s Revenue

Commissions from Sales

The primary source of WFG’s revenue is the commissions they receive from sales of their products. As mentioned earlier, WFG offers a range of financial services such as life insurance, retirement planning, and investment products. Their associates earn commissions based on the sales they make, and the amount varies depending on the product sold. For example, they may earn a higher commission for selling life insurance compared to selling an investment product.

Bonuses from Recruitment

WFG’s business model is built on building a downline network, where associates earn bonuses by recruiting new members. This means that the more associates a member recruits, the higher their bonuses. However, there is a requirement for the associates to make sales to earn these bonuses. As a result, there have been concerns that the focus on recruitment takes precedence over the actual sale of products.

Controversies Surrounding WFG’s Business Model

Pyramid Scheme Allegations

As with any MLM company, WFG has faced numerous allegations of being a pyramid scheme. A pyramid scheme is an illegal practice where the company’s revenue comes primarily from recruiting new members and not from selling products. The focus on recruitment and the bonuses that come with it have led many to question the legality of WFG’s operations. The company has faced several lawsuits and investigations into their business practices, but they have maintained that they operate legally.

High Turnover Rates

Another controversy surrounding WFG is its high turnover rates. According to reports, only a small percentage of their associates stay with the company long enough to earn a substantial income. This discrepancy between the number of associates and the number of successful associates has been a cause for concern. Critics argue that the high turnover rates are a result of the company’s emphasis on recruitment rather than product sales.


In conclusion, WFG makes money through a combination of commissions from product sales and bonuses from recruitment. As with any business, there have been controversies surrounding their operations, with some questioning the legality of their business model. However, the company has maintained that they operate ethically and legally. As an MLM company, WFG is built on the principle of network marketing, and it will continue to be a topic of debate within the financial industry.


Luis Diaz Morales is a writer, researcher, editor, acknowledged expert in all things loans & credits and a respectable expert author of focused on the financial topic.