- Report: #1086929
Report - Rebuttal - Arbitrate
Complaint Review: World Financial Group
World Financial GroupHouston, Texas USA
World Financial Group Aegon Transamerica WHERE DOES THE MONEY COME FROM? MLM? Houston Texas
*Consumer Comment: Commission Structure
*UPDATE Employee: one more thing
*UPDATE Employee: where the money comes from
*UPDATE Employee: Where the commission comes from
*Consumer Comment: From the companies
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I would like someone from this company to answer a huge question that I think are extremely valuable to anyone seriously considering being apart of this type of business (including myself). Now that being said, if no one does answer the questions its pretty obvious that this is fishy and a scam.
Full explaination below but here is the question:
WHERE DOES THE MONEY TO PAY EVERYONE COME FROM?
I personally have been approched by a friend about this business to sell life insurance and use it as an investment for long term. Of course it sounds great and perfect and it seems as if the product is legit.
Now Im NOT going to automatically call it a MLM scheme because a MLM scheme is signing up a mass amount of people under you in which the upfront cost partially goes to you and the people above in the hope that they get people below them.
For that to be entirely true, I would have to prove that the $100 "background check" is PARTIALLY going to the people above. In which they even make money if you dont do anything but sign up. Which I DONT really think is the case here.
It seems like there is a large amount of people in this company and the people that put in the Hard work actually make a decent amount of money. I was told that someone putting in the hard work will be earning at least +$50K yearly. Now someone way up the chain can make as much as +$500k a year.
I was told that the big conventions range about 20k people so I think can safely assume that throughout this company there is at least 100K people that put in $100 to just get started (which includes the people that dont do anything and fall off entirely).
I think I can safely assume that at least %5 are hard working.
So undershooting everything by large amount, 5k people x $50k is $250million yearly.
Now let me assume that all those people actually pay ~$100 a month because they have the life insurance that they are trying to sell.
100k people x $100 a month x 12 months = $120million yearly
why not add $100 "background check" to everyone adds another $10million.
to even break even 100K more people would have to just get the insurance.
WHERE DOES THE MONEY TO PAY EVERYONE COME FROM?
All this money should be going to these people's insurance and I do understand how the insurance business works- get the money now invest it and pay these people later when they need it or when they die etc. BUT no smart business would use this model because its a losing money model. I dont want to make assumptions about the ethics of this company. But can someone at least make sense of this for me.
Honestly, if I feel that I am given a legit answer. I will join and start making money, but if I join this I dont want it to fall apart after I have invested my time and my family and friends time/money.
This report was posted on Ripoff Report on 09/24/2013 10:48 AM and is a permanent record located here: http://www.ripoffreport.com/r/World-Financial-Group/Houston-Texas/World-Financial-Group-Aegon-Transamerica-WHERE-DOES-THE-MONEY-COME-FROM-MLM-Houston-Tex-1086929. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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