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For you newer licensed reps who have done your research and decided that doing the right thing for your clients was more important than your own success, here's a good exit strategy for you.

1) Take your license to a different company and resign from WFG. This way, the policies under your name get rolled up to your upline.

2) Then, go visit your family and friends and admit that you made a mistake, but say that you would rather make a small mistake than a big mistake. Replace their poor UL product with a proper term policy and show them how to invest the difference.

Voila! You get the commission off your new sales, and your former WFG agent gets the chargeback! And since you told your client the truth and admitted your mistake, you will get referrals from them in the future.

Warning: your upline will threaten you not to do this, obviously because they have a lot to lose! Don't let them bully you into staying, there is a way out!

Location: Maple Ridge, British Columbia

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Guest

Hi. My name is Carol and Iโ€™m trying to do my due diligence to fully understand WFG from the inside out before confronting a friend of mindโ€ฆwho for a lack of a better word has been completely brainwashed.

Iโ€™ve managed to get copies of some of the manuals and various forms. Thanks to William3, I was able to see the COI. I found the exact number of licensed agents and total amount of commissioned paid out in 2015โ€ฆ.right down to the penny. I understand the various contract levels: 25% training associate, 35% associate, 50% marketing director, and 65% senior marketing director.

Now Iโ€™m trying to figure out how much commission is earned for each of the products. Is there a flat percentage or each product or some mathematical equation? For exampleโ€ฆif an associate sold a $100,000 life insurance policy they would get 35% of what amount? What is the total commission earned for the policy?

What is the commission earned for the various other products?

I was hoping someone could help me with this. Thank you.

Prudencio Zlt
reply icon Replying to comment of Guest-1151252

Hi again Carol. I may be able to save you some time and help you streamline your research. While WFG technically offers many different life insurance products from many companies, WFGโ€™s Compensation and Promotion Guidelines are structured around pushing contractors to sell a very expensive and risky policy called Transamericaโ€™s Financial Foundation Indexed Universal Life (FFIUL). The FFIUL is especially risky in later life when COIs soar through the roof.

Letโ€™s go over the C&P Guidelines. Search the net using these words: โ€œWFGโ€™s Compensation & Promotion Guidelines Squarespace.โ€ Thisโ€™ll take you to an 8-page PDF. Notice on page 5, in the โ€œCompensation Guidelinesโ€ chart, where WFG awards more points for โ€œWRLโ€ products? โ€œWRLโ€ stands for โ€œWestern Reserve Life Assurance Co. of Ohio,โ€ WRL was the company who created the FFIUL. In 2014 WRL merged with Transamerica Premier Life Insurance Company. Thus the Compensation plan favors Transamerica products.

Even if your friend wanted to do the right thing and avoid flogging this Trojan Pig of a policy and instead double down to sell less profitable policies like Term Life and she somehow met sales and recruiting goals, thatโ€™s no guarantee your friend will advance up the WFG pyramid. Those same Guidelines make abundantly clear that, ultimately, her advancement in the organization depends on her upline. Please see here on page 8 stated in three places in the small-print footnotes:

Footnote 2: Promotion requires approval of direct upline ***

Footnote 3: Promotion requires approval of direct *** and CEO MD

Footnote 12: Meeting the minimum requirements does not guarantee inclusion in the Base shop Pool. Even if she meet the sales and recruiting goals, her upline can keep her from moving up. Thus her upline has total latitude to pressure her to sell the FFIUL.

Guest
reply icon Replying to comment of Prudencio Zlt

Hi William3. Thank you for coming to my rescue again.

I actually read the Compensation & Promotion Guidelines earlier, but it really didnโ€™t give a breakdown on how much they actually earn for each product. (Maybe Iโ€™m missing it.) If I understand correctly, thereโ€™s a 1-to-1 ratio of points to dollar amount. On page 5 of the C&P, an associate will earn 45 points for a WRL. But what is the amount of the policy for the 45 points?

Iโ€™m a numbers person.

I want to know how much commission is made off of a sale of a $100,000 life insurance policyโ€ฆbefore it is split up amongst the associate and their upline.

Prudencio Zlt
reply icon Replying to comment of Guest-1151362

Carol, good point. My understanding is that the FFIUL earns some of the biggest commissions of the life insurance products WFG sells.

Typically it's 100%--125% of the first yearโ€™s projected premiums. Thus if someone buys a policy for which they plan to pay $300/mo for premiums, that equals to $300 x 12 months x 125% = $4,500. I believe that 35% of that goes to the Associate who sold the policy and the balance to the uplines.

Iโ€™m afraid I donโ€™t understand how the points system maps to the dollars. If you search on โ€œtorrent wfg calculating commissionsโ€ that will take you to an example.

Prudencio Zlt
reply icon Replying to comment of Guest-1151252

Carol, more on compensation, for SMDs and below WFGโ€™s rates are some of the lowest in the biz. If sheโ€™s serious about selling Life Insurance and getting all the licensure, she should check out dedicated agencies, especially for mutuals like Nationwide.

Many of these will start her out at 60--80% of the commission and in a few cases even give a small salary. She can go to Insurance Forums dot net to get a wealth of info and compares.

At that site she can search on โ€œWFGโ€ to get a wealth of commentary on this MLM, not much of it positive. Most of the commenters there are agents.

Prudencio Zlt
reply icon Replying to comment of Guest-1151252

Another thing Carol--WFGers donโ€™t โ€œown their biz.โ€ Even some veteran WFGers are shocked to learn that, when they want to leave the MLM, they canโ€™t take their Book of Business with them. WFG clearly confirms that on page 8 of its Associate Membership Agreement:

โ€œB.

...The Associate acknowledges that WFG owns all rights in and to the following: ...(ii) the identities of and all lists of the members comprising WFG; and (iii) the identities of and all lists of the Customers of WFG...which constitute **property owned solely by WFG**. Associate agrees that Associate shall have no proprietary interest in, or ownership of, any Customers, other associates of WFG including Downline Associates, or Products and Services. **WFG shall have exclusive proprietary interest in, or ownership, of all Customers, and contractual relationships with other associates and the Product Providers**.โ€

Your friend can read this for herself.

She can search for the 22-page AMA-US.pdf. Itโ€™s at mywfg dot com.

Guest
reply icon Replying to comment of Prudencio Zlt

Thank you again William3. I found the โ€œtorrent wfg calculating commissionsโ€ spreadsheet.

Perfect.

Prudencio Zlt
reply icon Replying to comment of Guest-1151395

You're welcome Carol--anytime!

Prudencio Zlt

For folks who want more press and legal actions on WFG, Transamerica, and Universal Life policies, you can search on these items:

PRESS:

Feller et al v. Transamerica Life Insurance Company - consumerwatch

Draining Away!

- Wall Street Journal

The Great Life-Insurance Temptation - Wall Street Journal

Retirement Disaster Looms For Universal Life Policyholders - Forbes Cost of Universal Life Insurance Policies Sting Retirees - Wall Street Journal Universal Life Insurance Policies Hurt By Low Interest Rates - Fox Business Market Hits 'Universal Life' Policies - Wall Street Journal Top 10 Reasons NOT to BUY Equity Indexed Universal Life - Nelson Nash Institute At Consumer Watchdog: Consumers who bought life insurance protection from Transamerica Insurance Company decades ago are now facing a choice between paying enormous increases in their monthly premiums or losing their policies... LEGAL ACTION: Lieff Cabraser is investigating allegations of fraud and other deceptive practices in connection with the sale of universal life insurance policies by the following companies: [including] Aegon USA and Transamerica Zamansky LLC is investigating fraudulent and unsuitable sales of annuities and other insurance and investment products by representatives of World Group Securities, Inc.

a/k/a World Financial Group. Hope this helps.

Guest

I lost hundreds of thousands of dollars through wfg

My wife barely made any money yet she is convinced that one day she will become millionaire

Just disgusted

Some of the agents are claiming to be making over 250k/year r driving 10k cars

Show me Ur f###ING tax return

What a joke

Guest
reply icon Replying to comment of Guest-1150483

WFG official #'s for 2015 are 756 million paid in commission...of that the pie is divided into 53,000 agents and 197,000 new recruits..this doesn't add up the recruits prior to 2015.So take those #'s and we were told officially by WFG that 2,000 of them made 50k or more and a few 250k or more and a couple over 1 million where the boss and the top of the pyramid are perched.Now that leaves 248,000 agents and recruits to divide the 60% of commission left,so this means what...well it means that 99.2% of all agents and recruits have made less than 2k/year in 2015 or 160/month in commission which is the only source of income they have...So now they have to travel on that big 2k salary to attend seminars and training(brainwashing sessions..etc).And some brilliant WFG agents come on here and tell those poor soles that it's all income tax deductible....but..but...who pays taxes on 2k a year is my question..so you buy a plane ticket to las vegas and you it's income tax deductible with that salary doesn't change the fact that you don't save a dime in income tax...you don't pay taxes anyways...it's all a ploy to recruit so the top can get more money.Nobody that says they make 250k or 10k a month etc never shows any proof at all,they tell us they do as mr anonymous and then they disappear.

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