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In 2022, I was contacted by someone claiming they had an exciting opportunity for me to help people with their finances. The company? World Financial Group (WFG). They told me I could become a financial advisor, work on my own terms, and earn a great income while helping others build wealth. It sounded promising at first—who wouldn’t want to make money while doing meaningful work?
But the deeper I looked, the more it started to feel off. There was a required one-time membership fee to “get started.” There was no base salary—just commission. And the so-called training? It had less to do with financial education and more to do with learning how to recruit others into the system. I did some research and found that WFG had been frequently criticized as a multi-level marketing (MLM) scheme that emphasized recruitment over financial expertise. I passed on the opportunity and moved on, thinking I had learned my lesson.
Fast forward to 2025. I saw a Facebook post from someone living in my neighborhood claiming they were helping families become financially independent and offering mentorship to people who wanted to learn the industry part-time. It brought back memories of the WFG pitch, but I was curious again—maybe this was different. After a short conversation, I found out the company was Hegemon Group International (HGI). The language was eerily similar: “You can help people with their finances,” “You don’t need a financial background,” “We’ll get you licensed,” and of course, “You can build your own team.”
By now, I knew the signs. HGI also required a one-time start-up fee, paid no salary, operated entirely on commissions, and focused more on recruiting than actual financial advising. Once again, the emphasis wasn’t on gaining legitimate credentials like the Series 7 or Series 66 licenses—it was on growing your “team.”
About a week later, I was approached again—this time on LinkedIn. A recruiter said they were building a team at Premier Financial Alliance (PFA), a company I hadn’t heard of before. They told me I could be part of something meaningful, earn unlimited income potential, and receive mentorship from top industry professionals. But once again, I started noticing one of the red flags that they were expanding their team.
After three almost-identical pitches from three separate companies over the past three years, it became clear that these weren’t isolated incidents. These companies were part of a growing trend of MLM-style financial firms preying on people’s aspirations to enter the financial services industry. They dress themselves up as legitimate advisory businesses but often prioritize recruitment and commission-based sales over actual financial expertise.
The Common Red Flags to Watch For
If you’re considering an opportunity to become a financial advisor—especially on a part-time basis—here are some things to watch out for:
1. A Required One-Time Membership Fee
Legitimate financial firms don’t ask you to pay money to join. If someone says you need to invest in your own “starter kit” or pay to access training materials, that’s a major red flag. The fee can be anywhere from $100 to $200 dollars.
2. No Base Salary – 100% Commission-Based Pay
While some commission-based roles are legitimate, be cautious if the only way to earn money is through selling financial products or recruiting others. Legitimate financial advisors at established firms often receive a salary or a base pay structure along with commissions.
3. Lack of Proper Licensing (Series 7, Series 66, etc.)
To work as a genuine financial advisor, you typically need industry-recognized licenses such as the Series 7, 63, or 66. MLM-style financial organizations often downplay or skip licensing altogether, offering instead vague certifications or in-house “credentials” that don’t meet regulatory standards.
4. Heavy Emphasis on Recruiting Others
Any organization that requires or incentivizes you to recruit friends and family to join the business is operating more like an MLM than a professional advisory firm. This is often the most telling sign.
Final Thoughts
It’s easy to fall into the trap—these companies are good at selling the dream. They use words like “mentorship,” “freedom,” “financial literacy,” and “helping families,” all of which sound noble. But beneath the surface, many of them are structured to benefit those at the top, while newcomers struggle to earn anything unless they aggressively recruit others.
If you truly want to become a financial advisor, start by looking at firms that require (and support you in earning) the proper licenses. Seek mentorship from professionals with proven track records—not just big promises. And most importantly, remember: if an opportunity seems too good to be true, it probably is.
