is financial education services a pyramid scheme

In a nutshell, Financial Education Services prides itself on two things: a credit repair company and an opportunity for aspiring agents. This can be tricky given the company's poor reputation. Pyramid schemes are a type of investment fraud where distributors are incentivized to recruit other distributors. At FES there's 9 different ranks you can achieve and you go from one rank to another by hitting certain goals. This happens because MLMs have their own sales quota where members can only stay active and receive payment commissions if they are able to sell a specific number of products monthly. However, I like FES because they did not promise a specific amount of earnings or anything to their agents (unlike their competitors). Youre still confused with all that. While they offer many financial services, from life insurance and financial literacy training to wills and living trusts, their main offering is credit repair. According to the Federal Trade Commission, pyramid schemes "promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of . The cost is $29 to set up and $24.95 per month. They just have pages related to their contact details, privacy policy, terms of use, and income disclosure. This plan also helps you save on dental, vision and other health related services. A blogger by day, a tech enthusiast by night, and a downhill mountain biker at the weekends. I hope it can help, Hello dear, wow what an amazing post you have here I see you have written a very thorough article on the subject financial education review this has been one of the most thorough and laid down article I have read so far Your explicit expression your choice of words and skills of writing makes it easy for the readers to understand and form an opinion thanks my question is this does this website has any training program online, No problem, let me know if you have any questions about it, Hey nice article you have there, your thoughts are indeed invaluable. Financial Education Services is not a pyramid scheme. Let us take a simple example to understand the concept of a pyramid scheme. " Unlimited income potential and Financial Education " . Maybe you would like to check this 5-minute video that I recommend you to watch so youll know how to spot these pyramid schemes in disguise. Before committing financially or in terms of time, people who are interested in becoming agents should do a thorough analysis of the pros and cons of multi-level marketing business models. The first financial services company on this list, Primerica sells multiple types of insurance as well as mutual funds. Financial education services may fit the definition of a pyramid scheme if they involve promising participants large financial rewards for recruiting new members. See the example below: To know more about their ranking system, check outthe most comprehensive videoI found which explain all the promotion qualifications and possible commissions. Especially the way they tell you to recruit your friends and family. We investigate and bring topics to light that often go under-reported in the Middle East. Its because their members can still make some money by simply selling their services without recruiting people. I joined them as an affiliate marketer, and they scammed many people (including me) into paying to go up a level. Many people believe all MLM's are pyramid schemes and this isn't really true. After logging in you can close it and return to this page. You can earn 25-50% commissions. Thats a smart move for the company because this way, they are able to avoid being labeled as a pyramid scheme. But unlike MLM, the focus of a pyramid scheme is solely on recruitment, not on sales. At the same time, you can choose the pricier one, which is around $199. Since April 2018, this has increased to $499. In August 2019, the Federal Trade Commission (FTC) officially filed a complaint against FES, saying that the company was running a pyramid scheme. The fine also brings to light the possible risks and flaws that are built into MLM business models, especially those based on recruiting new company representatives instead of selling goods or services to end users. Honestly, that act alone somehow reflects that the management is guilty of the accusation, making me award this company with its second red flag. Simply stated, a pyramid scheme company is usually presented as an investment or earning opportunity. Specialties: Too many families are being overlooked because most financial service firms focus primarily on the wealthy. There's nothing really all that special about the products offered by FES and the price isn't better than the competition. Smart Credit is a service that allows you to monitor your credit score, auto score, insurance score and hiring risk index for job seekers. Is Financial Education Services a pyramid scheme? The MWR Financial Makeover combines making money, saving money, and growing money as the ultimate solution to help everyday people become financially independent. But if you cant then, you can refer to this instead Financial Education Services provides finance-related products and services that come in the form of credit cards, investment guides, discount packages, and life insurance. Floyd Mayweathers Involvement in GSPartners Raises Concerns of 300% ROI Ponzi, Ryan Xu and Sam Lee were not there when HyperNation/HyperOne launched, Your email address will not be published. I got to Titanium level and didnt have a clue what I was doing, and the mentors were not helpful at all. Active 5Linx I totally agree with you. You can sell FES products directly to customers and earn a $165 commission per $499 service sold. I will pass on this one. What I can thoroughly discuss here are the main fees associated with your sign up as an agent. No. As for the $89, I came across some old pictures of the sign-up site where it was listed that the monthly fee then was $87 plus an additional $2 as a donation to the Youth Financial Literacy Foundation. If that doesnt put you on edge a bit, then honestly, I dont know what will. Interesting. An illegal pyramid scheme is when there's no products and recruitment is the only way you can make money. Additionally, you will be required to pay $89 per month for a personal protection plan, but basically, here are the things included under this membership type: There are also some additional fees that I think you should know about. Because they simply let their members do all the advertising! The major problem here is most of these services have a lot of competition and people have a lot of choices. The fine will send a clear message to other MLM companies that they will be held accountable if they engage in fraud and that they must follow the federal rules and regulations that govern the MLM industry if they want to stay in business. State and federal regulators, as well as consumer protection advocates, should learn from analysis of past pyramid scheme cases. No, Primerica is not a pyramid scheme. I hope you learned some important lessons on how the company operates, and what other agents think about it, so that you can decide if Primerica career is a good long-term decision for you. I started making money online as a complete beginner and have made over 6 figures since. In this sense, many people are getting scammed online, and by many, I mean. I much appreciate it! Summary: Financial Education Services is an MLM company that provides multiple financial services, like credit cards, discount packages, and life insurance. But as a general requirement, customers will need to pay around $99 to set up a regular FES protection plan. As always, Im appreciative of your honesty and advice too. I was still waiting for the part about education. A company that was sued $1.75 million for illegal credit repair activities in 2019 is not a company I want to trust. Are they saying that they are a financial services company or an education company? And yes, I purposely mention the probability of failing because, like any other business, this one also requires a lot of perseverance, guts, and hard work above all else. 10mo Report this post In a nutshell, Financial Education Services prides itself on two things: a credit repair company and an opportunity for aspiring agents. I havent heard about MOBE, but I entirely believe that what you say is true. Consumer advocacy groups and government agencies are worried that multi-level marketing (MLM) companies like FES, which promise to deliver valuable goods and services, might use high-pressure sales tactics and do things that arent legal. A company that is promising its members monetary payment for recruiting people into the company instead of having to sell the actual products and services offered. The only real way you can make money is if you recruit as many people as you can and force them to sell to stay active. The companys name is quite puzzling, and they should definitely consider changing it. If you were to decide to use any FES plan back then, you would automatically gain a licensing fee to sell their products. Selling $89 worth of products monthly just to be an active member is what youll get here. Join us for an educational workshop near you! For instance, you should know that each weekly commission check will always have a $4 deduction for processing the check. United Wealth Education is a company that has been accused of being a pyramid scheme. The only reason a company like this will fall back on payment is if the investment wasnt profitable and the need some more time which is why they always tell new members from the start to bring in more members so they never run dry. Thanks for taking the time to share this! Even with my background and experience, I would altogether avoid them. Well, to put you out of misery, Im going to confirm that Financial Education Services is not a scam. They will eventually pay but when cannot be certain. 67 people found this review helpful. Ponzi schemes fall apart when the money owed to the initial investors becomes greater than the amount . So, in this sense, the two primary targets of the company seem to be: To find people interested in credit repair services To look for those who would like to become financial specialists or agents So I left it at a good time for me, as I lost a lot of money. legit opportunity to make money from home. Diplomat Tower, West bay, Zone 60, Street 836, Building140. So, in this sense, the two primary targets of the company seem to be: Upon reviewing FES customers threads and statements, it seems to me that the hype around here evolves around their promise to improve the credit score of its members significantly in just a few months. These are: But take note that you can only earn money from the sales of your downlines, and not by simply recruiting them. I agree with you about the MLM, this is always uncomfortable to made, but if you wanna avoid the 89 per month you only need to get 5 people, whether they are clients or agents, and also the agent credit will be fixed for free, you dont spend thousands of dollars, only the register fee and thats is. There's commissions between $100 and $550 at each rank. In this post, well talk about the FTCs case against FES and what happens to FES and the multi-level marketing industry as a whole because of the punishment. Maintaining 89 PV monthly means you must sell $89 worth of Financial Education Services every single month.

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