Some friends have approached me with a magazine and dvd about a company called World Leadership Group. It is run by a guy named Hubert Humphrey. My common sense and instincts tell me that it is just another MLM get rich quick scheme or pyramid deal.. It does not look like something I want to be involved in. I'm studying for the CA agent exam, and would rather make a living in a legitamite, honest way, (not saying that MLM isn't legitamite, but you know...).

I was just curious about it, and if anyone has any hard information or facts about it that I may be able to pass along to my friends so they don't end up in a situation that they regret.

What about Marshall Reddick? He's another one that has been a topic around here. I think he's like another Carlton Sheets.....

Any adivce or comments would be appreciated Thanks! What a great site this is!!!

Thanks -Rob

Want the best advice i can give you.Don't give away your money to these crooks.All of these people selling these sytems put in alot of fluff.You can actually find out the information yourself.

Find a local mentor who you can learn from there experience.Most of these people hocking these sytems know you will never use them,they just want your money.

Investing is NOT easy only about the top 10 percent do really well with it.It's competitive just like anything else.

Thanks for the common sense advice. I never get involved in anything without first doing my homework. This WLG stuff just sounded fishy from the start, and the Marshall Reddick guy comes across as the typical snake oil, "I'll make all your dreams come true" phony.. Thanks again -Rob

Rob,

It is a great company. I really didn't like what people are saying when they don't even know all the facts. They discourage people that are really need the opportunity.

Contact me anytime. I can answer all of your question to my best ability. But first read this I have posted it on TheRipOffReport.com

WLG Multi Level Marketing, YES! But a Pyramid Scam, NO!

Is WLG a Scam? Are there people losing their money? Are there people that are not happy? Are there people making money? Can you make money with WLG? Is Hubert Humphrey getting rich off of WLG, GEL, GRM, FLA? How about his past companies WMA, WFG etc.?

All this can be answered if you know what Multi Level Marketing is ALL about.

Hi, my name is Abitino Lao. I am just like all of you looking for business opportunities every chance I get. I have been to so many presentations and meetings of many different companies out there. But, I have never cared for Multi Level Marketing companies (MLMs/Network Marketing).

I didn’t like the idea of selling to my family, friends, and everybody else I knew. I didn’t want to chase them away and always have this awkward feeling between us, and every time they see me, they would think, “Tino is trying to sell to me again.”

Anyway, I don’t want to give a long story that might bore you to death. You can read about it at my website.

So to make a long story short, I am very interested in business, because I have always wanted to own one. Another thing that I am very fascinated about is Real Estate. Now that is where WLG came into the picture. I saw the opportunity right away. I could be a BROKER without a license? Now that was exciting to me. So that is how I got in the door.

Then afterwards I discovered what I got myself into. See, most people that join the company have no clue what they are getting themselves into, just like me.

But unlike them I did something different I DID my RESEARCH. Don’t get me wrong I did some research before joining the company, but it was more like finding out if GEL was even a real company. All I wanted was to do loans and get in the door.

This is what I discovered: When you join WLG you become a MARKETER, but not just any marketer, a Network/ Multi Level Marketer. You see, WLG is a MARKETING COMPANY. WLG markets the following products and services: GEL, the lending company, GRM and GRA, the real estate companies, and FLA the financial services company.

I want to explain one more thing.

MLM is not the same as the Pyramid Scam. Look at the pyramid. Whatever is on TOP NOW, will always be on TOP FOREVER. For example, your current boss will always be your boss and stay on top of you. The harder you work the higher he gets. Now, in multi level marketing if you work hard and you do well, you will one day be on top. It doesn’t matter how low you are on the list right now. You can pass the person who recruited you and his recruiter as well and so on.

Like I said I hated MLM in the beginning, but Now I’m huge fan.

Most people fear network marketing companies, but there is no reason why. MLM companies offer many great products; one reason why they do not do retail in regular stores is because their products are only appreciated by the people that know the product.

For example, if you are a tea lover, you know when you taste great tea, whereas a person that doesn’t have a clue about tea will not appreciate and enjoy it like you.

I know of a company that took their products out of Wal-mart to do MLM and have had much more success because people were being educated about their products and eventually learned to appreciate them. Let me also add that marketing for MLM products is a lot cheaper and include higher production.

So, you might ask: Well, all this is great for the company, but how does that benefit me? Am I being used by the company?

Well, let me tell you that in any business there is give and take. But, in the end, you end up in a win-win situation, then, that is all that really matters. You have great products or services and the opportunity to be in business for yourself; the company wins and you win- Brilliant!

So here is the BIG QUESTION. So why doesn’t it work for so many people? (97% to exactly)

I think that should be the complaint here and that WLG is a scam. I got to admit that you do need to carefully do your research before joining a company because there are too many scams out there especially on the internet.

Oh, by the way, did you know that GEL is the 5th largest broker/lender in the nation, working with some of the top companies in the industry like CountryWide, IndyMac, Washington Mutual, Chevy Chase Bank, Wells Fargo Home Mortgage to name just a few? Do you think they are scams too?

Now, for you that are seriously working hard and struggling, don’t give up. Find some good resources on MLMs and truly understand the business. I do have some recommendation;. Visit my website and contact me, I will do my best to help you.

Please don’t email me and ask how much I make, because that will just tell me that you really don’t understand the business and are DEPENDENT ON HYPE.

Much success to you,

Abitino Lao
Owner


P.S. Please don’t make anymore complaints if you haven’t done your extensive research.


Rob, you did the right thing but posting this but the problem people are give the wrong idea.

I am a licensed Realtor in Arizona AND a loan originator with WLG. Does that make ME a crook? I'm having a great time with WLG and wouldn't dream of going with another lending company. At the time of this post, we're now the 4th largest lender in the country. The people who bash us are the people who don't understand who we are. Smart people will see the opportunity here and build their team. Others will be afraid and fear what they don't understand. WLG is a sound company that operates much like Lending Tree (shop loans for best bid). It's perfect for Realtors who don't want to spend 50 hours a week working as a loan officer and want to build a residual income.

P.S. sure, there is plenty of fluff with their marketing campaign but I still got into it because time will go by regardless of what I do, so why not give it try? That's my outlook anyway..

You can see how many "companies" now monitor these web sites. Many come and make sales pitches like the above and some do it with out attempting to actually identify themselves. Look at the number of post to make a graded guess on how realistic their post may be.

As a general rule any MLM scheme is just that... a scheme and the winners with be a very few and the loser's will be the many.

I would strongly recommend avoiding them all like the plague. They can only survive by influx of new members and often members with little knowledge or understanding of the risk and have the most at risk by joining.

Never fall for hype.. the longer and more intense it is, the less real the product typically is. It is your money these MLM target, not a service for you to make money with.

Sorry, I don't have all day to sit around and post 2000 times on the internet. I'm actually busy with my clients and helping my mortgage team.

My advice, is to not take the advice of someone who puts others companies and interests down because they are the ones who are generally not successful and they want others to feel the way they do. Is that too long-winded for you? How is a mortgage not a "real product" anyway?

MLM is like the law of the jungle. The one's at the top of the food chain eat well and get fat. The one's at the bottom just get eaten.

Not in this MLM. I'm surprised you mention that since Exit Realty is a basic MLM in itself. Don't you get 10% of any agent's commission you recruit? How is that any different? It's the future of this business.

Eric, I won't be lured into a long back and forth discussion about Exit versus MLM. It's sufficient to say that in the Exit system the sponsoring agent only makes money when the sponsored agent actually closes transactions. And it's not multi level (like Avalar or Keller Williams), but a single level sponsorship. There is no sign on fee, or training tape fees or coaching fees like most MLM organizations.

I completely understand what you're saying. I'm just trying to point out that commission overrides in our industry are what make some companies more attractive than others. If people are going to come in here and bash MLM's, why not call your local Keller Williams agent and ask them how they're doing because it's no different. Best of luck to you!

MLM is not illegal but MLM with a mortgage company may be. How can someone be paid on a loan without doing work. That is a RESPA violation. each person getting paid must get paid something equal to the work they do.

Just my 2 cents, I'm not a lawyer

Violation with RESPA? I think Eric is safe if he's following HUD's guidelines but I don't know when it comes to collecting commssions from a downline.

( This is not the complete version )
HUD’S GUIDELINES: WHEN A MORTGAGE COMPANY
MAY PAY A FEE TO A THIRD PARTY FOR LOAN ORIGINATION
WORK WITHOUT VIOLATING RESPA Copyright 2004

HUD generally would be satisfied that no § 8 RESPA violation had occurred if a real estate salesperson (1) took information from the borrower and filled out the loan application; (2) performed at least five additional items on the Loan Origination Services List (attached hereto); and (3) received a fee reasonably related to the market value of the services performed.

Loan Origination Services List
According to HUD, some or all of the following services are normally performed in the origination of a loan:

(a) taking information from borrower and filling out application;

(b) analyzing borrower’s income and debt and pre-qualifying him to determine maximum mortgage he can afford;

(c) educating borrower in home buying and financing process, advising him about different types of loan products available, demonstrating how closing costs and monthly payments would vary under each product;

(d) collecting financial information (tax returns, bank statements) and other related documents that are part of application process;

(e) initiating/ordering verifications of employment and verifications of deposits;

(f) initiating/ordering requests for mortgage and other loan verifications;

(g) initiating/ordering appraisals;

(h) initiating/ordering inspections or engineering reports;

(i) providing disclosures (truth in lending, good faith estimate, others) to borrower;

(j) assisting borrower in understanding clearing credit problems;

(k) maintaining regular contact with borrower, realtors and lender between application and closing to apprise them of status of application and to gather additional information needed;

(l) ordering legal documents;

(m) determining whether property is located in flood zone (or ordering such service); and

(n) participating in the loan closing.