Is Financial Education Services A Scam? Credit/Insurance Pyramid Scheme?

So you're deciding whether to join Financial Education Services and want to know if it's a scam.

This post will show you everything you need to know about this company including background information, price to join, products, compensation plan and more.

By the time you're done reading, you'll know if this company is right for you or not.

Let's get into it. 

Financial Education Services Summary

Company: Financial Education Services (FES)

Price to join: $249 or $199 + $89 per month

Rating: 20/100

Do I recommend? No! 

Summary: There's a million MLM's out there and Financial Education Services is one in the finance/credit/insurance niche.

Do I think you should join this company? No. There's many reasons I say this but the main reason is you're more likely to lose money than make money. This is the case with all MLM's.

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What Is FES?

1) What is FES? FES stands for Financial Education Services and is a MLM company. FES was founded by Parimal Naik and Mike Toloff and was originally named VR Tech back in 2004.  

2) How do you make money with FES? Since FES is a MLM company you sign up with them and become an affiliate. As an affiliate you get commissions by selling their products to customers and you get rewarded for recruitment. This may sound good on paper but it's actually a horrible business model that the majority of people lose money in. 

3) What products does FES offer? I'll expand more on the rpodcuts further down in this review but FES offers many different financial, insurance and credit products like: credit builder, Lifelock, life insurance, discount shopping and more. 

4) Are there any similar companies? Primerica, Credit Star Funding 

Is FES A Pyramid Scheme?

Many people believe all MLM's are pyramid schemes and this isn't really true. It's illegal to operate a pyramid scheme anywhere in the world and this is especially true in America.

FES isn't an illegal pyramid scheme and instead has elements of one.

Look at the picture below to understand what I mean:

The part of the commission structure that rewards recruitment looks like the picture above. In a MLM you make money by creating a downline and you get a percentage of all sales made under you. 

An illegal pyramid scheme is when there's no products and recruitment is the only way you can make money.

FES, however, offers real products and you can make money by selling the products directly to customers without recruiting anyone. 

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Success Is Rare With FES

The reason people hate MLM's so much is so few people make money with them. If the system created a lot of winners you would see more people speak positively about them.

If you dig into the stats you'll see success is hard to come by with MLM's and 73% to 99% LOSE money, not make money.

Those who do make money only make a few hundred a month too (not enough to justify the amount of work being put in).

Look at the picture below to see more stats about MLM's:

As you can see you're not going to want to join this MLM or any MLM.  

How Much To Join FES?

In order to join FES you'll need to sign up with one of their services that cost either $249 + $199.

You'll also have to sign up for a protection plan to be commission eligible and this costs you $89 per month.

FES Compensation Plan

MLM's compensation plans are always very difficult to understand because they're filled with jargon and complicated terms. 

If you want to see the entire compensation plan for FES, watch the video below:

I don't think it's important to know every single detail of the compensation plan and I'm just going to summarize the most important parts below.

Affiliate Ranks:

At FES there's 9 different ranks you can achieve and you go from one rank to another by hitting certain goals.

For instance, to reach the second rank you have to generate $1600 GV (Group Volume) a month. Group Volume is the combined sales of the people you recruit into your downline. 

To get to the third rank you have to generate $5000 GV a month. This goes on and on and on until you hit the last rank of Executive Ambassador. 

The only thing is most people don't get past the first rank and it's almost impossible to reach the last rank. 

Direct Commissions:

You can sell FES products directly to customers and earn a $165 commission per $499 service sold. 

Your first sale must be made in the first 30 days, however.

Customer Acquisition Bonus:

If you recruit someone and they go on to make $399 in their first 70 days you get a commission.

The commission is based on rank.

If you're the first rank this bonus will earn you $100 and if you're the 9th rank you'll earn $550. There's commissions between $100 and $550 at each rank. 

Residual Commissions:

This is the part that rewards recruitment and is where you'll be making the majority of your money. 

At FES the commission structure is unilevel and looks like the following:

Essentially you make money based on what the people below you sell. How much you get depends on GV + rank and a few other factors. 

R&R Club

Those who experience good success in FES and recruit 500+ affiliates with active personal protection plans get what's known as a R&R bonus. This is different bonuses that go towards rent, car payments, retirement bonuses and more. 

FES Products

FES offers various financial planning and insurance products.

Here's the different services they offer:

My HealthCare2Go

This is a health service that covers you and up to 6 immediate family members. This isn't health insurance and this isn't so you can see a doctor face to face. This service is more for non life threatening problems and allows you to talk to a doctor via phone or video call. 

This plan also helps you save on dental, vision and other health related services.

The cost is $29 to set up and $24.95 per month. 

FES Travel

This service is for people that are constantly on the go and helps you save on hotels, cars, flights, cruises and other activities. 

MyCare Plan

This is services that have to do with dealing with your assets after you die and is known as an estate plan. 

This plan includes your will, living trust, healthcare power of attorney and financial power of attorney and more.

Secure Card

This is a Mastercard credit card that helps you build your credit if you have bad credit. Instead of getting a card based on your credit you get one based on a deposit. This costs $40 annually. 

Smart Credit

Smart Credit is a service that allows you to monitor your credit score, auto score, insurance score and hiring risk index for job seekers. 

Ultra Score

Ultra score is a service that gives you access to FES financial resource center, payment calculators and financial planning documents. 

Credit MyRent

This service allows your rental payments to help your credit score the same way paying for a mortgage does. 


More services that are coming to FES is products to help you save on cell phones, legal services, roadside assistance and live stream (tv).

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Finance Is Very Competitive

In order to make money your team is going to have sell a lot of services. 

The major problem here is most of these services have a lot of competition and people have a lot of choices.

There's many products out there to monitor your credit with and many services to help build your credit.

It's going to be difficult to persuade people that your services are the best. 

There's nothing really all that special about the products offered by FES and the price isn't better than the competition.

What I like About FES

I'm not a big fan of this opportunity but there's still a few things that FES has going for it including:

  • Some people make a lot of money: Don't get me wrong - most people lose money with FES. But there's still some major success stories in this company and there's the very, very, very, slim chance you make a life changing amount of money here (like hundreds of thousands and possibly millions).
  • Lot of products to offer: Another good thing going for FES is they offer a ton of different products. This is good because you can tailor what service you sell to individuals based on their needs. 

What I Don't like About FES

While there's some good at FES the bad outweighs the good. The main things I dislike are:

  • Low success rate: I mentioned in the last section there's a small chance at hitting big here. The truth is, though, most people just end up losing money. MLM's are tough to succeed with and FES is no different. 
  • Monthly fee adds up: In order to be commission eligible you need to sign up for the protection plan that costs $89 per month. This makes no sense to me since you have to pay several hundred when you sign up. This just seems like a way to nickel and dime affiliates.  
  • Crowded market: There's a million different financial and credit services out there. Nothing really separates FES from the competition and this will make it harder to sell their products. 
  • Bothering friends and family: One thing that really stinks about MLM's is you usually have to try and sell to and recruit to friends and family. This is really awkward and is one of the main reasons people quit MLM's. 

Is FES A Scam?

FES is not a scam. They offer legitimate products and a small minority will do well with this company.

However, FES is a bad business opportunity. 

MLM's are one of the worst business models out there and they have to have one of lowest success rates too.

People spend thousands and most will never see that money again. The way the commission structure is set up, it's meant to reward a few at the expense of the many.

This is why 90% of people end up losing money. 

You should definitely skip FES and try a different way to earn money from home. 

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Hopefully by now you've decided FES isn't right for you.

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