Let’s review Prepaid Legal. They are a company, that for a monthly fee, one obtains a membership which provides legal counsel whenever necessary. Prepaid was founded in 1969 by Harland Stonecipher. Though it did not begin as an MLM company, it was recognized as such by the 1980s. By the late 90s, at prepaid Legal was considered the 33rd fastest-growing company on the NYSE.Prepaid is also the listed on Forbes 200 best small companies list.
So how does Prepaid Legal work? For around $300 per year, a customer purchases on annual membership. $17 and $26 monthly plans are available. These plans make available to you legal advice on everything from writing wills, buying homes or just be familiar with your basic legal rights. There are more than 60,000 legal forms on the website and members can utilize. Essentially, members use the phone number on their membership card to contact a lawyer that specializes in the area they need help in.Plans vary by state.
So why would anyone want to use Prepaid Legal services? It’s probably easier than panning through the phonebook looking for a lawyer’s number that you need. The company points out that only the wealthiest 10% of people use legal services on a regular basis, and since the rest of us don’t, we might be at a disadvantage.Is the service necessary?
My opinion is not important, since over 1 million people have decided is necessary.
If you want to have a Prepaid Legal business, there is little more that needs to be mentioned. Apparently, the only way you can join, is by filling out an application for enrollment through their website. It costs $49 to start up a business and this includes materials, training, support, Prepaid Marketing Services, marketing supplies and Online Associate Services. Prepaid Legal is very excited about their timing in this industry. They state they are at 2/10 of 1% of growth potential and don’t anticipate critical mass hitting until 2%. Critical Mass is when a company reaches a point where they grow tremendously in a short amount of time. In my opinion, a good time to join a company is before they hit critical mass.
I found a compensation plan a bit of a challenge to comprehend. Prepaid Legal Associates are paid in three different ways. The first way to get paid is by getting commissions on every membership to Prepaid Legal that you sell. The second way to get paid is when you sign-up other people into the business and receive commissions for that. The final way to get paid is via residual income on your team’s success. The part that confused me was that they pay on five different levels according to how many memberships you sell per month. Also, they pay you an advance commission for the annual memberships they sell. For example, if you sell a Prepaid Legal membership to someone, you get paid a years worth of commission. But, if that person cancels their membership before the year is up I will get what is called a “chargeback”. A chargeback is exactly what it sounds like it is. You have to pay back any commissions earned by member cancels early. I’m not a fan.
Traditionally, when joining a company like this, you’re going to be taught approach every person you’ve ever known and try to get them to either sign on as a member or join your team. Let’s face it folks, this is the hard way of doing things. Wouldn’t you rather talk to people that actually care about joining a network marketing company? Wouldn’t you rather use a pain-free, surefire way to gain success in this industry?