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Prepaid Legal Mlm Business - Opportunity Or Scam?
By Joshua Fuson
Prepaid Legal Services has become one of the largest and most successful network marketing companies ever. They offer a variety of identity theft and legal-protection services, as well as an income opportunity is someone wanted to become an associate and re-sell those services.
There are, however, some very real concerns and issues about starting or participating in a Prepaid Legal business. In this article, I will provide and unbiased review of the pros and cons of developing a Prepaid Legal business, and see if we can find out whether Prepaid Legal is a great opportunity - or a great scam.
Prepaid Legal - The Good
Pre-Paid Legal Services began in 1969 when CEO and founder Harland C. Stonecipher was involved in a vehicle accident which left him with legal bills. He began researching the industry of European legal expense plans. In August 1972, Harland Stonecipher created Pre-Paid Legal's predecessor, The Sportsman's Motor Club, offering legal expense reimbursement services as a motor service club. Pre-Paid Legal started selling plans through network marketing in 1983. Pre-Paid Legal went public on the NASDAQ National Market System in 1984, and two years later moved to the American Stock Exchange.
With over 1.5 million members, they are one of the largest network marketing companies in existence today.
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Their legal plans are sold by independent associates and can be purchased either by a one-on-one basis or in a group setting as the plans may be provided as an employee benefit. These plans provide preventive legal services, which include telephone consultation on unlimited personal legal issues, document and contract review, and will preparation.
The best thing that Prepaid Legal offers is peace of mind. Knowing that you are legally represented, that you have no danger of having your identity stolen or misused, is a very secure state of mind.
Prepaid Legal - The Bad
Prepaid Legal is a network marketing company, which means that distributor of their services can build a downline and earn income off their distribution channel.
Prepaid Legal is one of the oldest and most established network marketing companies. Being over 50 years old, the first flag that we noticed is they are using marketing techniques that worked better 50 years ago. They encourage people to use their "warm market", i.e. friends, family, work colleagues, to grow your business.
Prepaid Legal also teaches their distributors to use the "3 foot rule". This is where you are supposed to talk to anyone 3 feet around you about the Prepaid Legal services and opportunity. That type of thing might have worked back in 1960, but in this day and age, it simply positions the distributors as a desperate salesman looking to make a quick buck.
Prepaid Legal - The Ugly
The fact is, someone could absolutely make tons of money marketing legal service products - if they know how to market effectively. Trying to build a six-figure income on the backs of friends, family, and work associates is more than just a tough sell - it can be downright frustrating, not to mention ineffective. Trying to "sell" and convince people on the legitimacy of your product and opportunity is much less fun and much less lucrative than talking to people that have already expressed a direct interest in what you offer.
In closing, I would say that starting and developing a Prepaid Legal business is lucrative if someone knows how to market effectively. It is not a scam, but like any business, success will be determined by the skill-set of the marketer. Prepaid Legal is definitely not a lottery ticket or a stock option - meaning, you do not just buy in and wait for a payout.
If someone does not have the first clue on how to market effectively, then I would suggest they either learn how to be an effective marketer, or else just use the products and leave it at that.
Joshua Fuson is a professional marketer, and has marketed dozens of different products and services. He has participated in the generation of over $14 million dollars of revenue in network marketing in past 4 years alone. To find out how, you can go... here. To learn more about growing a Prepaid Legal business, you can go to The Prepaid Legal Success Blueprint.
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