5

I've just seen a recruitment video for Prepaid Legal. The company sells, essentially, legal insurance - a prepaid service that covers potential legal fees.

Their marketing strategy, though, reads like a pyramid scheme. They offer enrolled associates a commission on each sale, which increases in a pyramid shape if they recruit other associates rather than continuing to sell the original product.

Is the company legit? Is their marketing strategy legal?

6

Prepaid Legal is a publicly traded company worth over $600M. They've been around for years. So it's not a fly-by-night operation.

I don't know enough to comment on whether their kind of MLM is legal.

4

A friend of mine is a Prepaid Legal lawyer. It's not an exclusive relationship: he does other things too.

Most lawyers regard Prepaid Legal as a way of getting more customers. They lose money on the Prepaid Legal stuff, but then "upsell" their paid services.

My friend tells me that he'd answer most of the Prepaid Legal questions for free, in hopes of building a customer base. He didn't signup for the trivial amount of money Prepaid Legal gives him.

  • This tells me how useful the prepaid legal services are. – blueberryfields Feb 26 '11 at 19:50
3

The are legit, I have been a member for more than 15 years. I have used there services many many many times. I have never sold any, I have only been a customer. The friend who sold me the service did very well for himself selling and recruiting.

1

The union that I used to belong to provided a similar service for $20/year. If you can make money selling such a plan, it's probably overpriced.

  • I pay 7.27 every two weeks (15.75 a month) I was paying 17.00 a month before it was offered as a benefit at work. Now they will try to sell you a $26.00 a month plan only difference is that it builds trial and research time at a higher rate in case you get sued or something. So I guess I would consider the $26 plan overpriced. The have awesome customer service though and it's like having a lawyer on retainer. – Move More Comments Link To Top Feb 25 '11 at 4:34

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