Is Your Rep Hiding The Prepaid Legal Scam?

The home based business industry has been mired in controversy for the last couple of decades. Years ago people used unethical practices to get others involved in pyramid schemes. Those who got in at the start could become vastly wealthy with little work, but as time passed the pyramid would eventually collapse and those who started at the end would be out of luck. The good news is the government cracked down on these schemes and they are now illegal. The network marketing industry now has a lot of guidelines to make sure companies stay legitimate and everyone has a fair chance at earning money. Sometimes illegal companies do pop up, but are typically short lived.

You are probably trying to find a legit way to make a home based income, so you’ll need to find out if there is a Prepaid Legal scam or not! It’s always best to gather your information from an outside source to be sure it’s not a scam. I can let you know right here that I am not associated with Prepaid Legal, so I can show you if there is actually a Prepaid Legal scam.

First off, what exactly constitutes a scam? According to Dictionary.com a scam is:
A dishonest scheme, or a fraud. You will discover a scam in the home biz industry by running a few simple checks.

Prepaid Legal scam? How can you get a commission?

Any company that gives its associates a percentage of the joining fee they charge new associates, would be considered a scam. This ruling is a direct result of the old pyramid scheme model, where money was only changing hands when someone wanted a place in the pyramid, but no products got sold. This meant that at the end someone always lost money and had nothing to show! So now a company NEEDS to be based on product sales and the distributors are really salespeople. You will usually earn some kind of special bonus on the first sales to a new associate, but an order needs to have happened. Luckily, Prepaid Legal does not share their enrollment fees. So Prepaid Legal is ok on this point.

Another way to look for a Prepaid Legal scam is to see if you have to purchase products?

One way that sneaky companies tried to get around the no money without product purchase obstacle for their distributors was to make them buy products themselves. For some time representatives had to make minimum orders in order to receive a check. This practice is not only unethical, it is illegal. Every company has to provide some way for you to qualify for compensation even if you choose not to purchase anything yourself. Usually there is an incentive to purchase or go on an autoshipment because it means that you will qualify more easily for payout and is the best way to ensure you STAY qualified, or get the most money out of the comp plan. But there should be a level of customer sales that will allow you to qualify for a check.

In the case of Prepaid Legal, you are not required to make a purchase to participate. They strongly encourage it, and honestly, if you don’t purchase the products and get to love them yourself how do you plan to convince others to?? At least we can definitely say there’s no indication yet of a Prepaid Legal scam.

Prepaid Legal scam? Income disclosure.

The income disclosure HAS to be there for a company to be covered legally. Its presence is a great indication of how much the company cares about staying legal! Other than it being there. I typically don’t worry too much about its contents as statistically 95% of network marketers fail because they treat their business like a hobby, not a business, and they don’t tend to put in consistent steady work until they achieve success. You can find an income disclosure for Prepaid Legal on their website!

So Prepaid Legal Scam? No. Opportunity? Maybe! As with all network marketing companies you will only be successful in Prepaid Legal if you have a good system in place and training on how to market. So many people in this business quit because they don’t know how to get leads and they throw their money away on poor advertising. Do yourself a favor and learn a simple strategy on how to market and build a solid home business before you commit to Prepaid Legal!

If there had been a Prepaid Legal Scam the company would not have stood the test of time as it has, but it needs to move forward in order to keep up with the more powerful tools for MLM marketing that are available today. There is only one tool that I know of on the market today that you can use to promote any network marketing company, will provide up-to-date training from top industry experts in all marketing strategies, tried and tested autoresponders, all the tools necessary for success, and programs to help you create instant cashflow, and that is My Lead System Pro. It can not only assist in your success in your network marketing business, but provides you with one tool to provide your team members to ensure they are fully set up for success in their businesses.

Not sure about MLSP?  Read the full My Lead System Pro Review.

If you found this article on whether or not there’s a Prepaid Legal Scam helpful, please leave your comments below!

P.S. Don't be afraid to Be a Rebel!

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If you’re looking at the Prepaid Legal business opportunity, or indeed any MLM, it is important to get some knowledge on where the company came from, what it is doing today, and whether or not it might be a good fit for you.

Company

The Prepaid Legal business opportunity was started by Harland C. Stonecipher after an accident in 1969 left him with large legal bills. The idea was to create the piece of mind for the members that if anything should happen they already have legal advice to hand. Prepaid Legal began using the MLM marketing model in 1983, and has been one of the leaders of the MLM industry ever since. They market solely through network marketing, and today have over 1.5 million members in the U.S. and Canada.

Products

Prepaid Legal offers legal service plans utilizing a large network of law firms across North America. The plans typically offer free legal consultation, document preparation, will preparation, and defence for various auto related charges. They have also more recently added identity protection as a possible added bonus in their membership packages. While these products can be incredibly valuable, and have no doubt helped many people, not everyone who buys a membership would if there were not an opportunity attached. It is important to consider if this industry and these products are something you can get really excited about before joining the company. It can be somewhat similar to selling insurance packages in that you are simply selling piece of mind.

Prepaid Legal Business Opportunity

Prepaid Legal uses a direct sales compensation model. So when you make a sale, you get a commission. They pay daily, which is something they are particularly proud of, and you get advanced commissions. When you sell a membership for $26 a month you get a commission between $25 and $182.50 depending on what level of qualification you have, this represents the commission you would receive on the membership for the entire year. The downside of instant commissions paid in advance is if your memberships get cancelled within the first year, the company will initiate a chargeback and you will have to give back any advanced commissions that you didn’t earn. Remember with this type of MLM opportunity the more people you recruit, the more money you make as you also make percentages based on the sales that are happening within your organization.

The downside of this opportunity is that it is a little bit outdated. They recommend talking to friends and family, and primarily promote selling the plans and the business on a face to face basis. While this did work well when the company first started, this method of advertising will make you fail, and fast. You need to be able to leverage your time and efforts using the internet and the tools that are available to marketers today. If you don’t have a strong marketing plan, and you aren’t using the power of the internet you are unlikely to recruit people into your business, as they will join a company that is more up-to-date and can help them learn to build an online business empire. With all the options out there today, you need to be able to offer a clear, easy, and efficient way to market for your recruits.

The Prepaid Legal business opportunity has stood the test of time, but needs to move forward in order to keep up with the more powerful tools for MLM marketing that are available today. There is only one tool that I know of on the market today that you can use to promote any network marketing company, will provide up-to-date training from top industry experts in all marketing strategies, tried and tested autoresponders, all the tools necessary for success, and programs to help you create instant cashflow, and that is My Lead System Pro. It can not only assist in your success in your network marketing business, but provides you with one tool to provide your team members to ensure they are fully set up for success in their businesses.

Not sure about MLSP?  Read the full My Lead System Pro Review.

P.S. Don't be afraid to Be a Rebel!

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