There are two sides to the pre paid legal services scam story. First we have the legal services aspect to consider and also the business opportunity side to consider. Let’s take them one at a time.
Pre Paid Legal Services Scam
Pre-Paid Legal Services Inc is a publicly traded company (NYSE: PPL) that has been providing subscription-based legal plans and services since 1972.
Today, the company serves over 1.5 million customers in the U.S. and Canada.
For $26 or less each month, families and small business owners have direct phone access to a local law firm to obtain advice and counsel.
Legal assistance is provided for virtually every thing you can imagine including document review when buying a house or a car, setting up a will, handling problems with insurance company claims, dealing with identity theft issues and more. Much more.
Various riders are also available including a legal shield rider, home business rider, and even a corporate record keeping option.
So you have to ask yourself…
Here’s a publicly-traded company serving over 1.5 customers.
If the legal services they provide were not on the up and up, if they did not work with high reputation law firms, they company would have been forced to close their door a long, long time ago.
Instead, they have been alive and well for over 38 years! Scam. Fraud. Worthless? Impossible.
Pre Paid Legal Scam
Now let’s take a look at the mlm business opportunity.
According to the Media Moogle site which provides a variety of PrePaid Legal information inclduing articles, lawsuits, complaints, pyramid scheme accusations, and more… the company profits decreased 8% in 2009 but, during the same time period, the number of new sales distributors enrolled decreased 17.8%.
Which is odd, actually, because when most network marketing businesses actually see a significant increase in their distributorship base during bad economic times.
Because when times get rough, people often start looking for ways to make extra money and a good mlm opportunity the preferred choice of many.
Of course in ANY network marketing opportunity you will have a tiny percentage of the active distributors who make a significant living.
Most will never make a time. It’s just the way it is.
A few will make millions, many will make a good living, and most will fail to produce a profit. Which has nothing whatsoever to do with the so-called pre paid legal scam claims because it’s a viable business that has stood the test to time for over three decades!
That being said, as you may or may not know, I also own one of the most popular mlm leads sites online.
So over the years we have worked with hundreds of distributors from virtually every network marketing opportunity on the planet and the majority of the feedback I’ve received over the years is the attrition rate for pre-paid legal services is pretty steep. And when you are trying to build a business suffering from a high attrition rate – it’s like trying to fill a bucket full of water that has a leak at the bottom.
If you can fill it faster than it is leaking – you’ll show a profit.
The challenge is you can never STOP actively filling the bucket!
So if you are seriously considering starting our own business, you can readily discount all the pre paid legal services scam claims. They are bogus. It’s a good, stable, well-respected company with a proven track record.
However, before you jump in with both feet you really need to stop and consider exactly how you will promote and grow your new business. What’s your marketing plan? How do you intend to advertise and promote the legal services (to get new customers) and the business opportunity?
The best way to start is to contact all of your family, friends, co-workers, business associates and local business owners.
This will keep your expenses down and, if approached properly, you net a few good clients and perhaps a few good business builders. But what are you going to do when you exhaust your warm market?
Listen - most people fail to build a profitable network marketing business because they never really sat down and figured out a way to consistently promote the product, service or opportunity… cost effectively… over an extended period of time. And new leads, new prospects, new customers and a steady stream of new business builders is the name of the game.
So the first thing you should do before starting any new business is to determine exactly how you intend to market and promote the business.
You may also want to check out the new MLM companies out there. They often pay a whole lot more for the same time and effort involved.
Bless and be blessed,
PS – Make sure to LIKE, COMMENT and SHARE this post. What challenges are you struggling with?