You occasionally meet legal issues in some cases, but you don’t want to pay that much money for the attorneys. So, you googled online and found LegalShield. You look at those prepaid plans and like to join as an associate, but you keep wondering “Is LegalShield A Scam?”
Am I right?
First of all, I am not here to sell you prepaid plans or convince you to join as a LegalShield associate. What I love to do is sharing my discoveries from its business model and the compensation plan to evaluate the possibility of making money with it.
Secondly, I can see you are doing your research well, so you come across this article. You deserve a big HUG! Googling Pros & Cons of any programs and get as much information as possible is the first step to avoid being scammed.
Let’s find out more about LegalShield, then you can make a better decision! Shall we?
What is LegalShield?
-Summary of LegalShield-
LegalShield was founded by Harland Stonecipher in 1972 as the Sportsman’s Motor Club. He was in a car accident and found himself in debt for the legal processes, so he got the idea to create an MLM company that provides legal services at an affordable cost.
In 1976, it was incorporated as Pre-Paid Legal Services, Inc. And, in 2011, Pre-Paid Legal agreed to merge with MidOcean Partners and changed its name to LegalShield.
They offer a wide range of legal services that including consumer finance issues, traffic violations, and accidents, estate planning, etc. All the above services provided by LegalShield is based on a prepaid basis with monthly subscription costs.
LegalShield Legal Services
Depending on different prepaid plans, you will get different coverage. But, all the plans pretty much cover the below for your reference.
- Consumer finance issues
- Traffic violations and accidents
- Estate planning
- Family law and divorce
- Real Estate
- Civil Litigation
LegalShield Prepaid Plans
LegalShield provides both personal and business plans, and you may choose the one that suits your legal needs the most.
It starts at $24.95 per month and it includes the below services:
- Consultations: Provide advice by phone, write letters & make phone calls on your behalf or review documents.
- Documents preparations: Will preparation, durable power of attorney, mortgage document preparation, etc.
- Traffic tickets and Motor Vehicle Services: Defense of moving violations, auto accidents, and criminal charge assistance, etc.
- Family Services: Divorce, annulment, adoption, or name changes assistance.
-Small Business Plan-
There are two types of legal services by the size of your company. If your company is less than 50 employees or fewer, you may choose Small Business Plan 50(SMB 50), and it costs $89. If your company is less than 100 employees or fewer, you may choose Small Business Plan 100(SMB 100), and it costs $149.
Here are what the plans cover:
- Legal consultation with your local attorney
- Document review and contract drafting
- Debt Collection
- Designated consultation for a specialized area of law
Besides the above, you can have a 25% discount for any legal services you need but not included in the plans.
Does LegalShield Service Work?
From their website, I can tell they do provide lots of legal services that we might need just like insurance. But, I am not personally using LegalShield’s legal service, I cannot give you my firsthand experience.
My curiosity kills many cats when I googled online for the customer feedback on LegalShield, and here are what I found:
Both positive & negative comments are equally important for us to know how good or awful LegalShield’s services are, and I believe you have a clear understanding now.
How Does LegalShield Work?
In LegalShield, you have three options to make money by the compensation plan:
- Sell LegalShield prepaid plans to make commissions
- Recruit more people to become LegalShield associate to get extra bonuses
- Get the passive income when members referred by you keep paying the monthly fee
There are no surprises or differences compared to other traditional MLMs in the industry, so it’s safe to say LegalShield is not offering you a plan that is impossible to achieve.
You have two options to join LegalShield.
The first one is to join as a normal member. Simply purchase the personal plan and take advantage when you need legal advice.
The second is to join as an associate with a $99 sign-up fee. LegalShield will provide you online training, the weekly newsletter, support center, associate perks, and help from sponsor/team/local leaders.
The Compensation Plan
LegalShield compensation works on a “pay one-year advance” system that is something new. Meaning you get one-year commissions once you make any sales. If someone cancels the monthly subscription, you will be charged back against future commission advances.
- Personal Commissions: You sell LegalShield prepaid plans, then you get commissions. In other words, the more you sell, the bigger your commission.
- Override Bonus: When you have associates under you, you can earn a group bonus once your downlines sell any memberships. To get an override bonus, you need to at least achieve Senior Associate. For example, if you were a senior associate, you can get a $20 override bonus when one of your referred associates sold a membership. You may refer to the below screenshot.
- Residual Income: After a membership, you or your associates sell lasts a year, you get a commission on each month it stays active. So, don’t just sell and stop caring about them. Building up a long-term relationship with your customers helps you get the most benefits from this plan.
For more details about LegalShield, you can check the official complicated document HERE or watch the YouTube video below.
How Much Do You Need to Sell to Stay Active?
I did my research online to know that you need to have 3 membership sold per quarter to maintain your business or you lose your entire downlines. To be honest, if you have a basic understanding of MLMs, you should know every MLM has minimum requirements. This is not something only existed in LegalShield.
There are 7 levels in the compensation plan. You start as an associate, and you will gradually move up to the next levels once you make some personal sales and start to have associates referred by you.
- Senior Associate
- Senior Manager
- Senior Director
- Executive Director
What I Liked About LegalShield
TOP#1 A Good Concept For A Product
I guess we all need legal advice in some situations of our lives, and we don’t want to pay much to the service. So, the legal service subscription concept is right to people’s needs, and we all can take advantage of LegalShield.
Another proof to support this is that LegalShield runs business more than 48 years now! I guess you should know that 5 out of 10 new companies don’t survive than 5 years, so LegalShield must provide some legitimate services that people need.
TOP#2 No Stockpiling Issues
What LegalShield provides is all prepaid legal services, so you won’t need to place orders for any physical products like all the other traditional MLMs in the industry.
TOP#3 LegalShield App On Your Palm
I am lazy, so if there is an app that I could get access to legal service on my bed, I would be very excited. This is what I feel when I see the LegalShield App.
It’s like a whole legal office on your mobile phone although contacting the attorney is something we try to avoid when we have legal issues.
Ugly Truth About LegalShield
TOP#1 No One Is Making Money
It is not a pathway to quick riches, and I admire the honesty from LegalShield. Let’s look at the income disclosure from the official website HERE.
They mentioned “For Associates with 0-2 years of experience who made at least one sale, average annual earnings were $504 for 2018. Approximately 76% of all Associates across experience years made less than $1,000 in 2018.“
Would you quit your daily 9-5 jobs by only making less than $1,000 in a year? I guess you won’t, and you probably take LegalShield as a part-time job, right?
One more shocking news I found from the income disclosure is that you only gained $866 in the fourth year you joined LegalShield. It’s impossible that people could support themselves & family by this little amount of earnings.
You might say “But if you recruit as many people as possible to make sales as a group, you would get more income around $12,298 in one year!”
I agree with that, but don’t you see that was in the 5-9 years after you joined LegalShield? Can you accept that you spend 5-9 years selling & recruiting for LegalShield but earn less than the minimum wage? I heard a “Hell No!” from your mind.
How come a legal-service-providing company gets in trouble in lawsuits? I don’t get it actually. Here are some lawsuits I found on the internet, it seems like LegalShield used to mislead people by its compensation plan.
- In 2001, Pre-Paid Legal paid $4,000 for civil penalties, reimbursed Wyoming state for $1,000 in costs, and refunded $2,000 to participants because they were using prohibited income representations to misled associates.
- In 2004, there were around 250 plaintiffs filed about 30 lawsuits in Alabama against Pre-Paid, all of them were settled or dismissed later by 2006.
- In 2005, Pre-Paid was found guilty of deceptive advertising and fraud and the court requested them to pay $9.9 million in punitive damages.
If you have time, I suggest you dive deep into this part since there were too many lawsuits in the past.
TOP#3 Many Complaints
On LegalShield’s BBB page, it shows they have a total 190 complaints in the last three years but only 69 cases were solved in the last 12 months.
The most complaints are about the refund policy and membership cancellation process.
Can You Make Money Selling LegalShield?
Yes, you can take LegalShield as your part-time job to only cover some of your bills, but you can’t rely on it to quit your 9-5 jobs based on the income disclosure I just showed you.
- You could earn from $455 to $$7,383 per year if you mainly focus on selling individual memberships.
- You could earn from $627 to $16,544 per year if you recruit people to make sales with you.
Is LegalShield A Scam?
Definitely NO!. There is no scam that could exist longer than 48 years. LegalShield has legitimate legal services and its associates do make money through the compensation plan. Therefore, I won’t say it’s a scam or even a pyramid scheme.
But, you need to think twice about things I don’t like much from LegalShield.
The low income potential, there is a high possibility you only earn less than $1000 in a year.
Many lawsuits in the past, and the last, many complaints on the refund policy and membership cancellation process.
My Alternative Way to Make Money Online
My alternative way to make money online is through Affiliate Marketing instead of pushing people to buy legal prepaid plans or convincing them to join the system to become your downlines. I feel blushed once I imagine myself doing that, so this is never my cup of tea.
Doing affiliate marketing will save me and you from that:
- You don’t even need to buy any physical or digital products and sell to someone face to face.
- You also don’t need to convince people to join you as you downlines to build a team.
- You are not restricted to only promote LegalShield prepaid plans. You can promote anything you like!
You only need to create a website or YouTube channel with quality content that makes people trust you then purchase them through your links.
The platform I am using currently is Wealthy Affiliate. The reasons for “Why Wealthy Affiliate?” are for all the training courses, every Friday night LIVE training courses, 24/7 sitesupport, and the most friendly community.
For more details or top secrets about Wealthy Affiliate, you could check my full review in the below link.
Wealthy Affiliate Income Proof
Here are some of the most active members from Wealthy Affiliate. Each of them did succeed in generating a sustainable income to replace their 9-5 jobs. You are more than welcome to check their stories HERE.
- I Made Over $1 Million With Affiliate Marketing.
- Can someone make a full time income promoting WA? You bet they can!
- What Does $1000 Per Day Look Like?$
- 40,000 In One Weekend
- A Very Humbling $12,803.26 Month – August Progress Report
- It’s Getting Better: $500+ in 2 Days
- Newbies Pay Attention! $5,195.20 Affiliate Check for June: Thanks WA!
- Joined the 10K Per Month Club. January Earnings $13,481.39
- New Record: $1,300+ Per DAY! Affiliate Marketing Works & Rocks!
- Made $7,395 in a WEEK: First Black Friday Results!
I hope you enjoy this review and you are more than welcome to share ideas or leave your comments below. I will reply as soon as I can, thanks.