Found a better way to hire a lawyer? So you look at those prepaid plans and like to join as an associate, but you keep wondering, “Is LegalShield A Scam?”
In my LegalShield review, I’ll cover the below topics to help you make up your mind. You surely can make better decisions once you read this article to the end.
- What Is LegalShield?
- LegalShield Legal Services and Prepaid Plans
- How To Make Money with LegalShield?
- LegalShield Compensation Plan
- LegalShield Income Disclosure
- My Alternative to Make Money Online
Without further ado, let’s get started.
Disclaimer: As the owner of Smileaffiliatesuccess.com, I have tracked down special deals for products, tools, and services mentioned herein. When you click my affiliate links on this page to make a purchase, I may get a small commission, and you will definitely get a great bargain. This is a win-win advantage for both of us.
What Is LegalShield?
-Summary of LegalShield-
Harland Stonecipher found LegalShield 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 decided to create an MLM company that provides legal services at an affordable cost.
In 1976, it was incorporated as Pre-Paid Legal Services, Inc. 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, including consumer finance issues, traffic violations, and accidents, estate planning, etc. All the above services are based on prepaid plans with monthly subscription costs.
LegalShield Legal Services
Depending on the prepaid plans, you will get different coverages. But, all the plans pretty much cover the below services.
- 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 needs.
It costs $29.95 to $145 per month and 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 three types of legal services with costs ranging from $49 to $169 per month. Those plans provide access to a provider law firm to assist your business with a wide variety of business legal matters.
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
Does LegalShield Service Work?
From their website, I can tell they provide lots of legal services that we need, just like insurance. But, I am not personally using LegalShield’s legal assistance, I cannot give you my firsthand experience.
I managed to find what happy and unhappy users have to say about their services, which will help you make better decisions.
Both positive & negative comments are equally important to know LegalShield’s services, and I believe you have a clear picture now.
How To Make Money With LegalShield?
In LegalShield, you have three options to make money by the compensation plan:
- Sell LegalShield prepaid plans to make commissions
- Recruit people to become LegalShield associates 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 MLMs, so it’s safe to say LegalShield is a legitimate MLM business opportunity.
You have two options to join LegalShield.
- The first one is to join as a normal member. Simply purchase the personal plan whenever you need legal advice.
- The second is to join as an associate with a $99 sign-up fee. LegalShield will provide you with online training, the weekly newsletter, support center, associate perks, and help from sponsor/team/local leaders.
LegalShield Compensation Plan
LegalShield compensation works on a “pay one-year advance” system. 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.
Here are the basics of the LegalShield Compensation Plan:
- Personal Commissions: You sell LegalShield prepaid plans, then you get commissions. In other words, the more you sell, the higher your commissions.
- Override Bonus: When an associate in your organization makes a sale, you will receive the override bonus for each level between yourself and the next active Associate in your downline.
- Residual Income: If your members stay with the plan after the first year, you’ll earn residual income. Building up a long-term relationship with your customers helps you get the most benefits from this plan.
How Much Do You Need to Sell to Stay Active?
If you have joined any MLMs before, you’ll know every MLM has minimum requirements.
In this case, you need to sell three memberships each quarter to stay active for the business.
There are seven levels in the compensation plan. You start as an associate, and you will gradually move up to the following levels once you make more personal sales and have more downline associates.
- Senior Associate
- Senior Manager
- Senior Director
- Executive Director
What I Liked About LegalShield
TOP#1 A Good Concept For A Product
We all need legal advice in some situations, and we don’t want to pay much for the service. So, the legal service subscription is right to people’s needs, and we all can take advantage of LegalShield.
TOP#2 No Stockpiling Issues
TOP#3 LegalShield App On Your Palm
I am lazy, so I would be excited if there is an app that I could get access to legal service. 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.
Ugly Truth About LegalShield
TOP#1 LegalShield Income Disclosure
It is not an overnight success, 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 $798 for 2019. Approximately 73% of all Associates across experience years made less than $1,000 in 2019.“
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?
Here are other interesting numbers you need to know:
- For associates who join LegalShield less than 1 year, the average annual income is $459.
- For associates who join LegalShield less than 2 years, the average annual income is $1266.
- For associates who join LegalShield less than 3 years, the average annual income is $1735.
Figures do not include individuals who may have received money from renewals or income from team sales but did not make a sale in 2019. So, if they calculate every associate in, the numbers will be so much lower.
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.
TOP#3 Many Complaints
On LegalShield’s BBB page, it shows they have a total of 190 complaints in the last three years, but only 69 cases were solved in the previous 12 months. 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 cover some of your bills, but you can’t rely on it to quit your 9-5 jobs. I know someone makes decent money with the LegalShield compensation plan, but it’s not my top pick.
Is LegalShield A Scam?
No, LegalShield is not a scam. No scam could exist longer than 49 years. LegalShield has legal services and pre-paid plans, and its associates make money through the compensation plan. Therefore, we can’t say it’s a scam or a pyramid scheme.
But, it would be best if you thought twice about things I don’t like much from LegalShield.
- The low income potential, there is a high possibility you earn less than $1000 in a year.
- Many lawsuits and many complaints on the refund policy and membership cancellation process.
I hope my LegalShield review gathers all the information you need to make a better decision. If you ask me whether I will join it, my answer is no. Let me show you my alternative to making money online.
My Alternative to Make Money Online
I believe that you don’t need to join LegalShield when you can get all affiliate marketing at a $49 membership fee per month or $495 per year. An alternative I do recommend is Wealthy Affiliate(WA).
Doing affiliate marketing will save you from:
- 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 can start a blog running an affiliate marketing business. You can write quality content that provides people value and insight. If your readers like your sharing, they will try the products via your links. Here come your earning potentials.
The platform I am using currently is Wealthy Affiliate. You will find all the proven-to-work training courses, every Friday night LIVE training courses, one keyword research tool called Jaaxy, 24/7 site support, and the most friendly community.
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Wealthy Affiliate Income Proof
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- 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
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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.
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