Although I did search, I only came up with a couple responses that didn’t specifically address selling these services. I am interested not in the prepaid legal service, but the people who sell it.
I have someone trying to convince me that for only $200 I, too, can sell prepaid legal services and rake in the cash. Anytime someone tells me I have to ante up money to get in on selling something it send up a red flag. However, two of my friends are being taken in by this. I am looking for hard evidence that this is a scam. It just feels “fishy” to me.
I have called the state Attorney General office but they did not have any complaints on file. Do any of my fellow Dopers have information on whether or not this is a scam, or where else I can look for such information?
Thanks in advance. I only use the computer at work so if I seem to drift off for a couple days I haven’t abandoned you! I really do appreciate this.
Rez
I’m not sure I understand what you’re asking about, rez.
What, exactly, are these “pre-paid legal services”? Most pertinently, are you a lawyer or paralegal? If not, then it seems pretty obvious that any scheme by which you would be offering legal services is at least a scam, and maybe something that could get you into a lot of trouble.
A Google search for “prepaid legal scam” turns up dozens of sites all linked to some company called “LegalMatch” who appear to do nothing but look at the information people post about their cases and then call a lawyer for you. A legal referral site in Canada says that they are a “multi-level marketing” scheme and add “More later. But why would you pay a monthly fee to talk to a lawyer when most lawyers will talk to [sic] for free?”
And there are a few screeds from individuals on random message boards, for what they’re worth.
It is “multi-level marketing” (read: very similar to Amway.) It is possible to do very well in Prepaid Legal, it is also very possible to not do well. I have the service, which I find to be great, and tried to sell. However, it was too much recruiting driven and have not done anything with it in over a year and a half. I do use the sevice about every other month.
The way it was described to me, and what I’ve gathered off the internet, is this: it’s legal insurance. You pay a flat fee every month (in the $20 range) and you have a lawyer should you need one. I know that for the buyer there are “catches” like a limited number of hours you get for the flat fee you’ve been paying. Mostly “fine print” things.
You’re not selling your own legal services. You’re selling insurance for legal services so you don’t have to be a lawyer. Just an insurance salesman. Still seems wrong - I just don’t know if it’s in the morally wrong sense or the legally wrong sense.
Hope that made sense - I used several generic “you’s” in there.
It’s no scam, believe it or not. The company is traded on the NYSE under PPD, and they actually do quite well.
But, like plasticbryan has mentioned, it is a multi-level marketing based model, so as cliche as this may sound, your return does really depend on how much effort you put forth.
Hi Rez,
First of all, I’m an associate and it is not a scam. I do think that some people that are involved might be less than honest (in selling and recruiting) but the people I work with are great people and are very committed to helping others be successful. It definitely helps if you already have marketing skills (I didn’t) and, if you do decide to get involved, be sure to take the training before trying to market the membership to anyone. I think this might be a weakness in the company by not requiring associates to take the training and listen to the tapes provided in the associates package. There is a lot of information to absorb and some people just don’t have the time, patience or whatever to learn the basics.
The money I paid for my associates fee I have earned back over and over again and it gives me great pleasure to hear how my members have used their memberships to help them deal with some pretty stick situations.
So, if you think you can bring a couple people in, sit back and make lots of money, this probably isn’t for you. If you are determined to make a better life for yourself and help some of your friends and family do the same; if you want to improve yourself and move beyond what’s holding you back in life by reading some great books by very successful people; if you want to surround yourself with people who want to succeed and want to help you succeed; and, most importantly, if you want to help people that, due to finances, normally would not consult an attorney when they need one the most have access to an attorney - this is for you.
Please know that Pre-Paid Legal is very serious about how their associates market the membership and how they bring in associates. I have heard of people who were very successful with the company that were kicked out for breaking some of the rules.
Something about this company that amazes me is that it is constantly striving to make things better. Not only for the associates but for the members too.
Okay, so you’re worried about paying some money to get started. When you see what you get for your money, you’re going to wonder why it’s so cheap. They will provide that 4 hour training, send you training CDs, supplies to get you started, they will keep track of your sales, commissions, income for the year, keep track of associates on your team and their progress, give you a free website (there is another that you pay for if you want it), send you a DVD with training tips, etc. each month, etc. The really incredible thing is that you only have to pay that fee ONCE!
So, I hope this helps and that if you do decide to get involved that you are very successful.
Take care,
Kate