Do you need occasional access to lawyers, but don’t want to give up your life savings to get it? Do you know anyone else who might want that same kind of legal access? Among other services, Pre-Paid Legal gives you affordable access to lawyers and also gives you the chance to earn money back for using their lawyers and referring others. But the truth is, some people call it the “Pre-Paid Legal Services Scam” because so many people try to make money in the business but spend way more money than they bring in. However, as you’ll see shortly, it’s not a scam, and the reason people fail has nothing to do with the company itself.

What is Pre-Paid Legal Services?

Pre-Paid Legal Services is a company that provides specialized Legal contract writing services in the United States and Canada through a network of over 50 independent provider law firms.

The company was founded by Harland C. Stonecipher who was involved in a motor vehicle accident and hospitalized. Even though the other party was at fault, they filed a lawsuit against Stonecipher. He hired a lawyer to defend himself, and in the process, used up all his life savings. Stonecipher felt that no one else should have to lose their life savings in a lawsuit, so in 1972 he created a company that would eventually become Pre-Paid Legal in 1983.

For a minimal investment of $26 per month, the company lets customers consult with a lawyer on matters such as speeding tickets, writing wills, and other potential lawsuits. They also market identity theft monitoring through a partnership with Kroll.

Why Are There Claims of a Pre-Paid Legal Services Scam?

Pre-Paid Legal Services promotes its products, services and business through network marketing. This means the company markets its products and services through independent representatives and word of mouth.

Basically, you get paid for selling the law service and identity protection packages, but you also get compensated for bringing in other independent representatives, too. According to their website, the Pre-Paid Legal compensation program allows you to be paid from $75 to $182.50 on every $26 membership you sell. Usually people who don’t know much about network marketing call this “a scam”.

Let’s look at the facts, though. The company has been around since 1983 and has been a stable company for over 25 years. Also, the company stock is publicly traded on the New York Stock Exchange, which is also a sign that the company is legitimate and committed to long-term success.

So Why Do 9 Out of 10 people Fail In Pre-Paid Legal?

In the network marketing industry, it’s a well-known fact that nine out of 10 people in multi-level marketing companies spend more money than they take in and tend to quit the business within two to four months after joining. Those industry averages also hold true for Pre-Paid Legal. Why is there such high turnover? It’s not because Pre-Paid Legal is a scam. As I’ve already pointed out, it is a legitimate company with a service that is needed in the marketplace.

One big reason new recruits fail in this business is because they don’t have any knowledge of how to effectively market the business. Every network marketing company lures in people with the same approach: it’s not “sales”, it’s “sharing”, “the product sells itself” and “start with your friends and family.”.

New recruits simply rely on their sponsor to teach them how to market Pre-Paid Legal. The result is that somewhat outdated, yet tried and true, “old school” marketing methods are taught as the preferred way to build the business.

Reps are told to share the plan with friends and family and to talk to anyone within a 3-foot radius who seems like a good candidate. They are encouraged to go to networking events, cold call leads, and put flyers on cars in shopping mall parking lots.

While some of these tactics do work for some people, the majority of people face a lot of rejection with those methods. Face it, rejection is hard to take day after day. Consequently, many new reps leave the business after just a few months, having made little to no money and calling Pre-Paid Legal a scam.

How to Become the One Pre-Paid Legal Representative Who Succeeds

If you are committed to success in Pre-Paid Legal Services, you must learn the correct ways to market your business both offline and online. You will want to start branding yourself as a knowledgeable person about the industry because you will gain position as a credible leader that others should follow.

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