In this article, we examine one of the most popular companies in the MLM network marketing industry, Prepaid Legal Services. Based on the latest figures Internet search, there is significant interest in whether Prepaid Legal is a viable business or not, so we took interest and would investigate. We will explore the business and what is behind so many questions about its legitimacy.
company is based on MLM network marketing, which many equate automatically with pyramid schemes, such as the one made famous by Bernie Madoff. But the FTC ruled in 1979 that network marketing was completely legal business payments business to distributors are based on product sales vs. hiring bonus. While some companies may make this line closely, Prepaid Legal seems to be in this category at all, however, one report available online model relates specifically to an endless chain system, which is soon apt to collapse. We look at this as a speculative, but will more closely follow the industry.
The company was founded in 1972 Motor Club athlete is. At present, the market and underwrite prepaid legal plans by using more than 50 independent law firms in the United States and Canada. Pre-Paid Legal began utilizing network marketing in 1983. The company went public on NASDAQ in 1984 and two years later moved to the American Stock Exchange.
Perhaps the current interest rate come from claims by some former multi level marketing distributors point out that recruiting video company may not give an accurate picture of the effort needed to succeed. For example, indicates one out their policies have cancellation policies 52% rate in year one, 65% in year two, 72% in year three, etc. 100 members sold today will result in less than 10 (according to quarterly reports of the Company) in seven years . Some believe that buyers policy may initially have legal issues, such as traffic tickets or need will ready, and after that have no continuing need for services.
Also, according to company SEC filings, it is the high failure rate of Multi Level Marketing affiliates. According to the published form, 97% do not really sell policies (only 3% make 10 sales) of 450,000. In addition, 93% of the 455,000 associates no sale at all. One reviewer also reports that there may be an ongoing effort to support the stock with the company buy back. If these reports are true, the company’s survival could actually be concerned? Also, SEC and FTC has been reportedly investigating Prepaid Legal, although the FTC has recently closed the investigation.
Despite the abundance of glowing testimonials from Prepaid Legal is Multi Level Marketing colleagues and clients, there are also many questions about this business. This may explain why recent Google search results indicate strong interest in the concept of “prepaid legal scam” at the moment. We would suggest that if planning to join any association first do some due diligence with trusted sources and make their own conclusions. We can not advise any person whether or not to participate. But we recommend against a decision solely based on business presentations. Regardless of the truth behind these facts and / or rumors, there are certainly divided opinions on the question if Prepaid Legal should be considered a viable business or not.