So my dad sent me a birthday card, which included a check. He asked me to use the money to register under him in Prepaid Legal, the multilevel marketing company that sells pre-paid legal services and discounts. He has a plan to register a few thousand Native Americans he is working with through another program (and believes he can get many to sign up under my name thereby guaranteeing me a perpetual income). This caused me to investigate the Prepaid Legal company.
What is a pyramid scheme? Is any hierarchical organization a pyramid, and is that the same thing as a pyramid scheme? I'd say there is a critical difference between a typical pyramid organization (like the US government) and a "pyramid scheme." Both function by giving the fewer people at the top more power/authority than any of the many individuals at the bottom; however, a "pyramid scheme" takes it one step further by advantaging the few at the top by exploiting the many at the bottom--that is what makes it a scheme. In a pyramid scheme the suckers on the bottom spin thier wheels with hope of extending the pyramid below them, but the program usually reaches critical mass before most people get in and so they never really profit anybody but those few early members at the top.
So, is Prepaid Legal a pyramid scheme? Like Amway before them, they claim they are not a pyramid scheme because they company does not profit from recruiting new people below them but instead by selling legitimate goods and services. As long as the company is built on actual goods and services thier argument is correct. But as I think back on Amway I recall that it encouraged people to sell products--sure--but there were below average quality and above average prices that no real consumer would ever purchase. The products were a cover for the real source of profit. To make real money you got people below you selling the crappy products, and that is what made Amway a pyramid scheme. So the defining issue then is... does Prepaid Legal profit mostly from selling legitimate and competitive legal services, or from recruiting people below and getting them to sell non-competitive services (who then want to get people below them to sell services). Is the emphasis on providing quality services for a fee, or the acquisition of sales people below you (who pedal a crappy product as cover for the pyramid scheme)?
As I search the web I see lots of blogs and other commentaries that say Prepaid Legal's services are a joke. Many people say they provide far less than they claim. Others say Prepaid Legal has outrageous cancellation rates (50%-75% in the first 3-5 years) that suggest the legal services are just a cover--a convenient way to pretend the whole scam is about a product/service and not about pyramid recruiting schemes. I cannot verify the quality/legitimacy of thier services because I've never used them.
So I must conclude that I do not know if Prepaid Legal is a pyramid scheme, but it appears that that may very well be the case. It depends on if the services are bogus or actually legitimate. Has anybody ever used thier services before (anybody who does not sell Prepaid Legal)? Can anyone vouch for the quality of the services (who does not have an alterior motive as a sales rep for the company)?
10 comments:
Matt,
I am going to have Stace answer to this. He has some feelings about PrePaid Legal... In fact, we had a subscription with them a while ago....
If, I am not mistaken...he does like them...but, I need to have him write to you...
Now...he is slooooow :) You know him :)
Emma
I've owned a Pre-Paid legal Services FAMILY legal membership for over 25 years.
There are many members who fall in love with the service, and then start offering the memberships and help others make money offering the memberships.
As a single dad raising 3 children, and enrolling families in insurance, my time was very filled. About 1998, I became a director level independent associate.
My main point is that I used and HIGHLY RECOMMENDED the service for MANY YEARS before I started offering the service as an associate. There are many families who have other family members on their TEAM.
Since your dad sent you a check to join, give it a try. I will not make a penny by suggesting that you join as a member and maybe later or at the same time as an associate on your dad's TEAM.
I'd suggest that you FIRST watch the "Justice For All" TV videos that were shown on CourtTV and True TV, and watch the Lifestyles video collection that shows how Pre-paid Legal Services can LEGALLY and FINANCIALLY EMPOWER your family and the families of those who you enroll.
You are wise to CAREFULLY check out a business opportunity, because many pyramid schemes DISGUISE themselves as MLM's or network marketing companies.
There is a short 2 page pdf on the Consumer Protection web page of the UTAH Attorney general that will give you some good insight.
http://extension.usu.edu/boxelder/files/uploads/fl-ff04.pdf
In a pyramid scheme, those at the top will ALWAYS make more money than you. In a real business like Pre-Paid Legal Services, you can make much more money that those in your upline.
If PPLSI was a pyramid scheme, then they would not have over 1.5 MILLION members, be publicly traded on the NEW YORK Stock Exchange, a solid track record of over 37 years, and a 177,000 PLUS square foot home office that is on a 87 acre campus. PPLSI has around a 1,000 paid STAFF to serve members and associates. They are the largest employer in Ada and Antlers, Oklahoma. They also have a call center in Duncan, OK.
If the value of the services were not a greater value and a solid service, then the insurance commissioners and attorney general consumer protection agencies would be working to shut them down. We have many lawyers and even current and former attorney generals who own our memberships to protect their families. Current attorney generals can NOT endorse a product, due to possible conflicts of interests. You'll see on the "Justice For All" DVD former state attorney generals who endorse PPLSI. The Former President of the American Bar Association endorses PPLSI. The current Presidents of the US Chamber of Commerce, and the US Black Chamber of Commerce both highly endorse PPLSI on that DVD.
However, when we have have our annual international convention each year, usually in Oklahoma city OK in March, then we usually have the Oklahoma governor, insurance commissioner, and attorney general speak praises of PPLSI.
If PPLSI was a scam, them people would run for the back door, if they knew anyone from the attorney general's office was listening to what they aere saying.
Scams operate in as much secrecy from government agencies as possible. As a Publicly-traded company, anyone can see all about PPLSI, and they are checked out frequently by the SEC, and large investment firms.
The research departments and experts from highly respected magazines like Money, Forbes, Fortune, Equities, etc have checked out and written many articles about PPLSI.
You probably know many people who have joined a health club and only gone a few times, or only the one time when they signed up. These people did NOT lose weight, and get in better shape or health. About 80 to 100% of them QUIT in the first 1 to 5 years.
WHY ??? Because the gym or health club was a TOTAL SCAM. IMAGINE ONLY THOSE who work really HARD by exercising and dieting on a REGULAR basis lost weight and got in better shape.
The same thing happens with those who join PPLSI as members or associates. If they do NOT use the service and follow the advice of lawyers, then they will QUIT what they do NOT use, unless they realize that it can be very valuable like a SPARE TIRE for your car, a smoke alarm, and a fire extinguisher.
It's NOT the fault of the gym or PPLSI that those who join do not use it. Everyone needs a will and the national average cost for a will according to Money Magazine is over $500 each. For a couple, that means that each just getting a will, living will, and medical power of attorney can save them over $1,000 !!!
It's a marketing SCAM that some MLM'ers use to get you to join their MLM. They bad mouth many MLM companies, and say they will make you a millionaire if you join their MLM. They might say that they tried the MLM that they are bad mouthing, but many times they never signed up.
Short stock sellers and their accomplices will write bad articles to profit by their scam articles.
The legal protection like insurance can save you the most money and protect you the most, if you enroll BEFORE you plan to use it. Having a defense against MOVING traffic tickets, civil lawsuits and certain JOB-RELATED criminal Charges, and IRS personal tax audits can be a life saver, literally !!!
The Identity Theft Shield is vital today and available in all 50 states. The 24/7 LEGAL SHIELD is available in most states. The family legal plan is NOT available at this time in Alaska.
If you want more details, e-mail me at scambusterone@yahoo.com
That way you can get information from a third party who will not financially gain from you getting a PPLSI membership or joining your dad's PPLSI team.
Anonymous has a very convincing explanation; however, the self-delusional Amway people who meet every month teach each other equally convincing pitches. That is why I'm really looking to hear from somebody who does not sell the product. If you want to know if you can trust a Ford, dont ask the Ford salesmen--ask people who bought Fords, right?
Matt, This is Brent. If you have questions and want personal experience talk to Brian and Jeralyn. They did prepaid legal for a while and HATED it. I just talked to her about it last week and she said they lost thousands of dollars and would strongly advise anyone of not getting involved. My main point is that I HIGHLY RECOMMEND talking to Jeralyn as she actually was involved and you know you can trust her. From what I heard from her last Friday, it does not sound like a good thing to get involved in especially with cancellation rates. Well don't take my word as I don't have much experience with it but I hope you talk to Jeralyn to find out what she thinks. Good luck...
P.S. I am the bomberman!!!
I would say run far and fast away. I have never heard of prepaid legal, but it sounds exactly like amway, mary kay, beauticontrol, etc. Even if it's not a pyramid scheme, there are better avenues to get what you need.
As a frequent user of prepaid legal services I can vouch that these services are indeed as advertised. I have spoken to my attorneys on numerous issues, in numerous states, in the few months that I have had the service and every time I have been "WOW"ed by the thoroughness and service these attorneys provide. I will also vouch, as an independent associate, that our money comes from providing a very real and much needed product. I, nor the company, brings in any profit from recruiting people into the business; you can't make 400+ mil a year consecutively with 1 time associate sign-up costs. You can view all of PPL's financial information, it's publicly traded under PPD.
Lastly, I commend you for doing your research before diving into any business. Few people do this and that is why the vast majority of business's close shop within 3 years.
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This difference is simple! You DO NOT have to be a part of the "Pyrimid" to be a member. It's not different than insurance you would by for Health, Dental, Auto etc.
I have been a member for many years. Talk to one of your friends who sell Pre-Paid legal. get the info & simple try out the service. I pay $36/month for a plan (in essance a retainer agreement) for everydau five legal matters. Sure if something major happens, you may have to pay more but thats exactly how your other insurances work.
I recommend the service to ANYONE! You can cancel at any time but I think your find the plans well worth it.
As far as selling it, I don't know but I do know of a few people who claim to make a very nice 2nd income from doing so.
Conclusion > Service is Great, you don't have to be a "Seller" to have the membership.
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prepaid legal
Best thing ever happen to me is prepaid legal will never stop the service. And for those that say it is a scheme u should do the right research on the right sites because people with weird web sites that say they did this and that are just lying because they weren't able to get good service or didn't make money just like people joining the gym and saying well i joined why am i not loosing wait well you have to be consistent
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