• Report: #444558
Complaint Review:

Pre Paid Legal

  • Submitted: Fri, April 17, 2009
  • Updated: Sun, February 06, 2011

  • Reported By:Lakewood Washington
Pre Paid Legal
One Pre-Paid Way Ada, Oklahoma U.S.A.

Pre Paid Legal Prepaid Legal: Money & Time Investment Not Balancing Out Ada Oklahoma

*Consumer Comment: Some want success more than others

*UPDATE EX-employee responds: Its a teflon company

*Consumer Comment: Only a few will make it and the Rest is History

*Author of original report: UPDATE

*REBUTTAL Owner of company: You can make money in this company-just not their way

*UPDATE Employee: Pre Paid Legal Sales

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My husband has been doing Prepaid Legal for over 7 months and I've been working my own network marketing party business for 5 months. Looking at Prepaid Legal through the lens of someone feeling success in my own business is causing me to question the validity of the potential associate income.

My business is pretty cut and dry: sell the product you get a 40% buying discount. There's nothing complicated to figure out how much money you can make at it so I understood what I was getting into. With Prepaid Legal, I could NEVER figure out the payscale and anytime I asked my husband to explain it to me, he always reached for the phone and would make me speak to his upline. My husband would always say, "I can't explain it but it works".

My husband is gone every Tuesday and Thursday to his team meetings and briefings and once a month to a Saturday event. Each meeting costs at least $10-$15 each to attend. Then there's the Sunday night conference call. They are strongly encouraged to attend each event because "you never know what information you may hear that will take your business to the next level". It's been 6 months. How much longer does one need? In my business, I work independently. There are local monthly meetings I can attend if I choose to and once a week conference calls I do in my pj's if I feel like joining the call. At the end of every call, there's always a piece of knowledge or idea that I can implement to my business immediately. Every time my husband returns home from his meetings, all I hear are stories of other people's successes. I do believe that this is vital when you are setting goals, but come one...EVERY MEETING! He never shares with me exactly HOW to do the Prepaid business.

This past March, my business and Prepaid Legal had their annual conventions. My business gave us points based on our sales for the year to go towards reducing the cost of hotel, airfare, registration and purchasing product to add to your demo kit. With Prepaid Legal, you're on your own. At our convention, my company spared no expense for our two conference dinners and two lunches included in your registration. We had motivational speakers, but we also had instruction in product demos, party sales, and managing your taxes as a business owner. They also gave us free product to add to our kits. Prepaid Legals convention did not include meals whatsoever. Halfway through the conference, my husband called asking me to wire him additional money because of the cost of everything. When he returned home all he talked about were the motivational stories and how many millionaires he met. The sales from my business paid for my hotel, registration, and spending money while at my convention. We had to pay for my husband's trip with money we did not budget for because he was convinced he'd make enough to recoup the cost. He's now talking about their next convention in August in Vegas. I told him he needs to make enough from Prepaid Legal in order to cover the expense and he's agreed. Everytime I ask him what he's going to do to get the money coming in he says, "I need to meet with my upline and figure it out". Maybe if his upline wasn't sleeping with all of his downlines he'd have time to develop my husband!

Their recruiting methods make no sense. For my business, I focus on doing parties. No pressure what so ever. I give out my business card, tell them in 30 seconds or less what I do and move on. Direct and to the point. With Prepaid Legal, you give them a DVD, check back to make sure they've watched it, then set up a three way call with the potential associate, the associate and the upline. They do the entire business pitch and then if you say no, they offer you the membership. I watched my husband try to do his pitch to a sales clerk by saying, "I'm a business owner and I'm looking to add people to my team". It's several minutes before they even hear the name of the company. Then there's the meetings at our house! He gets people to come over and when they arrive, they end up watching the DVD with my husband and his upline. Total bait and switch. When I do a party, I honestly tell my customers how much I personally made at their party and that always opens the door for someone who is serious about joining my team. Prepaid Legals methods just don't seem right.

As of this writing, my husband has paid out for Prepaid Legal more than he has made. He has sold three memberships total. When you sell a membership, they "advance" you the signing bonus of $30. If those individuals decide to cancel their membership within 12 months of signing, you OWE the company that $30. So if you bust your tail and sign up 50 people, you'll earn a quick $1500, but if they all cancel their memberships before the 12 months is up, you owe the company that amount so the $30 you earn for signing the next new membership stays with the company until that debt is paid off. The only way to secure that membership is to sign them up as associates and get them to join your team.

Is the product worth it? If you can get past the sales pitch I'd have to say yes. I've used them several times just to ask questions and the membership has been worth every penny. Can you make money at this? I'd have to say yes, but only if you can hang in there past two years. It's a very slow process. If you need quick money, this is not the business for you and considering the state of the economy, people need much faster returns on their initial investments.

Lakewood, Washington

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This report was posted on Ripoff Report on 04/17/2009 04:49 PM and is a permanent record located here: http://www.ripoffreport.com/reports/pre-paid-legal/ada-oklahoma-74820/pre-paid-legal-prepaid-legal-money-time-investment-not-balancing-out-ada-oklahoma-444558. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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1Author 4Consumer 1Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

Some want success more than others

AUTHOR: Mel - (United States of America)

It's a shame how some people get involved with a company that has hundreds and even thousands of PROVEN success and they start complaining because they don't understand how business and marketing really works.  Some people just don't have what it takes to make it in this business model and thats that!  some people just need to stick with a JOB!

Prepaid Legal Services is an incredible business with the support and recognition of major sources like former Attorney Generals, Forbes Magazine & the President of the United States Chamber Of Commerce!
Need I say anymore?  Some people just don't have what it takes period.

I came into Prepaid Legal Services 2 years ago with no experience. I just became a student of this incredible product and i understood that it would take time to grow with the company.  I can honestly say that I am truly happy and proud to be a part of this company.  I believe its the best opportunity in the United States today when you compare apples to apples!!!  If anyone cant make it here please don't blame the company, blame yourself.

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#2 UPDATE EX-employee responds

Its a teflon company

AUTHOR: attorneygod.com - (United States of America)

First off chargebacks are a b***h if you have em.  Secondly the consumer signs an agreement form not a contract so when they cancel the service which statistics show they do they get hit with no penalties but you do.  Thats the pitfalls of advanced commissions so when me and my buddy switched to pay as earned everything was going great.  We called up marketing and they said that we can tell people to cancel at any time is not violating the companies policy.  So being in this day and age no one keeps the service for long than a month anyways so our marketing campaign was use it when you need it then drop it.  We made a lot of money and caused our uplines to get hit with constant chargebacks which was amusing.  Brian Carruthers went from in 2 months from diamond level 6 down to platinum 7.  As soon as that happened my business partner was voted out of the company and I left them on my own free will.  Never gave him a reason, no warning, no letter was sent out, no phone call, no email, no nothing.  It took an act of voting to get him out because they could not terminate him for violating company policy.  This was done on a Sunday night around 8PM EST.  Off hours voting and no notification.  I guess when the uplines are losing out on money you become the problem.  So we Made up our site strictly for informing consumers and associates about the company.  Our next site is gonna expose the company with every purchase made at our store we are just waiting for the merchant account to be approved by Chase Bank.
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#3 Consumer Comment

Only a few will make it and the Rest is History

AUTHOR: youtube foward slash derrickjenkins - (USA)

I've seen this happen over and over and over. Most people don't think for themselves and fail. I've learned this business the hard way and It paid off big time. I think those meetings are useless and will cause relationship problems in the future.
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#4 Author of original report


AUTHOR: Meredith - (U.S.A.)

Update to my original report
It's been a year since I filed my original report. I just filed my taxes and submitted my husband's business expenses to our tax guy. My husband spent $3,000 in 2009 to attend training events (registration for all training events, payments for two meetings a week and a monthly  meeting). There were two conventions to attend, one in Vegas and one in Oklahoma. Those came to $1,090. His 1099 (statement showing what Prepaid Legal paid him) was $1200.

My experience with the Prepaid Legal service continues to be a positive one and no complaints about the membership.
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#5 REBUTTAL Owner of company

You can make money in this company-just not their way

AUTHOR: Sirslappy - (U.S.A.)

You are obligated to contracts you sign. You shouldn't of canceled prior to your question. $35 is a drop in the bucket as compared to what attorneys typically charge. If you were smart enough to hold onto your plan you would've seen a really good plan.

There's good and bad to this company just like any other company in the world. The good news is if you've ever dealt with an attorney then you know how a SIMPLE thing can cost TONS. Most attorneys want $100 per document to even look at. Our company gives up to 10 pages at no added costs. 10x$100 is $1000. A year of this service doesn't even cost 1/3rd of that. On top of that you can use this per subject matter and ongoing.

There's more aspects into this but that alone is worth it.

Now let's examine the alternatives-public defenders, contingency attorneys, and public aide. All of which are iffy and who knows what they would do. Pre-paid gives it's members an entire network of attorneys and if you don't like any attorney you can be forwarded over to another one. Whether you need an attorney who specializes in document review,child law, etc. Will one public defender or public aide attorney give you that diversity where they can specialize in everything? This part of the company is EXCELLENT. Now the bad part of the company is there are absolute MORONS working within the company. Yes you have to reinvent the wheel in this company because if not you're being influenced to pay for TONS of marketing methods such as flyers and trust me one flyer won't work, billboards that cost in the hundreds, DVDS that you hand out in commodity, and etc.

The best way to run a business is low cost high prophit. Now your other option is to make your own ads through our webapprovals team or adapprovals team. I won't mention any names but there's a COMPLETE moron who works within those departments that doesn't even comprehend the definition of unsolicited. This man has told me I need to make my emails unsolicited I send to people whom i ASK if I can send prior. The scary part about that is any unsolicited electronic email message by law is suppose to have your physical address listed. So what if some CRAZY person gets mad for whatever reason then see's my address listed and comes after me. Then the person who told me i HAVE to make my email unsolicited when it's really not would be negligent. He's a complete idiot!

This man quotes what the american bar association will say and gives out legal advice. He's not a bar'd attorney in my state and he's not an attorney at all!. As a matter of fact what he is doing is ILLEGAL. I've taken information from the FTC website and have asked if I can use this in ads and he's told me no because the credit repositorys wouldn't approve them. Um it's from the FTC's INFO and I'm sure the FTC is completely compliant with the credit repositorys.

I have taken information word for word off of pre-paids legal sites then he's told me you can't use that because it sounds like you're making things out to be a tax write off. Then AFTER I tell him it's from YOUR guys's site he then comes up with another EXCUSE-he tells me that you can't share the associates benefits with someone who isn't an associate yet.

I believe this man doesn't wish to approve things for the simple purpose of trying to make you buy their own marketing materials.

Now some other things about pre-paid legal. This charge back term is bogus and bull. Do you guys realize you're getting a loan basically? You get paid an assumptive commission assuming that the person you sign up will stay on for a year. If they cancel for whatever reason then you just owe back the difference. A smart person would actually look at this like a chance for an interest free loan. Go make a bunch of sales and take your early made money and put it in a bank account and suck up the interest off of that. That's just as good as residual income.

Now yes I do agree that pre-paid is full of crap when it makes it out like we actually get any kind of residual. If your stats hold up and you have a 75 percent retention rate then if a member stays on after 12months you get like petty  money. Like $7 bucks or something as your residual. It's a joke to tell other members you make good residual. I tell people that you can signup a team underneath you and get paid off of what another does within the program. That's actually flipping awesome.

Now as far as retention-you use the IDENTITY theft to keep people onboard. Sell the identity theft first and then let them know how often a person who has identity theft happen will need an attorney as well to go tell all the different banks or consumers or etc that their client had their identity ripped off. For $333 you can have the standard and identity theft together and use the attorney services as much as you want. Most attorneys charge $200+ an hour. If you can use this service just once a year-that'll typically save you money as compared to the TONS of money an attorney will charge you to help with ONE situation. On top of saving on any one situation you get the identity theft almost as a throw in. $333-that's an hour of some attorneys time. Not even enough money to help with ONE situation. The Identity theft is actually awesome because if you ever get your identity stolen then you just simply give our other company we're partnered with the information and they'll have licensed investigators go in and clear your name at no added costs if you give them power of attorney. Other identity theft plans wont do that and they'll just forward you over to another agency to pay more money. Think investigators would be cheap? Like I said-great service STUPID marketing.

Now another stupid thing the company does. Our policys aren't considered insurance and if they were then we'd have to get an insurance license. Yet the company persists to want us to sell this like insurance? This isn't insurance in my eyes-can you use your insurance right away? The identity theft plan is kinda like insurance and nothing else.

Yes you do have to re-invent the wheel with this company because if not then the company wants to make money off of you by spending all your money in marketing methods-handing out tapes,dvds,books,magazines,hotel things,etc.

You can make money in this company if your smart.
They're methods blow and their top guys will tell you to do it the companys way but I've come to see them doing their own methods everytime almost.

This product is awesome but the marketing is so up their rear they dont know if they wish to sell this like insurance-even though it's not by law or we'd need insurance licenses.-

Basically if you can get around the one complete moron in marketing who knows nothing of what he does and you can network market with good reliable methods then you can succeed. It's not easy but neither is any other business. Typically new business's fail 98% of the time the first year.
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#6 UPDATE Employee

Pre Paid Legal Sales

AUTHOR: James - (U.S.A.)

I have also been working with Pre Paid Legal for about 6 months and I must say that it was not easy to get started, but I am making way more than $30 per sale. I sale a $26 membership and make $181. And to date, I have not had 1 chargeback. I have had great training in classroom settings and in the field. I do not, however focus on individual sales, I work with businesses in the group market and the income is much higher. I average 35-50 sales per month and I have not found this to be any more difficult than any other sales position. I'm sorry that your husband has had a hard time, but even you mentioned that the products do work and they are worth the membership price. Maybe he needs to focus on selling in the group market to make more money.
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