Is Legal Shield a Pyramid Scheme? The Truth Revealed
If you are interested in the business opportunity that Legal Shield has, you should read this post first. Why? Well because Legal Shield isn’t all that credible of a company and there are some serious negative aspects to becoming an associate.
Legal Shield has been called a lot of bad names over the years, and being called a pyramid scheme is one of them. But is this true? Is Legal Shield a pyramid scheme? In order to find out I grabbed my magnifying glass and took a deeper look into this company.
But before I get into all of that, I think its important to give you a brief overview of the company and what they are all about.
Legal Shield Overview
Legal Shield was named in 2011, but in actuality has been around for much longer. It used to go by the name of Pre-Paid Legal, which was started in 1976, but changed its name when it was bought out by MidOcean Partners.
Legal Shield claims there goal is to give everyone access to an affordable attorney without any legal issues. And they offer plans starting at just $20/month. But if you take a deeper look into this company and look at their business model, you could argue that they have another more paramount goal… and that is to make mmoonneyy, and as much of it as possible regardless of the moral lines they might have to cross.
Besides their attorney service that they offer to the public, they also offer what they claim is an extremely lucrative business opportunity. Their business model is structured as an MLM, where anyone can go out and make money selling Legal Shield to other people as well as recruiting their own team.
Legal Shield Commission Structure
As I stated, Legal Shield is a MLM business. This stands for multi-level marketing. And what this all means is that there is a pyramid style hierarchy where you can recruit new members into the business and make money off of their efforts. The higher you are on the pyramid, the more money you make (for the most part).
If you get recruited into Legal Shield your membership payment is going to trickle up the pyramid and pay members above you, and so will money you make one sales, personal recruits, and so on.
And the same is true for you. You will make money off of the personal sales that your recruits get and membership fees that they pay. And you will make money off of your recruits’ recruits, and so on.
The 6 Associate Levels
The amount you make will depend on your status. There are 6 levels, or ranks, and the higher up you are the more you make. These include…
Junior Associate: Earn $50 per sale after reaching five personal sales.
Associate: Can earn $75 per sale. Need three personal sales and one personal recruit. Alternatively, you can get to this level by sponsoring two recruits, both of which have had five sales in the first 30 days.
Senior Associate: Make $100 per sale. You can get to this status by recruiting three active junior associates along with 30 total organization sales, which are the total sales from you and your team.
Manager: Make $125 per sale. Need to have 3 active associates and 100 total organization sales to get to this level.
Director: Make $150 per sale. To get here you need to have three active senior associates and 200 total organization sales.
Executive Director: Make $182.50 per sale. This is the tippy top of the iceberg, and it can be achieved getting 50 sales as a director without having 20 sales from any single team member in your organization.
Sounds Like A Pyramid Scheme, Is It?
Just because it has a pyramid style commission structure does not mean that it is a pyramid scheme. This is the basic structure of all MLM businesses and there are such things as legitimate MLM’s.
The key difference between a legitimate MLM and an illegal pyramid scheme are products. Does the company have and sell products.
Illegal pyramid schemes of the purest form rely solely new recruits buying into the business. There are no products being sold and all the cash flow comes from the new recruits paying a membership fee.
Obviously LegalShield isn’t a “pure” pyramid scheme because they do have products. Their product, which you could call a service, is legal help. They provide affordable attorneys.
BUT….. this doesn’t necessarily mean that they aren’t a pyramid scheme. I know this is confusing, but you will understand what I mean…
The Blurry Grey Line That Might Be Crossed
Not only must a MLM have products, but they must rely heavily on the sales of the products to support the business. Any MLM can have products, but many use them as just a cover up to hide the truth beneath, which shows that their business overwhelmingly relies on recruitment and associate membership fees.
A legitimate MLM will not rely too much on recruitment. They will put much of their focus on the actual product.
Their is a grey line between how much a company can rely on recruitment membership fees and how much they can rely on the sale of actual products.
The FTC steps in all the time and shuts down MLM’s for the reason of them being illegal pyramid schemes. Many people believe that this happens unjustly.. but hey, when the FTC says the business is illegal, then its illegal.
Does Legal Shield Cross That Line?
The answer is “maybe”. Many people will tell you that they do and honestly I would have to somewhat agree.
LegalShield without a doubt relies heavily on recruitment to stay in business. And on top of that they really mislead prospects to get them to join in, all in the name of money.
Final Thoughts & Do I Recommend This Opportunity
Honestly I do not care for MLM’s at all. They usually are way harder to make money in than anyone wants to tell you. Many people will tell you every sleazy misleading information there is just to get you as a recruit and make some money off of you.
LegalShield is fairly “sleazy” in my opinion. They seem to rely on recruitment a little too much for my liking and are overly focused on the money, rather than providing value.
There are a lot of Legal Shield complaints online also, many of them I was expecting to see.
The fact of the matter is that with a mlm like this you are going to have to recruit like a madman to be successful. Many people that you do recruit are going to quit so you are going to have to be constantly recruiting.
So if you have the salesperson type personality then this might be a good type of business for you, although I think there are better mlm’s you could join than this.
If you are like me and are just not the salesperson type and don’t think a recruitment style business like this is right for you.. and you want another option for making money with your own business, you should take a peek at how I make a living working online (link below). I work for myself online and its a pretty awesome career. In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂