Why 9 out of 10 people fail with prepaid legal services

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 provides you with affordable access to lawyers and also gives you the opportunity to recover money for using their lawyers and referring others. But the truth is that some people call it the “Prepaid Legal Services Scam” because many people try to make money in the business but spend much more money than they take 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 are Prepaid Legal Services?

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

The company was founded by Harland C. Stonecipher, who was involved in a car accident and was hospitalized. Although the other party was at fault, they filed a lawsuit against Stonecipher. He hired a lawyer to defend himself and, in the process, exhausted all of 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 minimum investment of $26 per month, the company allows clients to consult with an attorney on matters such as speeding tickets, will drafting and other potential lawsuits. They also market identity theft monitoring through a partnership with Kroll.

Why are there claims of a prepaid legal services scam?

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

Basically, you get paid to sell the legal service and identity protection packages, but you also get compensated for bringing in other independent representatives. According to their website, the prepaid legal compensation program allows you to get paid from $75 to $182.50 for every $26 membership you sell. People who don’t know much about network marketing often call this a “scam.”

However, let’s take a look at the facts. The company exists since 1983 and has been a stable company for more than 25 years. Additionally, the company’s shares are 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 legal prepayment?

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 leave the business within two to four months of joining. Those industry averages hold true for Pre-Paid Legal as well. Why is there so much turnover? It’s not because Pre-Paid Legal is a scam. As I have already pointed out, it is a legitimate company with a service that is needed in the market.

One of the main reasons new recruits fail in this business is because they don’t have any knowledge on how to market the business effectively. All network marketing companies attract people with the same approach: it’s not about “selling”, it’s about “sharing”, “the product sells itself” and “start with your friends and family”.

New recruits simply trust 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 being taught as the preferred way of building the business.

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

While some of these tactics work for some people, most people face a lot of rejection with these methods. Face it, rejection is hard to bear day in and day out. Consequently, many new representatives leave the business after only a few months, having made little or no money and calling Pre-Paid Legal a scam.

How to become the only successful prepaid legal representative

If you are committed to success in prepaid legal services, you need to learn the right ways to market your business both offline and online. You’ll want to start branding yourself as an industry insider because you’ll gain a position as a credible leader that others should follow.

There is a lot to learn in the area of ​​marketing, but there are some online attraction marketing systems that can help you in this endeavor. The best systems are completely generic, allowing you to customize the system and keep all the leads it generates. When you plug into a great generic attraction marketing system, you will find that you will gradually become the one person out of nine who will be highly successful in prepaid legal services.