Company: Legal Shield
Founder: Harland Stonecipher
Startup Cost: $149
Full Review of Legal Shield
This company started it’s offerings to the public in 1984 but was founded in the 70’s by a man named Harland Stonecipher. According to Wikipedia it has only become known as Legal Shield in recent years after an acquisition by MidOcean Partners in 2011.
Apparently Harland was in a car accident and even though he was not at fault, found himself in debt for legal proceedings resulting form this accident.
This is what spurred him on to create a system of legal protection for people of all budgets in the US and Canada. The product offerings include basic legal services for personal and business use along with identity theft protection and other products.
This is all done through an mlm (multi level marketing) business model and boasts some pretty cool success stories.
The Legal Shield Business Opportunity
Like most mlm’s you can make money with this through personal sales of the products and through referring others into your downline. You earn commissions based on your downline’s performance.
I have to say that this company has a decent emphasis on it’s products (legal plans) and to be honest I don’t think they are a hard sell. I mean who doesn’t want quality and affordable legal protection when they need it?
The business opportunity seems to be very straight forward and as far as mlm’s go, not bad.
How The Business Model Works
Essentially customers pre-purchase legal services through a monthly subscription.
From what I understand, the lawyers still get their full fee or whatever is worked out between them and LegalShield. I guess you could think of the whole thing like how an insurance company works but for legal services.
So the lawyers are happy since they get a reasonable fee paid to them by LegalShield and are getting new business they wouldn’t of otherwise have gotten.
Legal Shield is making money since obviously not all of the subscription fees paid by customers are going to the lawyers, only when it is needed, so they pocket what’s left over after all their other expenses.
The customer is happy since they are getting quality legal protection for an amazing price.
If you are a rep you get to stand behind a great product and make decent money with this business, theoretically.
Win win right?
Well unfortunately nothing is quite that simple as you would already know… like anything there are things you should be aware of before making a decision to get involved with an opportunity.
Getting started As A Legal Shield Associate
An ‘associate’ is the base level getting started with this company and comes at a cost of $149. With that money you will be getting a ‘business in a box’ kit and some training on getting started.
It appears as though this is the total cost getting started which seems pretty reasonable to me for an mlm.
Essentially there are a few ways you can earn with this company as a rep.
- Making money by selling the legal packages. You are paid whatever the membership is worth each month in advance for the whole first year. So if you sell a $40 per month package you’ll get an advance of whatever the relevant monthly commission on that is x 12 upfront. The downside to this is if the customer cancels you get money taken back off you, which may lead you to overestimate how much money you are really making with this business. Reportedly you can opt not to get upfront payments but I cannot confirm this
- You can make money on your downlines efforts according to what particular level you are on within the company. There are 7 basic levels in the compensation plan
- There are monthly residual commissions paid once the customer has gone past 12 months
- There are bonuses on offer like many mlm’s
It was really hard to find any information online as to what exactly you need to do to stay qualified as an associate but I did manage to find a review from a guy that stated you need 3 sales per quarter to maintain your business or you lose your entire downline. Ouch… it’s either this or maintain a membership yourself of some kind.
It was not clear on what membership exactly but I am guessing a basic monthly LegalShield service. These start at $17.95 per month so this does not seem too bad really. Still seems relatively low cost overall at worst case.
NOTE: Please let me know in the comments below if you have some solid info on this, I am a fan of providing the most accurate information to my readers as possible. Thanks in advance 🙂
The Real Costs Involved
- $149 to join
- Possibly maintaining a membership of some kind or making at least 3 sales per quarter
- While not mandatory there are conventions and seminars that will cost you money to attend if you desire. If they are anything like most mlm’s this is pushed pretty hard so be prepared
What I liked
- I think this is a great concept for a product and I think personally this is something I could really get behind
- Company seems pretty legit overall
- There is a nice emphasis on the product rather than juts recruiting others
- Appears to be a decent product for the price
- Low cost to get started
What I Didn’t Like
- It is only US and Canada based
- They teach hustling family and friends primarily which will inevitably fail the majority. They do promote some online methods though and apparently offer some leads so this is not all bad
- They do not display what reps are earning and related income data from what I could see, which makes it hard to evaluate properly
- They have changes names more than once which is slightly concerning
While it’s not impossible to succeed with a business like this, you are being shown warm market techniques which in my opinion aren’t going to help you build a profitable business. Unfortunately, the majority of distributors sign up, exhaust their warm market list and after realising they need to get more leads, turn to paying for them.
I am not saying this to put you off, but rather to help you realise what you are in for so you can weigh up how worthwhile this company is to join. It’s not a scam and you can definitely make money with this company, but I personally think there are better options to consider.