Is Legal Shield A Legit MLM Company?

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We are faced with legal problems every day. There were times when we need to hire a lawyer to give us some legal advice and make some representation on our behalf.

 Indeed. contracting a legal service cost a lot of money so having an access to a legal service that is affordable is a better option at first glance.

 Legal Shield is a company that offers an affordable way to get legal services. As to how legitimate and effective the company’s services and business offerings are, I am on the same page with you at this point because I have the same question as well about the company.

 So, I did some digging and wrote this article so we can all better understand the company, Legal Shield.

Is Legal Shield A Legit MLM Company

More About Legal Shield

legal shield logo

LegalShield also known previously as Pre-Paid Legal Service or Pre-Paid Legal, is a company that sells legal services to clients in the USA, Canada, and at some period in the U.K as well.

 It was founded almost 50 years ago by Harland Stonecipher and is based on its Oklahoma, USA office.

 It is said that Harland’s founding of LegalShield was materialized because of his goal to bring legal services to all at an affordable price.

Now, the company’s CEO is Jeff Bell. Bell has an outstanding and impressive background having finished his undergraduate and graduate studies with flying colors and having worked as an executive of several renowned companies in the world.

The company is accredited by Better Business Bureau (BBB) with A+ rating. On its corporate website, it is mentioned that currently, LegalShield has over 4.4 million members and 39 law firms in the U.S.A. and Canada.

Prior to rebranding to LegalShield, the company faced a number of controversies but were settled or were closed accordingly after some time in the past.

 LegalShield is also not a stranger to unsatisfactory reviews as evidenced by its customer reviews on BBB website.

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Legal Shield's  Products

As mentioned LegalShield offers legal services to customers. These services are offered at a monthly fee.

Here are LegalShield product plans:

Personal Plan - $24.95

This covers you, your spouse, and your children. Legal protections included in this plan are legal advice and consultation, representation in court, and draft and review of documents & contracts. 

Small Business Plan

These plan options are for small business owners with coverage including legal advice and phone consultation, document and contract review, and other legal services that you will be needing in your business. Plans are available in 3 different packages such as the following:

SMB Legal Essentials - $49

SMB Legal Plus - $99

SMB Legal Pro - $169

New Business Plan - $145 + state filing fees

This plan is for clients who are starting a business and want a law firm to set up all the paper works relating to the state filings. 

How To Join Legal  Shield

To join the Legal Shield business opportunity, you need to enroll as an associate and pay $99. Once an associate, you can start making sales and putting a team together to earn income.

 Succeeding monthly cost is $19.95/month for your back office, personalized website, and business building mobile apps.

The  Legal Shield Compensation Plan

I will be hones with you. I find it very hard to understand LegalShield’s compensation plan from what information I was able to get.

This information is not readily available from the company’s corporate website. I got the information on the LegalShield compensation plan from the links below, legalshield,myoffice and Youtube.

Based on my own interpretation, here are the ways to earn an income from LegalShield.

Personal Sales Advance

Depending on your rank as stated on the chart below, for every purchase of the $49.90 plan, you will earn between $60 and $280. Although this was not properly explained in the video, my understanding is that these commission amounts reflect the advance commission for a year of your customer’s subscription and will be charged on your future commissions when there will be cancellations within a year.

legal shield compensation plan

Override Income

When you start recruiting and build a team you can earn an override commission from the sales of your recruit that will be around $20 to $180 depending on your rank. 

Residual Income

After 12 months from your customers’ last purchase of the plan, you will get a residual income upon their renewal.

Performance Bonus

 As you progress in the organization, you will get performance bonuses as you sell and recruit more.

Legal Shield Income Disclosure Statement

I got a hold of Legal Shield's income disclosure statement for the year 2017. This document states that:

“For Associates with 0-2 years of experience who made at least one sale, average annual earnings were $718 for 2017.

 Approximately 82% of all Associates across experience years made less than $1,000 in 2017.”

By length of time in the company, the chart below explains the average earnings made by an associate who made at least one sales in the given period.

legal shield average annual earnings

In my opinion,  this presentation of associates’ income earnings by Legal Shield is quite evasive and does not clearly show the real picture of its associates’ income earnings. For one, the median income of associates is not presented. Also, the top earners’ commission amounts were not shown.

The average income among associates can go up but there is always the possibility that median income can go for as low as zero. It is a common occurrence in MLM companies when more than 50% of associates are earning nothing which can also be the case with Legal Shield

By not showing the earnings of the top earners, we cannot really see the success rate in terms of earning adequate income from Legal Shield’s business opportunity.  We all know that earning less than $1000 in a year is not our version of a success story when we talk about business income.

 Even if we say 18% of the members are earning above $1000 in a year, this does not translate to 18% success rate as well. We don’t know how many of this 18% is actually earning a full-time income or just a little above $1000 which can never be enough income for a person who is providing for a single household.  

When we talk about the prevailing figures across the MLM industry regarding members’ income we are often faced with a success rate of 1-10% with most companies falling near 1% success rate rather than 10%.

 Legal Shield may be falling on this very low success rate and we don’t have a way to confirm this from the income disclosure that it just presented.

You may check out this link for LegalShield’s income disclosure statement in 2017.

Let's have a look at the Pros and Cons of Legal Shield .

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The Pros And Cons Of Legal Shield

  • The company is a legit company that has been in operation for almost 5 decades. 
  •  It is accredited by Better Business Bureau with A+ rating.
  • It offers an opportunity to start a business from home at a low cost.
  • There are several unsatisfactory reviews for problems encountered on the services from customers.
  • There is a monthly recurring fee to be an associate.
  • You need to sell the service and recruit to earn from the opportunity.
  • There is an income disclosure statement but it does not show the real picture of how associates are faring in terms of their income.

Conclusion - Is Legal Shield A Legit MLM Company?

It is clear that LegalShield is a legit company offering services that many people are looking for. The company has been in operation for several decades and has an A+ trust rating with Better Business Bureau.

 In addition to offering legal services to clients, it also allows you to start a business from home at an affordable price.

But, Legal Shield has a fair share of controversies and unsatisfactory reviews from clients. Although the company offers an affordable fee for its services, it is something with a recurring monthly fee so if you have less use for them then, in the long run, your expenses can turn out to be much higher.

 If you are on this for the business opportunity, Legal Shield works as a multi-level marketing (MLM) company and for you to earn an income, you need to sell the products and recruit people to your team.

 These tasks are often downplayed and are made to appear easy but in reality, only a few with the right experience and capabilities can actually do the job well and achieved their sales and recruitment goals. Legal Shield has a simple compensation plan in my opinion but it was presented in a way that is hard to understand.

 It is good for the company to have an income disclosure statement but it lacks some relevant data to actually show the real picture of how associates are actually faring in terms of their income earnings from the business opportunity. 

Legal Shield is a legit company offering services that many people need however based on several unsatisfactory reviews, I think the company should revisit the quality of the services that they are giving to its clients.

 As for the business side of things, like in most MLM business opportunity, commitment to selling and recruiting is the key to success and as what the numbers tell us from Legal Shield’s income disclosure statement itself and even based on the figures from across the MLM industry, success is for the very few and going for it is never easy.    

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