When it comes to things like wills, setting up a trust fund for your children or even buying a house, you’ll probably need a lawyer. LegalShield is a company that sell a variety of legal services through a monthly subscription that allow customers to basically have a lawyer on retainer. But could you make money selling these subscriptions? In this LegalShield MLM review, I’ll take a look at this opportunity to see if it’s a profitable way for you to make extra money for yourself.

Legalshield Mlm Review

Pros

  • Decent Prices
  • Network of Lawyers
  • Different Plans Available

Cons

  • Not Everything is Covered
  • No Choice in Attorneys
  • Chargebacks

What is LegalShield MLM?

LegalShield is a multi-level marketing company that sells pre-paid legal services and identity theft solutions. They have over 7,000 independent attorneys in their network and 1.7 million members across the United States, Canada and the United Kingdom.

It was founded by Harland Stonecipher as Sportsman’s Motor Club in 1972. He was a life insurance salesman from Oklahoma. He started the company as the result of a car accident. Even though the accident was not his fault, he was forced to hire an attorney and struggled to pay his own legal expenses.

LegalShield was incorporated as Pre-Paid Legal Services, Inc. in 1976 and was traded on the New York Stock Exchange in 1984. It became a private company again in 2011 when it was purchased by MidOcean Partners for $650 million.

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Are LegalShield Products Worth Their Price?

LegalShield provide a number of services such as will preparation, traffic violation defense, setting up a power of attorney, consultations, and criminal charges resulting from auto accidents, among other services.

Legalshield Mlm Review - Legal Plans

These products can be bought individually or as a package deal and can be tailored to a customer’s needs which make them very attractive for the price.

Monthly payments are a much better deal for consumers than waiting until they need a lawyer and end up paying $200 an hour for a consultation. Consumer Affairs has LegalShield listed with a 3-star satisfaction rating so for the most part people seem to like the service they get. There were a few 1-star reviewers who had problems with unhelpful lawyers and a case where a contract was cancelled without notification.

LegalShield even have a decent rating with the BBB (Better Business Bureau). They have an A+ rating and a 3-star customer review with 78 reviews listed at the time of this writing. Unfortunately, LegalShield has not addressed any of the complaints listed.

The LegalShield MLM Opportunity

This particular MLM is different in that you are selling a service as opposed to a product. The service you are selling is access to a network of lawyers. So when you sell a membership to a customer, they get access to that network with a particular set of services. You’ll be signed up under a sponsor.

The application process includes a section where you write down a list of people you know to start selling to. There’s even a list of different sectors at the bottom of the page to help jog your memory.

How Much Does It Cost to Join LegalShield?

A New Associate Start-up kit will cost $99. This includes training, materials, a back office and sponsor support. You may also be required to pay a licensing fee. This will depend on which state you live in. Each state has their own licensing requirements. If your state requires a license, that license will need to be renewed each year.

Other expenses include personal expenses for your business such as phone calls, meetings, and travel expenses that are not reimbursable.

Can You Make Money with LegalShield?

Selling services means that you don’t have any material products to display so it’s harder for people to gauge whether or not the product is worth the price. The prices are reasonable but it still may be difficult to convince customers that they need these services. But let’s take a look at what could be possible for you.

Legalshield Mlm Review - Sales

If you recruit people to be on your team, you’ll earn override bonuses from their sales. As your sales team increases, your commissions also increase. If you made one sale a month, your earnings would be around $6,000 a year. You’ll also receive commissions for renewals as well.

Pros:

Decent Prices

Selling LegalShield memberships average around $25 a month. The moderate prices could make memberships easy to sell when you remind potential customers that most lawyers charge around $200 per hour.

Network of Lawyers

Customers will have access to a network of lawyers making it easier for them to get their issues resolved quickly. After a member places a call outlining the problem, a customer service representative has the appropriate lawyer return the call within four hours. A good selling point.

Different Plans Available

There are different plans for people who want to start a business, have an existing business and for individuals and families so you have a pretty wide customer market.

Cons:

Not Everything is Covered

One of the complaints I’ve come across is that not all legal issues are covered by LegalShield. They do not cover medical issues or criminal charges. If you need a lawyer for one of these issues, you can get a 25% discount when using one of their preferred lawyers.

No Choice in Attorneys

Members can’t pick and choose their own attorneys. So if a member uses one they really like, there’s no guarantee that the same lawyer is available for issues in the future.

Chargebacks

Each time you sign up a member, the contract is for a duration of one year. You receive commissions from each yearly contract. If a member cancels their contract before the year is up, you’ll be charged back for that commission.

Is LegalShield a Scam?

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Before you consider joining LegalShield, I want you to think about who you could possibly sell these services to. You have to remember that you will only be paid for the people who sign up for a full year. If a member cancels halfway through their contract, your commission is revoked. There’s no base pay which means you could spend hours trying to sell memberships to your family and friends and not make much money at all.

I’ll give LegalShield a few points though. In the documentation I read, they do specifically say that it will take a lot of hard work and that this is not a get rich quick scheme. At least they are honest about that.

I also think the service varies by state and some lawyers are more helpful than others. Keep in mind that you may have to get a state license to sell these memberships depending on where you live.

Final Thoughts

Your business with LegalShield is only as good as the lawyers and customer support. If either are lacking, you will lose customers fast. And if those customers are family and friends, you could be losing even more. No one wants to feel like they’ve been scammed.

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6 Comments

  1. I signed up to be an associate and paid the $99, but for reasons too lengthy to go into, I needed to bow out. When I asked my team leader if I could get a refund for the $99, I heard crickets. Do you know how I would get a refund?

  2. Great review Jay. I have been an Associate of LegalShield for over 10 years. Hence this comment is going to be long. But worth the read.

    When I first joined, my main purpose was to develop the MLM business. I had some success in signing up family and friends. The challenge, like all MLM companies is to motivate those who you sign up to sell the legal services and sign up other associates.

    While my sign ups maintained their subscription I earned a modest income. Gradually they dropped out and my income dropped too.

    I appreciated the value of the legal and Identity Theft services and maintained my subscription. Over the years LegalShield has been a Godsend to me. Hardly a month goes by without me getting legal advice in cases where I feel I have been taken advantaged of. They got me refunds, removed liens, represented me in traffic court saving me attending as well as reducing my fines etc. But the biggest benefit I received was when they helped me through a bankruptcy process that forgave me over $300K in debt that I accumulated after the last Great Recession.

    To no surprise this wasn’t a covered case so I had to pay for the legal services. With the 25% discount it cost me $1400. That was a bargain when compared to the debt that got wiped out. There was so much paperwork involved and the attorney assigned walked me through the process in a way that took care of so many items that I would have overlooked if I tried to do it myself. Such as IRS back taxes and Time Share contracts.

    The relief when we emerged from Bankruptcy was a renewed sense of freedom

    Recently I got involved with Affiliate Marketing. Since my experience with LegalShield has been incredible, I have plans to treat this like an Affiliate program to refer customers for the product rather than recruit other associates.

    Using the Affiliate Marketing model I can reach potential customers all over the US, Canada and the UK. And if I manage to find customers who are satisfied, then and only then, will I suggest they look into becoming an associate to share the benefits with others.

    Thanks for giving this honest review of LegalShield. Among MLM companies around I feel this is one of the better ones because the services are well worth it even with the limitations you mentioned. And I didn’t even talk about Identity Theft that is a hot topic today. The family subscription cost to me is about $50 a month which is well worth the price for having peace of mind.

    One last point. I have been assigned attorneys I didn’t like. The company changed the attorney with a person who I could better work with.

    1. Would you mind sharing how you find and accumulate new customers, via the internet. Old guy not internet savy, but willing to learn Want a home business, currently a PPL member. thanks

  3. Hi Jay, This is a very interesting concept to be selling legal services in a MLM format and one that I have not come across before. You mention that members and attorneys are in the USA, Canada and the UK, but I live in Italy, so would this be available as a service in Italy? 

    You mention that depending on where in the States you live, you might need an annual licence as well, but what is the position with the UK? Would you need a licence in the UK as well?

    If one has a pre-existing situation, (like a dispute with a builder), but you have not yet sought legal advise and you suspect you might need it, can one still sign up?

    I would be interested to hear your thoughts. Thanks, Liné

  4. My question is why are we not allow to use the same lawyer again and still not able to choose a lawyer cause I feel its not supposed to be like that I mean that in a way were by when you know the lawyer and he knows you too during the case. If you were to have another’ case it will be more easier if you were too work with him again

  5. Legal shield looks like a really good idea, especially for people in the US where legal services are very much in demand.  These days with lawyers charging for every tiny little thing, it could really save people money.  Not sure it would really be worth all the effort in promoting though, especially as if the contract is cancelled in under a year and you lose any commission from that sale.