PrePaid Legal Services, Inc. Scam or not?

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  • sraacke

    *Banned*
    Rating - 100%
    2   0   0
    Jan 19, 2009
    2,029
    36
    St. Gabriel
    My Mom is a retired IRS agent with her own accounting practice in the Denver Metro area. I figure she has her head on straight but once in a while she will do something to make me wonder.
    A couple of weeks ago I got a big envelope in the mail with a bunch of stuff from PrePaid Legal Service- http://www.prepaidlegal.com/ . I didn't order it and figured I must have gotten on some mailing list.
    The next day I get a call from my Mom telling me to look for said envelope and that she had signed me and my Lady, Tena, up as members of this program and tried to tell me how we can make money selling memberships to this program.
    I had done some research and tried to tell her that I appreciated her wanting to help me make money but I was afraid she had been conned into a pyramid scam. She replied "It's not a pyramid. There are only 4 levels." :eek3: Ok, so it's a short pyramid.
    She paid for our memberships which were $36 each for a total of $72. Also, they are drafting $26 a month out of her checking account in fees as a "Associate".
    There's plenty of info at wickipedia on this business including several lawsuits and complaints for deceptive marketing. http://en.wikipedia.org/wiki/Pre-Paid_Legal_Services
    Basically what you do is you sell memberships and move up in rank and each time someone below you sells a membership you get a cut. A pyramid in other words. Like Amway or Tupperware, there are sales goals and regional confrences to go to and sales seminars to attend. You know, pep rallies to get you to sell more of their stuff and you get to pay to go to these events.
    To be fair, even if I never even try to sell a single membership, I've looked at the packet of legal service offered with membership. It's got membership cards with the name of a lawyer partnership out of Alexandria, La (Provosty, Sadler, DeLaunay, Fiorenza & Sobel) and, like health insurance, breakdowns of services offered for free or at discount.
    Just like Tupperware has some nice containers and Amway has some nice products, I don't have a problem with them from that angle. I just don't want to be a salesman for them and I hate that someone (a cousin I havn't seen in 20 years) sucked my Mom into this.

    My question to everyone here is, Do you know of this company and if so what are your opinions of them?
    I'd especially be interested in hearing from those who are lawyers, like Dan Dzelenka, and what they think.
    I'm going to have the packets of stuff they sent me when I go to the LOCAL breakfast meetup at the Hammond IHOP Sunday morning if anyone actually wants to see what they sent.
    Thanks for any advice and opinions.
    Steve
     

    gsneff

    Well-Known Member
    Premium Member
    Rating - 100%
    22   0   0
    Mar 4, 2009
    1,891
    38
    Gonzales
    just as you stated, its like tupperware or amway. you make a cut based on what you sale and what you recruits sale. some people will make a killing, others won't ever make hardly anything. the way to make a living doing these pyramid programs is to be a great recruiter and trainer not go out selling the stuff yourself.
     

    Guate_shooter

    LA CHP Instructor # 522
    Rating - 100%
    30   0   0
    Dec 4, 2009
    9,424
    36
    (Breaux Bridge)
    I had looked into it once and I almost got DUCKED, as mentioned before the recruiter and trainer make the most amount, at the same time once you reach a certain level within the company you are allowed to form your own "company" this way you are at the top of the pyramid but you still pay a % to whoever put you into the game.

    Its all a big SCAM if you ask me, specially since most of the people who join are people with minimum resources who live pay check to pay check and are hoping to suplement some income at the end of the day the ones who make money are the ones who have money already and are not in need to pay bills and they dont mind waiting couple of years of it to take off.
     
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