Prepaid Legal is one of the banner companies in the network marketing industry. It has been around for more than 35 years and is listed on the New York Stock Exchange (NYSE). Here is the company’s timeline:
1969 – July 11, 1969, Harland Stonecipher is involved in a head-on collision, which results in serious legal fees. He has auto insurance to cover the damage to his car; medical insurance to cover the cost of his hospital stay, and even life insurance had the accident been fatal. But he has no coverage or protection for the legal bills that accumulate. He begins researching the industry of European legal expense plans.
1970-1979 - On August 8, 1972, Harland Stonecipher creates Pre-Paid Legal’s predecessor, The Sportsman’s Motor Club, offering legal expense reimbursement services as a motor service club. In 1974, Stonecipher speaks at the American Bar Association’s annual convention. Throughout much of the 70s, Pre-Paid Legal utilized the services of only three salesmen to solicit new members and service existing accounts. In 1978, Pre-Paid Legal stock is traded in the Oklahoma over-the-counter market.
1980-1989 – In 1980, Wilburn Smith, one of Pre-Paid Legal’s most successful Associates, quits his job at a local supermarket and joins the Pre-Paid Legal sales force. The introduction of the network marketing concept by John Hail takes hold in the ’80s and Pre-Paid Legal first initiates sales through network marketing in 1983. Pre-Paid Legal is listed on the NASDAQ National Market System in 1984, and two years later moves to the American Stock Exchange. At the end of the decade, Pre-Paid Legal “tightens the belt.” In response to operating losses in the first two quarters, the company implements major restructuring of its administrative and marketing functions. Layoffs at the Home Office result in a 46 percent decrease in personnel. The home office staff numbers 114.
1990-1999 – A pivotal decade, the ’90’s ushers in challenges the company has not yet seen and hardens the resolve of the most dedicated within the company. Hard times are evidenced by the move from over 230 employees in 1987 to 85 in 1990. Restructuring and careful business practices results in the company rebounding to a staff of 491 at the end of the decade. Additionally, on May 13, 1999, Pre-Paid Legal moves to the New York Stock Exchange, and within four months is listed as the 33rd fastest growing company on the NYSE!
2000 – Present – In 2000, Pre-Paid Legal makes the Forbes list of the 200 Best Small Companies in America for the fifth year in a row. As Pre-Paid Legal Founder Harland Stonecipher co-authors The Pre-Paid Legal Story, his company now surpasses the one million membership mark. In 2001, Pre-Paid Legal finalizes building plans for a new $30 million corporate campus. With memberships now available in 48 states and four provinces and the corporate campus finished, Pre-Paid Legal is positioned for exceptional growth and success. A home office staff of over 700 now supports over 1.5 million Members and Independent Associates across North America.
The Products
Prepaid gives members access to professional legal counsel not only for traditional legal problems, but for everyday events such as buying a house or a car, creating a will, handling a problem with an insurance company, dealing with identity theft, and much more where legal review should be routine, but rarely is. For Pre-Paid Legal members, access to legal counsel is only a toll-free phone call away.
Members are served by a Provider Law Firm, which has been carefully screened and selected by Prepaid Legal. To use the Life Events Legal Plan, members simply call their Provider Law Firm directly at the toll-free number on their membership card when they have a legal question or problem. It's really that simple. Pre-Paid Legal does all the work; no flipping through a yellow-page style catalog for a qualified lawyer, no claim forms, no worries about being able to afford a lawyer - just peace of mind.
Here is a list of the most popular plans available from Prepaid:
Family
Our Standard Plan provides valuable legal services to individuals and families such as phone consultation on any subject matter (personal or business), phone calls and letters on the member’s behalf, Will preparation and updates, legal document review, motor vehicle legal services, trial defense, Federal Tax Audit assistance, and a guaranteed 25% preferred member hourly dis¬count on legal services not otherwise covered by the plan. The Expanded Plan provides additional trial defense hours. Same rate for individuals and families; all covered family members are covered for one rate.
Legal Shield
The Legal Shield rider can be added to the Standard or Ex¬panded Plan for only $1 per month. It provides members with 24-hour access to an attorney if arrested or detained.
Identity Theft
The Identity Theft Shield (IDT) provides valuable protection and coverage for one of America’s fastest-growing crimes. IDT may be purchased by individuals as either a stand-alone product or as an addition to the Pre-Paid Legal Family Plan.
Identity Theft Shield GOLD - For $3 more per month members will receive monitoring and alerts from all three (3) major credit bureaus.
Professional
The Law Officers Legal Plan (LOLP) provides law enforcement professionals with 24-hour emergency telephone access to lawyers. Representation is available for administrative and post-termination hearings. This plan also offers many of the popular family legal plan benefits.
Special Industry
The Commercial Drivers Legal Plan (CDLP) was specifically designed for the legal needs of the professional truck driver. This plan offers an array of benefits, including representation for moving and non-moving violations. A new addition to the CDLP product line is Super CDLP, which provides many ben¬efits of the family legal plan in combination with CDLP benefits.
Small Business
We realize how difficult it can be to keep a business going in today’s market. Having an attorney available for the legal situ¬ations known to arise in the business environment gives peace of mind to run a business with less worry. The Business Plan can help with contract and document review, debt collection, contract disputes, trial defense, partnerships, consumer fraud, worker’s compensation, incorporation, and much more
.
Home-Based Business
Offered as an add-on to the Expanded Plan, the Home-Based Business Rider provides home-based business owners with commonly-needed legal services for a low monthly rate.
Self-Employed
Designed specifically for the legal needs of self-employed indi¬viduals, the Legal Plan for the Self-Employed offers many of the family plan benefits plus valuable benefits for this niche market.
Compensation Plan
The Prepaid compensation plan, although a traditional multi-level plan, is still very powerful. The reason is, like any other types of insurance, the company pays out the commissions one year in advance. For example, for the $26/month plan company pays out more than $250 to the field. The actual payout will depend on which level you have reached with the company, which is determined by either the number of other recruits you have sponsored or the number of legal plans you have sold. As you climb the ladder you will also earn overrides on the associates on your team. The advantage of the plan is that new associates with a little effort can start to earn reasonable amounts for selling the plans.
A Director will earn $207 for an Extended Family Plan ($25) + the legal shield rider ($1) + the ID Theft Shield ($9.95) sold as one package. The plans are easy to sell as long as you are using them yourself. Subscribing to a plan is a requirement to be qualified to be paid. The Executive Director position is the ultimate position to reach although one has to requalify each an every month.
After the first year, a small residual income is paid out on ongoing client subscriptions. The company also has other compensation in the form of car and travel bonuses based on numbers of plans sold and people recruited.
Here is an overview of the promotion requirements
:
Associate: Recruit one (1) new Junior Associate with member¬ship (OR) advance when you have 25 membership counters.
Senior Associate: Recruit three (3) frontline associates with memberships (OR) advance when you have a total of 50 organi¬zational membership counters.
Manager: Help one of your downline associates become a Senior Associate (OR) advance when you have a total of 100 organizational membership counters. Remember—you must still have three (3) active frontline associates.
Director: Help three (3) associates in separate legs in your downline achieve Manager Level (OR) advance when you have a total of 250 organizational membership counters, with no more than 200 membership counters from 1 leg.
Executive Director: Become an Executive Director by having 75 membership counters in one month in one of three ways: 1) You can qualify with 75 personal membership counters. 2) If you have at least one (1) Director leg and three (3) personal membership counters, you may count up to 25 membership counters from ANY leg to reach your goal of 75. 3) If you have less than three (3) personal membership counters, you can only count up to 25 membership counters from your Director legs. You must have at least three (3) Director legs to qualify for this option.
Unlike the other levels, the Executive Director level requires a monthly qualification. You qualify in one month & receive the bonus on the next month’s business.
Marketing Materials and Web Presence
With several decades of business under the belt, Prepaid has developed some impressive collateral materials. The web presence is professional and costs just $19.95/month to maintain. The back office is detailed and full of useful information. Most of their brochures are available in PDF format so that they are immediately available and downloadable.
For new associates they receive The Success Guide, which is probably the most comprehensive start-up guide in the industry today. Extensive flash presentations on the products and the business opportunity come with the standard web package. Standardized PowerPoint presentations are downloadable and in most major cities around the US there are several opportunity meetings and conference calls to plug into. Audio and video presentations are also available.
Conclusions
All in all, Prepaid Legal is a solid company with a great track record. It can provide a clear path towards a good residual income. The products are great. Personally, I have been using them for more than eight years and recently calculated I have been able to save more than $70,000 in legal fees I didn’t have to pay. Not only that, I had a great defense council in two frivolous lawsuits that were successfully defended. I have both the $26/month personal plan as well as the $75/month plan for my corporation. The compensation plan is seasoned with the ability for new associates to start creating reasonable checks immediately. There is masses of support from a great back office to corporate and team conference calls as well as lots of local meetings (recruiting and training). This is one of the benefits of being with an established company.
For more information please follw this link: Prepaid Legal
Posts
