Anybody Involved in Pre-Paid Legal &/ or Pyramids

[srjjames]

Hi, everybody. I'm not sure if there is a thread for this, but I was wondering in anyone on the board is involved with Pre-Paid Legal and if so how is it working for everyone? I just joined two nights ago and I'm reading trying to learn exactly how it works.

[tld221]

to me it seems like a pyramid scheme, sort of like how the "free ipod" thing works... or rather, it works a lot like Vector/Cutco knives.

the way it was "presented" to me (i have friends who do it) is that you buy the service first, which is $24.99/month. that includes 24-hour access to the "best lawyers in the nation." its supposed to be the poor-man's way of being able to afford legal services like the middle/upper class can. (again similar to CutCo. CutCo makes you buy the knife set for like $300). and then you sell the service to 3 people. then you move up to whatever the next level is. then you sell 5 more, and you get some kinda bonus. and you keep going up and up until you become an "executive." not sure what that entails, but i think it means you get more money per client you take on.

to me, i hear it pays a LOT but thats if you go really hard at it - as in setting up lots of "presentations" and having a high rate of people buying the service. supposedly PPLS is really reputable cause its been around for years, but ive only heard of it since my sophomore year (about 2 years ago).

[f8nacn]

PPL is a pyramid...although not really a scam... I know someone who does this as their primary source of income. There are advantages and disadvantages that they do not tell you about before signing up.

One advantage....you can get paid by direct deposit whenever you make a sale (normally next day I believe).

One disadvantage is that you have to continue to recruit...because if someone cancels the service you will have to pay the company back.

[kddani]

This is a really interesting subject that I admittedly know nothing about.

But as an attorney, I really wonder about some of the ethical and professional responsibility affects that this sort of thing can have...

[f8nacn]

Originally Posted by kddani

This is a really interesting subject that I admittedly know nothing about.

But as an attorney, I really wonder about some of the ethical and professional responsibility affects that this sort of thing can have...

Can't respond to that above --- not sure what the attorney's cut is should someone actually need their services.......never used the service so I thought it was a waste of money...they do have an identity theft watch program that may be okay....

[OOhsoflyDELTA#9]

I signed up for PPL back in 2000....I was working at First Union and my supervisor convinced me to sign on....I can't remember all the details but I remember it cost like $500 to get in and I may have signed up 8 to 10 people...I had to many other things going on in my life at the time, so I end up just letting it go......it had that "cult" like pressure thing about it also..like your group leader calling to motivate you, then the regional leader calling to motivate you and so on and so on..it was more contact then I wanted.....a friend of mine attempted to use the "letter writing" aspect of the service a couple of years ago and it didn't happen/work and she was VERY upset about it...I'll have to call her to get details to post.....

[Kimmie1913]

Originally Posted by kddani

This is a really interesting subject that I admittedly know nothing about.

But as an attorney, I really wonder about some of the ethical and professional responsibility affects that this sort of thing can have...

I am an attorney who worked for the Pre-paid legal firm in MD for about a year 5 1/2 years ago. It was no different than working in any other law firm. And your professional responsibility is never going to change regardless of how the business is coming in. National PPL contracts with local firms to be on call to provide legal services. The firm provides the very limited group of included benefits and then charges for the rest. The additional services are to be discounted off of whatever the firm usually charges. When I was there, clients automatically were entitled to letter/and or phone calls on matters ((but limited to two letters or calls on any one matter) and a will, also access to advice 24 hours a day. Also defense of simple traffic violations (speeding tickets) was included. If the traffic charge was more severe (usually DUI or some other criminal moving violation) then there was a charge. Everything else had a charge. Some simple matters (divorce with no property, consent custody agreements, bankruptcies -before the law changed) had flat fees. Everything else was discounted to $325 an hour.

The firm (not the attorneys in the firm) were paid a per member per month fee for participating in the program. The attorneys were paid as they would be in any firm with- i.e. salary and bonuses. If a matter was for fee there was some fee sharing. Also the attorneys had to each work a phone shift on the 24 hour a day help line. This is where members called when they needed a letter or a will or a question answered. It was also a lead generator for the matters that required a fee.

People used to get pissed off all the time about the limited scope of free services. We would track those complaints to help the company identify the dishonest sales people who actively misled about what was covered. One guy used to go to the criminal court building and sell to people awaiting arraignment and lie and say criminal matters were included. They were not.

I could see if you absolutely had no way of figuring out how to find an attorney why it would be attractive but if you had the ability to find an attorney on your own through a referral from a friend or family member, it seemed like a waste.