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**Trademark of Pre-Paid Legal Services, Inc.

Pre-Paid Legal Services, Inc.

Copyright Jeffrey Babener www.mlmlegal.com



Editor's Note:
Welcome to MLMLegal.Com Company Profiles at www.mlmlegal.com. Here you will find brief summaries of pertinent information about hundreds of MLM, Direct Selling, Direct Sales, Network Marketing and Party Plan Companies. As a general matter, the summary information is derived from Company published information, generally posted at Company websites, public information releases or posts at industry trade sites .*

Founding Story
Pre-Paid Legal Services, Inc’s predecessor was founded in 1972 and began marketing legal plans to individuals and families in 1973. Since that time, Pre-Paid Legal Services, Inc has gained over 1.4 million members in North America.

Pre-Paid Legal Services, Inc came to be when Harland Stonecipher was involved in a head-on collision on July 11, 1969. He had auto insurance that covered the damages to his car and his medical bills but did not have anything to cover the legal fees. He then began researching the industry of European legal expense plans.

On August 8, 1972, Harland created The Sportsman’s Motor Club, which was Pre-Paid Legal’s predecessor. This company (www.mlmlegal.com) offered legal expense reimbursement as a motor service club. In 1974, he spoke at the American Bar Association’s annual convention. Through the 70s, Pre-Paid Legal Services, Inc used only three salesmen to solicit new members and service existing accounts. In 1978, Pre-Paid Legal Services, Inc’s stock began to trade in the Oklahoma over-the-counter market.  

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In 1983, John Hail introduced the network marketing into the company’s sales approach.

In 1984, the company got listed on the NASDAQ stock exchange.

In the late 1980s, the company experienced operating loses within the first two quarters and responded with layoffs at the home office resulting in a 46-percent decrease in personnel. At that point, the staff numbered only 114 people.

On May 13, 1999, the company moved to New York, was listed on the New York Stock Exchange and was listed as the 33rd fastest growing company within four months.

In 2000, Pre-Paid Legal Services makes the Forbes list of the 200 Best Small Companies in America for the fifth consecutive year. Harland co-authors the book The Pre-Paid Legal Story and membership levels surpass the one million mark.

In 2011, Pre-Paid Legal initiated a re-branding strategy, which included the incorporation of a new name, LegalShield.

Impact on the Industry
Pre-Paid Legal Services, Inc is a member of the Direct Selling Association. It was one of the first companies in the United States organized solely (www.mlmlegal.com) to design, underwrite and market legal expense plans.

Discussion of Products
Pre-Paid Legal Services, Inc sells membership-based legal consultation for a monthly fee. This includes specialty plans. Pre-Paid Legal Services, Inc offers referrals to lawyers in the United States, Hawaii, the District of Columbia, Manitoba and Ontario.

Discussion of Opportunity
To start with the company, representatives have to purchase a sales kit. This kit includes sales aids and materials, certified field training, home office support through their Marketing Services Team, access to a wide range of marketing supplies and online associates services that includes communications and business documents.

Representatives make money through several avenues that include:

  • Individual Memberships - Legal Plans & Identity Theft Shield™
  • Employee Benefit Memberships
  • Specialty Plan Memberships Legal Shield Rider, Business Plan, Home-Based Business Rider, Commercial Drivers Legal Plan, Law Officers Legal Plan.

They also receive override commissions and residual compensation on their personal and organizational membership sales.

The Direct Sales Compensation is presented as follows:

 

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Discussion of Distributor Base and Sales Volume in U.S.
Pre-Paid Legal Services, Inc utilizes a multilevel compensation plan and a party-plan and person-to-person sales strategy. It operates in the United States and (www.mlmlegal.com) in Canada. Pre-Paid Legal Services, Inc currently provides legal services to millions of families and representatives in the U.S. and Canada. The Home-Office staff numbers in the hundreds.

Company website: http://www.prepaidlegal.com/

*At MLMLegal.Com the intent of MLM Company Profiles is strictly educational, and, to provide insight into the broad array of Company offerings from an industry that spans the globe in upwards of 150 countries with sales volume exceeding $100 billion and distributor involvement in the tens of millions. MLMLegal.Com does not promote or endorse any Company. MLMLegal.Com offers no value judgments, either pro or con, regarding the Companies. In most instances, descriptive material comes from self description by the Companies themselves. In all presentations, the names and logos of the Companies are obviously the trademarks owned by the Companies and are presented for the express purposes of informing the public about the Companies; and no product or opportunity offered by the Companies is offered in this presentation.

MLMLegal.Com typically provides a link to official Company websites so that readers can become more fully informed about Companies that are profiled. The descriptive material offered is best categorized as "snapshot" information and represents a good starting point for research on Company products, services and opportunities. It should be clearly understood that such information may need updating in a dynamic and changing business marketplace. In addition, the information is gathered and presented in good faith for educational purposes, and if errors in information become apparent, MLMLegal.Com will attempt to correct the information, or if necessary, delete the Profile altogether. A reading of a Company Profile is properly followed up with visits to the Company website, research on major internet search engines, discussions with industry professionals and experts and feedback from those acquaintances who have had direct experience with the Companies. In addition, a wealth of information on MLM, Direct Selling, Direct Sales, Network Marketing and Party Plan will be found at www.mlmlegal.com, including scores of articles, video, resource opportunities and detailed analysis on industry issues and factors to consider in both starting and running a MLM Company or a MLM home based business.

Jeffrey A. Babener, principal attorney in the Portland, Oregon, law firm Babener & Associates, represents many of the leading direct selling companies in the United States and abroad.

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