LegalShield Scam: MLM or Pyramid Scheme? [Review]

Are you curious about LegalShield and wondering if it’s worth your time and money? Well, you’ve come to the right place! In this review, I’ll be sharing my honest and unbiased thoughts on LegalShield, and whether or not it’s a legitimate opportunity.

As an online entrepreneur, I have reviewed many similar online opportunities over the years. So I can tell you what you need to know.

Now, before we dive into the review, let me make one thing clear: I am not affiliated with LegalShield in any way. That means I’m not being paid to write this review, so you can trust that my thoughts are completely honest.

Let’s dive in.

What Is LegalShield?

So, you’ve probably heard of Legal Shield, and you might know that it’s an MLM, but did you know that they offer a bunch of legal services? Yep, that’s right! They’ve got your back when it comes to court representation, attorney consultations, and even legal document drafting.

Fun fact: Legal Shield has been around for a while, way before it was called Legal Shield. Back in 1969, a guy named Harland Stonecipher had the idea to make high-quality legal services more accessible and affordable. However, Legal Shield as we know it today didn’t officially come into existence until 2011.

The company that eventually became Legal Shield actually started as a sports club way back in 1972. Then, in 1976, it was acquired by Prepaid Legal Services, which is probably best known for its MLM or “pyramid” strategy. Prepaid Legal Services itself was founded in 1983.

If you’re wondering where the name Legal Shield came from, well, it used to be called Prepaid Legal, but then it was renamed by MidOcean Partners in September 2011.

So, there you have it – Legal Shield is more than just an MLM. They offer a variety of legal services and have been around for a long time.

You may also want to read our article on the top MLM companies.

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Is LegalShield a Scam?

No, LegalShield is not a scam. It’s a real company that provides a real service. However, some of the consultants who offer the opportunity might not be on the up and up. 

Deception for financial gain is the essence of a scam, and anyone who tries to deceive you about the compensation plan or the time commitment involved is trying to defraud you. But don’t worry, Legal Shield doesn’t support or endorse that kind of behavior.

To illustrate, let me give you an example from my past. I used to work for a life insurance company that relied on network marketing. Some of the reps would manipulate the truth or tell white lies to build rapport with customers, which I found to be fraudulent. However, this doesn’t mean the insurance provider itself was fraudulent. The same goes for Legal Shield. Rogue advisors might be embellishing the truth to drum up business, but that doesn’t represent the company as a whole.

Is LegalShield a Pyramid Scheme?

No, LegalShield is not a pyramid scheme. A pyramid scheme is a structure in which income rises from the bottom up, and Legal Shield offers tangible goods and services to its customers. 

However, some people might still think of it as a pyramid scheme because of the way participants recruit others who in turn recruit others, creating a pyramidal structure. But again, the services offered by Legal Shield are legitimate.

You may read our article on the difference between MLM and pyramid schemes here.

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Legal Shield Products and Services

Legal Shield offer a range of products and services that can help you with legal issues starting at just $17.95 per month for individual plans.

Here’s what you can expect with Legal Shield’s individual plans: coverage for single adults without dependents, legal advice and counsel, letters and phone calls made on your behalf, legal document review, and trial defense. Family plans start at $19.95 per month and offer similar benefits. Plus, you can add trial defense and work-from-home options to both policies.

But that’s not all. Legal Shield also offers ID Shield, a service that protects you from identity theft and helps you recover from it if it ever happens. 

For just $9.95 per month for individuals and $19.95 per month for households, you can enjoy the following benefits: coverage for you, your spouse/partner, and up to 8 dependent children (family plan), complete identity monitoring, unlimited consultation, identity restoration, a $5 million service guarantee, IDShield Vault Password Manager, and child monitoring for family plans.

It’s never too early to start protecting yourself and your family, and Legal Shield makes it easy and affordable to do so.

Who Is LegalShield For?

LegalShield is an MLM opportunity. While MLMs can be a great fit for some people who have a knack for sales and networking, they’re not for everyone.

Some folks are put off by the negative associations that MLMs have with scams and pyramid schemes, while others simply don’t enjoy the constant need to recruit new members and push products. If that’s you, don’t worry – there are plenty of other ways to make money online.

Sites like surveyjunkie.com and inboxdollars.com offer easy and straightforward ways to earn some extra cash by taking surveys or completing other simple tasks. 

At the end of the day, whether you choose to pursue an MLM like LegalShield or explore other options, the most important thing is to find a path that works for you and fits with your lifestyle and goals.

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How Much Does It Cost to Join LegalShield?

The first option costs $99 per year, which is $20 per month for Legal Shield Advantage. This option includes the Associate Portal, Online Training, Weekly Newsletter, Support Center, Associate Perks, and help from your sponsor, team, and local leaders.

The second option includes the first selection plus one year of Legal Shield Advantage, which is worth $240. If you choose option 2, you can save the $99 setup fee and pay for the service for a full year upfront.

Keep in mind that MLMs rely heavily on face-to-face interactions like parties and presentations at people’s homes, which can involve additional expenses such as gas, parking, and clothing.

If the initial cost of Legal Shield is more than you want to spend right now, there are plenty of other ways to supplement your income. You can sign up for online surveys on sites like surveyjunkie.com and get paid for your contributions. 

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What is Legal Shield Advantage?

Legal Shield Advantage is a super helpful suite of enterprise solutions that’ll take your business to the next level. Here’s a rundown of what you can expect:

• Personalized Professional Websites: Want to showcase your brand in the best possible light? We’ve got you covered. Our websites are customized to fit your unique style and needs.
• Enhanced Associate Portal: Keep your associates up-to-date with our easy-to-use portal. They’ll have access to all the resources they need to be successful.
• Lead/Contact Management System: Say goodbye to disorganized contact lists! Our management system makes it a breeze to keep track of all your leads and contacts.
• FranklinCovey® Personal Development Courses: We believe in investing in our clients. That’s why we offer access to these top-notch personal development courses.
• Branded Professional Communications: From emails to newsletters, we’ll make sure all your communications are professional and on-brand.
• Contests and Incentives: Keep your team motivated and engaged with our fun contests and incentives.

LegalShield Compensation Plan

Here’s how you can make some dough:

1. Hustle memberships and score personal commissions.
2. Build your squad by bringing others in and earn overrides on their sales.
3. Make passive bucks through member retention (monthly fees).

Your earnings depend on what you’re selling, but let’s say you make a $39.90/month sale. There are seven levels from Associate to Executive Director, and as you level up, the advances get sweeter.

For example, as an Associate, you can bag an advance of $100. As a Senior Associate, that leaps to $120, and so on. As your team grows, you can also score overrides, starting at $20 and reaching up to $50.

Like most MLMs, LegalShield’s got some extras like advancements, bonuses, and shoutouts through their Performance Club Bonus points system. Plus, they have trips, contests, and promos to keep things fun.

Now, we’ve all seen those MLM presentations with circles full of dollar signs on whiteboards. It looks cool, but we know that MLMs can be tough. Not everyone’s into selling or recruiting – and that’s cool. If that’s not your vibe, making money with LegalShield’s plan might be a challenge.

But hey, it’s not impossible to win. Just remember, doing something you don’t dig is never a walk in the park. So, if selling and recruiting ain’t your thing, maybe check out other options.

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LegalShield Membership Plans and Pricing

When you sign up for LegalShield, you get access to legal aid by paying a fixed monthly fee. The more you contribute monthly, the more protection you receive. 

Here is an overview of the LegalShield membership plans, which includes both the LegalShield Legal Protection Plan and LegalShield Business Solutions.

Small Biz 10 (10 Or Fewer Employees) at $39 per month:

• You get unlimited phone consultations for one hour of legal work.
• Three telephone consultations on relevant legal issues per year (half-hour calls).
• Twenty documents reviewed per year (maximum 6 per month, 16 pages total).
• A total of 20 phone calls or mailings per year (maximum 6 per month).
• Five collection letters per month.
• A 25% discount on the attorney’s hourly rate for additional work.
• A maximum of two users can be specified.

Small Biz 50 (50 Or Fewer Employees) at $89 per month:

• Endless telephone consultations for one hour of legal advice.
• Three telephone consultations on specific legal issues per year (half-hour calls).
• Thirty documents evaluated per year (maximum 6 per month, 16 pages).
• Thirty telephone calls or letters per year (maximum 6 per month).
• Ten collection letters per month.
• A 25% reduction in the attorney’s hourly rate for additional work.
• Three designated users.
• 75 hours required for court defense per year, plus a maximum of 15 hours for case preparation.

Small Biz 100 (100 Or Fewer Employees) at $149 per month:

• Unlimited phone consultations for one hour of legal work.
• Three telephone consultations on specific legal issues per year (half-hour calls).
• Forty documents reviewed per year (maximum 6 per month, 16 pages).
• A total of 40 phone calls or letters per year (maximum 6 per month).
• Fifteen collection letters per month.
• A 25% discount on the attorney’s hourly rate for additional work.
• 75 hours of litigation defense per year, with a maximum of 25 hours for trial preparation.
• Five designated users.

Home Business Supplement Plus Additional $9.95 Per Month:

• Unlimited telephone consultations for one hour of legal work.
• Two telephone consultations on specific legal issues per year (half-hour calls).
• Three documents (16 pages) reviewed per year.
• Six calls or letters made per year (maximum of 6 in a single month).
• Three collection letters per month.
• Assistance with IRS audits.

Trial Defense Supplement Plus Additional $9.95 Per Month:

If you are defending yourself or your business in court, preparation for the hearing and trial is essential.

Business Formation Services:

State filing fees are not included in the $145 starting price.

A Registered Agent will cost you $120 annually.

No matter which plan you choose, your legal work will be done by a law firm in the LegalShield network. However, not every law firm offers all the services included in each package. The lawyer fees can vary significantly depending on your geographic location and the services your business requires, as shown in the table above.

If you’re self-employed, you can save $24.95 per month by adding the home office add-on to your legal expense package. For other small businesses, choose a rate based on the number of employees. It’s important to note that the attorney’s time is limited depending on the plan you choose. Therefore, it’s crucial that you fully understand the terms of the contract before you sign up.

Keep in mind that a one-hour phone call with the attorney can take up to one hour of billable time, and the attorney’s regular hourly rate will be reduced by 25% before payment for additional work

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Is Legal Shield Worth Your Investment? 

If you’re considering getting a Legal Shield membership, it’s important to weigh both the good and bad reviews. Let’s face it, every product has its limitations, and Legal Shield is no exception.

One customer’s negative review of the company may raise some red flags for you, but it’s also essential to look at Legal Shield’s response to these allegations. It’s always good to have a clear understanding of what you’re getting into before making a purchase.

Other reviews for Legal Shield are mixed, so it’s best to proceed with caution. It’s not like unboxing a product and deciding whether it’s worth your investment. Legal Shield requires a financial commitment that could add up to hundreds, if not thousands, of dollars before you even use it.

Before purchasing a Legal Shield membership, it’s crucial to read the fine print twice over. And if you’re considering becoming a Legal Shield distributor, it’s essential to study the company and its offerings thoroughly before committing. Remember, knowledge is power!

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Pros and Cons of Joining LegalShield

Thinking of joining LegalShield but not sure if it’s the right fit for you? Here are some pros and cons to consider before signing up:

Pros:

• Compared to other MLMs, the entry costs are relatively low.
• LegalShield offers a specific product or service, so you’ll have less competition than home businesses that sell cosmetics, jewelry, or clothing.
• As LegalShield doesn’t sell physical products, you won’t have to worry about inventory, shipping costs, or logistical issues like inventory and deliveries.

Cons:

• LegalShield (formerly Pre-Paid Legal) has faced lawsuits over dishonest advertising and falsifying financial statistics. While these have been settled or appealed, it’s worth being aware of if you decide to represent LegalShield as an affiliate.
• Like with any MLM, you’re not running your own business. While you can set your own hours, your income is tied to LegalShield and their rules and limits. When you leave the company, your sales and downline belong to the company.
• If you offer LegalShield insurance, you may be selling a product you haven’t tried or claimed yourself. This is common in the insurance industry and not a criticism of LegalShield specifically.

Final Verdict

If you’re looking for a way to earn some extra income from home, there are many options available. Multi-level marketing (MLM) companies like Legal Shield can be a great opportunity, but it’s important to consider whether it’s the right fit for you. Y

our success will depend on your ability to sell and your enjoyment of the work. Keep in mind that MLM success stories usually involve consistent effort and recruiting new team members.

If you’re interested in MLM, Legal Shield is worth checking out. One major advantage is that you don’t have to worry about the logistics of selling physical products. However, if you don’t like the idea of recruiting, MLM might not be for you. 

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Is There a Better Way to Make Money Online?

Want to make some extra cash? Consider starting an affiliate marketing business online! It’s a great option for those who are new to the world of online business. In my experience, it’s also the easiest and most rewarding online business model I’ve tried so far. 

With affiliate marketing, you can get started with almost zero costs and still earn a sustainable passive income to help pay the bills. Plus, you can do it as a side hustle if you’re not ready to commit full-time.

You may read our article about the difference between MLM and affiliate marketing.

If you’re interested in learning affiliate marketing and building a business from scratch, I recommend checking out Wealthy Affiliate. It’s a reputable platform that offers a free account (including a free website) with comprehensive training on SEO (free traffic methods), so you can get started without having to pay a penny.

Now, you may be wondering how much you can earn with Wealthy Affiliate. Well, let me tell you about a 21-year-old student who made $7,395 in just one week using free traffic methods! Impressive, right? Wealthy Affiliate has been around for 15 years and there are many other success stories from its members.

You can read our full review of Wealthy Affiliate here.

If you’re interested in joining Wealthy Affiliate, the pricing is simple. There’s a free starter membership (with no time limit) that gives you access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and access to the keyword tool. You can enjoy all of these perks without paying a penny.

So, if you want to see for yourself what Wealthy Affiliate can do for you, I strongly recommend signing up for a free account. No credit card required!

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