Is LegalShield a pyramid scheme? Is it a scam or a legit multi-level marketing business? Keep reading my LegalShield MLM review to learn more.
LegalShield is an American corporation that sells legal service products direct to consumers through employer groups and through multi-level marketing in the United States and Canada.
And because the company employs an MLM business model, people tend to confuse LegalShield with a pyramid scheme.
Is it a scam or a legit MLM business opportunity?
Before we get into this review, let me introduce myself…
Hi, I’m Ivan and I’m an online marketer who went from losing my time waiting tables to running a thriving online affiliate marketing business.
In the meantime, I have actually tried and reviewed 600+ courses, scams, MLMs, and even pyramid schemes to find the very best way to generate income online.
Keep reading my LegalShield MLM review where I’m going to show you what this company is about.
Also, I show you how it works, and I share my opinion about whether LegalShield is a pyramid scheme or a legit MLM opportunity.
LegalShield MLM Review – Overview
- Product Type: Legal Services Provider/MLM
- Owner: Harland Stonecipher
- Price: various packages
- Money-Back Guarantee: No
- Recommended?: No
Quick Summary: LegalShield is a legal service company that you can join and become a part of the marketing program. In other words, it is an MLM business opportunity. And because of this, many people call LegalShield a pyramid scheme.
So is it a pyramid scheme? That question has been answered in detail in my LegalShield review. But if you’re in a rush, I can save you time and say that LegalShield is a legit MLM.
By joining this MLM business, you get a chance to sell their products and (or) build a team of salespeople through which you can earn extra compensation and bonuses.
Due to this fact, LegalShield has been accused to be a pyramid scheme. Is it true? No, LegalShield is not a pyramid scheme.
However, I personally don’t recommend this type of business because it’s risky and very few make it. Keep reading my LegalShield MLM review to learn more before you make your very own choice.
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What Is LegalShield?
LegalShield was launched more than 48 years ago to supply budget-friendly legal solutions to common people like us. It’s also a network marketing business offering inexpensive lawful protection to both individuals and small companies.
Customers have the choice to get lawful representation and guidance, from a company that is experienced in criminal legislation, instead of the high per-hour prices normally provided by law practitioners.
The firm has actually stayed in business since 1972 and has 1.7 million subscribers to date.
MidOcean Partners acquired the company in 2011 and in September of that year, they ended up being Legal Shield. LegalShield’s lawyer network includes 39 law offices and 900 lawyers with approximately 22 years of expertise in all 50 states.
But since this company operates in a multi-level marketing style to attract new customers, whether LegalShield is a pyramid scheme is a common concern.
Related MLM Review: Primerica
Is LegalShield a Pyramid Scheme?
Legalshield is not a pyramid scheme. It features services you could need and use. In addition, it offers a chance to earn from marketing the company to others.
LegalShield’s membership plans are marketed as fringe benefits directly with a system of independent sales connections throughout the USA and also Canada under LegalShield’s multi-level marketing program.
Many people involved in multi-level marketing will certainly vow that their MLM company is not a pyramid scheme. They’ll have lots of more reasons to clarify why, and typically they’ll be right.
In practice, nonetheless, if you’re recruiting individuals, and those individuals are hiring individuals, and so forth … you will certainly wind up with a pyramid of people in which money streams.
And that’s why some say that LegalShield (and all other MLMs) is a pyramid scheme in disguise. Before shedding some more light on the topic, let’s learn what a pyramid scheme is…
What Is a Pyramid Scheme?
According to Wikipedia, “A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, rather than providing investments or product sales”.
You can check out a short video below to learn more…
So why do so lots of people assume that LegalShield is a pyramid scheme?
It’s because you can make cash by hiring a lot of individuals right into the multi-level marketing plan. That’s the most significant reason some individuals call it a pyramid scheme in disguise …
Is LegalShield a Pyramid Scheme in Disguise?
As I said in my review so far, LegalShield is not a scam pyramid scheme. They promise you commissions based on the sales made by you and others you register.
And since there are no straight repayments just for getting them to sign up, there is no shady activity. That said, LegalShield, once more, is not a pyramid scheme.
To put it simply, the company sells real items for people to consume.
The bottom line is that in pyramid systems you are forced to hire others in order to generate income from that firm. While in a multi-level advertising firm, you can earn money by hiring or marketing some physical items to prospects.
This is why LegalShield is not a pyramid scheme. But is it legit?
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Is LegalShield a Scam or Legit MLM?
LegalShield is not a scam either. Unlike some shadier MLM-type systems, Legal Shield is an official company with a real service.
Having stated that, the way in which some LegalShield professionals market or sell the opportunity, is possibly a scam.
Bear with me … a scam is specified as being dishonest action to acquire somebody’s trust and money.
So, although LegalShield is not a scam, a person who makes overhyped claims concerning the earnings capacity to recruit you would be trying to scam you.
To be really clear, I’m talking about individual salespeople associated with this MLM, not LegalShield itself. Legal Shield would certainly NOT encourage or pardon these activities.
Therefore, LegalShield is a legitimate MLM. But the way it is marketed smells like a scam.
Besides that, most MLMs are shady, tough to succeed, and sadly, most people lose money. This is the main reason why I don’t recommend this business opportunity to you.
There are much better, and more legit ways to make money online today…
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How Does LegalShield MLM Work?
LegalShield sells a legal service. After that, it enables people like you and me to come to be agents and re-sell these products in return for settlement.
The next actions depend upon you. You are in charge of advertising and selling, while LegalShield pays you a commission for each and every product you offer.
Nevertheless, there is one more way how this multi-level marketing works. As the business’s name implies, you can build a downline of salespersons and make income from their circulation.
For that reason, lots of people will assert that LegalShield multi-level marketing is a pyramid scheme…
Can you see why some people are fixed on claiming that MLM is a pyramid plan?
However, as I declared in my review, LegalShield is entirely legit. They use this design to reduce advertising and marketing expenses and also permit individuals like us to earn extra income.
Speaking of which, let’s see the following section of my review of LegalShield MLM to find out just how you can generate income promoting their items and how much you will be paid for doing so.
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What Products Does LegalShield Sell?
You might already be familiar with LegalShield services and products. With specific strategies beginning at $17.95 each month, you can gain access to solutions such as.
- Coverage for single adults without dependents
- Legal Advice / Counsel
- Letters / Phone Calls On Your Behalf
- Legal Document Review
- Trial Defense
Here is a short video about their service…
LegalShield additionally uses ID Guard, which is a service that assists to protect against identification theft, and recovers it (your identification) if required.
It’s offered for individuals ($ 9.95/ month) and families ($ 19.95/ month). The ID Shield service consists of,
- Coverage for you, your spouse/partner, and up to 8 dependent children (family plan)
- Complete Identity Monitoring
- Unlimited Consultation
- Identity Restoration
- $5 Million Service Guarantee
- IDShield Vault Password Manager
- Child Monitoring (family plan)
How Much Does It Cost To Join LegalShield MLM?
As mentioned earlier in my LegalShield MLM review, it’s all about recruiting and selling. We all now that the big money is made by hiring a lot more people into the scheme.
Prior to that happening, however, you need to pay to play and here are the two options on offer.
$99.00 (plus $20.00/month for Legal Shield Advantage)
This option includes,
- Associate Portal
- Online Training
- Weekly Newsletter
- Support Center
- Associate Perks
- Help From Sponsor, Team and Local Leaders
Alternative two includes everything from choice one, plus 12 months of Legal Guard Benefit (a $240.00 worth). Basically, with choice two you are paying your monthly charge upfront (for one year) and foregoing the $99.00 start-up price.
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What Is LegalShield Compensation Plan?
LegalShield gives you two primary ways to make money.
- Selling services. With every sale you make, you earn a profit.
- Recruiting members. You can gain commissions from the sales of people that you recruit to your downline.
You earn income through member retention (month-to-month costs). The amount you gain is dependent on the product or service you are offering.
There are 7 base levels which include:
- Senior Associate
- Senior Manager
- Senior Director
- Executive Director
The compensation plan works with an “advanced” system. As an Associate making a $39.90 (monthly) membership sale, you will be paid an advancement of $100.00.
It is very important to note, that you can be billed back for subscription terminations.
As you can see from the image below, you can progress from Associate to Executive Director and earn higher compensations for every sale you make.
As you proceed from Associate to Senior Associate, for example, your commissions get bigger. This level earns $120 per membership sale.
A Director earns $190 and more. In addition, as your team grows, a Senior Partner earns overrides which begin at $20 and rise to $50.
Furthermore, like a lot of multi-level marketing, there is an intricate deal of innovations and also incentives.
There is a Performance Club Bonus offer directs system where you can earn special recognition as well as awards. To learn more, check out the LegalShield compensation plan video below…
Can You Make Money With LegalShield?
You can definitely earn money with LegalShield, but only if you’re gonna put in the quantity of back-breaking work to do this, which, trust me, isn’t simple.
If you’ve been to an MLM presentation previously, you’ve probably seen them attract new agents by promising nice cash compensations and an ideal lifestyle.
It looks good, in theory, however, most of these schemes have a huge failure rate! There’s a big reason MLM has such high failure rates as well.
The simple truth is that lots of people do not do good at marketing and recruiting. Those that can do it easily (while managing hills of denial) are very uncommon, and if that’s not you … it’s going to be tough.
It’s not that you can not do well, but doing something you’re not good at is constantly a battle, and that’s why really a couple of people earn money with multi-level marketing.
But as I said in the previous section of my LegalShield MLM review, if you can do it, you can earn nice compensation for your work.
Related MLM Review: It Works!
LegalShield Online Reviews
One of the best ways to learn whether LegalShield is a scam or legit is to read some testimonials online. Most LegalShield reviews online are directed toward their products and are generally positive.
For example, on TrustPilot, the company has got an “Excellent” rating with over 78% of reviews saying that LegalShield products are great! (examples below).
On the BestCompany website, they got similar reviews. Most people are happy with the website, products, or delivery. They got 3.7 stars out of a possible five, which is a very good result.
Most Common Positive Reviews
Most people had a positive experience with Legal Shield’s lawyers. They were both mindful and receptive and achieved success in resolving their legal problems.
Most of those who gave LegalShield outstanding scores had actually been participants for a long time and had been frequent customers of their services.
They claimed that they have saved a great deal of cash because they made a decision to make use of LegalShield’s solutions.
Most Common Negative Reviews
On the other hand, one typical issue was that people had a difficult time cancelling their registration. And also even after terminating it, numerous participants found that their credit cards had actually still been billed.
Others declared that the things that the law practice needed to accomplish as part of their subscription advantages were not offered.
LegalShield MLM Review – Pros
Multi-level marketing companies generally do not last, because, well, services based on pyramid plans are not meant to last. MLM is already made for failure as quickly as they launch.
That aside, LegalShield plainly outlived its expected life expectancy of 1 to 3 years. It has been here since 1972 and that just shows that LegalShield is not a scam or a pyramid scheme.
Good Quality Service
The only online legal solution today that supplies a home-based business supplement is none aside from LegalShield. For an additional $9.95 each month, you can include this in any kind of legal package.
Furthermore, LegalShield was likewise the only one to provide financial obligation collection support.
According to your demand, financial obligation collection letters will be sent on a month-to-month basis by your legal representative to business that has postponed repayments.
If your firm is offered court, LegalShield can offer you both test defence and also trial prep work solutions.
Once again, LegalShield is the only law service I know to give such solutions, possibly saving you a great deal of money and also reducing your possibilities of getting sued.
Lots of Positive Reviews
Through LegalShield can not assure that you will certainly always manage the exact same lawyer, you can be sure that you are still in excellent hands with LegalShield.
And this is backed up by many positive customer reviews online.
That suggests that the company and its team of lawyers are doing a good job representing people. If it was another way around, the company wouldn’t have been in business for so long.
LegalShield Mobile App
What’s cool regarding LegalShield is that it has its very own mobile application, both on iPhone and Android. This is particularly valuable for company owners who are too busy to go open their laptops or perhaps make a call.
You might utilize the LegalShield application if you have any kind of inquiries or if you need to get some legal documentation.
LegalShield MLM Review – Cons
The firm has a background of lawsuits against them for deceitful advertising as well as misrepresenting revenue statements.
In one example a Mississippi jury ruled both the business and its founding CEO, Harland Stonecipher, guilty of fraudulence and also misleading advertising and marketing.
These are older legal actions which have been taken care of (either through appeal or settlement) however you ought to know them if you choose to represent LegalShield as an affiliate.
No Money-Back Guarantee
LegalShield’s rivals provide a money-back guarantee or a limited trial membership.
Rocket Attorney, for instance, provides a free 7-day trial along with a 30-day money-back guarantee. LegalZoom, on the other hand, has a refund policy or money-back guarantee valid within 60 days.
This isn’t the instance with LegalShield, You can do neither of both, so you need to thoroughly inspect every piece of information that’s included in the strategy you desire to avail.
If you choose after a couple of months that you no more have a need for LegalShield’s solutions, you can only cancel your membership by reaching out to client service.
LegalShield’s internet site isn’t one of the easiest to use, and it could be slow at times.
Luckily, after you’ve purchased your package, there’s no demand to go to the site all that usually. You can contact your attorney straight or most likely to the website of the companion law firm.
Limits To Legal Strategy
A monthly membership to a LegalShield plan, like any other online legal solution, has limitations. These include time restraints for the legal representative as well as additionally a restricted number of pages for document review.
If your legal job goes beyond the constraints, you will have to pay additional.
In addition, not all legal representatives, as well as law officers, are eligible for all incentives.
Some rewards are at the discernment of the attorney and the firm, indicating you may not be able to take advantage of every one of the features stated in the pricing list.
Erratic Customer Service
You will find some complaints online regarding LegalShield’s customer care. Most of these complaints are directed toward the inability to answer customers’ queries.
This is not that bad, and it’s quite normal. But you would expect more informed customer service from a company that’s been in business for almost half of the century.
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LegalShield MLM Review – Conclusion
As you can see from this LegalShield MLM review there is plenty of advantages to joining their program.
For example, LegalShield’s niche is not oversaturated, unlike wellness supplements, and apparel. Likewise, the services they offer are truly needed by individuals.
I mean, it is quite rare for ordinary people to enter big legal problems, but you will need to see a legal representative at least once in your life.
However, I want to point out a few downsides before I end this review.
I think that LegalShield is great only if you are a customer and not an associate. To be sincere, I assume LegalShield would have worked and would be a lot more identified if they did not use the MLM technique.
Moreover, if you despise hiring people, you’re possibly not likely to succeed in this opportunity and consequently, you’ll have a problem with earning an income.
I’m not claiming you can’t learn to do it, but that’s something you’ll only learn on your own from doing it every single day.
If MLMs are not your thing, you will possibly do better with something like affiliate marketing business where selling as well as recruiting is not involved.
But at the end of the day, LegalShield is legit MLM so if you fancy it, go for it.
I personally don’t recommend it because there are much better ways to make money from home (see the next section).
Thanks for reading my LegalShield MLM review. What is your opinion? Is LegalShield a pyramid scheme/scam? Were you a part or maybe still are a member of this business?
Feel free to leave your reviews at the end of this page!
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If you need any help or you have a question, feel free to contact me.
And feel free to share this LegalShield MLM review to help others as well!
All the best, Ivan. Founder, and CEO @freeaffiliatemarketingbusiness.com
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7 thoughts on “Is LegalShield a Pyramid Scheme or Legit MLM? – 2022 Review”
Thank you for your review. I’m interested in making money online from home, and I didn’t realize LegalShield is a MLM. While I would use LegalShield as a customer, I probably wouldn’t join their business program. I always feel like the only people making money with MLMs are the ones who entered early, and who are at the top of the ladder. In my experience with MLM you need to treat it like a business – you need to give it the time, energy, and resources like any other business. What MLMs do you think are worth the time and money?
Although MLMs like LegalShield are legit and you can make money promoting their products, I don’t recommend them to newbies. Advanced marketers could earn a lot of money in this niche, but for newbies, it would be a costly way to learn what failure is.
Thank you so much for this review over legal shield. I really enjoyed reading this mostly because I want to do online work and I love the legal system stuff. It’s nice to see that this is not a pyramid scheme like some other products are. I also kind of feel like it’s start up cost isn’t that much compared to some of the other mlm programs. However, like you said, few even succeed in this market and it takes so much time and effort every single day to do it.
You’re welcome! Glad to help you to learn more.
I totally agree with you about MLM being a hard sell. For every person that “makes it” there are dozens, if not hundreds that don’t. The companies never seem to mind that people drop out, as they take the attitude that if they throw enough mud against the wall, then some will stick! It’s very much a numbers game and you have to have a certain personality to enjoy MLM. But good luck to those who can do it.
Regardless of LegalShield not being a scam, I still wouldn’t invest in it nor join the program. First of all, I truly don’t like MLM companies; they seem like a headache that I don’t want nor need, and second, I know nothing about legal things. I would understand it it was a candle, scrapbook, vitamin, or anything in that simply field of the MLM world, but having to work under a MLM company that’s based on legal services, I would feel really uncomfortable; this is just my opinion.
I appreciate your comment!