LegalShield: Is It a Viable MLM or a Pyramid Scheme?
LegalShield Is It a Viable MLM or a Pyramid Scheme

Welcome to my in-depth review of LegalShield, a company that has been providing legal services through a multi-level marketing (MLM) model since 1972. If you’ve ever wondered whether LegalShield is a legitimate business opportunity or just another pyramid scheme, you’re in the right place.

In this review, we’ll explore the ins and outs of LegalShield’s offerings, its business model, and what you can expect if you decide to become an associate. We’ll look at both the positive aspects that make LegalShield appealing, as well as the challenges and drawbacks that you should be aware of. By the end of this review, you’ll have a clear understanding of whether LegalShield is the right opportunity for you.

Let’s dive in and see what LegalShield has to offer!

Disclaimer: This LegalShield MLM review has been thoroughly researched with information and testimonials that are available online to anyone in the public.  Any conclusions drawn from that information are my own opinions.

LegalShield MLM Review Overview

Product Name: LegalShield

Owner: MidOcean Partners

Product Type: Legal Solutions MLM company

Price: Two plans: $99 or $249

Best For: Customers, Not Associates

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Pros

  • Well-Established Company
  • Good Quality Service
  • Lots of Positive Reviews
  • LegalShield Mobile App

Cons

  • LegalShield Lawsuits
  • No Money-Back Guarantee
  • Slow Website
  • Limits to Legal Strategy
  • Erratic Customer Service

Quick Summary

LegalShield offers a range of legal services through a multi-level marketing (MLM) structure, providing members with access to legal advice, representation, and identity protection. The company has been in business since 1972, which lends credibility to its legitimacy and differentiates it from typical MLM schemes that often fail within a few years. Customers generally praise LegalShield for its quality legal services and helpful mobile app, which allows for easy access to legal assistance on the go.

However, potential associates should be aware of several challenges. While the MLM model offers the potential for significant earnings through sales and recruitment, it also requires considerable effort and skill in marketing and recruiting. The high failure rate common to MLM businesses means that many people struggle to achieve substantial income. Additionally, there have been complaints about the difficulty in canceling memberships and the occasional slow website performance, which can be frustrating for users.

In conclusion, LegalShield provides valuable legal services that are well-regarded by customers. However, the MLM business model may not be suitable for everyone, especially those uncomfortable with recruiting and selling. LegalShield is a solid choice for those looking for a reliable legal service, but for potential associates, there may be better opportunities available in affiliate marketing or other business models.

Rating
2.5/5

Recommended? If You're Looking For Legal Services as a Customer, then Yes. But It's Not Worth Your Time as an Associate

Table of Contents

What Is LegalShield?

LegalShield has been around for over 48 years, providing affordable legal solutions to everyday people like us. It operates as a network marketing business, offering legal protection at a fraction of the cost usually charged by traditional law firms. This makes it accessible for both individuals and small businesses.

legalshield-mlm-website-image

Instead of paying hefty hourly rates for legal services, LegalShield members can access legal representation and advice from a network of experienced lawyers. This includes help with everything from criminal law to personal legal matters.

Since its founding in 1972, LegalShield has grown significantly and now boasts 1.7 million subscribers. In 2011, MidOcean Partners acquired the company, and it was rebranded as LegalShield. Today, their network comprises 39 law offices and around 900 attorneys with an average of 22 years of experience, covering all 50 states.

However, because LegalShield operates using a multi-level marketing (MLM) model to attract new customers, many people wonder if it’s a legitimate business opportunity or just a pyramid scheme. This is a common concern, and it’s important to understand how MLMs work and what distinguishes them from pyramid schemes.

In the following sections, we’ll dive deeper into LegalShield’s business model, its services, and the experiences of its members to help you make an informed decision.

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Is LegalShield a Pyramid Scheme?

Let’s address the big question: Is LegalShield a pyramid scheme? The short answer is no, LegalShield is not a pyramid scheme. Here’s why.

LegalShield offers tangible services that people need and use, such as legal advice and representation. Plus, it provides an opportunity to earn money by promoting the company to others. LegalShield’s membership plans are marketed as benefits through a network of independent sales associates across the USA and Canada, utilizing a multi-level marketing (MLM) model.

Many people involved in MLMs will insist their company is not a pyramid scheme, and often, they’re right. But let’s break it down further.

In an MLM like LegalShield, you can earn commissions based on sales you make and sales made by the people you recruit. This can create a structure where recruiting new members is a significant focus, which is why some people confuse MLMs with pyramid schemes. However, there’s a crucial difference.

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.” In essence, pyramid schemes rely solely on recruitment without offering a real product or service.

Why Do Some People Think LegalShield Is a Pyramid Scheme?

The confusion often arises because you can earn money by recruiting others into LegalShield’s MLM plan. However, the difference is that LegalShield sells legitimate services. You earn commissions based on the actual sales of these services, not just for signing people up.

Is LegalShield a Pyramid Scheme in Disguise?

Let’s clear this up once more: LegalShield is not a pyramid scheme. LegalShield pays commissions based on the sales you and your recruits make, not merely for recruiting new members. This means there are no shady activities typical of pyramid schemes.

In a pyramid scheme, you’re forced to recruit others to make any money, and there are no real products being sold. In contrast, a legitimate MLM like LegalShield sells real services that people use. You can make money both by selling these services and by recruiting others to do the same.

LegalShield offers real products that provide value to its customers. While it operates on an MLM model, it is not a pyramid scheme because it doesn’t rely solely on recruitment; it’s based on the sale of actual services.

So, is LegalShield legit? Let’s continue to explore that in the next sections.

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Is LegalShield a Scam or Legit MLM?

LegalShield is not a scam. Unlike some questionable MLM-type schemes, LegalShield is a legitimate company offering real services. However, the issue often lies in how some distributors promote the opportunity.

Let’s clarify: a scam involves dishonest actions intended to gain someone’s trust and money under false pretenses. So, while LegalShield itself is not a scam, if a salesperson makes exaggerated claims about the earnings potential to recruit you, that individual is trying to scam you.

To be clear, I’m referring to certain salespeople associated with this MLM, not LegalShield as a company. LegalShield does not condone or encourage such activities.

LegalShield is a legitimate MLM. However, the way it is sometimes marketed can make it seem suspicious.

Moreover, like many MLMs, succeeding with LegalShield can be challenging, and unfortunately, many people end up losing money. This is one of the main reasons I don’t recommend this business opportunity.

There are better, more legitimate ways to make money online today, which are worth exploring.

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How Does LegalShield MLM Work?

LegalShield offers legal services and allows individuals like you and me to become agents who resell these services in return for commissions. Here’s how it works:

As an agent, you are responsible for promoting and selling LegalShield’s products. For every product you sell, LegalShield pays you a commission.

But there’s another aspect to how this multi-level marketing works. You can also build a downline of salespeople and earn income from their sales efforts. This structure is why some people mistakenly label LegalShield’s MLM model as a pyramid scheme.

affiliate marketing vs mlm - mlm pyramid structure

Can you see why some people might think MLMs resemble pyramid schemes? However, as I’ve stated throughout my review, LegalShield is entirely legitimate. They use this model to reduce advertising costs and provide people like us with an opportunity to earn extra income.

Now, let’s move on to the next part of my review to see how you can make money promoting LegalShield’s products and how much you can earn doing so.

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What Products Does LegalShield Sell?

LegalShield offers a variety of legal services and products designed to provide affordable legal protection. Starting at $17.95 per month, their plans include:

  • Coverage for Single Adults Without Dependents
  • Legal Advice and Counsel
  • Letters and Phone Calls on Your Behalf
  • Legal Document Review
  • Trial Defense

Additionally, LegalShield offers IDShield, a service that helps protect against identity theft and assists in identity restoration if necessary. IDShield is available for individuals at $9.95 per month and for families at $19.95 per month. The IDShield service includes:

  • 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)

These comprehensive services make LegalShield a valuable resource for individuals and families seeking legal protection and identity theft prevention.

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How Much Does It Cost To Join LegalShield MLM?

As mentioned earlier in my LegalShield MLM review, the focus is on recruiting and selling. The significant earnings come from building a large team under you. But before you can start earning, you need to invest in joining LegalShield. Here are the two options available:

  1. $99.00 (plus $20.00/month for LegalShield Advantage)
    • This option includes:
      • Associate Portal
      • Online Training
      • Weekly Newsletter
      • Support Center
      • Associate Perks
      • Help from Sponsor, Team, and Local Leaders
  2. $249.00
    • This alternative includes everything from the first option, plus 12 months of LegalShield Advantage (valued at $240.00). Essentially, with this choice, you pay your monthly fee upfront for one year and skip the $99.00 start-up cost.

These investment options are required to access the tools and support needed to start your journey with LegalShield MLM.

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What Is LegalShield Compensation Plan?

LegalShield offers two main ways for its associates to make money: selling services and recruiting new members. Here’s a detailed look at how the compensation plan works:

  1. Selling Services: When you sell LegalShield’s products, you earn a profit. This direct sales approach allows you to earn commissions based on the membership plans you sell.
  2. Recruiting Members: You can also recruit other individuals to join LegalShield as associates. When these recruits make sales, you earn commissions based on their sales too, creating a multi-level marketing structure.

Compensation Levels

LegalShield has a structured compensation plan with seven base levels:

  • Associate
  • Senior Associate
  • Manager
  • Senior Manager
  • Director
  • Senior Director
  • Executive Director

The compensation plan operates on an “advanced” system. For example, as an Associate, selling a $39.90 monthly membership earns you an advancement of $100. However, it’s important to note that you can be charged back if there are subscription cancellations.

Commission Progression

As you advance through the levels, your commissions increase. Here’s a brief overview of the earning potential:

  • Associate: Earn $100 per membership sale.
  • Senior Associate: Earn $120 per membership sale.
  • Director: Earn $190 and more per membership sale.
  • Senior Director and Executive Director: As your team grows, you earn overrides, which start at $20 and increase to $50 or more.

Additionally, there are various bonuses and incentives. For example, the Performance Club Bonus offers special recognition and awards based on your sales and recruitment performance.

legalshield-mlm-compensation-plan

Important Considerations

  • Member Retention: Your income is also influenced by member retention, as you earn ongoing commissions based on the monthly fees paid by members.
  • Chargebacks: Be aware that if members you recruit cancel their subscriptions, you might be subject to chargebacks, which can reduce your earnings.

Conclusion

LegalShield provides a legitimate opportunity to earn income through both direct sales and building a sales team. However, like many MLMs, achieving significant earnings requires consistent effort in recruiting and sales.

For further details and the latest updates on the LegalShield compensation plan, you can refer to LegalShield’s official resources​ (LegalShield)​​ (LegalShield)​​ (LegalShield)​.

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Can You Make Money With LegalShield?

You can earn money with LegalShield, but it requires a significant amount of effort and dedication. Let’s break it down:

The Reality of MLM Earnings

  1. Effort and Commitment: Success in LegalShield, like in any MLM, requires back-breaking work. It’s not a quick or easy path to financial freedom. You need to be persistent and resilient, especially when faced with rejection.
  2. Marketing and Recruiting: The core of making money in LegalShield involves marketing the services and recruiting new associates. Many MLM presentations highlight the potential for substantial earnings and an ideal lifestyle. However, achieving this requires strong skills in sales and recruitment.
  3. High Failure Rates: MLMs generally have high failure rates. Many people struggle with the demands of constant marketing and recruiting. Success stories are often rare, and the majority of participants do not reach high income levels.
  4. Rare Success: Those who excel in MLMs like LegalShield typically have a knack for sales and can handle a high level of rejection. If you’re not naturally skilled in these areas, it can be a tough and frustrating journey.

Potential Earnings

Despite the challenges, it’s possible to earn good money with LegalShield if you are diligent and skilled. Here’s a quick summary:

  • Direct Sales: You earn commissions on the membership plans you sell.
  • Recruitment: You gain additional income by recruiting others and benefiting from their sales.

While the compensation can be attractive for those who succeed, it’s important to set realistic expectations and understand that substantial earnings require consistent effort and talent in sales and recruitment.

In summary, while making money with LegalShield is possible, it’s not simple and requires a significant amount of effort, perseverance, and skill. For those who can navigate the challenges, there is potential for nice compensation.

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LegalShield Online Reviews

One of the best ways to determine if LegalShield is a scam or legit is to read online testimonials. Generally, most reviews about LegalShield’s products are positive.

legalshield-mlm-customer-ratings

Positive Reviews

TrustPilot: LegalShield holds an “Excellent” rating on TrustPilot, with over 78% of reviews praising their products. Many users report positive experiences with LegalShield’s lawyers, noting their responsiveness and success in resolving legal issues. Long-term members frequently highlight the cost savings they’ve enjoyed by using LegalShield’s services.

BestCompany: On BestCompany, LegalShield has a solid rating of 3.7 out of 5 stars. Users often commend the website, products, and service delivery. Many reviews reflect satisfaction with the legal assistance received and the overall value provided by LegalShield.

legalshield-positive-reviews

legalshield-positive-comment

Common Positive Themes

  • Effective Legal Support: Many users appreciate the responsiveness and professionalism of LegalShield’s lawyers. They feel well-supported in their legal matters.
  • Cost Savings: Long-term members frequently mention that they have saved a significant amount of money by using LegalShield’s services regularly.
  • User Satisfaction: Consistently, positive reviews come from users who have been with LegalShield for extended periods and utilize their services frequently.

Negative Reviews

Despite the generally positive feedback, there are common issues raised by some users:

legalshield-mlm-negative-reviews

legalshield-mlm-negative-comment

  • Cancellation Issues: A frequent complaint is the difficulty in canceling memberships. Some users report being charged even after they believed they had canceled their subscription.
  • Service Availability: A few users claim that some legal services included in their membership were not provided as promised, which led to dissatisfaction.

Summary

While LegalShield enjoys a largely positive reputation online, it’s important to be aware of the common issues raised by some users. Overall, the majority of reviews suggest that LegalShield is a legitimate service providing valuable legal assistance, though potential members should be mindful of the cancellation policies and verify the availability of specific services within their membership plan.

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LegalShield MLM Review: Pros and Cons

When evaluating LegalShield as an MLM opportunity, it’s important to weigh the pros and cons to make an informed decision. Below are some key aspects to consider.

LegalShield MLM Review :Pros

Let’s run you through the pros first…

#1 Well-Established Company

LegalShield has a long history, having been founded in 1972. This longevity is unusual for MLM companies, which often fail within a few years. LegalShield’s endurance suggests it is not a scam or a pyramid scheme.

#2 Good Quality Service

LegalShield is one of the few online legal services that offer a home-based business supplement for an additional $9.95 per month. They also provide debt collection support, sending monthly debt collection letters on behalf of their clients. LegalShield can also offer trial defense and preparation services, potentially saving clients a significant amount of money and reducing the likelihood of lawsuits.

#3 Lots of Positive Reviews

Many LegalShield users report positive experiences with the company’s lawyers, citing their responsiveness and effectiveness in resolving legal issues. Positive online reviews and testimonials support the credibility and reliability of LegalShield’s services.

#4 LegalShield Mobile App

LegalShield offers a mobile app for both iPhone and Android, which is particularly convenient for busy business owners. The app allows users to ask questions or request legal documentation directly from their mobile devices.

LegalShield MLM Review: Cons

Now for the concerns I had about LegalShield…

#1 LegalShield Lawsuits

The company has faced lawsuits for deceptive advertising and misrepresenting income statements. For example, a Mississippi jury found both the company and its founding CEO, Harland Stonecipher, guilty of fraud and misleading marketing. These issues have been resolved, but they are important to consider if you plan to represent LegalShield as an affiliate.

#2 No Money-Back Guarantee

Unlike some competitors, LegalShield does not offer a money-back guarantee or a trial membership. Competitors like Rocket Lawyer and LegalZoom offer free trials and money-back guarantees, which LegalShield lacks. This means you must carefully review the details of any plan before committing.

#3 Slow Website

LegalShield’s website can be slow and difficult to navigate. While this is not a deal-breaker, it can be frustrating. Fortunately, once you purchase a plan, you can often deal directly with your attorney or their law firm’s website, reducing the need to use LegalShield’s site frequently.

#4 Limits to Legal Strategy

LegalShield plans have limitations, including time constraints for attorneys and limits on the number of document pages they will review. If your legal needs exceed these limits, you will incur additional costs. Not all attorneys and law offices are eligible for all benefits, meaning some features listed in the pricing may not be available to you.

#5 Erratic Customer Service

There are complaints online about LegalShield’s customer service, particularly regarding their responsiveness to queries. While not uncommon, you might expect more reliable customer service from a company with such a long history.

LegalShield MLM Review: Conclusion

As you can see from this LegalShield MLM review, there are several advantages to joining their program. LegalShield operates in a niche that isn’t oversaturated, unlike markets for wellness supplements or apparel. The services they offer, such as legal representation and identity protection, are truly needed by individuals. Everyone encounters legal issues at some point in their lives, making LegalShield’s offerings relevant and necessary.

However, it’s important to consider a few downsides before making a decision.

Customer vs. Associate

LegalShield is excellent for customers needing affordable legal services. However, as an associate, the experience can be different. LegalShield might have achieved greater recognition and success if it didn’t employ an MLM model. If you’re not comfortable with recruiting people, this opportunity might not be the best fit for you, making it challenging to earn a significant income.

Challenges of MLM

Succeeding in an MLM like LegalShield requires dedication to recruiting and selling. While it’s possible to learn these skills, they can be daunting and require daily effort. If MLMs don’t suit you, you might find more success in affiliate marketing, where there’s less emphasis on recruiting.

Final Thoughts

LegalShield is a legitimate MLM. If the business model appeals to you, it could be worth pursuing. However, I don’t personally recommend it, as there are other, potentially more lucrative ways to make money from home.

Thanks for reading my LegalShield MLM review. What’s your opinion? Is LegalShield a pyramid scheme or a scam? Have you been part of this business, or are you currently a member? Feel free to leave your reviews and thoughts at the end of this page!

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Thanks for reading my LegalShield MLM Review!  If you have any questions, or any experiences to share then please write them in the comments below. ;). 

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