Is Legal Shield A Pyramid Scheme, A Scam Or Legit?

is legal shield a pyramid scheme scam or legit

Legal Shield opportunity review

Founded: 1976 but relaunched in 2011

Current CEO: Jeff Bell


Enrollment fee: $249

Overall Rank: 0/100 – not recommended

On the surface, being able to contact an attorney and get legal advice about any issue for as little at $17.95 a month seems ideal.

lug in to a commission structure and become an indepedent self-made entrepreneur – who wouldn’t like that?

But dig a little deeper and you’ll find that all is not as good as it seems…

I’m going to go ahead and assume that if you’re reading this it’s because you’re either deciding whether to join Legal Shield or you’ve already joined but you’re struggling to make any sales, get recruits and make any money.

In writing this review I want to find out if Legal Shield is a pyramid scheme, a scam or a legit business opportunity for someone looking to get out of the rat race and build a new life for themselves.

You’re going to see the flaws in the legal plans, the issues with the compensation plan and discover why this company has so many complains and law suits filed against them.

The truth is over 99% of people join Legal Shield fail to make any sales and sign up recruits and end up quitting the business altogether. Of those who are too stubborn to quit, 90% of them make less than $31.25 per month

Even if you’re great at sales, due to the many restrictions of the legal plans, 50% of customers cancel within 12 months which means you’ll have to hand the commissions you were paid back to the company.

This is definitely not a company you want to get involved with if you’re looking to make enough money to be able to quit your full-time job.

If you’re interested in turning that passion of yours into a thriving, profitable online business then check out my top rated training program which turns complete newbies into successful online entrepreneurs.

The best part is it’s free to start and there’s no selling or recruiting required.

My web businesses earn my $6,000+ per month around the clock and with the step-by-step training courses and awesome community support, there’s no reason why you can’t do the same.

Wanna Make Money Online But Tired Of Scams?

What we’ll cover in this Legal Shield review:

  • What is Legal Shield?
  • What is the Legal Shield business opportunity?
  • Is Legal Shield a pyramid scheme?
  • Should you become a Legal Shield associate?

What is Legal Shield?


Legal Shield founded by Harland Stonecipher in 1976.  Back then they were known as PrePaid Legal and only changed names recently as 2011 when they were bought by MidOcean Partners.

The rebranding was partly due to coming under new ownership but the opportunity to distance themselves from an enormous amount of customer complaints and law suits was very welcomed.

For $19.95 a month you can buy a legal plan that claims to give you 24/7 access to top-notch legal advice and assistance for whenever you need it most. For full plan details you can visit

what is legal shield about review

The problem is there are so many disqualifications and loopholes that people paying for the plan will find it hard to actually make use of it.

I have reviewed dozens of MLM companies for this blog and I am surprised at the sheer number of complaints on sites like Better Business Bureau and Pissed Consumer.

Reading through them it’s easy to what the common Legal Shield complaints are:

  • Too many disqualifications – if you’ve got any pre-existing conditions, getting divorced, have a criminal record, need a document reviewing that’s over 15 pages long, you’re not covered and will need to pay extra.
  • Inaccuracies and missspelled names on important documents like wills and user agreements.
  • It sounds like you’ve got a lawyer on hand 24/7. In reality the lawyer will only talk to you until he feels the subjects been covered. You are not in control.
  • If a lawyer feels like they’re going to lose, they will not take the case. This is not legal cover.

In most cases when you contact them with an issue you find out you are going to have to pay extra to have your issue resolved. It’s no wonder why 50% of customers cancel in the first 12 months!

Is this really something you can proudly promote to your friends and family?

legal shield scam complaints

What is the Legal Shield business opportunity?

Watch the 4 minute Legal Shield presentation video below and you’ll see a Bentley, a Ferrari, a countryside mansion, hot tubs, a home gym and movie theater.

You’ll also hear lots big and bold claims about how much money you can earn as a Legal Shield associate…

Like any multi-level marketing (MLM) company, Legal Shield has a qualifying levels you can climb if you make enough sales and sign up enough recruits.

legal shield commission structure

You can view the full compensation plan here (PDF), but basically there’s 4 main ways you can make money with Legal Shield:

1. Selling legal plans to those around you

You get paid 20% commission on any legal plan you sell yourself so when a customer signs up for $19.95 per month plan, you’ll get paid $3.99 commissions per month also.

2. Earning team commissions

This is where the recruiting comes in. An a Senior associate you can sponsor other associates into the business and make a percentage of everything they generate.

3. Renewal bonus

If a customer chooses to renew the 12 month recurring legal plan they for the first month of a new plan you earn a little extra on top of the usual commissions.

4. Extra bonuses

Every time you sign up a new customer or recruit you earn points which can be saved and used for things like contests and promotions, special trips, discounts and deals and ‘tax advantages’ (I don’t know what that is but hope it’s legal…!)

For a little more detail on the ways you can make money with Legal Shield take a look at this video:

You’ll need to pay the $149 enrollment fee to become a Legal Shield associate plus any License Application fee (varies state by state) which will enable you to promote their legal plans and recruit other independent business owners under you.

You may also be encouraged to attend conferences and events at $150 a pop, plus travel expenses.

Why it’s near impossible to make money with Legal Shield…

The owners at the top of the Legal Shield food chain really haven’t done a good job of making this a viable business opportunity; with this MLM you’ve got a bad product, a bad commission structure and record-breaking refund rates.

For example: when you read the fine print you’ll discover that if you don’t make 3 sales every 3 months in order to qualify for team commissions. Not only that but a failure to meet these requirements will mean you losing your entire team and future team commissions.

Yep – the profits will just get passed up the chain.

Another big problem you’ll find as an associate is that when you sign up new plan customer you’ll receive your 20% commissions for the full year.  Nearly 50% of all plans are cancelled and refunded before the 12 months is up, meaning Legal Shields will take money back from you.

Legal Shield pays an advance commission for the customer’s full one year service they sign up for. However, many cancel before that year is up and Legal Shield then takes back a portion of those commissions.

The hard truth is that hundreds of thousands of people have signed up as a Legal Shield associate only to quit after not making any money at all.

75% of associates fail to sell more than one plan.

In 2006 the New York Times ran a story on the decline of network marketing where they found Legal Shield (then known as Pre-Paid Legal) sold 500,000 plans in 2005 but they had 438,000+ associates selling those plans.

If you take a look at Legal Shield’s Earnings Disclosure (PDF) for 2015 (the most recent available online), you’ll see that the average associate with less than 2 years’ experience who made a grand total of $878 for the year.

Remember this isn’t including the 75% who couldn’t dupe anyone into buying a Legal Shield plan.


Because this is a hard sell! And the number of legal plans being sold year on year is going down.

With this product and this commission structure, do you really expect to make any serious money?

legal shield review scam or legit

Is Legal Shield a pyramid scheme?

is legal shield a pyramid scheme

There’s always a very fine line between an illegal pyramid scheme, a legit product-based pyramid scheme and an Multi-level marketing company.

Sometimes the only difference is a slightly stronger emphasis on products vs. recruiting.

Here’s a helpful definition from Wikipedia:

“A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services.

As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.”

So what about Legal Shields? Is it a pyramid scheme?

Well… they are based on a multi-level marketing company structure, often referred to as a network marketing or direct sales company and they do focus heavily on recruiting others into the system.

I’ll let you be the judge on that one.

What I do know is that as far as MLMs go, this is definitely not a business opportunity I would recommend. You going to have an impossible struggle to make any money at all.

Even if you keep pushing and break though, you’re going to earning a measley couple of hundred dollars a year. It’s a lot of stress, a lot of hassle, a lot of recruiing for very little reward (if any).

Should you become a Legal Shield Associate?

In my honest opinion I would recommend you stay away from this company. You will lose money, not make money through this as hundreds of thousands of people have already done.

With a substandard product and a terrible compensation plan designed for failure, the odds are stacked against you.

On the website you’re told:

“It’s up to you how you run your business. It’s all up to you to create your own business and go after your dreams.”

Here’s the deal:

As a Legal Shield associate you don’t own your own business.

As we’ve aready seen, don’t meet their sales criteria in any 3 month period and your whole team is taken away from you overnight.

The big wigs at the top of the triangular-shaped structure can adjust the commission structure any time they want to and there’s absolutely nothing you can do about it.

This is by far the biggest deal breaker for me – I don’t want to put in all that time, energy and money into building a downline only to lose it. I just can’t put any of my eggs in that basket.

As far as my financial future is concerned, I need to own it. It should be mine to control and I’m not about to had it over to someone I’ve never met.

This is why I started my first internet business back in 2014 and I’ve been making money online ever since.

I completely own them, I’m my own boss and the earning potential is limitless.

Oh and guess what?

There’s no face to face selling required. There’s no need to recruit and once you get your websites up and running, they’ll generate an income for you 365 days a year.

3 years ago I was a complete newbie, didn’t know anything about websites or affiliate marketing but I learned everything after accidentally stumbling across a free training course at Wealthy Affiliate.

I went from being tied to a call center job and living at my mum’s house to where I make more than $6,000 per month and now live in Thailand doing what I love.

If you like, you can read my online success story but basically I learned how you can build profitable websites based on any topic you’re interested in and make money. If I can do it you definitely can.

It’s not a get rich quick scheme and as with any type of business, you’ll need to put the work in upfront, but if you’re seriously looking for a legit way to make money online I think you’ll really like it.

Questions Or Thoughts Of Your Own?

Have you ever been a customer or Legal Shield associate? I’d love to hear your experience, good or bad! Join the discussion 🙂

Do you have any questions about anything I’ve covered? Be sure to ask below ad I’ll always do all I can to help you get started in the right direction.


  1. Aaron 07/20/2018
  2. Rose 10/02/2017
    • Simon Crowe 10/04/2017
  3. Teresa (TLC) 08/31/2017
    • Simon Crowe 08/31/2017

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