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Letters to Tim
Prepaid Legal

Tim,

I have a friend who has been approached by representatives of one prepaid legal website. After paying a fee of $150-$250 (this poor guy really can't afford it) my friend will be eligible to market these services to the public.

I think it sounds like a 'pyramid' situation.

Can you give me your honest opinion. Out of curiosity, is this just one big company or many because they all have the same amount of (N.Y.S.E) New York Stock Exchange time behind them?!

Wendy

Tim's Answer

Wendy,

A pyramid scam is an endless chain where only the people at the top make any money and is doomed to fail as you would have to recruit everyone on the planet. When you run out of people, the pyramid collapses.

The program that you refer to is not a pyramid as it has a limit on the levels of participation. This program is MLM or Multi Level Marketing. I personally dislike most MLM companies as very few make any real money in proportion to the time and the money devoted to recruiting their down line, additionally the product and/or service is generally higher in cost to the end consumer to pay all of the levels of compensation.

The program Prepaid legal appears to have a number of problems in the US and Canada. They include Class Action Law Suits, Sanctions from the FTC, State Bar Associations and State Governments.

The links at the bottom of this letter will help your friend to make a more informed decision on whether to participate. I personally would not recommend this program to anyone.

Tim

Pre-Paid Legal Services Links to more Info
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