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I have had Pre-Paid Legal since 1995 and I can attest to the fact that
sometimes you get good legal advice and sometimes you get useless advice
from their lawyers. The attorney's that work for the law firm you are
assigned to in your state are not the cream of the crop. Still, I have used
their services on a regular basis and I wouldn't go without it.
Best Regards,
John Theo
> Folks:
>
> In my latest dealings with yet another salesman promising me something for
> nothing, I've been approached by a Pre-Paid Legal (NYSE:PPD)
> salesman. This is yet another annoying multi-level-marketing scheme, in
> this case to provide legal insurance to the masses.
>
> Naturally, I've been unable to get them to give me a simple, horsey and
> duckey, explanation of their business model. Mostly the pitch is that
> "everyone else except you is buying legal insurance, and it's terribly
> exciting." The only substantive info I've been able to get is that it's
> $26/month, and that approx 1/3 goes to the salesmen out in the MLM tree,
> 1/3 goes to corporate, and 1/3 goes to the law firm.
>
> My question: why would any law firm be willing to lay off all of PPD's
> insurance risk, for a mere $8.33/month? Sure, some customers will go
> months or years before using the service, but it wouldn't require much
> customer time, for a law firm to go broke.
>
> And if it's such a great business for the law firms, why don't they fire
> PPD and pool together to create their own competition to PPD?
>
> I just don't get how this business works. Any comments?
>
> Paul
>
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