LegalShield Review: Pyramid Scheme or Scam?

Today we will be reviewing a company called LegalShield. Is LegalShield a pyramid scheme or scam? Find out in this LegalShield review.

You might have stumbled into this review because someone you know has mentioned LegalShield to you.

Or, probably someone in social media whom you haven’t seen in years was trying to recruit you.

It is most likely the latter, since LegalShield is no different from other MLMs.

I am not affiliated with LegalShield.

If you pay a little attention to what hunbots try to sell to you, chances are you have an idea of what a multi-level marketing company is.

It resembles a pyramid scheme in a way, since MLMs also focus on recruiting.

The only difference with a pyramid scheme and an MLM is that MLMs actually have products to sell, which sort of puts them in a gray area.

They are neither guilty or not guilty of being a pyramid scheme.

A pyramid scheme is illegal, and they are pretty easy to spot since they have no products to sell.

MLMs, on the other hand, do have products but their main focus is still on recruiting.

Being able to tell these two apart can be quite confusing at times, since some MLMs really push recruiting more than anything else.

The best way for you to know is to do your own research, and consult reviews, like this one.

In this LegalShield review, I will be providing information about the company, its products, and how you can make money with it.

Hopefully this LegalShield review can help you decide whether you want to sign up for the company or not.

Before we proceed with the LegalShield review, check out my #1 recommendation to making money online after reviewing 300+ MLM companies.

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What is LegalShield?

LegalShield is a multi-level marketing company that offers legal services.

This company was founded by Harland Stonecipher in 1972.

LegalShield’s selling point is that its legal services are cheaper than those in actual law firms.

You can know more about LegalShield’s history by watching this video.

The company markets its services through its group of independent business owners, which are called LegalShield associates.

LegalShield Review - LegalShield services

LegalShield provides services for the following, along with many others:

  • Estate Planning
  • Consumer Finance
  • Real Estate
  • Employment
  • Home business
  • Renters
  • Landlords
  • Traffic & Accidents
  • Family Law
  • Trial defense
  • Commercial Drivers
  • Ride Share & Delivery
  • Gun Owners

LegalShield has the following plans available:

  • Personal Legal Plan
  • Small Business Legal Plan
  • Commercial Driver Plan
  • Identity Theft Plan

You can choose which plan you would like according to your needs.

The company is currently based in Oklahoma, United States.

Is LegalShield a Pyramid Scheme?

Since LegalShield members earn money both by selling services and recruiting new members, then it is safe to say that LegalShield is not a pyramid scheme.

However, the company still falls short of being a good one to invest in.

Its focus is still on recruiting instead of properly training their associates for sales and marketing.

Their services may be legitimate, but that does not really matter if the company resembles a pyramid scheme.

The focus on recruiting is to blame for this.

Pyramid scheme vs MLM

Like Trades of Hope, Atomy, and 4Life, LegalShield is not a pyramid scheme.

High Failure Ratio

You can view LegalShield’s income disclosure statement here.

Now, let us wrap our head around the data they have given us.

According to LegalShield’s income disclosure statement, associates who have been in the company for 1-2 years earned an average of $504 on 2018.

76% of all associates made less than $1,000 on the very same year.

What is this data trying to tell us?

It is telling us that it would take more than two years for you to actually make a decent income with LegalShield.

Also, just look at the earnings again. $504 for a single year?

Imagine having to work so hard for that whole year and only earning that measly amount.

Basically, every month, you earn $42. That is outrageous.

Having to do all that hard work of selling, marketing, and recruiting should warrant to more than that amount.

I do not recommend LegalShield as a full-time source of income.

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Is LegalShield a Scam?

No, LegalShield is not a scam. However, you may want to watch this video so you can be more informed about the facts that LegalShield does not tell you.

Even though the income disclosure presented to us shows that people earn as little as that amount, the company is still there, which means that people do earn money from it.

If you look at that perspective, the company has been around for quite awhile, so maybe it is safe to sign up for it? Nah. I still do not recommend it.

How to Make Money from LegalShield

LegalShield gives you two primary ways to make money.

  1. Selling services. With every sale you make, you earn a profit.
  2. Recruiting members. You can gain commissions from the sales of people that you recruit to your downline.

As usual, recruiting is more emphasized here compared to sales.

Do not expect to be successful in LegalShield if you have no plans of recruiting people.

How to Join LegalShield

LegalShield’s website does not really give us enough information on how the registration process works, but you may check this link.

It turns out that you need to find another associate to be able to be guided to the registration process.

The website can help you with this step.

Since registrations are often straightforward, I think you will have no problem with it whatsoever.

Things I Like in LegalShield

Established Company

MLM companies usually do not last, because, well, businesses based from pyramid schemes are not meant to last.

MLMs are already designed for downfall as soon as they launch.

That aside, LegalShield clearly outlived its expected lifespan of 1 to 3 years. It has been here since 1972 and that is quite a feat to achieve.

Anyway, this should not assure you that your investment is safe in their hands.

Demand for Services

LegalShield Review - Expensive lawyers

judge money

Lawyers are pretty expensive.

It would not surprise me as to why law schools are also expensive.

You are basically investing in a profession that is stable, as the need for legal services are pretty in-demand in any day of the year.

Having to consult a lawyer for something petty is quite a waste, but there are times that call for that.

This is where LegalShield comes in.

LegalShield sells plans depending on your needs, so you only have to pay a fixed amount per month.

No more need to spend big bucks on one visit to a lawyer.

Legal services are often pretty expensive, so a cheaper alternative like LegalShield is very appreciated.

The services it provides are pretty much the same as regular law firms.

Paying for legal services for a small monthly fee is much cheaper and convenient compared to going to a regular law firm.

If you have a business that needs regular legal assistance, then LegalShield is for you.

The monthly fees for their plans are also pretty cheap, so I think the services are worth it.

No Inventory Needed

LegalShield Review - Unsold inventory

Do not worry, your house would not look like this.

Since LegalShield only sells services, you have no inventory that you need to hold on to.

This makes this MLM ideal compared to other MLMs, since you can really work at your own pace without needing to worry about how many products you need to sell.

Things I Dislike in LegalShield

Emphasis on Recruitment

Well, this one is pretty unavoidable. LegalShield is an MLM, after all.

Anyway, even if though there are a lot of good things about LegalShield, this is still the dealbreaker.

I doubt that LegalShield will provide you with proper training, so you will have to resort to recruitment in order to earn money.

If you look back at the income disclosure statement from earlier, it clearly shows that people fail to make as much sales as expected.

It looks like you cannot escape from this if you want to succeed in LegalShield.

You need to recruit people in your downline and hope that they make sales so you can earn commissions.

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LegalShield Compensation Plan

You can view LegalShield’s compensation plan here.

Here we are again with another compensation plan full of tables and charts, as if that could help us understand what they want to teach.

Anyway, I would not waste my time having to understand such a complicated document. I suggest that you just watch this video instead.

This video is a crash course on the compensation plan. You will find everything you need about earning money from LegalShield here.

LegalShield Ranks

There are 7 total ranks that you can reach in LegalShield. To advance to the next rank, members should meet specific requirements and maintain them on a monthly basis.

  1. Associate
  2. Sr. Associate
  3. Manager
  4. Sr. Manager
  5. Director
  6. Sr. Director
  7. Executive Director

10 Shocking MLM Statistics That You Need To Know!

MLM stats
  • Almost 99% participants of all multi-level marketing companies lose money, according to the FTC.
  • There are 38% more chances of you profiting from your own any kind of small business than joining these MLMs.
  • Success rate of an online business, which will give you financial and time freedom, is 20% more than joining MLMs for making money.
  • The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from MLMs.
  • According to the AARP foundation, 47% distributors of all MLMs lose their money. Apart from this, 27% do not make a single penny.
  • In the remaining 26% that actually make money, 53% of them make less than $5000/year.
  • 39% of those 53%, who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
  • Forget about building a long term business with MLMs, because 50% of all MLMs participants quit within one year.
  • 75% people that joined MLMs say that they will never again join any kind of MLM.
  • A poll was conducted in 2018 among 1050 MLM distributors and it was concluded that most of them made 70 cents an hour and 20% of them did not make a sale. 60% of them made less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their MLM involvements.


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Final Verdict ? LegalShield

On the surface, investing in LegalShield seems like a good idea.

However, once you unravel how the company operates, you get why people often fail in this, even if all the sales videos and advertisements promise a great future ahead of you.

You should not be easily swayed by advertisements since these MLMs are pretty good with words, and they will undoubtedly sugarcoat information if it means that people will invest in them.

Also, you can see from this review that there are a lot of good things that I like about LegalShield.

LegalShield’s niche is not oversaturated, unlike health supplements, clothing, and beauty MLMs. Also, the services they provide are really needed by people.

I mean, it is pretty rare for ordinary people to get in big legal trouble, but you will need to see a lawyer at least once in your life.

However, let us look at some facts before we conclude this review.

I think that LegalShield is good only if you are a consumer and not an associate.

To be honest, I think LegalShield would have worked and would be more recognized if they did not employ the MLM tactic.

It would be great if you can just go to LegalShield’s website and purchase the plans there, instead of having to go to a LegalShield associate.

To be honest, these MLMs do not really provide adequate training to their associates.

Why would I choose LegalShield’s inexperienced associate? What if they make a mistake?

Another thing is, why would I need to trust someone who hardly has any knowledge on law?

It does not make sense.

LegalShield’s business would have been more successful if they are not an MLM.

Being able to provide cheap legal service to people who need is certainly a good business model.

But no, they chose to be greedy and became an MLM instead. What a bummer.

That?s it for my LegalShield review.

I do not recommend MLMs. but if you want to make money online, you should check out my #1 recommendation to making money online after reviewing 300+ MLM companies.

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