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Prepaid Legal Sell
Legal Insurance |
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PrePaid Legal (PPL)
is a company that sells legal insurance, similar to health
insurance, to anyone who would enjoy having an attorney on
retainer without having to pay the high retainer
fees. The monthly premium for PrePaid Legal
insurance starts at $16 per month (although the $26 a
month plan is the most popular), and there is no long-term
contract. As long as a member pays his monthly dues,
he has same-day phone access to a local attorney who can
help with anything from signing a contract to fighting a
speeding ticket to answering legal questions about car
warranties. If the issue is more complicated,
requires in-depth research, document preparation or
representation in court, then hourly rates kick in but at
a discount so that the member is still paying less than it
would cost to hire an attorney on his own.
PrePaid Legal sell its insurance plan through
Independent Associates (it does no company advertising)
and pays them for each legal membership they sell, as
well as for memberships sold by the associates
underneath them. This is typically known as
"multilevel marketing," but it is possible to
earn a good income without a downline of recruits since
associates are paid a good rate for the memberships they
sell. Some associates, though, recruit downlines
and do little selling themselves; others do all the
selling themselves.
PrePaid Legal is a NYSE company and was founded in 1972. Currently 1.5 million U.S. families have a PrePaid Legal
membership, and the company has experienced 7% growth in
memberships since 2002. The start-up cost to become a PPL
associate is $49 and includes sales aids and materials (brochures,
applications, etc.), training (which is quite good) and support
from the person under whom you signed up and from the main office
in Oklahoma. The company stresses that sales experience is
not necessary to become an associate.
In a nutshell selling the legal insurance plan entails showing
the PPL plans to prospective buyers, signing them up and sending
the enrollment form to the corporate office. There are
several plans, from individual memberships (the most popular plan)
to employee benefits plans to specialty plans (home based business
rider, commercial drivers' plan, etc.) so that the prospective
buying audience is large.
PrePaid Legal pays its sales associates daily via direct
deposit for all sales made that day and pays up to $182.50 for
each $26 sale (there is also a $10 application fee). The
amount paid depends on the level (associate, senior associate,
manager, director, etc.) a sales associate has attained, but this
high rate is possible because PPL pays commissions advanced on a
year's schedule. The downside of this is if the member you
signed up cancels within a year, pro-rated chargebacks are
deducted from your pay. While the advance commissions are
tempting, and PPL does have a high membership retention rate,
chargebacks can add up quickly. Sometimes it is better to be
paid less each month, month after month, rather than upfront for a
year's membership. Once a member signs up and continues his
membership month after month, residual compensation can add up.
A fast way to build a PPL membership base as an associate is to
buy legal leads. PPL would rather you try to sell insurance
memberships to family and friends, but many associates buy names
and numbers of people seeking immediate legal help. These
generally sell for $4 to $6 each. With a 15% membership
sales rate, which is about average, solid profits from selling
this legal insurance product are possible.
Contact PrePaid Legal at www.prepaidlegal.com.
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