The Pre-Paid Legal Compensation Plan
Do you think your multi-level marketing company makes it hard for participants to earn a living? Well you haven’t seen Pre-Paid Legal! It’s next to impossible for an associate to earn a real living selling their “plans” to unsuspecting customers. Here are the numbers…
Below is a screenshot of the Pre-Paid Legal website as of April 8, 2008. The plan for selling memberships is simple. If you sell a membership that costs the customer $26 a month, they say you can be paid $50 to $182.5 for that membership. (Althoug the chart shows $25 is actually paid out to the lowest level associates, where most of the PPL reps sit.)
The money paid out is an advance against future commissions. So you might receive $50, but that is all you will get for that membership for the whole year.
But here’s the catch that they don’t tell you: 50% of people who buy PPL memberships cancel them within the first year. Chances are, you’ll have to pay back some of that advance. How lucrative is that?
This document gives more information about the commission structure, but still you see that unless you recruit, you’re going to be stuck at $25 per plan you sell. And that’s your payout for the entire year on that plan (while you cross your fingers and hope the person doesn’t cancel!).
I just noticed the MK site is allowing reviews again. Time for the IBCs to rate every product with five…
Withholding information that would have a significant factor in consultants making their “business” decisions is fraud. Plain and simple. Mary…
I only wish I knew MK reps to leak it to! That Ellen Bowman is a real piece of work.…
Such a good explanation, DJ! For those who know, is it even possible for a customer to order directly from…
Exactly ... and they would have let the old product stock decline as much as possible at full price BEFORE…