Is LegalShield a Pyramid Scheme

Is LegalShield a Pyramid Scheme? Read This and Find Out!

We have all encountered different scams in our lifetime. Some are quite witty, while some are quite ridiculous that only the gullible fall for them.

However, some scams push the limits by being way too good to be true, like pyramid schemes. Pyramid schemes are illegal.

Today we will be looking at a company called LegalShield. Is LegalShield a Pyramid Scheme? You will know as you read on.

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LegalShield is a multi-level marketing company founded by Harland Stonecipher in 1972.

LegalShield is a company that sells legal service products in the United States and Canada. The company markets pre-paid legal service plans, with a network of independent provider attorneys.

The plans are sold as company benefits or directly through their multi-level marketing associates. The areas covered by the personal legal plans are:

  • consumer finance issues
  • traffic violations and accidents
  • estate planning
  • landlord / tenant
  • family law and divorce
  • real estate

The company is currently based in Ada, Oklahoma, United States.

How to become a LegalShield associate

To become a LegalShield associate, go to this link.

These are the steps you need to follow to ensure a smoother application process:

  1. Using the link above, find a sponsor by entering your zip code.
  2. Once you have found one, you will be redirected to their personal website.
  3. Pick your starter plan. You are required to pay the $99 associate start-up fee.
  4. Enter your personal information.
  5. Enter your payment information.
  6. Review your order.
  7. Congratulations, you are now on your way to becoming a LegalShield associate.

LegalShield has quite a flexible sales model. According to their website, selling is made simple by these three steps:

  1. Make personal sales. You are welcome to remain as a solo associate if you feel like it is what suits you best.
  2. Put together a team. You can build a team of associates to earn commissions.
  3. Collect residual income. You can collect additional income for each membership that lasts over a year.

LegalShield Enrollment Plans

LegalShield has the following starter plans to choose from:

Legal Plan - starts at $24.95/month. Extras include:

  • Gun Owners Supplement (for 18+ only) - $12.95/month.
  • Home Business Supplement - $9.95/month
  • Trial Defense Supplement - $9.95/month

Small Business Plan - starts at $39.00/month. Extras include:

  • Small Biz 10 (10 or fewer employees) - $39.00/month
  • Small Biz 100 (100 or fewer employees) - $149.00/month
  • Small Biz 50 (50 or fewer employees) - $89.00/month

Commercial Driver Plan - $32.95/month

Identity Theft Plan - starts at $9.95/month. Extras include:

  • IDShield Family - $24.05/month
  • IDShield Individual - $9.95/month
  • IDShield Three Bureau Family - $29.95/month
  • IDShield Three Bureau Individual - $14.95/month

Associate Start-up - $99.00 (one time fee). You are required to purchase this.

What are LegalShield associate levels?

There are 7 total ranks in LegalShield. Each rank requires the member to reach a certain sales quota on a monthly basis.

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

LegalShield Compensation Plan

LegalShield's compensation plan can be accessed and viewed through this link.

There are four primary ways to make money with LegalShield.

  1. Personal sales. Associates earn a certain percentage from memberships they sell.
  2. Sales by associates on your team. Once you sponsor another associate, you can earn money once they make a sale.
  3. Renewals. When a membership gets renewed, associates earn money for each month the membership continues to be active.
  4. Bonuses. Associates can earn bonuses when they reach a certain quota of sales in a given period.

I found a video on LegalShield's official YouTube channel that could explain the compensation plan better. You can watch it below.

LegalShield Pros and Cons


  • Company has been around for some time
  • Membership includes exclusive training, tools, and support to help you with your business
  • Demand for affordable legal services are quite high


  • No free trial
  • Plans have limits
  • Poor customer service

Do LegalShield associates make money?

According to LegalShield's 2018 Income Disclosure, average annual earnings for associates with 0-2 years experience who made at least one sale were $504.

This is quite low, especially if you are someone who has been in the company for 2 years. That is roughly $202 per year. This might be one of the lowest paying MLMs I know of.

$202 is roughly $16.83 per month. Even as a part-time job, your earnings are measly change compared to other part-time positions. That isn't even equal to minimum wage.

This is the reality of most MLMs. They oversell their business opportunities, saying things like you can do the opportunity full-time. However, from what the data has given us, the reality is anything but that.

The only consolation for this MLM is that you do not have any stocks you need to sell before you can order another batch. However, your time is the one being wasted for earnings this small.

I truly believe that there are better ways to make money online than joining MLM companies such as LegalShield and Shaklee. However, the data also shows us that there are people earning big, which means that it is possible to do the same.

I believe that as long as you get the proper training and support, you can make this business work.

LegalShield reviews

LegalShield has its own fair share of negative reviews.

In this post, a Reddit user shared the story of a LegalShield associate who has annoyed every member of their charity organization. It turns out that the associate isn't even making money and just depending on his wife for everything, until she divorced him.

In this one, a Reddit user shared their experience of being preyed on by a LegalShield associate who kept insisting him to sign up for the company. They immediately saw all the red flags of the company being similar to a pyramid scheme, and they were able to decline.

Is LegalShield legit?

Yes, LegalShield is a legit company that has been in business for many years now.

However, MLMs always get bashed for the following reasons:

  • Team leaders insist more on recruiting than selling products
  • Members cannot sell products due to lack of training from their leaders

The good thing with LegalShield is you have the option to work solo. Some people are just not comfortable with socializing and meeting up with potential recruits.

Is LegalShield a Pyramid Scheme?

First of all, let's look at what a Pyramid Scheme is:

"A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products." Wikipedia


As LegalShield associates make money both by recruiting other team members AND by selling services to customers, it is safe to say that LegalShield is not a Pyramid Scheme!

How to succeed with LegalShield and any other online business

MLMs tend to get a bad reputation because only a few people succeed in them.

This is because of leaders who do not train their members properly, and only use them to recruit more members so they could earn that easy commission money. What is the point of having all these products but not training your members to sell them?

Here is the thing... You cannot force the people you know to join your MLM if they are not interested with the company or its products. You will just end up straining your relationships with them or pushing them away.

You need to find your target market, since they are the people willing to spend money and do purchases to sustain your business. Your target market is one of your main keys to success.

There are two popular ways to do this:

  1. Set up paid adverts that target a specific audience within your niche
  2. Find a way to generate free organic traffic that can be turned into sales

The first option is very expensive and if you are just starting out, then I recommend you scrap that for now.

The second one is completely doable and inexpensive, in fact, you can even get the right tools and information for FREE.

In this FREE Make Money Online Course, you will learn a number of things that can help you succeed with LegalShield and any other similar businesses.

By the end of the course, you will have the following knowledge:

  • How to choose your niche or better leverage your existing one
  • How to build a website in just a few clicks and have your own branding
  • How to write content that can attract thousands of visitors who ACTUALLY want to buy your products

and more!

Click on the red button below to get started 🙂

I hope you enjoyed reading my "Is LegalShield a Pyramid Scheme?" review!

Feel free to let me know your thoughts by leaving a comment below 🙂