Evaluating The Network Marketing Industry, Part 2

Aug 18, 2011, Network Marketing

What Company Fits All These Considerations The Best? If you read my previous post, Evaluating The Network Marketing Industry, Part 1, you know we discussed what factors we should take into consideration in evaluating the right company to align ourselves with in building our own business. Now, after reviewing these criteria, you should be able […]

What Company Fits All These Considerations The Best?

If you read my previous post, Evaluating The Network Marketing Industry, Part 1, you know we discussed what factors we should take into consideration in evaluating the right company to align ourselves with in building our own business.

Now, after reviewing these criteria, you should be able to analyze any company you take a look at, to see if it will be a good company for you to align yourself with.  But you may be wondering, “Brent, can you just tell me what company you believe is the best?”

As I’ve been involved in network marketing for over 7 years, and being a student of the industry, I’ve seen companies come and go, surge and subside, in each niche.  I’ve seen whole niches rise and fall, like fads; first it was nutritional health, then several years back it was travel, then a slough of juice companies just a couple years ago, and now many are focusing on de-regulated energy…but they all faded almost as quickly as they first exploded in popularity.

Through my experience and studying, I’ve found there is one company that fits all these considerations the best: Pre-Paid Legal Services.

Let’s see how the facts about Pre-Paid Legal stack up to the factors we have to evaluate a company.

Age And State Of The Company: Pre-Paid Legal has withstood the test of time of 39+ years. You’ll also get peace of mind from learning that the regulatory agencies have reviewed the company’s model, and the New York Stock Exchange (NYSE) deemed it fit to be a public company on the most prestigious stock exchange in the world.

The company has strong financial stats, with cash reserves, and once you get your Pre-Paid Legal business started, that should let you sleep easily knowing your company and your check would be there the next day.

The company performed so well on the NYSE, and provided such great returns for investors, that it caught the attention of an investment firm, MidOcean, and in 2011 they spent over $650 million to purchase the company, so they can put to use their own experience in running other network marketing companies to accelerate the growth of Pre-Paid Legal, and capitalize on more of its potential market.

Pre-Paid Legal’s Product Is Definitely A “Non Me-Too”: The barrier of entry is enormous, for another company to copy what Pre-Paid Legal has in an established, closed-panel, attorney provider system; thus no real competition exists. For a start-up to pull together the top law firms in the U.S. and Canada to agree to provide their services (before even having a large customer base to draw monthly fees from), and to create a big enough customer base from which the fees can lure the law firms, is nearly impossible…this is the ultimate “Catch-22” that has kept competition out for three decades.

Pre-Paid Legal’s Product Is Also “Stand-Alone”: Statistics show that even if a marketing Associate (rep, distributor) decides not to sell anymore, a majority retain the product (offered as a monthly membership). This demonstrates that they value the product first and foremost as a consumer, and not just for the promise of making money selling the services.

Additionally, over 40,000 companies actually offer Pre-Paid Legal as one of their employee benefits.  Now that’s definitely stand-alone,  no business opportunity involved there whatsoever.  Additionally that adds some great credibility to the validity of the product.

For some people, selling “lotions, potions, or notions” may be of no interest to them.  But Pre-Paid Legal has a unique, professional product that even professionals are eager to share with others.  No need to “put your pride in your back pocket” to talk to people about the “same ole” products.

The Compensation Plan: There really is no other compensation plan in the industry that pays like PPL does. Because of their track record, retention rates (how many people keep the service month after month, and for how long), and customer base, Pre-Paid Legal can afford to pay sizable up-front advanced commissions (which are paid DAILY by direct deposits), as well as residual income for the life of the memberships sold (commissions paid over and over, every month a customer keeps the product after the first year).

On a $36 membership sale, instead of getting paid an industry norm of a few bucks or maybe $5, Pre-Paid Legal will pay from $69 up to $252 per $36 sale…because they’re able to advance to you a commission in advance for the whole year, expecting that the customer will keep the plan for the whole year, because on average about 70%!  The company pays out well over half of the revenue in commissions!

In most network marketing opportunities you would have to produce from $6,000 to $10,000 in sales volume to earn $1000 in commissions for yourself.  With PPL, a person can earn $1000 from as little as $1,700 or so in volume!  Because of this, new reps earn that meaningful money we were talking about more easily and quickly, helping them feel successful and sticking around longer, making the churn lower.

The Pre-Paid Legal comp plan is what is called a “Differential Unilevel”, meaning a person can build as wide and as deep as desired, while getting paid infinitely deep on downline sales.  PPL has added money to the compensation plan at all levels 7 times in the last 10 years. Few companies add money without taking it away from somewhere else.  But Pre-Paid Legal can afford to add more to the pot.

Many network marketers confuse RESIDUAL income with PASSIVE income. Passive income is what you’ll earn on the overrides from the sales you organization makes, even if you quit; but your team must keep selling to make the passive income.  True residual income is earned from the products sold even if every single person in your organization quit selling new products/services.  See the difference?

Because Pre-Paid Legal offers a valuable, needed membership that a large percentage of customers keep long after they initially purchased it, you can count on making recurring RESIDUAL income long into the future.

Market Timing for Pre-Paid Legal is perfect. The fact that is has been around for a long time is really a very good thing.  You won’t have to worry about the stability of the company and your future with it as you would with a start-up company under 5 years old. Pre-Paid Legal has paid out over $1.2 Billion in commissions in just the last 10 years, but they’ve paid out that much money just in reaching 3% market penetration!

With MidOcean taking over, and their experience in greatly increasing the market share of other network marketing companies, they look to be adding jet fuel to Pre-Paid Legal’s fire as they implement market branding efforts in the next month or so.

That means, there is no better time than now for you to start your Pre-Paid Legal Business: ahead of the wave of people who are going to be flocking to their business.  And as the economy continues to crumble, more people will realize the value in working for themselves and building their own business.  So position yourself to help those people and profit.

You and I both agree, network marketing is the right industry, now choose the right company and commit to the process and the journey to your success. Just stop wasting time with the wrong company, and quit jumping from sinking ship to sinking  ship.

Choose correctly (PPL!), work hard, follow our leadership, and get paid for life (truly)!

Click here to apply to work with me on my Pre-Paid Legal Team.

Leave a message