Prepaid Legal Review: Can You Trust This Legal Services Company?

Do you know that you can have unlimited access to over 50 independent local law firms for just about any legal matter?

With Prepaid Legal Services, your family or small business can reach a local law firm to consult about the legal side of your business. You can talk to lawyers about reviewing legal documents, auto and home mortgages, insurance policy claims and many more. If you are subscribed to Prepaid Legal Services, you can get legal assistance by phone for an affordable monthly subscription.

Pre-paid Legal Services Then and Now

Pre-paid Legal Services was founded on August 8, 1972 by Harland C. Stonecipher with headquarters in Ada, Oklahoma. After over three decades, the company now has over 1.5 million active subscribers in the United States and in Canada; providing them with specialized legal services. The company is publicly traded in the New York Stock Exchange so in my mind, there is no doubt they are serious and there is no Prepaid Legal scam.

The company uses multilevel marketing to promote their products and services which can be purchased individually or can also be used by owners of small businesses through payroll deduction.

Prepaid Legal Scam Or Just Sour Distributors?

As with any other businesses, Prepaid Legal Services also had its share of bad publicity. If you look up the company online, you will come across many statements and reviews claiming that there is a Prepaid Legal scam and that many people were allegedly cheated of their hard-earned money. The fact is that the multilevel marketing company gives advance commissions to their distributors in the assumption that the customers will keep their membership for at least a year. However, some customers decide to stop the service after only a few months. Naturally, the commissions will have to be returned to the company. I believe this is where the confusion come from.

The distributors who had to return some commissions to the company are the one claiming that they have been scammed by Prepaid Legal when they are just the one responsible for not building the business properly…

Is Pre-paid Legal Services Currently a Good MLM Business?

Doing research for this Prepaid Legal review, I found some staggering numbers (don’t quote me on those though). As of 2009, the company’s overall profit decreased by 85% and the number of existing distributors decreased by 17.8%. If you look at trends in the multilevel marketing industry, their numbers usually go up in times of financial crisis as more people look for other income streams. Taking this into consideration, you may find Pre-paid Legal declining figures discouraging. With that said, it is important to note that the service they are providing is different from other multilevel marketing companies.

If you think about it, it’s just like any other industry with periods of highs and lows but it doesn’t mean there is a Prepaid Legal scam. And there is no doubt that Pre-paid Legal Services is a legitimate multilevel marketing company that provides invaluable service to those who need it. This is especially true since hiring an attorney for a tax audit or remedying an insurance claim is very expensive.

You need to understand that your success depends on how hard you work on establishing your network and growing your business. Unless you invest time and effort, you won’t be seeing any returns in your investment. You need to widen your reach and leverage all the opportunities available to you.

Going Beyond a Prepaid Legal Review: How Do You Succeed With Prepaid Legal?

If you are seriously considering joining Prepaid Legal and build a successful business, then you must sponsor and train as many distributors as you can so you team can generate more commissions and duplicate fast. Understanding sales and marketing are the basics requirements.

Do you have plan for that? Where can you find all these new distributors? Can you only rely on your warm market? If you are not sure about all these questions and you clearly understand that you are going to run out of friends and family members pretty fast, then you must learn the game.

The answer is pretty simple. Your goal is to find hundreds and hundreds of people and point them to your system, to your business presentation. This is simple but not easy! Most likely, the best way to that is to use an attraction marketing system that will teach you how and allow you to funnel all the traffic to capture pages and training. If the system and marketing funnel are set up properly, it is possible to generate dozens of leads, day after day, 24/7/365 and generate upfront cash-flow for your business while building your team!

Short Sales: Can A Bank Make A Realtor Cut His Commission?

Can a bank force a real estate agent to reduce his commission on a short sale? When you talk to a bank negotiator reviewing a short sale package, one of the first things you’re likely to hear is “you’re going to have to cut your commission or closing fee”. This is to be expected from professional negotiators trained to use scare tactics in an attempt to minimize a bank’s losses. As of March 1, 2009, Fannie Mae loan servicers cannot require real estate brokers to reduce commissions below 6 percent as a condition for a short sale approval. Even without this recent rule change (which banks often ignore anyway), banks have no authority to alter the terms of a listing agreement, which is a binding legal contract.

Nobody can force an agent to lower his commission, but a bank rep can try to bully an agent or broker into lowering it voluntarily. Here are some of the phony reasons and intimidation tactics bank reps often cite or use to get an agent to lower his commission:

1. “The investor guidelines don’t allow us to pay more than X% for a commission.” Investor guidelines have no bearing on the legal contract a broker signs with a seller. The bank can’t cut your commission, but they have a huge incentive to try to scare you into doing it yourself.

2. “We’re not or our investor is not going to pay for that.” The reality is that in a short sale, the seller’s lender is not paying for anything. The seller’s lender actually receives a check at closing-the buyer or the buyer’s lender actually pays for everything.

3. “If you won’t lower your commission, then the seller will need to get another agent.” It’s up to the seller not the bank to choose an agent to represent them. If someone says this to you, turn the conversation around and ask the bank rep “Are you suggesting that the seller break the legally binding listing contract they signed?” They usually back off real fast.

Real estate is a people business and Realtors are accustomed to trying to make everyone happy. For this reason, agents frequently give in too quickly to unreasonable demands and banks know and exploit this tendency. When you stand up to the bank and calmly explain that under no circumstances are you going to lower your commission, the bank will normally give in. If the bank does not give in, tell them that they can continue paying the taxes and insurance on the property for a few more months or they can get this bad mortgage loan off their books by honoring the terms of your listing agreement.

Why should you accept a lower commission for doing more work? As soon as you start reducing the commission you are contractually owed, the bank is likely to ask you for a bigger concession later on. If the bank believes that they can take advantage of you, they will! Take your stand at the beginning of the negotiation. Banks usually back down-sometimes immediately, in other cases it may take some time. Regardless, as long as you have a good working relationship with your client, you can wait for the bank to come to its senses. Miraculously, banks tend to be much more cooperative and less likely to try to cut commissions the closer a property gets to a foreclosure sale, so stand your ground and get paid the amount that you have earned and are entitled to receive.

Agent’s Commission – How Much Should A Seller Pay?

When selling a house – is it practical for you to have it done through a real estate agent? If you want it sold fast, then the most logical thing to do is have it listed through an agent. These professional experts have experiences that can expedite the sale. But some are wary about employing an agent because of the commission outlay, an amount which could be quite material.

How much commission does a house seller have to pay to his agent? This has been a perennial question asked by a seller? Maybe there had been no straightforward answer given to this. All that has been divulged is that the agent’s commission is a percentage of the total contract price of the property sold. And that the commission is paid upon culmination of the transaction.

The truth about commission- there is no standard and legal commission rate. In reality, the setting of a fixed commission by real estate agencies is prohibited. This could be the reason why the amount of commission is not clear. Each agency has its own rate.

Real estate agencies can actually charge any commission they would want. It all depends on the people, the seller for that matter – how much this seller is willing to share to his or her agent from the proceeds of the sale. The commission can be very high as there is no ceiling. What keeps it down and reasonable is competition. Even in this setting of commission – the economic law of supply and demand seems to penetrate. The presence of many agents keeps the price down.

The commission is internal arrangement between the agency and the agents. The company can set a maximum and minimum rate for the agents and the latter are allowed to negotiate the commission with the clients. If the agent is under a broker, the commission has to be shared between them. Upon listing of the property, the agent already has stipulated the percentage of commission to be set upon sale. If this agent wants to lower this percentage, he has first to seek approval from his supervising broker. This can be done as there really is no fixed commission rate and the arrangement of rate is just internal.

But then there is one restriction – the agent can never divulge to other real estate agents the amount of commission to be put on top of the selling price. And in the same manner, real estate companies are not supposed to expose to any agent outside of the company their implemented rate. The commission earned on the sale is a split between the listing company or broker and the agent. The sharing between them is again a matter of agreement in-between.

Whatever is the amount of commission, a seller should know that he or she can haggle with it. The rate of commission, in this stiff competition, is negotiable. The seller can always search for better deal which will mean less expense for him or her.