Policies and Procedures

As is customary with MLM Distributor Applications, there are company Policies and Procedures on the back of the Pre-Paid Legal Associate Application. Yes, I'm that 1 in a 100 person that actually reads them, although every applicant signs that they have read them. One might even draw the cynical conclusion that if you have an Applicant read the Policies and Procedures you don't want to work with them. Too analytical!

Go figure...Pre-Paid Legal's P & P are full of more legalese than most I have read, as I guess they have more access to attorneys than most MLMs. Regardless, I did find one clause to be unusual and a bit disturbing:

13) Advance commissions for sales produced by the Associate or in the Associate's downline shall be paid only when sales of PPLSI products/services have occurred, and shall be earned only as fees on PPLSI products/services are received by PPLSI. PPLSI reserves the right to change commission advance rates, adjust advances for membership cancellations, pay commissions on as as-earned basis or to place commissions on hold in its sole discretion. Any sums advanced to the Associate shall create a debit balance which will be a loan to the Associate from PPLSI. This balance will normally be repaid by withholding earned commissions, including renewals, but the Associate is ultimately liable for repayment upon demand by PPLSI. An Associate may request commissions be paid on less than a 100% advance basis. Advance commissions are made in connection with the business of selling PPLSI products or services and the Associate agrees that advance commissions are for business purposes and are not a loan for the Associate's personal, family or household purposes. (Bolding added.)

Well, the last line of that clause helps me make a decision! I'll go with the option, which must be in writing, to only be paid commissions as they are earned.

Smart move for anyone else? Probably not, as I'm sure that over 90% of the active Associates just spend their advanced, unearned commissions on whatever they please. And it also means that I might be losing out on a source of income that takes advantage of the huge 3-6 month fallout rate in most MLMs. More next time on the 1 year versus 3 year Earnings Plan.