Pre-Paid legal Services, Inc.
Pre-Paid Legal Services (PPLS) marketed its memberships through a multi-level program that encouraged buyers to become salespeople. Members that sought to become sales associates paid the company a fee of $65 to cover the cost of training materials, training meetings, and home office support services. Registered sales associates sold the company's services to their friends and business associates. The most successful even recruited their sales force. Sales associates were compensated on a commission basis. Prior to 1995, associates that signed up a new member received a commission of…
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