Case | HBS Case Collection | November 1999 (Revised July 2003)

Pre-Paid Legal Services, Inc.

by Paul M. Healy and Jacob Cohen

Abstract

Pre-Paid Legal Services' business model reveals two key issues--managing the sales force and sales growth and managing claims. Students analyze the economics of the business and consider how to measure firm performance, how to evaluate and reward the sales force, and what services to offer. The case also discusses a Fortune article criticizing Pre-Paid Legal's method of reporting sales force commissions. Students are asked to evaluate Fortune's analysis and to recommend potential responses by Pre-Paid Legal's management.

Keywords: Financial Management; Financial Strategy; Salesforce Management; Marketing Strategy; Accrual Accounting; Business Cycles; Forecasting and Prediction; Insurance; Business Growth and Maturation; Insurance Industry;

Citation:

Healy, Paul M., and Jacob Cohen. "Pre-Paid Legal Services, Inc." Harvard Business School Case 100-037, November 1999. (Revised July 2003.)