Pre-paid Legal Services, Inc

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Case

Reference no. 9-100-037

Subject category: Finance, Accounting and Control

Authors: Paul M Healy (Harvard Business School); Jacob Cohen (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 1999

Version: 2 July 2003

Length: 14 pages

Data source: Published sources

Topics: Financial management; Accounting; Accounting policies; Sales compensation; Compensation

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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.

Location:

Oklahoma

Industry:

Insurance

Size:

USD150 million revenues