The Truth of Car Bonuses in the MLM industry (aka “The Good, Bad and the Ugly Truth Behind that Beemer”)!

MLM Car Bonuses - Fair or Unfair?
MLM Car Bonus

There are many companies out there that offer car bonuses in the home-based business/network/multi-level marketing industry.  I’ve seen them in many different forms, and some just disguise them better than others. 

Don’t be fooled by all of the “fancy words” or “smoke and mirrors” with car bonuses.  I have many concerns with how some companies will reward (and “penalize” in some ways when refused) you for it:

1)  What is going to happen, hypothetically speaking, when you (or someone in your organization) loses their monthly qualification for their car payment?  Where do you think that payment is going to come from?  You’re probably right if you said “right out of my own pocket”!  I had a chat with a good friend of mine that’s in another company that has a car bonus.  He told me that he has to spend about a week out of the month calling his downline to make sure that they keep their volumes up so everybody can “stay qualified”.  One of his people fell below their qualifications, and lost their bonus money and status.  Ouch!
2)  What happens if your team falls apart or, worse yet, your company goes bankrupt?  You’re stuck in a long-term lease for a car that you can no longer afford.  Double Ouch!
3)  This is not really a “free” car, either.  Your ability to get that car also is very dependent on your credit rating.  If you have a “less than favourable” credit rating, your chances of driving off the lot with that new car is “slim to none”.
4)  If you refuse to take that car bonus, some companies will still give you that car bonus, but only up to half of the value of the original car bonus.  IMHO, not a very fair deal for the distributor that doesn’t want that “fancy car”.
5)  What happens when you have to maintain the car (i.e. oil changes, mechanical or electrical issues, etc.)?  Who pays for that?  Not the company that you are promoting!  Unless it’s part of the leasing contract, it will probably come out of your pocket.

My suggestion to these companies is to eliminate this “incentive”, as it only leads to a lot of hype.  Our industry already has too much of it!  Spread it around to more of the “Average Joes”.  An extra $50-100 in their wallets will go a long way to make them (and, in turn, the company) more productive.  A happy distributor is one who will stay longer with that company!

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    2 thoughts on “The Truth of Car Bonuses in the MLM industry (aka “The Good, Bad and the Ugly Truth Behind that Beemer”)!

    1. Greg,

      Thank you for posting these concerns. I have some rebuttles, however. I don’t know who you are or what you do, but I would be very interested in knowing. For the first one, the thing that needs to be understood is that the company is not giving you a car. It is giving an incentive to stay at a certain rank. It’s as if you were saying that YOU BOUGHT a car and the company will pay for the monthly payments. The deal is that they will provide this incentive if you stay at the rank. If you are coming up short, you should be extremely motivated to push your team and makeverything sure you’you’re doing things the right way. Otherwise, I would recommend not buying the car so soon.

      2 I’m positive that there is some kind of agreement on the papers that says that the car must be either given up to the recipient or it must be taken back or given some kind of leeway in case the company collapses. Have aNY proof saying otherwise?

      3 I would like to see your proof for this as well; I know several college students who had thousands of dollars in debt get their car. I’d be more concerned about the company’s credit rating, and that’s still just pointless.

      4 I don’t understand. Are you saying they give you half a car? Or that they will only pay for a different car up to half the value? In that case, it is totally fair. The company made a deal with the auto shop to be exclusive to their car and make it their flagship vehicle. It’s probably what made them agree to give it to you without a credit rating.

      5 Well, gee, Greg, if your job gave you a car for your hard work do you really think they’ll pay for your gas and oil either? Maybe Premium gas so your car runs “like it was meant to?” That’s just a moot point, period. You pay for your car’s maintenance that you already have, it’s just asking if you’d rather have a new popular model rather than a used 20 year old hatchback. Who expects a company to pay for maintenance on a new vehicle?

      All impressions aside, I really would like to hear your feedback. Thanks for posting and reading.

    2. Here’s my reply to some of your questions:

      1) I understand that you are not “buying” the car.

      2) There is no “agreement” here if the company collapses. That is never done, as the lease is between the car company (i.e. BMW) & the lessee (the distributor). If the company goes broke, they will still be stuck with the car every time!

      3) I have seen many people in a certain weight loss company (that starts with “V” and ends in “s”) that have lost their cars because they have lost qualification for several months in a row, and they could not afford to pay for it anymore. Then, that little “ding” goes on their credit rating!

      4) I’m not saying that. I thought that I stated it pretty clear here. If they choose not to take the car, and take the cash from the company, their so-called “car payment” would be cut in half. Sometimes, due to a bad financial situation (or otherwise), they may not be able to get that car. Not particularly fair to “ding” them and chop that payment in half (for something that they’ve earned) because of that.

      5) I understand that you have to pay for the maintenance. That’s real issue, I just had to tell everybody that so they know about it.

      I hope I’ve answered your questions satisfactorily.


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