MLM Car Bonus: My Opinion on Network Marketing Car Bonuses

by Chuck
(MD)

What should you know about a MLM Car Bonus? I’ve found that many network marketing companies now offer a car bonus to their top producers. Although each company handles it differently, in most cases a distributor can earn a MLM Car Bonus once she reaches a certain level in the compensation plan. This does not mean the distributor gets a car for free though. Most of the time, the company pays the distributor a set amount, or reimburses their monthly lease payment.

The danger of the MLM Car Bonus is two-fold. First and foremost, you typically have to go in debt to buy or lease a car, in order to receive the car bonus. If you are like me, and don’t believe in debt or having car payments, that could be a problem. In other words, most companies won't give you the bonus if you have a paid off car.

The second major problem of the MLM Car Bonus is that you must re-qualify each month to continue receiving the bonus. If you fail to re-qualify for the car bonus one month, you stop receiving it. Worst of all, you still have the lease or car payment to pay each month. Now, you’ve put yourself in a financial mess.

Truthfully, I’ve never been a fan of the MLM Car Bonus. If companies intend on keeping it as part of their compensation plan, they should reform their car bonus plan. They should simply pay their distributors the designated bonus amount, whether they have a car payment or not. The distributor should be able to spend the money how they want to, without having to go in debt to buy or lease a car.

On the other side of the coin, many people enjoy their MLM Car Bonus. I’ve known several distributors who received somewhere between $400 and $1000 each month for their car bonus. As a result, they drive a nice car, with a big monthly payment. They use the car to recruit new people and show off. In that respect, the car bonus is a powerful marketing tool for the distributors and the company.

My only advice to you is to do your homework first. Decide whether going into debt in order to receive a car bonus is a wise investment for your family. Many people are accustomed to having multiple car payments each month, so this might not be a big deal for most people. But, if you believe in debt free living like I do, I would recommend you proceed with caution.

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Dec 18, 2012
My Car Bonus Stopped and I am Stuck with a Big Payment
by: Alexis

Chuck,

Your article is spot on. Three years ago I qualified for a car bonus with my MLM Company. I went out and leased a new Mercedes, with a monthly car payment of $800.

For about a 18 months or so, everything was fine. My organization was growing and I re-qualified every single month. In November of 2011, my two biggest leaders decided to leave our company and join another company. They took most of their organization with them.

In just one month, I lost almost 85% of my "volume" and no longer qualified for the car bonus. Worst of all, I am stuck with an expensive lease payment I can longer afford. I used to love my car. Now I hate it!

I wish I would have read this article a few years back, because I never would have leased a new, expensive car. My best advice to any distributor is to stay out of debt, keep your expenses low, and bank as much of your MLM Income as you can. Don't waste it on fancy cars!

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