MLM Car Bonus: What You Should Know

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 they reach 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 each month, 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 (not that I’ve found anyway).

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 (or whatever the parameters are), you stop receiving the money. Worst of all, you still have the lease or car payment to pay for 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, I believe they should reform their car bonus plan. They should simply pay their distributors the designated bonus amount each month, 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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3 thoughts on “MLM Car Bonus: What You Should Know”

  1. Wow, you just taught me something I never knew. I thought the company just supplied the car, and I had no idea that you had to put yourself in debt to do so. I must say that I am in complete disagreement with this system. The MLM company is in a win-win position here because they are receiving the advertising and sales and if the representative doesn’t qualify, they are in a financial bind. I must agree with you Chuck that that money should be able to be used by the distributor however they choose. Thanks for educating me on this subject.

      1. Hopefully the MLM companies that offer car bonuses are very clear with any of their distributors who are eligible for them. It just seems like a scam like system they are running by putting a distributor in debt for one of the cars that is advertising their system. I hope people strongly consider the car bonus before they accept it.

        While I am at it, it would be nice to hear from any MLM distributors who have taken a car bonus for their views on this subject.

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