In the world of car deals, buyers may be accustomed to the usual runaround from used car dealers. You may have heard of car owners getting scammed by sellers. But have you heard of the free cars offered to top salespeople from direct-to-consumer sales companies? Other names for these companies include multi-level marketing (MLM), referral marketing, network marketing, or some other catchy combination of words. Others may call them pyramid schemes. But free MLM cars may cost more than you think.
Classic Mary Kay Pink Cadillac May Not Be a Free Car
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Possibly the most popular example of free MLM cars is the iconic fleet of pink Cadillacs offered by Mary Kay cosmetics to their most valuable salespeople. CarBibles reported on the question of whether these free cars are really free, and suggested that there is a deeper secret here.
According to Mary Kay’s website, the Career Car program (the one that gives pink ladies their pink cars) is “one of the best car incentive programs in the direct selling industry.” What makes this incentive the best in its class? Well, we’re not too sure. The website doesn’t offer many specific details, and CarBibles reporters weren’t able to get anything out of the company.
That blush pink shade isn’t one of the craziest car colors, but it’s memorable. And, according to CarBibles, it may not be that free.
Free MLM Cars May Actually Be Leases
While leasing has pros and cons, a typical lease typically includes a detailed contract that is spelled out before you show up to buy. Free MLM cars like the Mary Kay Cadillac are supposed to be a lease full of surprises.
According to CarBibles, qualifying for a company car requires a number of “downline consultants” and more than $20,000 in sales. And qualifying probably won’t be the end of it all. Once a team member meets the standards (for the reference car only), he must continue to sell large amounts of product per month to keep driving the fancy pink car.
Supposedly, sellers who do not meet the minimum sales figures are required to pay the company, reimbursing them for the “free” car payment. If a seller falls too far below expected sales figures, the company can repossess the car.
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These rules, if true, would keep the top salespeople working hard to push the product and get their sales numbers in order. By comparison, the actual cost of leasing a Cadillac that isn’t painted pink (or Chevy, if you’re on the bottom tier) is significantly cheaper than the amount of product needed to maintain that status symbol.
However, how many cars are just status symbols? For the people who drive them, it can be completely worth it.
Other companies that offer free cars
Free cars can be creepy. And free MLM cars that can require huge financial investments can be even scarier. But Mary Kay isn’t the only company offering car incentive programs like this one.
Without digging too deep down the rabbit hole of referral marketing/network marketing/multi-level marketing companies and their bonuses, I was able to unearth a handful of other direct auto sales incentives. Another iconic MLM car is the Arbonne Mercedes-Benz. Direct Selling News lists ViSalus and Nerium with the Bummer Club and Roadmap to Lexus, respectively.
The Shaklee Dream program has unique secrets to getting a free car, and Thrive/Le-Vel also has a program for their sellers to buy cars that appear to cost nothing. For extremely successful marketers, these free MLM cars can actually be just that: free. But, with little solid information to go by, it seems like an impossible dream.
If you’re considering diving into direct marketing sales specifically as a way to drive a luxury car for free, you may be better off just putting pennies in your piggy bank.
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