Privilege Car Club launched in the UK back in August, 2017.
Two corporate addresses in the UK (office/registered) are provided on the Privilege Car Club website.
Andy Wall (right) is identified as Privilege Car Club’s CEO and Founder.
Up until April, 2017, Wall was promoting Market America.
Recently Privilege Car Club has announced plans to expand into the US.
The difference between the US and UK model is solely the currency used (USD vs GBP).
For the purpose of this review I’ve adopted Privilege Car Club’s US business model pricing.
Read on for a full review of the Privilege Car Club MLM opportunity.
Privilege Car Club Products
Privilege Car Club has no retailable products or services, with affiliates only able to market Privilege Car Club affiliate membership itself.
The Privilege Car Club Compensation Plan
Privilege Car Club affiliates pay $75 a month on the promise of a free car.
Qualifying for a free car is achieved by direct and indirect recruitment of other Privilege Car Club affiliates, who also pay $75 a month.
Payments in Privilege Car Club are tracked via a 3×4 matrix.
A 3×4 matrix places a Privilege Car Club affiliate at the top of a matrix, with three positions directly under them:
These three positions form the first level of the matrix. The second level of the matrix is generated by splitting each of these first three positions into another three positions each (9 positions).
The third and fourth levels of the matrix are generated in the same manner, housing 28 and 81 positions respectively.
Positions in the matrix are filled via direct and indirect recruitment of new Privilege Car Club affiliates.
Each newly recruited affiliate is placed in the matrix, with those paying $75 a month counted toward recruitment qualification criteria.
Recruitment qualification criteria is used to determine what free car level a Privilege Car Club affiliate qualifies for:
- have at least 81 affiliates in your matrix (20 minimum under each of the first three positions) and maintain for at least three consecutive months = $24,000 car
- have at least 125 affiliates in your matrix (30 minimum under each of the first three positions) and maintain for at least three consecutive months = $36,000 car
I’m not sure if it’s a mathematical oversight or the Privilege Car Club matrix extends beyond four levels, but a 3×4 matrix only houses 120 positions.
I assume this is supposed to be the $36,000 car and not 125, otherwise an affiliate is looking at building a team five positions over a 3×4 matrix (technically a 3×5 at that point).
Note that insurance is deducted from the value of the car.
Once an affiliate qualifies for a $36,000 car, they can re-insert themselves back into their matrix and build a new position.
This is referred to as an “Ambassador position”.
If the Ambassador position qualifies for a $24,000 car or higher, after the initial two-year lease period that money can be
- put towards a higher value car or
- paid out as a $1200 monthly payment
There is a third tier referred to as a “President position”, wherein the process repeats itself again.
By adding additional positions within their existing matrix and filling them, a Privilege Car Club affiliate can drive a leased car up to approximately $82,000 in value (or $4800 a month).
This is presumably how better cars can be achieved, however Privilege Car Club do not go into specifics either on their website or in their compensation documentation.
Joining Privilege Car Club
Privilege Car Club affiliate membership is $180 a year plus $75 a month.
Privilege Car Club bills itself as a “reward based private Crowd-funding club”.
Anytime you see an MLM opportunity marketing itself on the premise of “crowdfunding”, this means affiliates are paying affiliates.
In MLM this is otherwise known as a cash gifting scheme.
In an attempt to differentiate itself from your typical gifting scheme, Privilege Car Club replace first tier gifting with a leased car.
The first tier requires 81 people paying $75 a month.
That comes to $6075 a month, which in two years generates $145,800.
Privilege Car Club spend $24,000 on a car and the rest? Who knows.
Will the car be registered to me?
No, it’s an asset of Privilege Car Club Ltd (PCC) so it will be registered with them.
Actual cash payments don’t kick in until another $6075 a month is generated, which doubles Privilege Car Club’s available revenue off that single affiliate’s downline. Not forgetting that the company purportedly sells leased cars every two years too.
Granted downlines are shared owing to the multi-leveled nature of a matrix, however that’s still a significant surplus in Privilege Car Club’s favor.
In reality the business model hinges on the majority of its affiliates not qualifying for a car and still shelling out $75 a month.
I also understand that after 14 days no refunds will be given.
No matter what the marketing says, most Privilege Car Club affiliates won’t hit and sustain 81 affiliates in their downline – that’s once, let alone consistently for 24 consecutive months.
Does the £1k cash payment come under Cash Gifting?
No, you can only receive cash payments when you have qualified at the 20k level or 30k level.
You will then be classed as a Master Member and you will then be an advert for the club.
At that point PCC can reward members for helping others.
For example, by putting on a meeting, telling others about the club, speaking at our events and using your testimony.
Technically you are not paid for recruiting.
Whether you substitute cash for an asset of equivalent value or not, affiliates paying affiliates in MLM is still cash gifting.
Privilege Car Club’s leased cars are no exception – especially when they go on to offer gifting payments (100% derived from fees paid by other affiliates) beyond the $24,000 car tier.
Trying to pass off these gifting payments as “rewards” and claiming they’re not tied to recruitment is disingenuous.
Without affiliate recruitment nobody in Privilege Car Club receives a leased car or monthly gifting payments.
Thus both the leased cars in lieu of payment and monthly gifting payments are indeed Privilege Car Club affiliates getting paid to recruit.
Gifting schemes operate in much the same manner as pyramid schemes.
New recruitment is requires to sustain those who joined earlier, with only those with the largest recruited downlines realizing any benefit.
The rest of the Privilege Car Club affiliate-base loses out, with the majority of affiliates taking a loss when recruitment slows down and the scheme inevitably collapses.