Question
Is gross income the same as profit in an MLM?
Short answer: No. Gross income is money received before expenses; profit is what remains after expenses.
Why this matters
An income disclosure may report compensation from the company without subtracting ordinary business costs.
Expenses can include fees, product, samples, websites, shipping, training, events, mileage, taxes, and unsold inventory.
Questions to ask before joining
- Does this income number subtract participant expenses?
- What expenses did typical new participants pay last year?
- How many participants earned less than their expenses?
Related recruiting phrases
Helpful next pages
Sources
- Multi-level Marketing Businesses and Pyramid Schemes, Federal Trade Commission . Accessed 2026-06-14. Support type: Regulator guidance.
- Business Guidance Concerning Multi-Level Marketing, Federal Trade Commission , 2024 . Accessed 2026-06-14. Support type: Regulator guidance.