Question
What should an MLM income disclosure show?
Short answer: A useful disclosure should help you understand typical participant outcomes, including no-earnings participants and expenses.
Why this matters
Look for medians, percentiles, no-earnings participants, inactive participants, tenure, and clear definitions.
If a disclosure reports only people who reached a rank, it may not describe the outcome for most people who joined.
Questions to ask before joining
- Who is included and excluded from the disclosure?
- Does it show net income after expenses?
- How are inactive participants, discount buyers, and short-tenure participants counted?
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.