Autoship Requirement
A mandatory monthly product purchase that MLM distributors must maintain to remain commission-eligible, functioning as a recurring fee that often exceeds typical earnings.
Also known as: autodelivery requirement, monthly purchase quota, active volume requirement
Last reviewed: 10 June 2026
Autoship (or 'autodelivery') programmes require distributors to have a minimum quantity of product automatically charged and delivered to them each month. The stated purpose is to ensure distributors personally use and can recommend the products. The practical effect is a recurring financial obligation — often $50 to $300 monthly — that must be met regardless of whether the distributor has made any retail sales.
When median distributor earnings fall below the cost of autoship, the participation model operates at a structural loss for most participants. The expense is often omitted from income claims and from the 'business opportunity' presentations made to recruits. Distributors who cancel autoship lose their commission eligibility, which creates lock-in pressure.
Regulators have focused on autoship requirements as evidence that a company's primary customers are distributors rather than genuine end consumers — a key indicator of product-based pyramid structure. Companies that cannot demonstrate substantial retail sales to non-participant customers face pyramid-scheme scrutiny.
Examples
- A distributor must purchase $120 of supplements each month to receive any commissions; median annual commission is $86.
- An MLM's income disclosure shows that 73% of active distributors earn less than their required monthly autoship cost.