MLM Income Disclosure Statement (IDS)
A document required by regulators in many jurisdictions that shows the actual distribution of earnings across all active MLM participants, revealing what typical distributors earn.
Also known as: IDS, MLM earnings disclosure, distributor income report
Last reviewed: 10 June 2026
Income disclosure statements are the most reliable tool for evaluating an MLM opportunity. They are typically published annually and break down earnings by distributor rank, showing how many participants achieve each level and their average or median annual income before expenses. Most IDS documents reveal that median earnings are minimal and that significant proportions of active participants earn zero commissions.
Regulators including the FTC in the United States and Trading Standards in the UK use income disclosure statements to assess whether a company's marketing materials give a misleading impression of typical earnings. Companies that prominently advertise high incomes while burying low-median IDS data face enforcement action for deceptive trade practices.
Consumers considering an MLM opportunity should compare the median earnings figure from the IDS against the minimum cost of participation (starter kits, monthly product quotas, event fees). When costs exceed median earnings the opportunity is likely to result in a net loss for most participants.