Digital Income System Review Why The FTC Sued Them

Hello, my friend and a very warm welcome back. This is going to be a review of the Digital Income System. I’m sure you are asking why when they were sued by the FTC?

The reason for the review is so you can spot a Pyramid Scheme in the future and not lose all of your money! The sales material for this type of offer can be very persuasive. But it is very often all false info!

By doing the work for you, you can come back to this post as a reference if you have any doubts about similar programs. Helping you is my number 1 aim.

There can be many red flags in this type of offer and showing you what they are will save you a lot of money in the future!

This post may contain affiliate links. This means if you click a link and make a purchase I will receive a commission. The price you pay will not be affected.

Joining a good training program is how I managed to quit my job within a year and you can do the same if you want to work online.

Let’s dive in and find out more about Digital Income systems:

Digital Income System Review


Program Name: Digital Income System

Program Type: MLM-Pyramid Scheme

Founders: Possibly Derek Jones and Bill Foley but that was unconfirmed until the FTC case came about.

Cost Of Purchase: Minimum of $1,000 maximum of $25,0000

Is it recommended? Totally not recommended. MLM’s are designed for you to recruit others to buy into and they have no products, training, services, or anything of value to offer.

It is portrayed as a way to make lots of money by encouraging you to purchase the higher tiers and encouraging others to do the same.

What Is Digital Income System?

Digital Income System promotes itself as a traffic rotator program with a huge earning potential attached!

If you visit the website you will see a video where they try to convince you to join. But who are the founders? Normally they are front and centre but, not, in this case, all that is apparent is the website was registered back in 2018 on December 6th.

Due to this program being sued by the FTC a surprising amount of names were discovered. One such discovery was Derek Jones is actually really Derek Jones Foley.

Hiding the company’s founders is a big red flag to look out for.

What Does Digital Income System Sell?

The only thing this sells is itself, It has no products, services, or training. The members get to promote Digital Income System and that’s it!

In a nutshell that is why it was sued by the FTC as that contravenes laws in many countries.The biggest red flag of all!

How Does The Program Work?

This is a traffic rotator and it works by members signing up, using the marketing tool to recruit people and get paid if they get people to join this continues on as long as you are recruiting others.

What this means for you is that 100% of the member’s investments are paid out and recycled into the higher tiers of the program. That’s why you’re signed up as an “affiliate” and can’t start your own tier. You are going to be a part of someone else’s downline. On top of that, the anonymous admin takes 50% of the fees paid out company-wide.

How To Make Money With This System?

There is only one way and that is getting others to buy into the levels of the Digital Income System.

The Levels are:

  • Entrepreneur costing a one-off $1000
  • Director is set at $3000
  • Professional will cost $5000
  • Ambassador is a massive $12,000
  • Executive Level is a whopping $25,000

It is possible to join at the top level if you so choose.

The Compensation Plan

You join at the level that you have chosen and when you recruit others to do the same you will receive a 50% commission.

  • If you recruit an Entrepreneur at ($1000) you will receive $500
  • Recruit a Director paying ($3000) and receive $1500
  • Recruit at the Professional level ($5000) and receive $2500
  • Recruit an Ambassador who pays ($12,000) and receive $6000
  • Recruit for the Executive option ($25,000) and receive $12,500

An important thing to note is you can only be paid for the level you are currently on. This means If you are Professional level and your new member joins at the Ambassador level you will only get $2,500 and the other $3,500 will go to the next person above on the Ambassador level.

This is how they persuade you to join at higher levels. Preying on the greed factor.

The Pros Of Digital Income System

There are absolutely no pros to this Pyramid Scheme whats so ever!

Related Post: Stefan James Products Review.

The Cons Of Digital Income System

  1. Ruled as a Pyramid Scheme By the FTC.
  2. Even if you recruited 10 people you would never get paid.
  3. The founders hid their identities
  4. Claims made by this system are false.
  5. Tactics used to promote the system include taking advantage of the pandemic whereby people were desperate to make money online.

Is Digital Income System A Scam?

Yes, it is 100% a scam and that is why it was sued by the FTC.

The Named defendants in the FTC’s lawsuit are:

  1. Digital Income System Incorporated.
  2. Derek Jones Foley (the owner, Florida resident)
  3. William Foley (another named owner, Florida resident)
  4. Christopher Brandon Frye ( the main promoter claimed to have made millions with this system, Arizona resident)
  5. Jennifer Hedrick the person who took advantage of the pandemic ( another promoter, California resident) and
  6. Kaitlyn Scott ( named as a promoter, South Carolina resident)

The reasons the FTC sued these defendants are stated as:

  • Misrepresentations regarding earnings
  • Document disclosure violations
  • Earning claims violations
  • General media earnings claims violations
  • Misrepresentations regarding income or profits and
  • Misrepresentations in general.

As of the 15th of May 2021 Following a mediation conference held in April, each of the DIS defendants has reached settlements with the FTC.

At the time of writing this, it is unknown if any member has received any money back. There are lists of people who got involved with this system are you one of them?

Have you heard of MOBE? they were a company operating a very similar system to Digital Income and they are no longer around! 

Writing this review is my way of helping you to NOT get involved with such offers, there is nothing stopping a company like this from starting another program! Stay well away from anything like this or face losing all the money you have invested.

Are you reading this review because you are looking for a business opportunity to work online from home?

If your answer is yes then read on a little further!


How I Work Full-Time Online From Home

For many years I searched for a legitimate way to make money online. I knew it was possible and I just had to find it!

The search actually took me 6 long years and I got into some terrible programs in that time and spent absolutely thousands of dollars.

Last year I finally found exactly what I was looking for!

It’s called Wealthy Affiliate and as soon as I joined I felt completely at home.

I didn’t need any special skills as full training is provided, what did I have to lose.

Suitable for beginners and experienced marketers.

You can read my Wealthy Affiliate Review. Including the pros and cons.

The Reasons I Chose Affiliate Marketing

 I work In the world of Affiliate Marketing. There are many positive reasons for this:

  • You can start straight away (with my #1 recommended program)
  • There are no expensive tools or software to pay for
  • You can work on this a couple of hours a day in your spare time
  • You don’t need to make your own products
  • You will learn  all about SEO which is the organic and sustainable way of driving free traffic to your site
  • No need to recruit others to join
  • You don’t need to be concerned with customer support
  • No special skills are needed (which is good because I don’t have any 🙂
  • You can still earn from whatever you are writing today for many years to come, a truly passive income
  • No need to pay out for ads unlike the program we have just reviewed.

I Quit My Job

After starting with this training program 13 months ago and learning all I needed to know for a fraction of the money that some courses are charging I quit my hated day job at the 10-month mark.

Affiliate Marketing is a simple business model that just takes a lot of work to get started in the beginning because you are getting traffic organically instead of paying for it.

Now I spend my days writing reviews to stop innocent people like yourself from being scammed like I was!

(If you want to make your new business work better upgrade to the premium membership for $49 a month or $1.63 a day that’s less than a Starbucks costs!)

Thanks for supporting me to the end of this post I appreciate your time.

Have a question for me then please leave it in the comments below and I will get back to you as soon as humanly possible.

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Lisa. Founder and CEO of

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