An Income Disclosure Statement of a direct selling company contains a precise and trustworthy estimate of the expected income of its distributors. This disproves any claim or argument that the company is exaggerating the potential or typical profits made from it. But for many organizations, this could prove to be a challenging task. IDS improves brand trust by providing truthful MLM income disclosure statements. According to the Federal Trade Commission, an income disclosure statement is necessary to provide consumers with an overview of direct selling business. The FTC mandates direct selling companies to disclose an accurate earning statement of their distributors so that customers can make an informed decision about whether to join an MLM company.

Best practices while preparing an income disclosure statement:

- The disclosure must be brief and easy to understand for the intended audience.
- Avoid making any false or unjust claims or acting in any unfair manner.
- Regardless of where they come from—whether from distributors or the company—all claims must be supported by evidence.
- To ensure that your consumers are seeing your revenue disclosure statement, use a web analytics tool to examine its reach.
- It is unacceptable to publish claims that cannot be supported.
- In order to prevent penalties in the future, streamline all of your claims in accordance with the FTC regulation.
- Update your income disclosure statement on a regular basis in accordance with the legal requirements.

Prospects are drawn in and customer perception of your business is raised by a clear income disclosure process. The popularity of direct sales has skyrocketed in recent years. The typical American has probably come across one or more direct sales opportunities on social media or other internet venues. While some MLMs select a more automated strategy that lowers the possibility of errors and guarantees prompt payment to all members, others choose to rely on human oversight and laboriously manage each distribution manually.