The Federal Trade Commission (FTC) has been working to protect consumers from deceptive marketing practices since 1914. They have made Income Disclosure Statements mandatory for direct selling companies. This change was due to the high number of complaints from consumers and marketers who were unable to estimate their earnings potential with the company accurately. This article will explain what an Income Disclosure Statement is, why it is essential, and how direct sales companies can use it as a benchmark for success.
What is an Income Disclosure Statement?
An MLM Income Disclosure Statement or IDS is an earnings statement published by direct sales companies. It provides detailed information about how much money the average distributor makes with their business. The statement includes any commissions, bonuses, or other incentives that were earned during the year of disclosure.
Importance of Income Disclosure Statement?
For many people considering an opportunity with a direct sales company, the number one question is whether or not they will be able to make any money. With some companies being dishonest about their average earnings, it can be difficult for potential distributors to know if they will have success with the company. An income disclosure statement is one way to build credibility for the business and stand out from the competition. With the information published in the income disclosure statement, a distributor will have a clear idea of what type of earnings potential they are looking at when joining an MLM company.
Direct selling is a business model and also a channel of distribution that helps individuals to sell their products and services directly to customers.
This business model is widely accepted all over the globe and is still growing exponentially by providing millions of people with a decent income.
Distributors are not an employee of a direct selling company.
Being a direct seller gives them the freedom to fix the time, energy, and money they want to invest in the business.Becoming a part of a direct selling company is not a hard task.
Purchasing a joining package, costing only a small amount, makes anyone a distributor.
Also, there is no restriction to which all people can become a distributor.
It has opened up a world of opportunities to an average person.
So, if you are one of those ambitious folks who want to earn a wee bit of extra cash from the comfort zone of your homes, direct selling is your key!
Sellers can earn handsome commissions on the products, earn money by referring new sellers under them, to the company and through social media marketing and selling products online.
In this blog, we have created a list of top direct selling companies in Canada based on the following factors.
Vitamins, Skincare Products, and Water Treatment Systems
Tupperware is one of the oldest direct selling companies around and is still going strong.
In this blog, we are going to have a look at the top Network Marketing companies in Germany. All the companies in this list have been around for a long time and have been performing exceedingly well.
Also, Read more on: Top 10 Network Marketing Companies of 2018
We have prepared this list based on online research and word of mouth
