Duane A. Dworshak - Page 4

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          other sales materials promoting Cell Tech and its products, (2) a           
          mailing list of potential customers, and (3) mailing envelopes in           
          which to enclose the cassette tapes and sales materials.                    
               From June 1995 through most of 1996, petitioner mailed Cell            
          Tech sales material packages to potential customers.  About 2               
          percent of the people to whom he mailed materials purchased                 
          products from him during that time.                                         
               Petitioner planned to increase the quantity of the products            
          he sold and the number of sales representatives he recruited.  He           
          tested products, evaluated potential companies, and tried to                
          identify the most efficient method of selling products.                     
          Petitioner also bought and read books and periodicals about                 
          direct marketing in general and specific companies for which he             
          became or was considering becoming a sales representative.                  
          Petitioner kept records of his customer base, his mailings and              
          whether they resulted in sales or recruits, and his income and              
          expense receipts for his marketing activity.                                
               By late 1996, petitioner had become dissatisfied with being            
          a Cell Tech representative.  In late 1996 and in 1997, the                  
          positive response to petitioner’s Cell Tech mailings declined to            
          less than .5 percent, and many of his customers stopped buying              
          Cell Tech products.  Petitioner concluded that it was not                   
          productive for him to continue mailing Cell Tech materials.  He             








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