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commissions based on the products that his or her downline
distributors are able to sell. If a downline distributor then
recruits additional individuals to sell, the original upline
distributor receives commissions on sales by both downline
distributors. The additional commissions received by the upline
distributor are not, however, determined by the profitability of
the downline distributors, only by their sales.
Mrs. Smith was recruited in this fashion to become a
downline distributor for Susan Walsh, first for Espial in 1999,
and in subsequent years for Renaissance and Cyberwize. The
record does not reflect who introduced Mrs. Smith to 24/7
Internet Marketing. Ms. Walsh provided Mrs. Smith with product
training and sales organization training and advised her on how
to teach and train other potential downline distributors.
With the exception of Cyberwize, Mrs. Smith created nominal
business plans for each of the companies for which she marketed.
These plans included vague goals about the number of customers
Mrs. Smith would attract and the sales that she would achieve.
For instance, Mrs. Smith’s Espial business plan is an undated,
one-page document which states: “I will build a sales force and
retail products to derive income that will exceed employment in
the corporate arena, and I will have become a highly visible
sales organization known as a leader in sales, sponsorship, team
support, and residual income.” With respect to her market, Mrs.
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Last modified: November 10, 2007