William C. and Dorothy M. Smith - Page 8




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          take to recoup the losses.  Instead, Ms. Walsh testified that her           
          advice focused on the future and was directed at how to sell the            
          products and how to recruit others and teach them to sell the               
          products.  Ms. Walsh’s advice assumed that sales equal profits              
          without any apparent consideration of the costs associated with             
          realizing such sales.                                                       
          Mrs. Smith testified that she devoted 60 to 80 hours per                    
          week to her marketing activities.  We find Mrs. Smith’s testimony           
          unconvincing.  Mrs. Smith testified that a typical day consisted            
          of:                                                                         
               First of all, I plan my day the night before, and then                 
               I would get up, review the plan, and I would be ––                     
               actually go through, review the plan, the contacts that                
               I needed to make, what I need to do for that day, and                  
               that usually began somewhere between seven and eight                   
               o’clock.  Then I, after reviewing what my plan was for                 
               the day, I would then begin to make phone calls and                    
               confirm appointments and follow through with things                    
               that I had planned out the night before.                               
                    Then once I made those phone calls, I then would                  
               go travel to call on either customers or businesses in                 
               order to market the product or return calls to those                   
               who had responded to advertising, that type thing.                     
               Then in the evenings, a lot of times I would                           
               participate in conference calls regarding the business                 
               as well, and then that evening, of course, I’d plan my                 
               work for the following day.                                            
          We do not believe that these activities amount to 60 to 80 hours            
          per week of work time, and there is little documentary evidence,            
          such as logs and calendars, to substantiate Mrs. Smith’s                    
          testimony in this respect.                                                  








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