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The time Mrs. Smith did spend with these direct marketing
activities was devoted primarily to recruiting additional
downline distributors as opposed to selling the actual products
themselves. To recruit additional distributors, Mrs. Smith
placed advertisements in the classified sections of local and
regional newspapers about joining her marketing organization.
For instance, one advertisement under the heading, “Network
Marketers” states: “The top trainer in the industry seeks 5 key
people in the Nashville area. $25,000/mo. FREE car.” Mrs. Smith
would then spend time responding to phone calls inquiring about
these advertisements as well as traveling to and meeting with
these potential downline distributors. Mrs. Smith would also
prepare periodic goal sheets, with stated numbers of the sales
she hoped to make, and review similar goal sheets prepared by her
downline distributors. Finally, Mrs. Smith would meet with other
distributors during conferences and seminars.
It is not clear how many downline distributors resulted from
these recruitment efforts by Mrs. Smith. Many of her downline
distributors did, however, come from among Mrs. Smith’s family
and friends. For instance, one of the first members of Mrs.
Smith’s Renaissance team was her husband, Dr. Smith.3 Another
3Mrs. Smith offered no explanation of what benefit
petitioners might have received from Dr. Smith’s purchasing the
Tax Relief System when Mrs. Smith had already purchased the
system and the platinum level of service.
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Last modified: November 10, 2007