I know word of mouth is considered the best way by most people but like Amir said new people don't enter your group often. I personally have talked to all my friends and i have only had one join but didnt sick with it.
My instructor doesn't like demos he say they don't work. My idea about demos is that it is more about educating that recruiting. I think they are fun.
I don't think using the media is bastardizing the art but because my instuctor learned japan he think we don't need it beacuse people should be knocking down our door to learn. Please keep in mind I am from Mississippi and we are a state of homebodies(just lazy).
We don't test like other schools either, only once a year but we are in the process of changing that to quarterly mainly because of the USJI changing their bylaws or something like that. Personly I like the traditional belt system.