Useful Advices - Business

Although I might seem to really hate MLM (and you’ll know me as the person who banned all MLMers and network marketers from My Speed Business Network) I want to assure you that I have

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

enormous goodwill and respect for MLM done properly.

After all, network marketing provides a business model that has the potential for incredibly wide-ranging benefits: fin

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ancial, economic, educational, social, political and philosophical. It’s a brilliant model. The problem is that it has been done so badly that its reputation is foul, to say the lea

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

st. This series of articles is an attempt to redress that, to point out the errors, and describe proven business strategies that will help MLM to fulfil its promise, to many more peo

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ple.

MLM or network marketing is the name given to any business model whereby the growth of the business depends upon recruitment of more business owners, and payment is via

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

a tiered system of commissions. For instance I may join the business and my commissions on product sales may be 20%. If I persuade you to join (ie, become a business in my “downline

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

”) then you will also receive commissions on your sales of 20%. However I will receive commissions on your sales of perhaps 10%. And if you sign up people under you (which I’ll be e

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ncouraging you to do of course!) then you and I will both enjoy commissions on their sales. And so on.

There are lots of different configurations, with some companies having

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

only 2 tiers available for instance. Commission rates vary, some companies pay a bonus for recruiting, and some companies charge a joining fee or require you to buy product, marketi

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ng materials, or even “training material”.

Network marketing, or MLM is different from “pyramid” schemes. In a pyramid scheme you must pay to join, and you get money back on

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

y when you convince someone else to join. Every pyramid scheme collapses and some simple math will show you why.

Let’s say there is a pyramid scheme where everyone who joi

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ns is limited to joining up just 5 other people, on the basis that they’ll quintuple their money. So it kicks off with the founder joining up 5 people, who each must now go and join

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

up 5 more people. So far so easy. By the third layer you only need 126 people and the top guys have got their money back and are rubbing their hands. However by the sixth layer tha

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

t number jumps to 15,626, and by the ninth layer you need 1.9 million people. Depending on when the scheme collapses (and it always does) 1.5 million people will lose every cent. No

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

wonder pyramid schemes are illegal.

MLM or internet marketing, by definition are not pyramid schemes, but if the emphasis is on recruiting instead of product sales, then it

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

is behaving like a pyramid scheme and will collapse. These companies tend to produce more consultants than the market for the product can bear. No smart business person would go i

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

nto a market that was already saturated, so make sure you check your market before agreeing to join any downline. Run from any company that stresses recruitment over product sales.<

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

br>
A MLM company that is experiencing steady growth (absolutely NOT rapid, unless you are in at the top), that can demonstrate market demand for its product, and which focuses o

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

n product rather than recruitment, is the smart choice.

Once the market has stabilised, recruitment should be at a rate which replaces attrition, so that the entire organisat

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ion is sustainable.

MLMProfessionals.biz does not have an association with any MLM or network marketing company, and does not receive payment for product sales or recruitment

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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