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We do a training called the "5 Pillars for Success". These are the pillars that YOU as an MLM distributor need to have in place for success. It’s not what a network marketing company needs. It’s you, the distrib

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

utor, and that is an important difference to understand.

The top company in the network marketing industry does $10 BILLION in sales every year. Company #2 does 1 Billion a year. And what’s amazing is, Company

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

Examples of combination products may in

#1 pays only about 10% of the commission that Company #2 pays!

Company #1 is very profitable. But, aside from the old-timers, the distributors are not profitable at all.

Do They Even Know How To Spell MLM?<

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

b>

So company management experience with integrity is Pillar #1. Has that CEO or management team ever built a network marketing organization?

A lot of these network marketing company owners come from a Fortune

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

500 background. They’ve never driven 4 hours one-way to do an opportunity meeting for 20 people, only 2 show up, do the meeting, do the training, drive home, fall asleep at the wheel, pull into a rest area and

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

Combination pro

leep for a couple hours so they can get home, get a shower, and go to work that day as a secretary, a nurse, a carpenter, a doctor …

THAT is the truth about MLM that these pretty-boy hotshots will never know. L

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

et me tell you a story.

My good friend Dave Cones came to Florida from Oklahoma, in 2002. We were invited as guests to an opportunity convention, because we were doing some consulting with these people. We sat

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

in the audience. It was a 2-day event. We watched the presentations & watched the people there.

The company - and I can mention their name, for reasons which will soon be obvious - was Heartbar, a publicly-trad

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

d network marketing company. They were about 18 months old at the time.

President of the Company - Great, Fabulous Guy!

You couldn’t have found a nicer guy … but he didn’t know anything about MLM. His b

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

ackground was Fortune 500.

So he’s onstage doing a presentation, and he said, “You know, I’ve just so enjoyed travelling the world, travelling across the U.S., going to the meetings, meeting such great, great a

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

esome people. What amazing people that we’ve met!”

“And that’s going to have a big impact on our decision, if we ever decide to do away with the compensation plan and go to direct sales.”

Dave & I looked at ea

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

Following aspects would a

ch other. We had the same thought: “Whoa! Hard to believe that guy said that from the stage!”

The Reps Must’ve Been on LSD!

When they took a break, Dave & I chatted with some of the reps. We asked what

dd to the challenges in developing combination products:

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

they thought about what the President said about doing away with the compensation plan.

Nobody heard it!

It was amazing. It was like they were on some euphoria drug. We didn’t talk to one single person who hea

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

d him say that!

Something else those reps didn’t know: Heartbar created a product and was selling it to athletes. They didn’t think their reps would ever find out. Of course, the reps did find out. And when the

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

y realized their own company was competing against them, they raised a howl.

The “Dear John” Letter Arrives

And right after this ruckus, the company sent out a letter of termination to every single Hear

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

bar rep.

How could they do it? Because a clause in the Heartbar Policies & Procedures said “Company may terminate the status of any distributor at its sole discretion, without cause, by giving 30 days written n

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

Professional from academic institutions, pharmaceutical industries, health care indust

otice to the distributor.”

And if you were unclear what they meant there, you just had to read down another couple paragraphs. It said, “Termination results in the distributor’s loss of his or her sponsored dow

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

nline organization.”

So distributors built the organization, built the group volume, & built the product sales. And the company cut the reps out of the profit picture and went direct sales with it.

This is EXA

.

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

TLY what you can expect with a management team of Fortune 500 guys who never built an MLM downline. They have no understanding, no empathy for you. Their only concern is bottom line profitability.

So if you bui

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

Companies that provide selfless information through particip

lt their business for them, but it’s in their financial interest to get rid of you - and they can legally do so - you will be history.

Have you read YOUR network marketing company’s Policies & Procedures lately

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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Write You - Heartbar - A Network Marketing Horror Story!

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