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Network marketing is a multi-billion dollar business. As a business model, it is taught in major universities around the world. The Wall Street Journal stated, “…between 50% and 65% of all goods and services sold in this millennium will be through network marketi

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

ng.” It is a business model that is perfectly suited to the “information age.”

What is this “Business Model?”
Network marketing is a way of doing business that is different from the “traditional” model used by most consumer packaged goods, food and drug com

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

Examples of combination products may in

anies. It is one of the most promising income opportunities in American today. It is the idea of many people each doing a little work, as opposed to a few people doing a lot of work. To quote J. Paul Getty, the world’s first billionaire, “I’d rather have 1% of th

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

efforts of 100 people than 100% of my own.”

Rather than using the customary distribution process of moving products from manufacturer to wholesaler to retailer to consumer, network marketing companies use a network of independent marketers to move products dire

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

tly from the manufacturer to the consumer. Further, the cost structure of a network marketing organization is different than a traditional packaged goods marketer.

With a traditional company, millions of dollars are spent on advertising to entice consumers to bu

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

Combination pro

that company’s products instead of the virtually identical product from another company. With a network company, the advertising expense is channeled into sales commissions for distributors who promote the product through “word-of-mouth” advertising, i.e. by tel

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

ling other people about the product. In the traditional business model, money is spent BEFORE the sale in the form of advertising; in the network marketing model, the money is paid AFTER the sale in the form of commissions. Which model seems to make the most sens

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

from a business standpoint?

With network marketing, you have two sources of income: (1) direct commissions from sales you make yourself, and (2) commissions from sales made by people you introduce to the business, called residual income. You can invest your tim

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

and money once and get paid multiple times for the effort. It means getting paid for the work of others. In traditional sales, you may be a great salesperson and have a few dozen good customers and earn your income from all their purchases. However, you probably

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

have to nurture these customers and spend most of your working time making sure they are buying from you and not someone else.

In network marketing, you can build a downline of 100, 1,000, or even 10,000 people, most of whom you will not know nor ever have conta

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

t with. This is because the majority of the people in your downline will be people who know somebody, who know somebody, who know somebody, who know you. By having a downline that is working with you, and for you, you can multiply your efforts many times. The ear

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

Following aspects would a

ning potential of a downline of 1,000 people, each putting in only one hour a day five days a week, represents 20,000 hours of work in a month. It would take one person 10 years to produce the same amount of work. That’s the power of a network.

Perhaps Robert T.

dd to the challenges in developing combination products:

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

Kiyosaki, author of the Rich Dad, Poor Dad series, said it best. “The richest people in the world look for networks. Everyone else looks for work.”

It is estimated that more than 50,000 people start a home-based business every week in the United States. The aver

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

ge person owning a home-based business earns more than $50,000 a year (often working part-time), while the national average annual household income is less than $45,000 (and most of those people are working at least 40 hours per week). Additionally, a home-based

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

usiness owner can qualify for many legitimate tax breaks, and tax experts suggest that the average person can save between $2,000 and $10,000 on taxes every year just by starting a home-based business.

How is this possible? Well, consider these two tax structure

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

: a wage earner first earns income, then pays tax on that income, and then pays for expenses with after-tax income. A business owner first earns income, then pays for expenses, and then pays tax on net income after expenses. In other words, a business owner can l

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

Professional from academic institutions, pharmaceutical industries, health care indust

egitimately reduce the amount of tax he or she has to pay because business expenses are paid with pre-tax income, not after-tax, income.

Network marketing is a $36 Billion industry in the United States. More than 20 per cent of the estimated one million milliona

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

res in America today have earned their fortunes over the previous six years through network marketing. Worldwide, there are over 3.5 million millionaires, and more than 700,000 have made their millions via network marketing. Conservative estimates are that networ

.

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

marketing in America is creating 40 new millionaires every month from average people. This means that a person’s greatest chance of financial success is through “networking.” Again, Robert Kiyosaki observed, “If I had it to do all over again, I would choose netw

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

Companies that provide selfless information through particip

rk marketing.”

For people who are interested in starting a home-based business, supplementing their income, and providing greater security for retirement and for their children and grandchildren, network marketing is an obvious choice.

Bruce Bailey, Ph.D.

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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