Cases - Business

What’s the difference you ask? Well, plenty!

Your basic pyramid scheme ( which Charles Ponzi perfected in 1920’s Boston) is just that…a scheme—one to get your money out of your pocket and into someone el

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

se’s. An elaborate swindle, and sadly one that is still alive and well today.

One unfortunate casualty of this type of “crookery” is the legitimate business that markets its products using Multi-Level Ma

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

Examples of combination products may in

rketing. Other names are “network marketing” or just “networking.” Because they look similar to pyramid / Ponzi schemes, they are often dismissed as such out of hand. So, how can you tell the difference?

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

Here are the clues:

1. Legit MLM’s sell real products or services that generate a profit that is shared among the participants. Ponzi’s offer fantastic promises of huge profits with NO WORK! (Where have

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

you heard that before?)

2. With real MLM’s, everyone pays the same modest “starter fee” which is often refundable. The start-up fee usually covers training materials, sales literature, sample product and

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

Combination pro

registration paperwork. The cost of these materials do nt result in profits or points for the immediate recruiter. Nobody makes anything until someone sells a product or service. No one can buy a better

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

position within the organization with more money— you have to EARN that. Pyramids, chain letters, etc. promise you that the more you pay in, the more you’ll make.

3. Everyone who works hard in an honestl

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

run MLM can make MORE MONEY than the person who got in ahead of them. With a Ponzi, that’s impossible, and a key distinction.The later people’s money is simply used to pay the early birds’ profits, and

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

because it generates to real income, the guys at the bottom of the pyramid lose. “ Last one in is a rotten egg.”

4. MLM’s pay you for work—selling a product or service and recruiting other people to do t

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

he same. Again, it’s the work that generates the money. You do NOT get a dime for enrolling someone in your organization. If they don't succeed, you don’t succeed. Quite a concept, huh? If you are lazy,

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

ou get zip. if you work hard, you get paid, sometimes handsomely!

What are MLM’s? The concept of multi-level marketing is not new or even remotely unique. It is simply an opportunity to build a business

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

Following aspects would a

around a sales force of commissioned salespeople. The hardest part is finding people who want to do the same thing— that is to enroll or recruit people who want to sell products and recruit and build the

dd to the challenges in developing combination products:

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

ir own business. That is easier said than done, especially with the shadow of Mr. Ponzi over anything that involves getting others to join. Often mistakenly called a pyramid scheme, MLM’s are actually be

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

tter viewed as multi-level pyramids—with each member having the equal opportunity to build as big an organization as they are able, and can potentially make more money than the person who recruited them.

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

By contrast, look at all the companies today that employ commissioned salespeople, dealers, franchisees, sales managers etc. Those are the real pyramid schemes. Sales managers, district managers, regiona

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

l sales managers and VPs of sales all make more than the poor grunt knocking on doors. He is doing all the hard work and his commission is diluted, split and passed up to the other guys above him in the f

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

Professional from academic institutions, pharmaceutical industries, health care indust

orm of “over rides.” Now this chap does have the possibility to be promoted higher up to the upper levels, but someone has to quit or get fired first. When this does happen, what does the company do? They

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

either replace the “higher-up” from some outside company or they go out and RECRUIT more grunts…hello?…Mr. Ponzi?

So, In conclusion, If you can stand rejection, and have a sales personality. Money can be

.

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

made with MLM’s. Just make sure they adhere to the four principles stated here.
1. Profits, comissions, bonuses are derived from the sale of actual products or services.
2. Low start-up cost

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

Companies that provide selfless information through particip

r> 3. Ability to earn more than your recruiter (through working harder)
4. No pay simply to recruit. If you enroll someone who does nothing, you earn nothing from that enrollment—move on to the next

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

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.cases.org.ua/article/16129/cases-Ponzi-Pyramids-and-MLMs.html">Ponzi, Pyramids and MLM's</a>

BB link (for phorums):
[url=http://www.cases.org.ua/article/16129/cases-Ponzi-Pyramids-and-MLMs.html]Ponzi, Pyramids and MLM's[/url]

Letting Fun Increase your Bottom Line What is the best way to reenergize the workplace? It can be as easy as having a little fun! While training and observing groups as a corporate trainer and team builder over the past few years, I am always amazed at how a group of strangers gel and become a team in a matter of hours. Groups on teambuilding retreats can become closer to each other in one day than some people do in years of working with each other in offices. The major reason I attribute the success of these groups to and the way they gel is the use of “fun”. Here are fourteen ways to put fun in your business:

By attending to an effective, well-structured Business Improvement Program (BIP), business owners are able to learn elaborate, reliable marketing and business management techniques with minimal time and effort. A solid, coherent Business Improvement Program can easily make the difference between a poorly managed, low-rewarding, average business and a prosperous, lucrative,

The path to financial freedom is not paved with gold. The potholes and roadblocks keep many away from realizing their true potential.

Tags

Links

Cases - Ponzi, Pyramids and MLM's

Related Articles: