Cases - Business

How important is the initial start-up cost (price point) of an online or home based business opportunity? This is a very delicate subject that is often not credited with enough significa

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

nce. Hitting the right “sweet spot” with start-up costs can literally make or break your success in the online entrepreneurial world.

Call it what you want – ”price point”, “start-up co

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

Examples of combination products may in

t”, “price threshold” (the initial fee to get registered and started in an online opportunity), but it is crucial that this amount is not priced too low, or too high.

TOO High Priced Bus

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

iness Opportunities

The problem with high ticket business opportunities are twofold: 1) your field of prospects is radically reduced, and; 2) most newcomers underestimate the additional

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

osts of getting a business started. Most people who join high ticket business opportunities ($2,000 to $10,000) are not told about the high cost of making each sale (the average cost of

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

Combination pro

cquiring a new customer). Advertising is your most significant ongoing investment. Online beginners hear that an opportunity is… $3,500 (for example) and forget that this amount will on

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

ly get them started. What about advertising? What about ongoing maintenance fees? (turn-key websites, accounting and training services, etc.) For an opportunity with a flat start-up c

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

st of $3,500, your average cost per sale can range from $1,000 to $4,000. Why you ask? Because, as mentioned above, businesses with higher price points narrow your field of prospects dr

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

amatically, so you must advertise more to adjust for the waste, or pay significantly higher rates for upper income prospects. You would be shooting yourself in the foot if you didn’t exp

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

ct to invest a minimum of $1,500 to $4,000 per sale to advertise it right. So you really need $5,000 to $7,500 to start this business correctly. On top of that, if this business is a 2/u

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

system (where you owe your sponsor your first two sales), you’ll need another $6,000 to $8,000 for these training sales. That’s a total of about $12,000 to $15,000 to get you started ri

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

Following aspects would a

ght. A brilliant man once said that before you start anything, “count the costs”.

Bottom line, “High Ticket Home Business Opportunities” can be great if you have a lot of money. Again,

dd to the challenges in developing combination products:

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

the problem is that most people do not plan well enough in advance. In fact, they usually don’t know what they don’t know to even ask the right questions.

Here’s something else to consi

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

der – when you sell a program that exceeds $1,000 for sign-up fees, you’ll need to be good on the phone (or be a fast learner) since most people will not invest much over $1,000 without t

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

lking with someone.

TOO Low Priced Business Opportunities The problem with business opportunities that cost $10 to $100 is that they’re just so difficult to turn into serious money. Le

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

’s compare $10 to $100 price points. If you stand to earn $10 to $100 per sale, you will invest the same amount of time, energy (and usually advertising costs) to make 1/10 to 1/100 the

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

Professional from academic institutions, pharmaceutical industries, health care indust

amount of money. You’ll have to make ten to one hundred TIMES the number of sales to make the same amount of money.

Most people don’t realize that the cost of making a $15 sale is almos

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

as high as making a $500 sale. Especially when you consider one of your best sources of advertising…Google. The average cost per click for the “Business Opportunity” related category c

.

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

ost about $0.75 to $1.50. You would have to sell one in 10 people who come to your site…just to break even (with no net profit). There are free advertising vehicles of course, but these

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

Companies that provide selfless information through particip

require massive amounts of time and oversight, which ultimately limit you quite a bit.

So what’s the best price point you might ask? In my opinion, it’s somewhere between $300 to $1,000

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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