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Which method is more lucrative? Which has greater long-term growth potential? Can they be combined?

You're selling an e-book titled 101 Ways to Make Chocolate Chip Cookies retailing at $27. You don't have a database of names to market to

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

so you decide to sweeten the deal by offering a bundle of bonuses that total more than your $27 e-book. You negotiate with five other authors to throw in their e-books as complimentary gifts when prospects buy your e-book. They agree.

You

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

Examples of combination products may in

include 101 Toppings for your Chocolate Chip Cookies ($19), 15 Culinary Techniques to Knead Cookie Dough ($9), 27 Recipes for Buttery Chocolate Chips ($17), How to Make the Most Mouth-watering Cookies ($17), and How to Make Cookies So Sof

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

t, They Always Sag in Your fingers ($9). These five e-books total $71 and complement your e-book nicely.

You also negotiate marketing to all five authors' e-mail list and splitting the gross sales 50/50. You offer to do the sales copy and

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

all purchases go through your shopping cart. They don't even have to lift a finger to make money. They send out a brief endorsement e-mail to their list with a link back to your webpage.

A week passes and you make 1,000 sales totaling $2

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

Combination pro

7,000. You pay your joint venture partners half gross and still have $13,500 in change. Not bad for a few hours work. This is selling the sizzle—when your special bonuses have a higher perceived value than the actual product for sale.

The

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

other school of thought is selling the steak...

You sell your product or service on the merits of its value. This is where you show the perceived value of the product or service is so important to a certain niche market, they'd stand to

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

gain or lose out if they don't buy now. This takes a little more finesse and persuasion, but much more personally rewarding.

Here's an example...

My mentor sent an e-mail to his database for a one-year coaching program. It included a mon

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

thly lesson, an assignment, and a critique. All done through e-mail.

His database is a targeted list of business owners who like, trust and respect their coach. And most, if not all, have been previous customers.

So I forked out $7,000 f

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

or the program. If I opted for financing, it would have cost just under $10,000. With about 26 scholars who enrolled, my mentor made close to $200,000. From thin air.

He sold the steak ? la carte. There were no bonuses. No prizes for the

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

best grade. Not even a guarantee. Or a certificate.

This is almost Nirvana. Zero overhead and no headaches. Just produce 12 lessons, 12 homework assignments, and critique 26 papers a month. On the side.

Back to the sizzle...

You've got

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

Following aspects would a

1,000 new customers in your database who bought your 101 Ways to Make Chocolate Chip Cookies. You want to sell them your new paperback: How to Market Your Cookies ($47). It contains tips, tools, advice and even a business plan for the seri

dd to the challenges in developing combination products:

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

ous cookie entrepreneur. There are sections on marketing to schools, fundraisers, mail order, and retail outlets. You've included a complimentary special report on running your own small business as a bonus for ordering your new book.

53

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

of the 1,000 purchase your paperback for a total of $2,491. Not bad, but certainly not the result you wanted since you ordered a minimum 5,000 books to qualify for the price break.

This letdown usually occurs when you sell the sizzle. You

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

r customers value the bonuses more than the actual product. They come into your universe receiving more than they paid and most expect you to continue with equivalent offers.

Not so with steak buyers...

Most will be ready to move forward

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

to higher priced products without the bribing from bonuses. If they trust you—and value your products and services—then including more freebies may actually devalue or diminish the product you're selling.

Can the sizzle and the steak be

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

Professional from academic institutions, pharmaceutical industries, health care indust

combined?

I'm glad you asked. The answer is yes and one of the best ways is to bundle up bonuses from your product line with your offer. This way, you can reap higher profits. So get busy building your product line. And when you negotiate

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

joint venture deals, you can now insist on higher margins for yourself because you have proven your products can make money for your JV partners.

Which method is better?

If done right, both are very effective. If you want to make a casu

.

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

al sale, then include as many bonuses as possible. But if long-term customers and lifetime income and reward are your goals, prepare to sizzle by selling the steak.

Tommy Yan helps business owners and entrepreneurs make more money through

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

Companies that provide selfless information through particip

direct response marketing. He publishes Tommy's Tease weekly e-zine to inspire people to succeed in business and personal growth. Get your free subscription today at www.TommyYan.com.

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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America is in a new kind of war, and the demands on American business will be significantly different than in World War II. Then, the nation's entire business community focused on one objective, winning the war by mass-producing the weapons of war. This time the volume of weapons produced won't be a determining factor in the war's outcome. Victory may ultimately just be maintaining the American lifestyle. Here's how we can win.

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