Advice You - Internet and Businesses Online

When I first started selling retailing online in 1999, it was easy. I had very little competition and search engines could be easily manipulated to provide lots of fre

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

e traffic.

Online success is much harder in 2007 for two primary reasons. First, the low barrier of entry means that competition is fierce in practically every possib

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

Examples of combination products may in

e niche. Secondly, while in the past, many of us capitalized on free traffic from search engine optimization, that strategy is much less dependable today and is quite

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

esource-intensive.

For many markets in today’s online environment, the most dependable way to generate traffic is PPC campaigns with major search engines. In fact, in

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

any niches, it is probably the only way to generate significant business.

Predictably, the shift from organic SEO to PPC has been quite good for the search engines, bu

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

Combination pro

not so good for the advertisers. However, the greatest enemy of PPC advertisers is not Google—it is lack of marketing sophistication among the advertisers themselves

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

.

Very few PPC advertisers could venture a good guess as to how much they should be spending per click on a specific search engine. Unfortunately, this lack of sophis

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

ication always leads to overbidding.

If my competition is overbidding, I have a choice—jump in and commit suicide along with them or sit on the sidelines. Neither cho

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

ce is appealing, so in many ways, my business is hurt by competitors’ lack of sophistication.

I wish I could teach my competition a few things about PPC—even my larges

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

competitors need some serious help. I would rather make money myself rather than just watch them shovel their money over to Google.

Calculating your breakeven PPC bi

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

is not difficult. You simply have to calculate the average profit per visitor before advertising expenses. If you want to take a bit of risk and you have a healthy c

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

Following aspects would a

ash flow, you can base your breakeven PPC bid on the lifetime value of a visitor rather than just the value of the initial order.

Ideally, you want to run this calcula

dd to the challenges in developing combination products:

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

ion for every PPC keyword you bid on and every search engine it is run on. Your breakeven PPC bid will be different for Google traffic than Yahoo traffic. While this

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

ounds like a lot of calculations, there are plenty of tools that will help make this quite easy.

In my industry, I often see my competition bidding more than $1 for a

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

eyword with the hope of selling a $10 product. Our top bid is usually only a fraction of that and will be based on what an average visitor from that traffic source is

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

orth to us—probably well less than $0.50 in lifetime value.

Perhaps my competition can justify their astronomical bids, but I doubt it. From our research, our convers

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

Professional from academic institutions, pharmaceutical industries, health care indust

ion rate is among the highest in our industry, and conversion is the most critical factor involved in determining a breakeven bid. As I have watched numerous competito

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

s start and ultimately fail over the years, they all have had one thing in common—they bid too aggressively for traffic. Unfortunately for us, as fast as one unsophist

.

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

cated competitor fails, we see another one bidding above us.

Over time, I have no doubt that PPC bids will drop considerably as more advertisers get smarter. Incorpor

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

Companies that provide selfless information through particip

ting smart bidding into your advertising strategy will help ensure that you will be around to see the day when bidding for the top position actually is profitable again

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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Be it any area or any sphere of life management is the key to success. Management of simple things such as your day-to-day activities etc. might not require much consideration but lot of planning is to be done when it comes to managing assets.

Customer bills that are unpaid after the terms that were set are considered past-due accounts. Many business owners and managers have a billing processes, but no process for collecting on past due accounts.

Is fear stunting your growth? Not able to go for your most profitable opportunities? Next time YOU get the urge to shirk a high ROI gig because it overwhelms or intimidates, try one (or all!) of these six creative breakthrough strategies.

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Advice You - Why Your Competitors' Lack of Sophistication is Killing You!

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