There is an old saying, “Those who can’t do, teach.” This phrase could be applicable to the medical ancillary sector as well, only changed to “Those who can’t sell, become distributors.”
If there is one thing the medical ancillary space has in abundance, it’s “distributors.” Many sales groups have arisen in recent years, most of whom have the same business model….get somebody else to go out there and generate sales so they can make a piece of their commission.
Recently I was contacted by an individual who found our podcast. He explained that he needed to be plugged into all of our ancillary solutions as a distributor because he is hiring on reps by the hundreds.
In speaking with him about specific programs, I realized that his grasp of the medical industry was no better than a lay person. I cut the call short and told him I’d email him some videos and materials that would bring him up to speed. He gave me his email address, which indicated he worked in another industry.
Upon speaking with him further, he admitted to me that he has NEVER worked in sales and has NEVER worked in the medical industry. However, his business model was to contract with several vendors, pay half of the money out to the reps, and keep the rest.
This begs the question, why does the sales rep need this person?
I explained to this person that if you want to have any success as a distributor, you need to add real value. That means lending your years of expertise to help the sales rep become successful.
His response was that he knows he will probably have high turnover, but if he puts 100 people on the streets, a couple of them are bound to make a sale.
The only difference between this person and a pimp is a wide-brimmed hat and a cane. His business model was to waste people’s time and pray that a small minority do not catch on to their hustle.
Sadly, this is not an isolated case. In my 9 years in the ancillary sector, I have come across all too many “distributors” with the same business model. Their only currency is that they know where to get the contracts. They count on the ignorance of sales reps not being able to find out how much commission they are giving up by working with a middleman.
Here are some good rules of thumb for when you are with a BAD distributor:
- Inexperienced in the medical industry
- No system for training or coaching
- They are NOT personally successful themselves
- They do not have references to other reps who have been successful working with them
- No help in closing deals
- Not transparent on pay
- Unwilling to invest ANY financial resources into reps
- Revolving door of reps in and out of their company
- Distributor is not direct with vendors
- Cannot pass a background check
A bad distributor is akin to a pimp.
This is not meant to be an indictment of ALL distributors. There are good distributors who do business the right way and offer tremendous support. A good distributor is well worth the money they are taking off the top. If you are working for a good distributor, consider yourself lucky, and stay put!
However, if your distributor checks all the boxes of a bad distributor, get out now. The chances that you will be successful with them is very slim.
For those looking to work outside of the “distributor – rep” paradigm, www.everyancillary.com has your solution.
Every Ancillary offers all of the tools that you need to be successful in this sector. You can offer a full portfolio of medical ancillaries, contract directly as a distributor with ancillary vendors, with the resources you need to present multiple solutions to doctors in one platform.