There was a time when it was unheard of for physicians to sell nutritional supplements in their practice.  In essence, it was considered taboo for a doctor to pursue this path as a means to make money.  However, two realities have changed the direction physicians are taking today as it relates to selling nutritional supplements.  First, consumers continue to be moving toward preventive healthcare.  Second, with lower income and higher expenses, doctors are looking for additional answers to support themselves, their families and their practices. 

Below is some data that might be useful to share with any physician that continues to operate with that “old school” belief that doctors should not sell nutritional supplements to their patients.  The data comes from two sources.  The first is a report compiled by ChangeWave Research called “Preventive Care and Wellness Trends”.  That report surveyed 313 doctors in February 2010 to get their input on the latest trends in preventive care and patient wellness.  The second is a survey done by the Nutrition Business Journal from a survey conducted in March 2010 of 600 medical professionals in the US.

Changing Wave Observations

• 41% of doctors recommend that patients take vitamins/nutritional supplements
• 31% of doctors report increased patient interest in preventive care and wellness.  Those changes were driven by lifestyle changes but also included supplementation as a means to avoid illness
• Doctors rated Vitamins/Nutritional Supplements as the safest products in the marketplace, even more safe than prescription drugs and over-the-counter drugs
• 29% of doctors recommended nutraceutical products to their patients with the top 3 recommendations being Fish/Omega oils, Probiotics, and Fruits and Vegetables/Whole grain/Organic products

Nutrition Business Journal Report

• 76% of practitioners sell supplements in their offices
• 70% of practitioners reported being “very knowledgeable” about supplements and how they can be used to support their patients health (growing trend on physician education on nutrition)
• Predict that the healthcare practitioner channel of distribution is going to be “one of the most vibrant and fastest-growing sales channels in the nutrition industry for the next 10 years”.  Below is the chart showing this trend over the last decade.

So what does all this mean?  First, physicians are marketing nutrition because (1) the consumer is moving in that direction and (2) their net income continues to shrink (lower pay and higher expenses).  Second, according to the Nutrition Business Journal, physicians continue to be the most trusted source to consumers on who they listen to for advice on nutrition.  That means if you are in the nutrition business, it might be worth getting more medical professionals involved in your business.  Finally, clearly the views of the medical profession toward supplementation sales in a doctor’s office are evolving.  The awareness continues to grow and change is taking place in the medical profession.

I would like to add one more important observation.  Medical professionals tend to be scientist vs. salesman.  They are used to recommending products that have science to support claims.  I suspect that those nutritional products that have science to support the efficacy of their product will be the ones that the medical profession gravitates toward as an answer for their patients.  Clearly the regulatory environment is moving in this direction which further supports marketing products that are supported by science.  However, not all science is equal.  Doctors are accustomed to “primary research” over “borrowed research”.  It is critical that research is done directly on the product (primary research) vs. relying on claims contributed to the components in the product (secondary research).  In the end, the stronger the research and the more it resembles what physicians are accustomed to in their practices, the higher the probability that you will attract medical professionals to your business.

In closing, it is important to realize that trends matter, especially if driven by real demand.  The face of prevention, healthcare and nutrition are changing.  The key is to not only recognize these trends, but to proactively get positioned to take advantage of them.  One of the key momentum principles in business is to attach your business model to a growing long-term trend.  As the old adage goes, it is easier to swim with the current than against it.

The Nutrition Business Journal (NBJ) recently conducted a study using various large MLM/Network Marketing Companies in the nutrition industry.  The study was focused on determining what the companies in this industry felt was the key to “longevity in the nutrition multi-level arena.”  The findings were as follows:

1. Scientific product substantiation is the key to differentiation and longevity of MLM nutrition companies.

2. Competition remains fierce and communicating the science behind a product is a key factor in staying “relevant” in the MLM sales channel.

3. Differentiation through science over salesmanship is a key factor for new distributors looking for an opportunity.  The other key factor being looked at is the “international business venture” component of any opportunity.

4.  According to the summary by the NBJ, one of the key reasons the MLM industry has a bad reputation is because of “overzealous marketing” where companies went beyond reasonable health claims associated with their product.

5. The NBJ also noted that “consumers are ultimately looking for value and some assurance that the products they are buying will do what they claim to do.”  The MLM’s that see the most success in the industry understand that science has to trump marketing for long-term success.

The findings above are consistent with the movement in the regulatory community (both current and proposed).  The good news is that some of the MLM companies are “seeing the light that science has more value than salesmanship” and reaping the benefits of doing business the right way.  It is good to initiate positive change before regulation vs. regulation forcing change.  As MLM companies in the nutrition industry recognize and accept that science must prove the value and merit of their product, it will benefit both the industry and everyone involved in it.

If you tend to be one of those “business dinosaurs” who refuses to acknowledge the direction in which the nutrition industry is headed, you might ultimately find that embracing change is a much better path to long-term stability than (1) failing to recognize it or (2) failing to do anything about it UNTIL you suffer the consequences.  In the end you have to remember that one of the keys to long-term business success is being proactive in your thinking and actions.  There is clearly a movement toward science to support nutritional claims.  Since scientific proof cannot be created overnight, the more proactive you are in managing this change, the higher the probability that you will profit from the change.  For those that embrace this movement, I suspect will reap the rewards.

There are many who believe that the key to accumulating wealth is to make a lot of money.  As you can see from some of the statistics below, that belief is certainly not true.

• National statistics show that about one-third of lottery winners ultimately file for bankruptcy (Source:  Milwaukee Magazine)

• Almost 80% of National Football players are flirting with bankruptcy two years after they retire (Source:  Sports Illustrated)

• 60% of National Basketball Association players end up broke within 5 years of retirement (Source:  Sports Illustrated)

There are countless individual examples to support the statistics above.  However, discussing those examples is not the direction of this blog.  My goal is to discuss a very important component of the accumulation of wealth – Financial Capacity.  Financial Capacity is your ability to handle wealth.  The statistics support that your wealth will be controlled more by this factor than by how much money you make in life.  That is why it is critical to focus on increasing your Financial Capacity as part of your personal development plan.

As I have studied the individual examples of failure from the data above, there seem to be two common problems that exist with this group.  First, most of these people lived over their means.  The simple truth is that their long-term value to the marketplace was limited but they lived a lifestyle that assumed it would go on forever.  In essence, they violated one of the key rules of accumulating wealth – live below your means.  Even with their substantial incomes or lottery winnings, those who lost money had a huge amount of debt.  Second, this group made very poor decisions when it came to relationships.  For some, the relationships were on the lifestyle side of the formula.  Whether friends or family, these big income earners seemed to be supporting a lot of people who were involved in their life.  For others, the problem had to do with the relationship selection on who managed their money.  The finance books don’t teach this important principle:  people are the greatest risk in the marketplace.  One of the key principles in accumulating wealth is to make “risk management” the highest priority in the wealth accumulation process.  In other words, if you can avoid mistakes with your money, then the growth will come.  However, when greed takes over for risk and common sense, then often you will find that those you trusted with your money will be the major reason you lose it.

So here is my advice to all of you.

1.  Always live under your means, especially when it comes to using debt.  Remember, living under your means is about living within the value you can get paid in the marketplace.  If a business, relationship, or financial windfall becomes the reason to live over your value to the marketplace, then I suspect in time that you too could end up living over your means.

2. Get enough financial education to know reality from a sales pitch if you are depending on others to manage your money.  You have to have enough Financial Capacity to be able to make good relationship selections.  That means you have to be able to successfully determine if the person managing your money (1) can do the job (the “Value Factor”, and (2) is putting your interest ahead of themselves (the “Character Factor”). 

3. Finally, I think the best investment you can make with your money is in YOU.  I find people get the best returns and happiness in life when they focus on personal development and having their own business.  Personal development is the key to growth.  Having your own business is the key to enhancing getting paid for your value in the marketplace as well as taking ownership of your financial future.

In closing, I can promise you that if you increase your Financial Capacity, you will increase your wealth.  And in return you will be rewarded for saving and accumulating wealth vs. being penalized for failing to accumulate wealth simply because you didn’t have the Financial Capacity to turn your hard work into a lifetime of riches.