Aaron Liang Working at a startup, one key thing to consider with external sales/distribution team vs. an internal team is the market penetration strategy. As you noted, independent rep groups often have large boutique portfolios of products that they carry to offer to the various customers in their region. Therefore, they are trying to sell an array of products or services and yours is just one item in their kit so they may are unlikely to dedicate efforts to expand your products use in accounts relative to others in their portfolio unless its worth their while.

On the other hand, an in-house team would be totally aligned with the goal of pushing access for just your product and expanding its use to new accounts. On the other hand as you noted, that probably costs more. I think at the end of the day it all depends on your strategy for expanding access and leveraging the right combination of in-house and independent agents to push your product.

Bruce Ackman Jill,

You have some sales history which should be your guide. Your second consideration should be your plans for your company (organic growth through follow-on products or cash-cow for lifestyle, as two extremes). Your third consideration should be sales volume and geography: Can you get high margins and high sales through local distribution/sales or do you need high volumes to exceed breakeven? Final consideration should be your own nature regarding control.

Jill Bigelow Aaron Liang Bruce Ackman Thank you for your advice. Since launch we have sold thousands of units but mainly B2C so B2B is a pivot. We have total product validation and now an issued utility patent. PELV-ICE is very well recieved by the medical community and we are ready to scale. Margins at any volume are solid even in a distributor model but I am most concerned with whom I partner with. As Aaron mentioned, I don't want to have our line get lost in a large book of business but I know that having a rep or rep group that already has established relationships will make entering a hospital system and closing that sale smoother. I think I just need to find the right senior rep that is really well respected that has relationships in ortho, surgery, uro etc... that is passionate about changing the standard of care with PELV-ICE. Let me know if you know anyone!

Sandra Hodgson third option would be to co promote with a company already in that space. You'd give up some of your profits but you'd have an established sales force typically of higher caliper than a "contracting" company without the true expense of your own sales team

Jill Bigelow Sandra Hodgson thank you. I like that idea. Do you know any to recommend?

Pat Licata Hi Jill ! First of all congratulations ! Let's talk.. we scale & build salesforces in medical with independent and direct sales reps.. My email is pat@patlicata.com

Kenneth Knighten
I've worked with several start ups in the past. The above comments are great. In the ideal world you want your own Sales team, but that is very expensive with salaries, commission, travel reimbursements, benefits, etc.

The most successful start ups go at it slow. They co-promote the product with a distributor/company that sell to your target audience. Then, they will add people as sales grow. Your first person would cover the whole US working with all product partners. This person usually becomes the national accounts or VP of sales. As the product partners sales grow, the start up would add a regional rep to work with the product partner to grow sales even more. The national accounts/VP would focus on other product partners to build their sales and add regional reps as sales can justify the cost. Once sales hit a certain mark, you would add reps in markets that are weak in sales. Just like building blocks. You build your base of sales, add your reps to grow sales higher.

Kenneth Knighten Distribution vs Company.
Some companies are going to want some kind of ownership and because your product is new you may not get the full potential value. You would get more attention and dedication to the product working with a company.
Distributors are use to seeing products come and go. Their focus may not be as much as you want/need as a company. Their value to you will be their relationships and you can maintain more ownership. They will work off the percentage of sales, usually in the 20-40% range. They can grow your sales and you can grow value and vision of your company.

Sandra Hodgson not off hand, I'm not in that arena, but that should be easy to uncover with a little investigation.

Jill, there are two potential partners as suggested by Sandra based near you with national representation. You're welcome to give me a call this week and I would be happy to try to facilitate a connection for you. Tim

First gut check is actual regulatory status and evidence based studies to create a robust profile and present for reimbursement. Let me know if you need further clarity. Good Luck!

Jill,
Hire a VP of sales to seek out the best distribution channels. You will have many distributors claiming the your product fits perfectly in their bag. Don't fall prey to this! It medical gut cost you more money in the start up phase, but in the end you will reach your goals faster with less headaches! Good luck!

Jill, we import/distribute specialized Orthopedic and Sports Medicine products into Canada. You can visit our bilingual website at www.poportho.com

The PELV-ICE at first glance might fit very well into our product line.

Additionally, I too (along with my wife) are the inventors of a Hip Fracture prevention products of which we have 5 patents on it (3 in the U.S., 1 in Canada, and 1 in Europe). The website is www.comfihips.com

You can reach me by email at martinonrot@sympatico.ca or martin@worldwideortho.com

Congratulations! Sounds like a great product. With just one product (and not a full line of products), your best bet is to contract with independent distributors who carry related products and have established relationships with your target customers. Hire an experienced sales leader to assist in building out and managing your sales force. Make sure they have first-hand experience in the market you're seeking to develop.

Greg Switzer Jill,
Regardless of the structure of your selling organization, I recommend hiring a VP of Sales or National Sales Manager.

Concerns managing a medical device selling organization range from territory alignments, compensation agreements, pricing strategy, inventory management, GPO/IDN contracting strategy, compliance. Additionally, an ongoing B2C channel co-existing with a multi-faceted B2B channel will need mgmt. A glaring challenge is that you sell to several healthcare specialties. In my experience, crossover from OB/GYN to ortho for example, often doesn’t work well for a single selling organization, especially independent boutique distributors. Access to providers and call patterns are very different across these specialties. While there are some great boutique distributor/agencies, your risk is being underrepresented to important customer constituencies.

Happy to converse more off-line if you desire. Congratulations! GS

I have to agree with John Blumers here. With just one product at $X selling price, it may be difficult for a single direct sales rep in an averaged-size geographical territory to make a living off of just that device. Better to have that product offered by a distributor that already carries bracing or other Durable Medical Equipment (DME) so it can be part of an assortment and therefore more attractive for the reps to sell.

Regina Bauman Hire Vp of sales and agents. Agents will have the relationships to get a fast return.

Sell it or Lisc it out without the headaches ....sounds easier than it is without sales histories but if it's novel, validated and works, big companies in that space will talk to you. If not a quick trip to "the islands" strongly suggest 1099 network w/ one person to put it together and hold accountable....they also need to be able to sell, train & manage sales groups. If it was easy....anyone could do so be ready for "the grind."

Jill, I've used both and both ways have their advantages Having a direct sales force gives you 100% focus, but can be very expensive too. Going 1099 means their is competition for their time selling your product Reps will usually give their most time to what they are use to selling and what pays the most.

My suggestion is definitely hire a Sales Director that can utilize both strategies where it makes most sense. Probably more heave 1099 initially.

I've been direct and 1099, run a distributorship and been a sales manager for snd VP of sales for a start up. Ive seen so much in the last 32 years and it's changing rapidly.

If I can help in anyway, please reach out to me. Would be willing to consult with you as you make this critical decision. Ive also built sales teams from the ground up.

Congrats on having a winning product!!

All the best,

Art
713-828-8695 cell

Jill, I think you've received consistent advice here on a few things, namely hiring a VP/National Sales Director to manage the relationships with a team of independent dealers. The key objective will be finding the right specialty dealers with whom to work, matching complimentary call points, products, and relationships, and willing to devote adequate time to the device. Everyone will be interested, you'll need to carefully pick the right ones (4-5 to cover the country likely). Also, spend the time and money as an organization to produce data/studies/white papers/clinician testimonials to support its effectiveness and results...a robust value prop backed by evidence will drive sales as well as interest from larger organizations who would potentially acquire your product. Good luck!

Ronda Cobb, BSME Either way you go, you will have some costs and benefits. However, if you are already working full time, you do need a Sales Manager/VP of sales. While a scrappy start-up, you still need to think like a smoking hot commodity. Planning will be key to managing the demands of increased sales and all the "stuff" that comes with that. Get a Sales Manager on board in some fashion and prepare to move quickly and efficiently into the future. Best wishes and reach out for more assistance.

National Sales Director or VP of Sales to formulate the plan. Hire a Contract sales force with a rent to own clause. It keeps the sales group focused on doing well, but gives you the "out clause" if you need it. When the time comes to convert, you can be selective on who to keep if you so choose.

You will save money hiring Independant distribution but you will still need a Sales executive to manage all the relationships and all aspects of the sales process

Ted Newill Independent reps that have a boutique portfolio aimed at your target market are a good start. I agree with Eli. The squeaky wheel gets the grease. You will need a sales manager to drive the independent reps and make sure they understand your value proposition and how to communicate it to your prospects. You may want one telesales person to sell to areas that are not covered by the independent reps.

Marc Weiser Sorry to go off on a slight tangent, but have you given any thought to International Distribution? MamaStrut seems like such a great product with universal, international appeal. I have 10yrs experience in the medical device/aesthetics arena and would love to see what we could do outside The U.S. through my distribution network. Please let me know if you have any interest and congrats on your success!