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TOPICAL DERMATOLOGICS FOR THE SKIN CARE PROFESSIONAL
Issue 1 December 16, 2009 Message from the CEO Welcome to DermaMedics. I want to personally thank all of you for joining Joyce and me in this new venture to offer ad‐
vanced skin therapeutics to professional offices around the country. I very much appreciate your enthusiasm as well as your patience while we have devel‐
oped the website, the products, and the marketing materials needed to support your sales efforts. We started this effort in April, and hoped to be ready to launch in August. As often hap‐
pens with any new endeavor, goals rarely get completed on time. But now all that work is done and we’re ready to call on accounts. I am excited to have the chance to watch this com‐
pany grow and to hopefully dominate the professional skin care industry. The time is right for DermaMedics. The number of medical spas has more than doubled in just 3 years, as physi‐
cians from diverse specialties are realizing that the most lucra‐
tive practice to be in now is skin care. Skin care sales in the U.S. last year were $8 billion and sales from spa services and products exceeded $9 billion. Growth of skin care in the U.S. exceeds 10% a year, and this increase is fueled both by 75 million baby boomers, as well as by consumers under the age of 40 who are worried about their skin. DermaMedics, alone, has the technology and products physicians and medical spas need to provide the best possi‐
ble care for their patients. 2010 promises to be a very exciting year for DermaMedics. Thanks again for joining me in this en‐
deavor. Sincerely, Bryan Fuller Regional Sales Representative Newsletter Salary and Bonus Structure
As you embark on this new venture to offer our novel anti‐inflammatory and anti‐aging technology and prod‐
ucts to professional accounts, you obviously need to know how you will be financially compensated for the hard work you will do to generate sales for the company. As a Derma‐
Medics Regional Sales Manager (RSM), you have 3 ways to earn in‐
come. ers will receive 20% of all net sales to professional accounts. An addi‐
tional 5% of net sales will be paid to Therapeutic Skin Care Enterprises. 2. Selling Therametics Products to Non‐Professional Ac‐
counts In addition to selling the Derma‐
Medics brand of products to Profes‐
Eight products are now ready for sale under the DermaMedics brand. In addition, you will be the exclusive distributors for Therametics’ Derma‐
Rad Relief product for cancer radia‐
tion patients. You will also have the Complexion Repair Acne Treatment line of products to sell. At present the Complexion Repair products are a Therametics brand but these prod‐
ucts will be re‐branded under the DermaMedics label. DermaMedics regional sales manag‐
Salary and Bonus Structure 1,2 Website Update 2 Free Sample Policy 3 Possible Talking Points to Accounts 3,6 Competitive Prod‐
uct Update 4 Continuing Educa‐
tion—Dermal Re‐
surfacing 4,5 Coming Soon—
Product Update 5 DermaMedics Sci‐
ence Review—
Therosol 6 sional Accounts, you will also have 1. Selling DermaMedics Products the opportunity to sell the Therametics line of skin care prod‐
to Professional Accounts Your primary sales effort will be to sell DermaMedics products to Pro‐
fessional Accounts. The definition of a “professional account” is: a busi‐
ness owned and/or run by an indi‐
vidual with an advanced college degree in a medically related field. Examples include physicians, nurses, dentists, pharmacists, medical spas run by one of the above individuals, and pharmacies. In addition, certain high‐end resort spas may qualify as a Professional Account. Inside this issue:
ucts to accounts that, while not qualifying as Professional Accounts, do offer skin care services to cus‐
tomers. Examples of these types of accounts are day spas, health clubs, beauty salons offering facial services and tanning bed facilities. Because Therametics products are also sold under a direct sales program, there are some regulations re‐
garding sales of our products to these facilities. The Therametics office should be contacted prior to making sales calls to non‐
professional accounts, to ensure that the sales of Therametics prod‐
ucts are allowable. DermaMedics RSMs selling Therametics products to non‐
professional accounts will be entitled to the same compensation received from Professional accounts; i.e. 20% of net sales. TSCE will also receive 5% of net sales. 3. Selling Therametics Products as PSRs Finally, all DermaMedics regional sales managers have been given the Therametics title of Senior Professional Sales Representative and have all the benefits that this title provides. Briefly, being a Sr. PSR means that Therametics products can be purchased for a 40% dis‐
count and then resold to friends, relatives, and other customers. Further, as a Sr. PSR you may recruit new PSRs to your team and receive commissions from their sales. (Continued on page 2). Regional Sales Representative Newsletter Page 2 Cont’d—Salary and Bonus Structure
For complete information concerning the Theramet‐
ics compensation plan for PSRs consult the Therametics website (login as a PSR) or consult your “Why Become a PSR” booklet. The Calm & Correct Se‐
rum is a gentle sili‐
cone based serum de‐
signed to soothe and visibly im‐
prove dam‐
aged skin. DermaMedics Sales Bonus Structure In addition to receiving 20% of all net sales of Der‐
maMedics products to Professional Accounts, as well as 20% on sales of Therametics products to non
‐professional accounts, DermaMedics RSMs are entitled to sales bonuses, which are paid directly to you by Therametics. The bonus structure is as fol‐
lows: CONSISTENCY BONUS. This bonus is 2% of all monthly net sales when a RSM meets his/her sales quotas for 2 or more consecutive months.
SALES +10% GROWTH BONUS. This bonus is given IN ADDITION to a consistency bonus. An RSM will receive a 2% bonus on ALL monthly net sales when monthly sales have exceeded his/her sales quota by 10%. SALES + 20% GROWTH BONUS. In addition to a con‐
sistency bonus, a Territory Manager will receive 4% instead of 2% of all monthly Net Sales when he/she exceeds his/her territory sales quota by 20%. Redness Reduction Emulsion is designed to visibly re‐
duce facial redness and to soothe and moisturize damaged and sensi‐
tive skin. YEAR END SALES GROWTH BONUS. In addition to the above consistency and sales bonus, a Terri‐
tory Manager will receive a year‐end sales bonus of 5% of total yearly Net Sales when he/she ex‐
ceeds his/her yearly territory sales quota by 25%. The above bonus structure is based on an RSM ex‐
ceeding monthly sales quotas. As with any new com‐
pany it is hard to predict the ease or difficulty of in‐
troducing a new skin care product into the profes‐
sional market. For this reason the first year sales quotas have been set particularly low. As is shown below, the first two months of sales calls do not have any sales quotas attached to them. That is because the first two months will be primarily spent calling on accounts to find out: 1) what procedures they are using, 2) what skin care products they carry, and 3) what their needs are in terms of products to help improve or protect their patient’s skin after proce‐
dures. Starting in month 3, RSMs will be expected to generate sales according the following schedule: Month 1: $0 sales, but proof of 30 sales calls to Pro‐
fessional Accounts Month 2: $0 sales requirements but proof of 30 sales calls to Professional Accounts Month 3: $2,000 Net sales per Territory Month 4: $5,000 Net sales per Territory Month 5: $8,000 Net sales per Territory Month 6: $11,000 Net sales per Territory Month 7‐12: $15,000 Net sales per Territory It is worth noting that at present, one of Therametics’ Professional Accounts, a spa in Tulsa, SkinMedic, orders approximately $8000 worth (retail price) of products EACH month. And this is only one account! From this example, it seems very likely that every RSM will be exceeding his/her sales quotas consis‐
tently, and will therefore be routinely receiving sales bonuses. DermaMedics Sales Quotas DermaMedics Website Update-www.dermamedicsprofessional.com
After what seems like forever, placed by your accounts and The website contains an enormous the DermaMedics website is up even sends you an instant email amount of information, as well. It’s and running! If you haven’t al‐
notification when one of your a great resource for any questions ready received your log‐in infor‐
accounts places an order. It also regarding skin conditions, Clinical mation, it will soon be sent to allows you to see what products Studies or our Therosol technology. your email address on file with each of your accounts is buying. us. You have the ability to enter a new Professional Accounts into The website has many great fea‐
tures. It allows you, the RSM, to place an order for one of your accounts directly from your ac‐
count. It shows all the orders the system & the software will then automatically assign them to you. Soon there will also be a page devoted specifically to your sales training. Please visit the website, sign in and look around. Please note that it is still “under construction” and not totally finished. If you have any questions, please direct them to Jennifer at [email protected]. Issue 1 Page 3 Free Samples Policy
We realize that one of the best sheets and samples. These ways to get a potential account should only be left at offices to buy DermaMedics products is which the RSM feels are seriously  60– 0.25oz Intensive Relief  60– 0.25oz Redness Reduction Emulsion to have them try free samples. interested in our products. The And we also understand that it is sample policy below is a guide‐
In addition to the above sam‐
a financial strain for Sales Man‐
line. If an RSM is finding that ples: agers to have to purchase these each office he/she visits is genu‐
Each RSM will also be given one items. Therefore, DermaMedics inely interested in our products, set of full size products to has come up with the “free sam‐
then more samples may be pro‐
demonstrate during office ple” policy shown below. The vided. The free sample policy will visits. numbers shown below were continue until April 1, 2010. At derived by assuming that each that time, we can re‐visit this Sales Manager will call on a mini‐
sample policy. However, as long mum of 9 accounts a week, or 36 as sales quotas are being met, each month. At every office visit, free samples will always be pro‐
2 of the trifold DermaMedics vided at no cost. brochures should be left. As each RSM visits an account, he/she can judge for themselves whether the potential account is interested enough in our prod‐
ucts that it is worth leaving prod‐
uct cards and samples. We esti‐
mate that at least half of the offices will want to have price  75– Trifold DermaMedics Bro‐
chures  20– Folders  20– Price Lists  20– Each (8) Product Card  20– Product Use Card  60– 0.5oz Calm & Correct Se‐
rum  60– 0.25oz Restorative Serum If the RSM meets with an ac‐
count and either the nurse or physician has a specific inter‐
est in testing one of our prod‐
ucts on a specific patient, a full size product will be pro‐
vided free of charge. In regard to acne products, while DermaMedics can’t afford to give out full size Complexion Repair kits, we are going to make available to our RSMs, trial size kits of Complexion Repair, at no charge. Possible Talking Points to Accounts
As I mentioned, I expect the first As you begin to call on physician based) anti‐inflammatory tech‐
month or so of calls on profes‐
offices and Medical spas, one of nology to treat inflammatory sional offices to be more the first challenges will be how skin problems”. Then I might say “information gathering” than to introduce DermaMedics to the that: “the company has discov‐
anything else. Asking questions office staff. We talked a little ered a family of novel, plant‐
like “what services and medical about this during the training derived anti‐inflammatory procedures do you offer?”, what here in Oklahoma City, and my chemical compounds that have topical products do you use to feeling was that one possibility been formulated into products treat post‐procedure inflamma‐
would be to introduce yourself as for cancer patients.” These prod‐
tion, what products do you sell a sales manager for a “relatively ucts have been found to com‐
that are effective in treating new biopharmaceutical company pletely prevent the worst form of rosacea, hyperpigmentation, specializing in the development skin burning; that is, the burn‐
eczema and rashes?”, and what of topical dermatology prod‐
ing from cancer radiation treat‐
products do you sell that are ucts”. ments.” (Continued on Page 6) specific for “anti‐aging”, will provide a lot of useful informa‐
tion. You may have thought of more questions to ask by now. I might then say that the com‐
pany was “formed to develop novel, non‐steroidal (plant Restorative Serum is a proprietary anti‐aging formulation. This mois‐
ture‐
retaining formulation is non‐
come‐
dogenic and gentle This mois‐
turizing lo‐
tion is an advanced skin bright‐
ening for‐
mula de‐
signed to minimize the appearance of “age spots” and to visibly restore a balanced com‐
plexion to the skin. Regional Sales Representative Newsletter Page 4 Competitive Product Update—Treatments for Rosacea
Rosacea is an inflammatory skin problem, that affects over 14 million Americans. The causes of the disease Foaming Facial Cleanser is a pH bal‐
anced, soap‐free cleanser that has been for‐
mulated with a unique blend of mild, yet highly effective skin cleansing surfactants. are poorly understood. There is some genetic component to the disease as it is more prevalent in those of German, English and Irish heritage. While some researchers claim a surface mite, called Demodex, is linked to rosacea, others show no data for this. What is clear is that rosacea severity can come and go, and involves vasodilation, and the development of acne‐like lesions. Left untreated, rosacea can lead to the development of rhinophyma, a thickening of the skin of the nose. Several prescription medicines are available to treat the symptoms of rosacea and these include topical metronidazole (Metrogel), Finacea (azaleic acid) and topical antibiotics, like clindamycin and erythromycin. Oral antibiotics such as tetracycline are frequently given to patients. How these drugs work to control rosacea is not known with any certainty. As many of you know, there are no Over‐the‐Counter drug products for rosacea. The reason for this is that the FDA has never issued a “monograph” of acceptable rosacea treatment drugs. As a result, any product that is sold without a prescription must limit its “use claims” to cosmetic language, such as “reducing the appearance of redness” “calming the skin”, etc. There is one exception to this. If the rosacea product claims to be a “homeopathic” medicine product and contains an accepted homeophathic ingredient (sulfur) that is listed in the “Homeopathic Pharmacopoeia of the U.S.” for use in treating rosacea, then the FDA allows the product to claim that it treats rosacea. An example of one homeopathic product is Prosacea, which contains sulfur. Con‐
sumer reviews are mixed. About equal numbers of patients say it either works or doesn’t. Most say it smells bad (to be expected for a sulfur product). It also dries out the skin. In terms of cosmetic products that are sold with the “implied” purpose of treating rosacea, the following products are marketed as rosacea products: 1) Rosacea LTD III, a disk impregnated with a lotion containing sulfur and zinc oxide, 2) ZenMed, which contains non‐proprietary ingredients such as aloe vera, willow bark, green tea, licorice extracts, 3) Redness Relief (a Eucerin product with licorice), 4) Dermarest Rosacea Ad‐
vanced Redness, 5) DDF Redness Relief (with horse chestnut and licorice) and 6) TriDerma Facial Redness cream. The bottom line is that none of these products contain novel ingredients, most have plant extracts, and none of them work well. Of all the ingredients in these products, only sulfur has a mild beneficial effect Intensive Relief has been spe‐
cifically formulated to re‐
hydrate the skin and to replenish lost oils needed to aid in skin repair. on rosacea. Unlike the above products, DermaMedics Redness Reduction Emulsion contains the patent‐pending and pro‐
prietary active, Therosol, as well as Therosol‐C. Therosol is an anti‐inflammatory and Therosol‐C is an anti‐
bacterial/anti‐microbial compound. The combination of Therosol and Therosol‐C combat the known and pos‐
sible causes of rosacea. The DermaMedics formulations have been shown in clinical studies (one at Stanford) to reduce rosacea symptoms. Redness Reduction contains no crude plant extracts. The product does contain chromium oxide, a green pigment which instantly reduces redness when applied to the skin. Continuing Education—Dermal Resurfacing
As more physicians from different specialties, in‐
products act to: 1) minimize inflammation, 2) and re‐
cluding Emergency Medicine, Obstetrics, Family duce patient downtime (away from work and friends) Practice, Urology, and others set up medical spas by accelerating skin recovery. In this brief article we’ll to cash in on the rapidly growing anti‐aging skin talk about some of the procedures used to resurface care market, the use of lasers to resurface the skin skin. has grown dramatically. The end result of the use of any laser, pulsed‐light or radiowave unit to re‐
surface skin, is the production of inflammation with resulting patient discomfort. DermaMedics The overall goal of any resurfacing procedure is to “wound” the skin so that it repairs itself, and in doing so, replaces the old dermal matrix with new matrix proteins like collagen and elastin. (Continued on page 5) Issue 1 Page 5 Coming Soon—Product Update
In the coming months, DermaMedics will Medics premiere will be the Anti‐aging Collagen‐
be changing over to the DermaMedics be debuting several new products built enhancing Lip Balm. Loved by those of us in the Brand. Included in this line will be the specifically for the professional. lab, this lip treatment is sure to be a hit! Foaming Body Wash, Calming Serum as First up will be the DermaMedics Overnight Currently in formulation is the DermaMedics well as, a new product, the Baby Cream. Repair Cream. This anti‐aging cream is Under Eye Treatment. This lotion is being built As you know, the Complexion Repair Acne highly moisturizing and works great on to not only reduce the lines and wrinkles around Treatment System is currently available severely dry skin. the eyes but to also minimize the dark circles for you to sell under the Therametics Also to be found in the Anti‐age category most of us battle. name. This will soon not be an issue, as will be the DermaMedics Skin Tone Balanc‐
Also in formulation is the Sensitive Skin Foaming we are preparing to change the graphics ing Serum. Formulated for an all‐over appli‐
Facial Cleanser. This gently cleanser is being on the bottles to reflect the DermaMedics cation, this pigmentation reducer is a favor‐
formulated with extra moisturizers specifically name. ite among the Therametics customers. for individuals with extremely sensitive/dry skin. *All names are subject to change. Making both its Therametics and Derma‐
The Therametics Baby’s Relief line will also Cont’d—Continuing Education—Dermal Resurfacing
The extent of wounding is proportional to the amount of new colla‐
melanin and hemoglobin. The absorption of this light generates gen produced. A skin that is “ablated” down to the lower dermis will excessive heat in the pigment which then destroys whatever tissue obviously produce more matrix proteins than a skin that is not dam‐
it resides in. Thus, hair follicles that contain brown pigment are de‐
aged as much. The two main types of lasers used to resurface skin are stroyed (hair removal in blondes doesn’t work because the pigment the “ablative” lasers and “non‐ablative” lasers. The first ablative la‐
doesn’t absorb the light), and blood vessels that contain hemoglo‐
sers to be used were CO2 “flat beam” lasers and these vaporized the bin are destroyed. The higher and longer the pulse, the more dam‐
skin from the surface down to the dermis. These lasers produce the age is caused. IPL, like lasers, causes inflammation, and thus, physi‐
most severe burns and patients typically take anywhere from 10 days cians are reluctant to use higher settings which would work better to 2 weeks to recover enough to go back to work and face their col‐
in removing hair or skin problems. However, with DermaMedics leagues. In addition, the pain is so bad that anesthetics typically have products the physician and or aesthetician should be able to use to be used. Recently, newer versions of ablative lasers, called higher IPL settings to produce better results. “fractional” lasers have emerged. Two are the CO2 Fraxel laser and The last device I’ll talk about here is Thermage. This patented device uses radiofrequency energy to heat collagen in the dermis thereby “pixels”, or dots of laser light, only evenly spaced areas of the skin, removing water and shrinking the collagen. The collagen then pulls and not the entire skin’s surface, are ablated. And though there is still the other fibrils it’s associated with tighter and the skin tightens. considerable discomfort, inflammation, and peeling , the recovery There may also be new collagen formed from this procedure but time is generally less (typically 6‐7 days). “Non‐ablative” lasers (for according to the data the probability that this occurs is not good. example YAG lasers or the Starlux Erbium laser) do not vaporize the Thermage produces only very mild inflammation, but on the other skin from the surface downward, but rather heat the skin internally, hand, it produces only mild and transient improvement in the skin. thus leaving the surface of the skin intact. The heat generated in the the CO2 DOT laser. Because these lasers break up the laser beam into dermis damages the collagen and stimulates a wound repair process. The disadvantage of non‐ablative lasers is that they don’t provide the results an ablative laser does, and in addition, it takes 4 sessions to get results that are comparable to 1 treatment with an ablative laser. In addition to lasers for skin treatments, there are other devices used to improve skin appearance. Intensed Pulse Light (IPL) uses a broad spectrum (white) light from a Xenon light source to treat rosacea, acne, telangiectasia (broken and visible blood vessels) and to remove Regional Sales Representative Newsletter Page 6 Cont’d—Possible Talking Points to Accounts
The Facial Moisturiz‐
ing Treat‐
ment is for‐
mulated with a high level of skin friendly oils and lipids that help to restore the balance of oils necessary to maintain The Hydrat‐
ing Body Lotion re‐
plenishes the water lost from your skin throughout the day and provides long‐lasting moisture to help protect the integrity of the skin’s surface. “Because of the success of this then conclude by saying that sure. Because of this finding, technology in preventing inflam‐
“because of the close link be‐
DermaMedics has developed a mation from radiation treat‐
tween skin inflammation and line of anti‐aging products which ments, the company decided to aging, DermaMedics scientists are also exclusively sold to medi‐
develop a line of products exclu‐
have also studied the anti‐aging cal professionals.” sively for medical professionals effects of the Therosol “family” that could be used to help treat of compounds. They have found their patients, not only suffering that Therosol is remarkable in its from skin problems but from ability to stimulate collagen and inflammation caused by medical elastin production in the skin and procedures, such as chemical to protect the skin from the loss peels and laser procedures.” I’d of collagen caused by sun expo‐
These are just my thoughts on what might be good “talking points” and you may have al‐
ready come up with a better opening presentation. DermaMedics Science Review-Therosol Technology
As all of you know, all DermaMedics products con‐
tain Therosol, a plant‐derived chemical compound discovered in Dr. Fuller’s research laboratory about 4 years ago. Plants containing Therosol, include basil, Clove, palm tree, Anise, Nutmeg, and others. Therosol is a trademarked name for propylguaiacol. This compound is actually an FDA approved food flavoring agent and has been used widely in the food industry for many years. Because of its use in food, it has undergone rigorous safety testing by the National Toxicology Program (NTP), which is part of Health and Human Services. Therosol has been found to be completely safe and non‐irritating, whether taken orally or applied topically. The com‐
pound has a wide variety of anti‐inflammatory and anti‐aging activities and is therefore not only good for treating inflammatory skin problems but for re‐
versing the signs of skin aging. Further, since most skin aging is inflammation based, by blocking inflam‐
mation, Therosol halts skin aging. These remarkable anti‐aging and anti‐inflammatory effects, coupled with its small size and skin penetrability, as well a perfect safety record, makes Therosol an ideal choice to use in dermatological products. Similarly Therosol‐E and Therosol‐C, which are found in many DermaMedics products, are also food flavoring agents and have also been rigorously tested for safety by the NTP. By combining these three Thero‐
sol compounds at precise concentrations, Derma‐
Medics has been able to build products that are highly effective in treating psoriasis, acne, rosacea and radiation dermatitis. 655 Research Parkway, Suite 546 Oklahoma City, OK 73104 Toll Free: 1‐800‐990‐6552 Local: 405‐319‐8130 www.dermamedicsprofessional.com