I see 3 ways companies are successful
1) Make borderline illegal products....sorry to say it but it freaking works. Look at all the people who have made grey market or even illegal supplements by skating around the legalities....and the millions they made. How was Gaspari the 70-90 million in sales company they once were? It sure wasnt from the regular stuff...it was the halodrol's and Novedex.....USP labs? Jack3d.....IForce.....these other pro hormone companies? Craze? It was all from doing their best to create massive sales before Uncle Sam caught up to them...and Uncle Sam did catch up to some of them and destroyed them...and others got out or transformed before or during the government catching up to them. Im not saying its right and you could very much wind up in the slammer
FDA warns maker of controversial sports supplement Craze .....but there is no doubt it works and puts you on the map. I would never have the balls to do it...because it seems like a 50 50 chance of getting your life ruined to me by the US government but like I said the proof is in the pudding with some of these other companies who did have the balls to do it.
2) Have a massive following online....if you have a massive following online as a trainer or a celebrity or someone who is a social media star....or are a company with a massive advertising budget/campaign you can make a successful supplement business....sometimes with the egos this sport has people think 17 likes on a post they left on facebook means they are a social media star....LOL.....the problem with this area of supplement sales is your customers are not knowledgeable are are more followers..... and people who want to be told what to do......Jim Stoppani comes to mind, companies like Shakeology come to mind, although Rich Piana doesnt own the majority of that supplement company (i believe his ex-wife and her new husband does and he owns a small portion)...he comes to mind as a social media celebrity....and again...does anyone in here think that his customers are as knowledgeable as the readership of professionalmuscle? NOT a chance.....they are just guys/girls that want to be part of a gang mentality and want to be part of something...and kind of again "told what to do"
3) this one i respect the most.....study your ass off and come out with some far out there legitimate products that WORK and are new and innovative....you wont come out of the starting blocks like #2 with sales, and you wont come out with the sales of #1 (but man will you have so much less stress than #1 than worrying about when your going to jail)....I have respect for the entrepeneurs who came out with carditone, creatine monohydrate, citrulline, various herbal products.....that legitimately work....its a harder road but the legitimacy you will create in the industry....will be worth it.
Couple do's and donts: Capsules = dirt cheap to make, light to ship = huge huge profits.
Powders = heavy, not much margin, heavy to ship. You sure as hell dont hear about a new heavy powder company becoming millionaires much do you? Its always grey market capsule companies....or small psychedelic powder tubs.
Do not put a bad product out there!!! My absolutely 100% dont. Your reputation is made by the product you make and the day you make a shoddy product or skirt on the ingredients or dont have what you claim is in the product actually in there.....your name is mud. Unfortunately with all the amino spiking and shysters in the industry that never gets applied much does it? Put out a good product that is what is exactly advertised and on the label.
The supplement industry isnt like it was 12 years ago...its oversaturated....everyone tries to make their own supplement line and own supplement company now and hardly anyone makes it. You saw Phil Heath's line go belly up, youve seen huge companies like Gaspari, Ultimate Nutrition, Musclepharm and GNC etc etc hit either bankruptcy or hard hard times financially and on the brink of defunct....more power to you if you can hit the ground running.....its a tough road
Bodybuilder?s Supplement Company Sold Out of Bankruptcy - Bankruptcy Beat - WSJ
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Nutrition 21 Files Bankruptcy With $122.8 Million in Debt - Bloomberg
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GNC ousts chief executive as sales continue to fall | Pittsburgh Post-Gazette