The rise of the Contract Sales Representative

Our industry is changing rapidly!  There is a paradigm shift that is occurring within Healthcare Sales jobs .  Companies are moving rapidly to a new kind of Medical Sales Rep: the Contract Sales Representative.

The contract company I work for has told us interesting facts about being a Contract Pharmaceutical Sales Rep that you should know.  They have informed us that 70 percent of all of their contract positions are Specialty Sales Reps. The pharmaceutical contract company I work for expects to grow by 250% within the next three years. Contract Sales Jobs are increasing exponentially, while Sales Jobs with the Manufacturer are slowly decreasing.

This industry is dynamic and constantly changing!  I have been a Pharmaceutical Sales Representative for the past five years and I have been through four layoffs.  My first Pharmaceutical Sales Job was with a Manufacturer.

I currently work as a Contract Specialty Sales Representative. Contract Reps are impossible to identify in the field.  Other Drug Reps and my customers do not even realize that I am a contract Sales Rep. I wear the same name badge and hold the same business card as the reps who work for the manufacturer. I am completely integrated within the manufacturer. I am under their management, attend their POA meetings, attend their conference calls and work in tandem with their reps. The only difference is that my paycheck comes directly from the contract company.

All of health care is purposely moving toward the contract side, including jobs in Clinical Trials, Marketing, Legal, Sales, and R&D. So why are companies making the change?

1.     Contract Reps cost less.

Heathcare companies are pinching pennies to protect their bottom line and the Sales Force is a large expense.  Medical Contract Reps are about 20-30 percent less expensive, therefore saving them money without sacrificing number of reps.

2.     There is no severance pay.

Companies need to move fast in this volatile industry.  Medical Contract Reps provide the manufacture the flexibility to make a change without the obligation of providing a severance package.

3.     The manufacture keeps stats on contract reps they employ vs. their own reps. *  They have informed us that Contract Reps are just as productive and bring in just as much revenue as the Sales Rep. who works for the manufacturer.  Therefore, the quality of work is uncompromised when switching to a contract sales rep.

Contract reps are here to stay and their positions are increasing exponentially.

The MDJ Team

Copyright © Medical Dream Job, LLC 2012

*In full disclosure, I have not seen these studies nor am I privy to this information, but they do track our activities and sales results at the home office.  They have informed us that in every metric, the contract reps out-perform the reps. who work for the manufacturer. These metrics include: the number of calls, Calls on Targets, productivity and even Sales metrics.

Posted by: Jon Edward on: 27 Jan 2013