Getting the demo video right is more important than ever.  Every inventor needs to be skilled at VIDEO EDITING and PROTOTYPE MAKING.

In “As Seen On TV” category of DRTV, we often use the inventors original video for the initial survey phase of testing.  With smartphone technology and video editing so accessible, learning to make a demo video is a basic skill every inventor needs to have.

“A Picture Is Worth A Thousand Words but a Demo Video Is Worth a Million Dollars.”

Carrie Jeske

I’ve included a script writing template at the end of this blog.

Making The Demo Video

1. Decide Audience based on Prototype Quality? Are you pitching to our team or our you pitching to potential customers?   If you prototype looks good, pitch as you would to real customers.  If not, you’ll need to pitch to our group and focus heavily on the problem you’re solving
2. Keep It Short. 60 seconds or less is idea for our survey test phase. Visual Demo works best. If you go to 2-min scripts are no more than 300 words with Product Problem/Solution repeating so use most compelling language
3. What’s Your Problem? ASOTV products have a clearly understood PROBLEM / SOLUTION pitch.   Often problems are shown in B/W for dramatic effect.   While that level of production is not necessary for the initial demo video, showing and telling the PROBLEM/SOLUTION is.
4. The Product is the Star – Show close ups of the product more than your own self so we can see what we’re buying. Show or explain examples of the Features of your product providing Benefits to the consumer.   Add a Wow Factor.
5. Editing & Voice Over. If you can shoot the visual then do a voice over of the whole video, that tends to get more responses from consumers. If not and you need to pitch in a one take smartphone format, then speak clearly and show close ups of the actual product more than your own self.
6. “WOW” Factor. Outrageous Demos & Amazing Visuals, Unique Materials.   Flashlights strong enough to be ran over by a Mac truck.   Tape that can reseal boat bottom cutouts.  Magic materials that have amazing & unique benefits.  These are the secrets of As Seen On TV.    Get creative with it, when appropriate.

Product Names. The product name will be tested at the end of the process but creativity up front is important.   Names that Explain Function are best.   Two Consonant names tend to roll better such a Magic Mesh, Windshield Wonder, Jupiter Jack.

Hosting or Posting the Demo Video

Do not send a large video file to licensee’s.  Companies don’t want their email systems bogged down by large files.   Instead, host the video on the cloud.  There are many options from Dropbox, Google Drive to YouTube Unlisted.  Learn to upload your demo video then COPY the link and PASTE it into your email.

Submitting Your Demo Video

1. Always put the PRODUCT NAME in the Subject line so feedback can be easily tracked or searched.
2. Include a simple link to the demo video or attach a pdf sell sheet along with a SHORT note.

EXAMPLE EMAIL:   Dear George, please take a quick look at this new “patented” product and let me know if you company is interested in discussing licensing or acquisition.

ADD LINK to “Unlisted” YouTube Video

Any feedback you have regarding your interest or experience with these kinds of products is appreciated.

I look forward to your response.

DO NOT SEND DUPLICATE EMAILS & WEBSITE SUBMISSIONS.

DO NOT SEND MANY EMAILS ABOUT THE SAME PRODUCT.

DO ALSO SUBMIT ONLINE IF THEY OFFER THE OPTION.

Waiting For A Response

See another blog about this topic.  It’s important!

Pitch Demo Video Script Template 

Production Notes:

Time Voice Over Audio Portion so the entire spot is no more than 2 minutes and preferably 1 minute with a 30 second action demo edit scene available for social networking interest.

The post Demo Video Pitch Tips appeared first on Inventive Ideas, LLC.

Pitch your product ideas – Italy.    Reserve your seat now for private meetings in these great locations.

Pitch your product ideas – Italy is back.

$10 secures your spot.

The 2016 trip produced some great product ideas and established excellent friendships.    We’re coming back, bigger and better in 2017!

Rome – Sept 26

Cinque Terre – Sept 27-28

Florence – Sept 29-30

Venice – Oct 1-2

Milan – Oct 3-5

Pitch Your Product Idea in Italy. Do you have the next big As Seen On TV product? Connect with direct licensee and licensing agents to get an agreement.

Earn royalties with your great new product ideas!

Get a FREE copy of Carrie Jeske’s latest book.     Create Simple Products For As Seen On TV

Purchase on Amazon.

Join the Inventing Workshop

www.InventingWorkshop.com

An online virtual classroom where individuals create new consumer products as a group.

The post PitchProduct Idea – Italy 2017 appeared first on Inventive Ideas, LLC.

Work and Play Well With Others

Investors don’t like to work with arrogant inventors no matter how good the product is.   People with money have a lot of options about where to spend it.  The best investors are those who’ve worked hard and will admit to a little luck in the process. They’ve been around the block a few times and reached a place where they can enjoy choosing to work only with people they like.   These are my kind of investors.    Generally, if someone is willing to deal with anyone and their brother, just to make money… they normally haven’t really made big money themselves.

So be nice.  The investor is there to help.  If you get a sense this is not the case, just walk away.    It’s not worth the time.

The Royalties

Inventors can shoot themselves in the foot by playing hardball on the royalty rate.  It may seem like the smart thing to do, but it’s not always.  Remember, the licensee is making a substantial investment with the hope of a return.  They are investing manpower, infrastructure, and time, normally on an item untested in the big leagues.

Sometimes, there is a need to bring in strategic alliances that were unanticipated on the front end, but whom increase sales potential substantially.  If the inventor played hardball and negotiated too much royalty, there may not be any slices of pie leftover to invite other inside.   If this is the case, eventually the manufacture will lose steam on the item and it may wash out, with the inventors’ royalty rate high and their earning meager.

I would prefer a smaller royalty rate with a motivated and dedicated manufacture, whose going to focus on my product and do everything in their power to see it successful.

Every industry has different inventor royalty standards.  Find out what range you should be in for your industry.   For As Seen on TV, short form 2-minute tv spots… the range is 1-5% to the inventor.   The more developed and tested the item, the higher the range.  The less tested and developed, the less the range.

The Term

The term may vary based on industry, product buying cycles and development plans.    Just ask questions and learn, then be reasonable.    As a general rule, the inventor wants a 12 month initial term with a renewing 24 month term, provided minimum royalty guarantees are met on licensing agreements.

What inventors don’t want is a long term and small minimum royalty because it allows a manufacture to sit on your item.  The best licensing agreement for the inventor is the one that insure focus on selling the product.   If they are not prepared to do that or if the product doesn’t prove out viable for that manufacture, the rights need to revert back to the inventor releasing the product to test in other distribution channels.

Minimum Guaranteed Royalties

If a licensee does not agree to some kind of minimum royalty guarantee, walk away.      It’s all about time vs money here.  The more time the product is tied up, the greater the minimum royalty guarantee.  The less time, the less royalty.

One example I recently saw was a 24 month term with a minimum royalty of $20,000.   To me that seems like a long term and low number.  Not a good plan for the inventor, unless you plan on doing nothing anyway.

This is a good time to discuss the manufactures sales plan and sales strategy.  They know their business and their capabilities, you do not.   Don’t attempt to add value here or pretend to know their business.    As the inventor, you’re looking to hear a reasonable approach to selling your item and gain licensing agreement on the minimum number of units or wholesale sales that they are comfortable with.     Keep in mind, both inventor and manufacture have the same goal.  Sell as many units as possible, in the least amount of time, at the highest profit.   Simple.   Stay on common ground.

Advanced Royalties / Inventory Purchases

It’s tough to get advanced royalties but possible.  Again, common sense comes into play.   If you’re asked to pause your licensing efforts to give them more time to evaluate the item, that’s worth some money.

If you have inventory available, licensees may be willing to purchase it at cost or wholesale value.

Know The Math & Understand The Language

Here’s a biggest gotcha that I see.   Understanding the language and the math is most important.  If you’re unsure, ask the question, then reword the documents so it’s clear.

Are inventor royalties paid off the gross profit, the net profit, the gross proceeds, or wholesale cost?

Gross profit equals Revenue less Cost of Goods.  Since the inventor is not in control of the cost of goods or what accounting method is used that defines Cost of Goods, this is not good language to be paid royalties by.   The inventor cannot control it and it’s intentionally vague.

Net profit equals Revenue less Cost of Goods, less expenses.   This is even a worse description to pay inventor royalties from because it allows the manufacture to deduct all their expenses from the inventor royalty.

Gross proceeds received from licensing royalties, is a term that’s been cropping up lately.    This is very misleading to the inventor and normally very costly too.    Many of the licensing agreements I’ve seen have the inventor earning 15-50% of the gross proceeds.    Sometimes inventors confuse this language, thinking this is a royalty rate.   As if they are getting a 15% royalty rate.    That’s not the case.   Here an example from our industry, paying a standard 3% royalty on wholesale price.

$11 Wholesale price x 3% royalty = $330,000 per million units sold.    If a company pays an inventor on the “gross proceeds received from licensing agreement royalties”, then the inventor earns a percentage of the $330,000.    It’s not a good deal when you can submit directly to Will It Launch and receive 100% of the inventor royalties.

A Win Win Win.

Just be reasonable and kind.   Give and take.   Figure out the aspect of the licensing agreement is most important to you and understand what is most important to the licensee.   A good agreement is when both parties compromise and when the licensee is committed to allocate resources that create product sales, to the best of their ability.

To submit your product, please review these other helpful blogs on the Inventor Corner, then send Carrie and email directly.

Submit Your Product for review.

Onward & Upward,

Carrie Jeske

copyright 2014 Jeske.  For reprint rights, please contact Carrie Jeske directly.

Licensing Agreement

The post Licensing Agreement Gotchas appeared first on Inventive Ideas, LLC.

By David Koehser, attorney with comments by Carrie Jeske of Inventive Ideas.

A licensor who does not want to spend time identifying and soliciting potential licensees and administering a licensing program may want to engage a licensing agent.

Functions of the Licensing Agent

An agent’s functions include identifying potential licensees for the licensor’s property, representing the property at appropriate trade shows.

Presenting the property and licensing proposals to potential licensees, and negotiating license agreements.

Some agents may also help the licensor develop and position its properties so that they will be suitable and attractive candidates for licensing.

In most cases, the agent will administer the license by receiving and reviewing licensed product samples and collecting and accounting for royalties and other payments.

In some situations, the licensor may prefer to receive samples directly.

and may want to receive all payments and remit the commission to the agent.

Scope of the Licnese Agency

The licensing agent agreement should list or define the properties that the agent will be authorized to represent. As well as the product lines and territories covered by the agreement.

Some properties may have potential for publishing, software, film or other uses beyond the typical merchandise categories. The licensor may want to exempt those uses from the agent relationship. Particularly if the agent does not have any experience or track record in securing licenses in those areas.

Inventive Ideas has exclusive agreements with the As Seen on TV distribution channel. As well as connections to licensors and product buyers in many industries.

Exclusivity

Most agent appointments will be exclusive. This means that the agent is the only agent that can represent the licensor. Under an exclusive agency.

The agent will be entitled to a commission from any license entered into during the term of the relationship.

Regardless of whether the license resulted from the efforts of the agent, the licensor or some third party.

Ownership and Control

The licensor should always retain ownership of the property and should have final approval over all license terms. The licensor should also sign all license agreements and retain final approval rights over all artwork and product prototypes and samples.

The agent should never acquire any interest in the property, and should not be a party to any license agreement.

And payments on behalf of the licensor.

Commissions and Expenses

Commissions for licensing agents generally average between 30% to 40% of gross licensing revenue. And may run as high as 50%. In addition, some agents require the licensor to pay part or all of certain expenses incurred by the agent in representing the licensor. These expenses may include trade show costs, costs of creating promotional packages and display and solicitation materials, travel costs and legal fees. In addition, the licensor may want the right to approve all expenses in advance. Also you may want to impose a cap on the total amount of expenses for which it will be responsible.

Inventive Ideas charges between 30% and 50%.

Depending upon the stage of the product and quality of the marketing materials, brand and message already established.    We won’t ask for expense reimbursement, unless pre-approved, in writing.   A licensing agreement can be achieved without exhibiting at trade shows since our network is pre-established. Once an agreement with a licensee be reached. 

Term

Most agents require a minimum initial term of two or three years, since it often takes that long to develop a property, find licensees and begin to receive royalties. The licensor will usually have to concede on this point, but may be able to get the right to terminate the agreement earlier if certain performance benchmarks.

Such as a minimum amount of royalty income or a minimum number of new licenses.

If they are not reached by a specified point in the term.

Inventive Ideas works in the fast paced medium of TV.

For traditional brick and mortar businesses, the product development cycles are 2-5 years before new concepts land on store shelves.

so the term of our agreement must accommodate that fact.  

Renewal

The agent will not want to invest a substantial amount of time and effort on the licensing program unless it will have the opportunity to stay around and reap the rewards from that investment. Accordingly, the agent will usually want an option to renew the relationship for one or more additional terms. Typical renewal options include: (i) automatic renewal, unless either party gives notice by a certain date before the end of a term; (ii) renewal solely at the option of the agent. Or (iii) automatic renewal or renewal solely at the agent’s option

Inventive Ideas agreements renew when email documentation proves that there is interest to move forward from a specific licensee.   If no progress is being made in the form of calls and active communication.

The agreement is canceled in 90 days.

Termination of Authority

Under the common law of agency, the licensor can terminate the licensing agent’s authority to act on behalf of the licensor at any time. However, the licensor cannot terminate the agent’s right to receive commissions from licensing deals entered into during the term of the agreement. A licensor who terminates an exclusive agent’s authority to act and retains another agent before the end of the term of the agreement.

With the first agent will be liable for the payment of commissions to both agents for deals entered into during the balance of the term of the original agent agreement. And may also be liable for double commissions after the end of that term. (See paragraph 10 below.)

Termination of Agreement

An licensing agent cannot guaranty the success of a property. However, the licensor should always have the right to terminate the agreement if the agent fails to pay net royalties to the licensor within the time required under the agreement or enters into any license agreement without the licensor’s approval. 10. Post Termination.

They can be the source of major disputes when that relationship ends.

In general, an agent will feel that the success of a licensor’s program is a direct result of the agent’s efforts. And the agent will want to continue to be compensated for those efforts even after the agency relationship has ended. A licensor, on the other hand, will likely be reluctant to continue paying commissions to an agent who is no longer providing services. Especially if the licensor has to retain and pay another agent to continue the program. Some alternatives for addressing these competing concerns are as follows:

Excellent issues that should be addressed in any licensing agreement.

• After termination, the agent will still be entitled to receive commissions from all licenses entered into during the term of the agreement.
• (including all renewals, extensions or modifications of those licenses) .
• All licenses that were under active negotiation at the end of the term are entered into within some specified period of time
• (usually six months) after termination.

• The licensor may want the agent to provide a list of all licenses under negotiation that will be subject to commissions if entered into within the six month post termination period. In addition, the licensor may want to specify that commissions on renewals.
• Or will apply only to the portions of the license originally negotiated by the agent. Not to any additional properties or product lines added after the termination of the agency relationship.
• The agent’s commissions continue after termination, as provided above, but at a declining rate. (e.g., 40% for the first year after termination, 30% for the second year, and 20% thereafter).

• This reflects the fact that the agent will no longer be searching for licensing opportunities. In most cases, will no longer be administering existing licenses or collecting royalties.
• The agent’s right to commissions ends on a final date (e.g. 3 – 4 years after termination), even if agreements originally negotiated by the agent are still in place at that time. In addition to questions regarding post termination commissions. The issue of who receives royalties after termination can be difficult to resolve. The licensor will usually want to have all royalties from existing licenses paid directly to the licensor, or to the licensor’s new agent. However, the previous agent may want to continue to receive those royalties. And thus insure that it will get its commission.

Assignment

In many cases, the licensor enters into an agent relationship as a result of the licensor’s confidence in the individual agent who will be handling the licensor’s account. Accordingly, the licensor will want the right to terminate the agreement if that agent ceases to handle the account for any reason. Licensors and their agents should resolve the above issues in a written agreement before beginning an agency relationship.

This is excellent information found at:     http://www.dklex.com/the-role-of-licensing-agents.html

The post The Role of Licensing Agents appeared first on Inventive Ideas, LLC.

Click through this blog to learn to sell your product concept to investors who will fund market viability testing.

Here’s how Pam Woods earned a 6-figure term sheet to test her product concept in the As Seen On TV (ASOTV) market segment.

I’m so proud of Pam Woods, who signed a term sheet for a six figure licensing agreement for a product at the concept stage.    She listened and learned from feedback I gave her for 4 video revisions on her first product, then knocked one out of the park on her second project.Pam is the kind of person I enjoy working with most because she is a learner and a helper.    She made this video so others can learn from her story.Pam and I met at the Inventors Center of KC monthly meeting.Congratulations,Carrie Jeske Info@InventiveIdeas.com Inventive Ideas works to teach inventors low cost, high return inventing strategies.  Too many people spend money on an idea with patents and manufacturing before market viability testing of the product concept is complete. This means buying a garage full of product in blue, only to find out the market loves your product, but wants red.   Since you can’t respond fast enough, you’re stuck selling blue.

“I never see failure as failure, only as the information I need to change my direction.”

Learn & Earn.

The post Sign a 6-Figure Term Sheet at Product Concept Stage appeared first on Inventive Ideas, LLC.

Q. Why don’t more companies work on commission only?  

A. Because it takes years of relationship building to attract the right investor group with the proper distribution channel and capital to make the product successful. 

Too many inventors want FREE help on the front end then start trying to cut commissions for the one who brought them to the dance in the first place.   Greed is not good.

For example, I recently won two inventors a term sheet with minimum guaranteed royalties of $250,000 for the first year!   It’s FANTASTIC.

Both had been unsuccessful with other avenues of licensing.  One asked me, “Would I make more if the licensee weren’t paying you on the back end?” 

The answer is “No, the licensee would make more.” and the inventor would make nothing because they wouldn’t have a deal in the first place.

I’ll take a small % of something over 100% of nothing every time. 

I prefer working with teams of people where each one’s contribution is recognized and rewarded appropriately.  

I choose to march onward and upward, helping inventors, on commission only, regardless of the presence of greed in my midst.

Those who agree, please submit your inventions and let us earn money together.

If you’re into social networking, please connect with me on:

FACEBOOK      LINKEDIN        YOUTUBE       TWITTER

Carrie Jeske

royalty rates

The post Product Royalty Rates – GREED is never good. appeared first on Inventive Ideas, LLC.

License Ideas For Royalties

Inventors Center of KC members meeting, webcast LIVE from the Kauffman Foundation in Kansas City, September 2012. Special guest –

Stephen Key, author and inventor

1)  Watch this video to learn how to earn up to $100,000 per product, as a product scout, while you sharpen your skills in our category. 

http://www.willitlaunch.com/how-to-make-330000-inventing-for-tv/

2)  For even more help read blogs and watch links: 

http://www.willitlaunch.com/inventors-corner/

3)  Also here’s some NEXT Steps if you want to work on licensing outside ASOTV.

http://inventiveideas.com/when-as-seen-on-tv-wont-fly/

4)  Also here’s some of my agents available for hire, to make connections for you.

http://inventiveideas.com/licensing/

5) So join me on social networks and keep learning and helping others.

FACEBOOK      LINKEDIN        YOUTUBE       TWITTER

Just takes 1 winner to earn millions.

See you on the shelves,

Carrie Jeske

The post How To License Your Ideas For Royalties appeared first on Inventive Ideas, LLC.

How do I present my product to retailers? 

This question begs so many others.   First we need to define “product”?     Some inventors use this term, when they really mean “intellectual property” or “patent”.     An idea is not a product, it’s a product concept or product idea.

Either way, the short answer is that you have two choices:

1)   Do it yourself.    (Takes more time, but you learn more about the market and your product.)

2)  Hire someone to do it for you.    (Costs 10-30% more but if there are pre-existing relationships then things move much faster.)

If you have a patent and want to license your patent rights and be paid royalties, you need a salesperson called a Licensing Agent.

If you have product market ready and want to sell it, either wholesale or retail, you need salespeople called Manufactures Representatives (MR) or Distributors.

I’ll explore these options in greater depth in a future blog.

AS SEEN ON TV

For the As Seen on TV market that I’m focused on now.    I will act as an “Invention Scout” or “Licensing Agent” and take your idea directly to a group of people who can test the concept, develop the product, manufacture it and distribute on TV, in catalogs and through full mass market retail in 30 – 180 days.   Just look at the products in stores on the As Seen On TV product shelves.     You don’t need a patent because it’s a First To Market Strategy, but if you have one or get one, that’s always extra beneficial.

I look at products at the concept stage and will never ask you for money.    Realize it’s a long shot (90+% failure) but if you train your mind to solve everyday problems in simple, low cost ways, you could earn between $300,000 to millions per year on one winning invention.  You do need to educate yourself on how to protect your invention ideas appropriately.      LEARN and EARN.

Keep trying!   Here’s how I can help:

1)  Watch this video to learn how to earn up to $100,000 per product, as a product scout, while you sharpen your skills in our category. 

http://www.willitlaunch.com/how-to-make-330000-inventing-for-tv/

2)  For even more help read blogs and watch links: 

http://www.willitlaunch.com/inventors-corner/

3)  Here’s some NEXT Steps if you want to work on licensing outside ASOTV.

http://inventiveideas.com/when-as-seen-on-tv-wont-fly/

4)  Here’s some of my agents available for hire, to make connections for you.

http://inventiveideas.com/licensing/

5) Join me on social networks and keep learning and helping others.

FACEBOOK      LINKEDIN        YOUTUBE       TWITTER

Just takes 1 winner to earn millions.

See you on the shelves!

Carrie Jeske

The post How do I present my product to retailers? (Early stage answer). appeared first on Inventive Ideas, LLC.