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.

First, you have to have a well made prototype.

The better the prototype, the easier it is to license.   However prototypes can be expensive so hedge your bet by starting with the least expensive, best looking version of your idea that you can do.

See Types of Prototypes for more detail.

It can be a low cost, but well done $5 Prototype, a hand made craft or a professionally done or 3D printer prototype.  Finished products are easiest to license or sell but higher risk and more expensive to the inventor.

Second, make a demo video.   

This can be professionally done, shot by an amateur or homemade with a smart phone or video recorder.   The key is to use the right language and shoe the product Problems / Solution / Benefits in under 2 minutes, but no more than 5 minutes.   If you have questions, read my blog, Demo Videos That Sell.  

Third, post your video online.

I recommend setting up your own YouTube or Vimeo channel because it offers you a free platform with the most control over your video content.  You can see a view count, telling you when your video is being viewed so you can keep an eye on the progress.   Generally, we need 1-3 views to start, 4-7 views if we’re interested and under 10 views to offer a licensing agreement.   The content remains under your control so you can delete the video at any time.

To maintain confidentiality:

• Vimeo:   Please be sure to set your privacy settings to “only people with a password.” Don’t forget to include your password in your submission email. Also, please select “download the video” option.

• YouTube:       Please adjust your settings so the video is “unlisted”, then      share the link with us via the submission form.

Finally, submit your product to Carrie Jeske

Always give us First Look before sending anywhere else.

1. Submit Online.   A member of our team will review your submission and reply with the next steps.

IMPORTANT: when you submit via email, be sure to include:

Subject Line of Email:   Simply list the Product Name.  This allows me to sort, track and forward to interested investors.

Link To Video in the Body of Email:  Copy/paste a link to a video from your YouTube, Vimeo, or website in the body of the email.

My email date and time stamps every email for my protection and yours.   All submissions are confidential, non-public disclosures.    I will reply to every single product submission with specific feedback related to the Characteristics of Successful TV Products.

To find out more Low Cost, High Return Inventing watch and SUBSCRIBE to Carrie Jeske YouTube channel.

Submit Products for review.

Onward & Upward,

Carrie Jeske

© 2020 Jeske.  For reprint rights, please contact Carrie Jeske directly.

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Prototype types are very important to know because when you invent well, it’s in sequence.

In the early stages, inventors need to save money and prove the invention concept in the fastest amount of time with the least amount of cost.    Understanding the 8 kinds of prototypes and knowing when to use them can save a lot of time and money.   Here is my recommendation.

Use through the VALIDATION / EVALUATION Phase

1)   Proof of Concept Prototype

Use existing materials, parts and components to prove the new idea works or not and make reasonable assumptions about how much the invention will cost to make, based on similar materials being sold in other products.    This step DOES NOT have to be in tangible form.   You can easily look around in stores and compare the cost of similar materials, used in other products.   You can make assumptions based on the retail price points and gain insight on which materials might work best for your concept.

2)   Inventor Mock Up Prototype   

(Low cost start for As Seen on TV Submissions).   Click here for info on How To Submit Product Concepts.

A rough construction using crude materials such as cardboard, foam, paper or wood typically done to show the idea in 3D form.    You can jiffy rig pieces and parts together to demonstrate the product so you can show it to potential partners.   The main goal here is to be able to explain the features and benefits to trusted people who can offer you feedback.    You can make a home made video demo showing your product in action and

3)  Virtual Prototypes or Animations Prototype 

(Perfect for developing Sell Sheets before spending money on inventory)

3D Computer Aided Design (CAD) rendering.   These can be fancy and detailed done in a CAD program for greater detail or simple and arty, making the product look aesthetically pleasing on a graphic sell sheet.   Using a graphically created photo is a great way to test the concept, validate the market need and gain support from team members, investors and license partners is fantastic.    It’s so important to determine the features and benefits of the product.

I’m not a fan of animations as a form of submitting product ideas for licensing, unless the product is complex.   For simple items like what we look for in As Seen On TV, the mock-up is best for evaluation, but the working prototype or 3D Printed prototype is better for testing.

CAD drawings or line drawings are great for patent filing, but not very compelling to marketers and product licensee’s.

The farther an inventor brings the product, the easier it is to gain interest.

Use through the BUSINESS PLANNING Phase & Testing Phase.    BEST for ASOTV.

4)  Model or 3D Printed Prototype 

A form built and painted for aesthetic appearance only

5)  Working Prototype

A fully functioning item yet may not be fully designed & engineered for manufacturability, nor it may not be appearance like.

6) Black Box Prototype

An existing enclosure or box  with mechanical, electrical, optical and or software internals fully functioning.

Use through the PROTOTYPES & PATENTS Phase

7)  Rapid Prototype

A group of techniques used to quickly fabricate a scale model of a part or assembly using three dimensional CAD data.

Use through MANUFACTURING phase

8)  Pre-Production Prototype

A prototype provided by the manufacturer prior to full production.   Done to insure quality, concept, and functionality.

Watch and SUBSCRIBE to Carrie Jeske YouTube Channel for more info.  Positive Comments Appreciated.

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Carrie Jeske is a Direct Licensee, Licensing Agent & Product Scout Team Founder

We live in a fast moving, quick changing world.  The opportunity for independent inventors has never been greater. The risks never more crippling.   Be smart when launching new product ideas.  Beating knock-offs can be a dirty business or a magical mystery tour.  Here are my tips or the latter (while taking a dip in the former.)

1) Stay Pure

Use private submissions till you’re ready to go public.   The public domain can generate consumer interest, but it comes at the price of increased market competition.   Don’t take your product idea public too soon.

Many manufactures in every category and especially on As Seen on TV shelves need time to test the product before investing capital. In TV, it’s about survey’s, web tests and 2-minute TV commercials. Getting a positive result with a strong marketing message takes time.

Stay pure. Find a partner you trust and gather inside feedback to make your pitch and product the strongest it can be.   Leverage industry insiders by giving permission for candid feedback and considering negative feedback before dismissing important product and market competition information. If opportunity arises, sign a licensing agreement BEFORE going public. It’s likely the direct licensee can capitalize on the head start so everyone makes more money.

Improve the prototype, product pitch and demo video so when you do go public, you’re putting your best foot forward.  Stay pure, till you’re seriously ready for something more. When you’re in position, put your best effort into going viral. Try crowdfunding.

With 60 Second Salad, the inventors gave WIL the opportunity to complete the testing cycle before going public.  We had an early advantage over competitors. Even so, within weeks of the viral video, Asian knock-offs began flooding Amazon and my email.

2) Marry A King

Once you go public, you’ll get suitors or hear crickets. If a billion-dollar company comes calling, get hitched, if they are willing. Be charming, smart and marry for the money!   After all, this is business. You’re not having human babies together.  The King controls the distribution channel and has the power, time, money, connections and experience needed to make your product a financial success. Let them do it.

Don’t make the mistake of telling a King how to run a business or spend money. Just say “Thank you” and collect a royalty check in the mail then live a happy life, in community with friends and family.

The alternative; become a competitor and battle in the open consumer market. Call it a knock off, a follower or capitalism. Either way, it’s coming.

A Speedy Wedding  

Be fast and first. A big company with current products already on store shelves has a fine tuned operational infrastructure humming like a sailor on shore leave.  They want more products!  They move fast. Don’t over haggle or delay the prenuptial or they’ll tire with you and move on to another or leave you at the altar. A business marriage is not a lifelong commitment.  It’s a term agreement to make money together. Don’t confuse the two. Make money.

Bring Protection      

Patents

Having a fully granted utility patent is helpful, but only in the hands of a large experienced company. Most independent inventors cannot afford the legal fees to enforce their patent.

Fighting legal battles is what attorneys are trained for.  Don’t be naive.  Knowing how long to draw out a court case, when to settle, and how to leverage product sales to the last penny is a strategy.  An inventors best bet, is to have their patent protected by a direct licensee, large funding source or pro bono legal firm.

Funding

If you’re determined to do it yourself, make sure you have the funding in place to handle large purchase orders.  Start with equity partners, factoring or investor notes then move to credit lines with caution. I strongly discourage credit card debt or high interest business loans.

Partners

Connecting with the right partner is one of the single most important decisions an inventor can make. Working with someone you trust, who has your back can avoid many pitfalls.  There are no guarantees with product inventing, but feeling good about the people you work with… priceless.

With 60 Second Salad, WIL secured a billion-dollar partner to handle the operational rollout. They took our testing data and ramped up product development and lined up retail buyers in under three months. That’s the power of a King. 

3) Flirt with Social Networking, Online Selling, Crowdfunding

If there are no wedding plans, play your own game. But keep an eye out for suiters to avoid being knocked off.

Remarketing

Use Remarketing campaigns through Google AdWords and fall in love with social networking. Paying for clicks or sales isn’t easy or cheap but there are low cost strategies that gain market awareness. If you don’t have big bucks, it costs TIME and SKILL.   There are many free pre-view training programs that will share one to three good ideas for free, in hopes of selling the program.  Before you buy, trying DOING the three free steps.  Too often, inventor entrepreneurs focus on the “knowing” rather than the “doing”.  Both are important, but before I’d pay for a program, I’d see if I could implement a few suggestions for free.   Take the free classes, learn and do. See what works.  The secret is testing to determine your target market.

Affiliate Marketing

Affiliate marketers choose the products they want to sell. Sellers provide a unique affiliate code that is used to refer traffic to the target site. Most affiliate programs will offer ready-made text links, banners and other forms of creative copy. Affiliates simply copy the code and place it on their website to start referring traffic. When interested visitors click on these links from they get redirected to the product site and if a product purchase is made the referrer makes a commission.

This was a boom in the 1990’s and can still be a fantastic strategy.  Today, inventor entrepreneurs must wade through the mass of internet service providers, affiliate marketing programs.  I don’t have any answers, but if I were investing in a product with this as a strategy, I’d require an credible expert on the launch team.

Direct Sales

A no brainer. Your margins are better, but you still must market the site and fund inventory.

Crowdfunding

Get funded and go viral. Be noticed. Just remember; a marriage to the King is still the best end game.

4) Know Who You Are

If you’re on your own or seeking a partner, know who you are, but let the product lead. The jockey and the horse work together to win the race, but quality horses are harder to develop then good jockey’s.  Leverage what you’ve got.

• Friendly– great customer service. Excellent return policies.
• Giving– donations to causes. Affiliation with those causes.
• Caring– environmentally conscious materials?  Does this matter to your target market?

5) Do It Better

Ultimately, it’s the product that will stand on its own. Focus on:

• Uniqueness– product design and problem / solution consumers will pay for. Think soberly on the truth and integrity of this requirement. Is your product solid or are you making a mountain out of a mole hill?
• Marketing. Develop legendary branding. Put together a well thought out marketing pitch that is compelling to your target. Be the purple cow.
• Diversity. Create many product lines. Consider adding accessories and product extensions to broaden the value of your offer. Most knock-offs won’t go the extra mile. Always count the cost.
• Trademarks.Unlike patents, trademarks are harder to get around. If you have a clever name or brand that the direct licensee values or that the market knows, this could be important.  If not, it’s not. Spend wisely.
• Value. Price competitively. Is there a strong value proposition?  Today’s consumers have many options for spending money. Is your value clear?
• Quality. Make the best quality at the lowest possible price to consumers and highest profit margin for you.

With 60 Second Salad, the viral testing video and crowdfunding campaign used a white prototype.  The final rollout product is red, a part of an existing product line, and comes with a bonus knife for added value.

6) Two Is Better than One

Sometimes it’s best to knock yourself off.  There are a couple of good strategies here.

Different Distribution Channels

With some products, the best of both worlds is possible.  License one version of your product to one market, then make and sell to build a business in another market segment.   Two is better than one.  Get a big company working on a version of your product that works for them and keep on your own path to marketing.  Double dipping with a partner reduces risk for the inventor entrepreneur.

Do this yourself if you can fund the manufacturing and distribution. Working multiple channels where the market pulls product, rather than pushing it up the hill is the way to go.

Different Price Points and Feature/Benefits

Some experts claim covering three price points with a mix of feature/benefit works to keep the big companies at bay.  Try low, medium, high price prices, giving consumers a wide array of choices that all say “Buy Me”. The risk is too much inventory and higher operational costs.

7) Love the Masses or Know Your Place

Think soberly. Is the product a mass market consumer item or a niche?  There’s nothing wrong with niche products. In fact, it’s easier to sell niche products on your own sometimes because it takes less money to reach a select group of customers.  Is your product more geared to people who love biking? Is it sports related or fishing?

Finding the right customer is like having 12 ponds to fish in.  You must figure out what pond has fish and then understand what bait they bite on before you run out of time and money.  The faster you find your target, the more sales.

Mass market products are at greater threat because big companies have greater need for products and more resources to produce them.  They sell more and make more, which by default, means greater market competition for dollars.

Niche products can fly under the radar and become nice lifestyle businesses for inventor entrepreneurs.  The risk of knock offs is much lower with a niche product.

Conclusion

In my way of thinking, making money on a new product idea is the goal.   Avoiding knock offs is an important key toward that end.  I trust these steps will help inventor entrepreneurs make wise decisions, find high quality partners, service providers and direct licensees.   There are a lot of good people in the inventor community and a few scoundrels.

I hope we can work together on the next big retail rollout.  It is my singular business focus. Please:

1) Give me “First Look” on “As Seen On TV” product ideas. Submit to carrie@WillitLaunch.com

2) Join my Product Scout team.

3) Participate online in video Co-Inventing Workshops.

See you on the shelves!

Carrie Jeske

PS – Carrie Jeske has been happily married for 30 years to her Jr. High School sweetheart. They travel extensively but reside in Kansas City.

The post 7 Ways to Beat Product Knock Offs by Carrie Jeske 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.

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So many inventors spend hours of time, money and energy worrying about the wrong things.     

I’m talking about Manufacturing, Warehousing and Order Fulfillment. 

 To launch a new product successfully these things are important.

However, they are not the most important considerations and often take care of themselves once you have a product consumers want to buy.

Winning As Seen On TV (ASOTV) products are not rocket science.  The materials and components tend to be simple.  This makes making molds and product design much faster.   In addition, the relationships between manufacture and marketer are long standing and maximize speed.

Materials management and economies of scale is easy.    Inventors need not worry about the production of the product, unless they want to.

Likewise, warehousing is not an issue.   Our partners, strategic allies and service providers have all the space needed and are well equipped to handle storage, as well as just in time inventory demands.     Order fulfillment is handled by professional and reputable partners who are fully equipped to take and manage millions of products a year, both direct to consumer and wholesale to mass market retailers such as Walmart, CVS, Walgreens, Bed, Bath & Beyond and more.

Dont Waste Time On Manufacturing!

Inventors often waste valuable time and energy pouring over the methods and cost of manufacturing, warehousing and order fulfillment.  

When done right, the costs of these important steps is a zero sum expenses since consumer purchases, along with shipping and handling costs are covered with each order taken. 

Plus, for products in the As Seen On TV category run in short form (120 second) tv commercials.

The retail price point is rarely over $39.95 so a quick look at materials from an experienced eye can usually ballpark costs quickly.

What inventors should spend the majority of their time, energy, talent and money on, is coming up with a solid marketing pitch. Really taking time to gain critical product feedback from non biased consumers and working to narrow exclusive benefits that spark a purchase is the second most important task of the inventor.  

Of course, the first is actually inventing the product, but that’s debatable since good marketing has skyrocketed.

Many products otherwise sitting with average sales on store shelves and in catalogs.    

Consider Magic Mesh, a product selling in Australian direct mail catalogs.

For two years prier to Will It Launch discovering the magic of the magnetic click, click, click to ignite consumer orders.  

Even today, with knock-offs everywhere, the product continues to break records. 

In the ASOTV category, the inventor goal is a successful market viability test.    Finding a product that solves a problem consumers are willing to pay to solve takes creativity.    Discovering a “Wow” factor or creating something visually appealing that inspires interest is the goal.  

 The more the inventor can do to learn these techniques and add sizzle to their pitch, the better.    Get that right, and everything else will take care of itself.

See you on the shelves,

Carrie Jeske

www.WillItLaunch.com

©2015 Jeske.   All rights reserved.  For reprint rights contact Carrie Jeske at carrie@inventiveideas.com

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Market Viability Testing Saves Money.

Of course you trust the potential success of your product.   It’s your idea!  

For an investor, that trust must be earned before they believe the same potential is true.  

Testing a product for market viability BEFORE you spend money producing it increases the inventor’s ability to gain support from investors.  Testing reduces the financial risks and increases the investors comfort that the product will actually provide a return on investment.   Consumer buying habits are complex with many options for spending and demands on every dollar earned.   Tiny tests in low cost ways provides quantifiable data, imparting trust to investors that your product meets a market need significant enough that people are willing to pay for it.

As an inventor looking for funding, you have two main goals to attract investors:   Reduce risk and provide an exit plan.   Tiny tests transfer trust that your product or market ready product will provide a return on investment in a reasonable time frame and demonstrates your own financial savvy.

For more about test marketing items for TV to mass market retail see Our Approach.

I look forward to connecting with you on LinkedIn, Facebook and YouTube.     Read other blogs at the W.I.L. Inventors Corner.  

Finding and developing strong relationships, built on trust and shared profits is very important to me.   I see many inventors spend too much money on patents and manufacturing of products that really were not good bets.    Inventing is like gambling.  No one can predict what consumers will choose to buy or reject.    Make sure you never bet more then you can afford to lose and place your money into the highest potential payoffs. 

Onward & Upward,

Carrie Jeske

Learn about market viability testing

   (c) 2013 Jeske.   For reprint rights please contact Carrie Jeske for written approval.

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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

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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.

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