Secure A Licensing Agreement for Consumer Product
With trusted manufactures or distributors in any industry.
We can help!
What To Expect:
Royalty Split Options Available. No Cash Requirement.
Steps to Success
Gather Your Pitch Assets
1. Make a well made prototype. The better your product looks the easier to sell it.
2. Make a 2-Min or less Demo Video you post on YouTube so you can email prospects the link.
3. Email Carrie a link for feedback.
Develop A Prospect List
1. Go to the store and look at products that are made with similar materials, competitive to your idea or in the same section of shelf space you imagine your product would be sold.
2. Look on the packaging and make a list of these manufactures. They are your prospect list.
3. Call and lookup these companies to confirm the name, email, phone of the proper contact.
4. Email Carrie Jeske your list. (preferably in Excel spreadsheet)
5. Call, email to gain interest in your product. This is a tedious process with most contacts saying “No Thanks” or endless voice mail messages. Stay strong and keep at it until you get someone interested.
Gain Interest (most important)
1. When you get someone who starts asking question, get Carrie Jeske involved. Either forward her the email or set up a conference call with your contact. Carrie will make this high value call a priority and jump in to quality the lead and close the deal.
DO NOT give away information. The goal is to get Carrie on the call or in the email to trade information early. There is much we need to know and this is the time to gather data and build relationship. Carrie will handle all the communication with you listening in and learning. You have final approval before any agreement is made. Carrie will advise you on the best terms for you and the manufacture. Remember, many licensing agreements that are signed do not pay a financial return. Carrie Jeske’s goal is to Make Money on New Product Ideas. Negotiating an agreement that is fair to all parties and actually pays real money is the goal.
Negotiate Terms & Licensing Agreement
At some point, they will complete a test or internal evaluation of the product. If this goes well, or even before that, a discussion on terms will take place. Terms are much more comprehensive then simply discussing royalty rates. It’s important that every aspect work together so both parties can receive a financial gain. See Licensing Gotchas for more information. The agreements Inventive Ideas uses have been vetted by many attorney’s over the years so you do not need to have them reviewed. However, you are free to hire the attorney of your choice and we will honor whatever changes they deem important. Our goal is simply to use a simple, easy to understand document that is fair to all parties.
Receive Mailbox Money
So Remember, it takes time for royalties to flow. Also enjoy your life, keep inventing and guard your cash. Advance royalties are hard to get, but in most cases we are able to secure between $5,000 and $50,000 up front. The manufacturing, sales and distribution takes time so be patient. It may be 6-24 months before additional royalties are paid. There will be many obstacles along the way so Inventive Ideas maintains a great working relationship with all our direct licensee partners. We add a variety of value to the process and work to keep the product owner/inventor updated on relevant steps along the way.
Royalty Splits
Inventive Ideas believes in the critical aspect of each partner along the complicated path to product launch so we offer no cash upfront options on selected products. Coming up with a great product ideas is the start. Funding, testing, manufacturing, selling and distributing are equally important. We have two types of royalty split options depending on who brings the contact to the table.
1. 25% of inventor royalties when the inventor produces the interested contact.
2. 50% of the inventor royalties when Inventive Ideas secures the interested contact.
Licensing Agent Agreement
Let’s get started. Actions speak louder then words, especially the ones on paper. Follow the steps above and when either of us has a live prospect on the line, we’ll sign paperwork to clarify our relationship and royalty split at that time.
Get to work! I already am. 🙂
Don’t have the TIME?
12-month provisional flies by faster than expected. Also most licensing agreements take 3 – 8 months to negotiate. That’s tough when you have a full time job. So start early yourself or hire Inventive Ideas to move fast.
Don’t have the CONTACTS?
So submitting yourself online may work. Inventive Ideas goes directly to the source. This is our business so we have pre-existing relationships with manufactures and licensees. We know how to get their attention and what to say when we have it.
Don’t like to TELEPHONE PROSPECT?
So not everyone has the personality or skill to pick up the phone, determine the need, qualify the interest and sell product features and benefits. At Inventive Ideas, we’re experts.
Lack the experience to NEGOCIATE an agreement that actually pays money?
A quality licensing agreement is more than a royalty rate. There are many complexities related to market timing, operations, sales planning, term, production also more that impact the manufactures interest. Many inventors are so focused on securing a high royalty rate that they end up with bragging rights about the contract, but no money in the bank when the agreement terminates for lack of performance. At Inventive Ideas, we negotiate a win-win agreement that protect the inventor while providing incentive to the manufacture to invest in the final product rollout. So our mission: Everyone earns!
FACTS:
1. So according to the USPTO, 90% of patents issued for consumer products are never commercialized.
2. The majority of provisional patents expire without being licensed.
3. Also many signed licensing agreements expire unpaid.
So let Inventive Ideas improve your odds of success by starting early. Also A quality licensing agreement takes 3 – 6 months to negotiate. So Start Now. Contact Us.
When you need a professional.
