The step people struggle with the most when it comes to licensing their ideas is getting in to companies. You’re fearful of rejection. You’re unsure of what to say and don’t want to stumble. Will the person on the other end of the line even know what you’re talking about, you wonder? But the fact of the matter is is that your ultimate success depends on your ability to land your product idea in front of the right person at the right company–that person who will say, “Yes! We need to license this idea.” In my eyes, you’re not even in the game until you’ve begun calling potential licensees to submit your idea.
Getting in to companies is not difficult, but it does take practice. At the end of the day, all that you’re really trying to do is find a home for your product idea. You’re simply asking a company, is this a good fit for you?
To provide you with the most current advice possible, I consulted David Fedewa, a former student of mine who is now a coach at inventRight. David is incredibly talented at getting in. When I listened to him coach a student who was having trouble connecting with potential licensees the other day, I was blown away by his insight. He does not take no for an answer. And that’s how he’s licensed several products ideas in a short period of time.
What is your mindset when you call a potential licensee, David? Do you feel like you’re gearing up to sell your idea?
No. I’m not selling them anything. I’m bringing them a great opportunity. I really believe that.
Let me back up a little bit. When I started calling companies, I was nervous. In fact, after weeks of psyching myself up, when I finally made my first call, I hung up as soon as I heard someone say hello. I felt like I was interrupting someone’s day–that I was a bother. I don’t feel that way anymore.
Attending the International Housewares Show in Chicago changed my point of view. Companies that I had been pitching my ideas to were going to be at the show, so I figured it was a good time to introduce myself in person. As I approached a booth, a salesperson’s eyes lit up with excitement. “Wow! It’s amazing to finally meet you,” he said. “I love your products.” I hadn’t even introduced myself-he had read my nametag. When he began calling other people over and exclaiming, “It’s David Fedewa!” I was shocked. Everyone shook my hand, as if I were a celebrity. It was the craziest thing ever. People started asking me what else I had coming down the pipeline. When the same thing happened at different booths, I realized just how valuable I was to those companies.
Many companies are familiar with open innovation and will know who to direct you to when you call to get in. But some won’t. Employees at these companies will most likely perceive you to be a salesperson and try to get rid of you. It’s your job to get in touch with the right people by whatever means necessary. The way I look at it is, I’m doing them a great service by being so persistent.
How persistent are you, really?
After failing to receive a response from an employee I had been calling for three months twice a week as well as emailing to follow up, I finally asked his secretary if I could send her a video of my product. If she liked it, she could take it to the person I was trying to reach. If she didn’t, I would stop calling her. Half an hour after I had sent it to her, I got a call back from the marketing manager I had been trying to reach. That’s what I mean by creatively persistent.
What strategy do you prefer using? Phone? Email?
That’s a trick question, because it doesn’t matter what my preferred method of communication is–it’s all about the person I am trying to contact’s preferred method. I start off calling. Then I leave a voicemail. If those strategies don’t elicit a response, I move on to email and finally, LinkedIn. (To be clear, I only request to connect–I don’t message them. That’s not the right way to pitch someone.) At some point, after the individual hears my name on his voicemail, sees my name in his inbox, and looks my smiling face on LinkedIn, he realizes I’m not going to go away until he answers me.
What do you send them?
What you send a potential licensee needs to deliver the benefits of your product idea clearly and concisely. This is very important-make-it-or-break-it important. It could be a sell sheet or a promo video. What’s crucial is that the company gets what you’re trying to convey.
When I couldn’t get a single company to call me back about an idea that I thought was better than sliced bread, I was surprised. So I asked a friend to take a look at my sell sheet. He immediately asked, “What is this? How does it work? Why would someone want this? I don’t get it.” It was only then that it dawned on me that my marketing had failed. I reworked my marketing so that it conveyed the benefits of my idea very clearly. When I went back out and pitched it to the same companies, six out of ten of them called me back that very same day with huge interest. Their interest had everything to do with how I had presented the idea.
If they’re interested and want to see a prototype, what do you do?
I run around the house screaming! Then I get ahold of myself because I know there’s still a lot of work to be done. Just because a company asks for a prototype doesn’t mean it’s going to be a good partner. The good news is that the company is open to having a relationship with you. So further it. Call and start asking questions. Relationships only work the channels of communication are open. If the company asks you for things, it’s OK to ask it for things too.
When you receive a “No thank you,” what’s your next move?
I look at having one of my ideas rejected as an opportunity to improve. Feedback is critical. In fact, asking for it has led me to every deal I’ve signed.
After receiving no after no, I became so frustrated I called a company back and asked why. What the employee said next changed my life. He said, “It’s a cool product, but it’s too big.” As an imaginative person, this shocked me. When I looked at the product, I could immediately envision it being smaller. But somehow, the company could not. So I quickly cut my prototype in half and re-shot my promo video. When I resent my pitch to the same companies, one ended up licensing it.
So, asking for feedback is mandatory. Look at doing so as part of the process-as a stepping-stone to your next deal. Literally all of the products I have licensed and all the products I have helped others license were turned down initially.
What if a company says it likes it, but doesn’t want to license it at this time?
I ask, “When will a good time be?” I don’t want to have to keep calling the company every three months to find out.
In David’s words, there is no such thing as a million dollar idea–only a million dollar execution.
Originally published on Inc.com June 11th 2015.
