In business schools and universities around the world, students are taught that to bring your invention or product idea to market you must start a company. I'm here to tell you they're wrong.
Of course, if you want to start a company that's fine.
But the simple truth is that most people don’t have the time, money, experience, or even the desire to start a business.
Many folks think that if they "just had the money" they could start a successful company. I'm here to tell you that's usually not why companies fail - it's usually because the founders don't have the appropriate experience to manage all the different aspects of running a business.
There is another way! It’s called licensing. The concept is simple: you basically "rent" your invention or product idea to a company that already is in business. You collect a royalty (payment of money) each and every time the company sells your product. It's just about that easy!
By licensing your product you are leveraging the power of an existing company. Your licensee has shelf space, marketing, manufacturing, distribution, in essence, they are the perfect partner.
The benefits of licensing in today’s world are huge.
First of all, it will help you get your product to market quickly. Speed to market is one of the best protections for your invention. Be the first!
Next, there is close to zero financial risk. You aren't buying equipment, inventory, packaging and materials! Your licensee does all the heavy lifting!
Another benefit is that while your licensee is working hard to bring you product to market, you can create more ideas! You have the freedom to create rather than have the headache of owning a business.
Finally, there is the opportunity for what my father called "The Multiplier Effect" (to be sure, others have called it that as well). You can be earning money in your sleep! You can be earning money while on vacation! You can be working other projects and earning money - you can keep your day job and earn extra money. Because your licensee does the work and you collect checks, you can multiply your income-earning potential. How great is that?
Tim Ferriss, a former student of inventRight, wrote abut this concept of "passive income" in his best selling book "The Four-Hour Work Week".
There are companies that need product ideas from you. Find them! Companies that have embraced open innovation are looking for product ideas outside their own walls.
As Warren Buffett has said, “If you’re not making money while you’re sleeping you will work the rest of your life.”
Here are the things you can to do to get into this game!
1. First learn and understand as much as you can about licensing by reading One Simple Idea by Stephen Key. This book is easy to read and outlines a process anyone can follow to license their ideas. And if you’re not much of a reader make sure to get it on audio.
2. Watch our videos at inventRightTV. There’s over 300 videos teaching our 10 step process from Stephen Key and inventRight.
3. Become a member/student of inventRight. Our coaching program has been working for inventors for over 20 years. We have students in over 60 countries around the world and we are recognized as the industry leader.
4. Eventually, you will need to file a Provisional Patent Application (after having done some market research). You can hire a patent attorney or a patent agent or you can do it yourself with SmartIP.
5. Make a list of companies to whom you will submit your idea. There’s thousands of companies looking for ideas, here are a few CEOs asking for ideas from you.
6. Market your invention. We have plenty of videos at inventRightTV showing the marketing tools you will need such as a sell sheet or a sales video to market your invention. You can hire a freelance designer or work with our design studio.
7. Join your local inventors group for support. You will need it. Being around like-minded individuals is extremely helpful. Here is a list of your local inventors group.
8. Once you get interest from a company you will need help with your licensing agreement. This is extremely important. We can help. inventRight offers a negotiations coaching service. Please see click here to work with our negotiating Coach David Fedewa.
Licensing can be extremely exciting. But you must take action, you cannot just dream about it or expect others to do it for you. At inventRight we offer our expert and experienced coaches to advise you - but you are the person who will ultimately do the work.
The number of companies that need ideas is growing every single day. Don’t let your ideas stay in your head. Get up and go for it!