Is it possible to get paid for your ideas? Yes. Most people think the only way to get paid for your ideas is by starting a business, but that isn’t true. It’s possible to get paid for your ideas without starting a business through the licensing business model.
When you license your idea for a new product, you are essentially renting it to someone else, usually a company. In exchange for the right to produce and sell the product for a specific time period under certain terms — also known as a licensing agreement — you are paid a small percentage of every unit that is sold. Technically, this payment is a “royalty.” Royalties are a form of passive income.
As a way of doing business, licensing has existed for a very, very long time. At its most basic, licensing is official permission to do, use, or own something.
If you want to get paid for your creativity, it’s very important to understand licensing. Two different types of licensing you should be aware of are brand licensing and product licensing. The focus of this article is product licensing.
More specifically, this article will explain how product licensing helps you get paid for your ideas using the example of Cigdem Delano, who went through our coaching program.
Cigdem is the inventor of the Unspill-a-Bowl® for pets as well as the inventor of the Pendant Saddle®.
The Unspill-a-Bowl is exactly like it sounds; a bowl for drinking water that prevents spills.
Her Pendant Saddle® necklace is designed so your pendant always hangs correctly.
Both products are patented, licensed, and currently selling on the market.
Congratulations Cigdem!
“I couldn’t have accomplished any of this without inventRight! The inventRight team does an incredible job of teaching its students how to fish successfully, rather than doing it for us. I appreciated having my mentor and the entire inventRight team supporting me every step of the way.
When challenges inevitably arose, knowing I had my mentor and a team of inventRight experts, including Stephen Key and Andrew Krauss, available for one-on-one assistance gave me the confidence to keep going until I reached success. Thank you!!”
Get Paid For Your Ideas: How Product Licensing Works
Licensing is less expensive than starting your own business to bring a new product to the market. When you license an idea, in exchange for the rights to produce and sell your idea, you get a small percentage of each unit of the product that is sold. The more successful the product is in the marketplace, the more you will be paid for your idea. (Just because an idea is licensed does not mean it will be popular with consumers.) An excellent resource for learning the steps of the licensing process is our cofounder Stephen Key’s book One Simple Idea.
Using Product Licensing To Get Paid For Your Ideas: Cigdem’s Story
As a member of inventRight, Cigdem worked closely with her coach to successfully license two of her ideas for new products. She was inspired to invent, patent, and license the Pendant Saddle® necklace after becoming frustrated with a couple recurring problems.
If you’ve ever worn a necklace, you’ll recognize these problems: A pendant that doesn’t stay in place, or having to constantly reposition your clasp at the back where it belongs, because it continually migrates to the front!
Cigdem decided to solve these problems, and in the process, invented the Pendant Saddle® necklace.
She shares the timeline of how she invented, patented, and licensed it below.
“Way back in October 2018, I solved the “moving-pendant” and “migrating-clasp” necklace problems and filed a provisional patent application for my solution. I called it the Pendant Saddle® necklace.
In 2019, with guidance and encouragement from the inventRight coaches and team, I licensed my idea to Adrienne Designs, after meeting them at the JCK International Jewelry Show in Las Vegas.
They believed in my idea and, despite the challenges posed by the pandemic, brought my Pendant Saddle® to market. Our collaborative partnership spans production, marketing, and sales. By early 2021 we had made our first sale. The inventRight methodology truly works!
In May 2022, my utility patent was granted. The next month, a retailer began selling my Pendant Saddle® chains on Amazon in their collection.
This year, Adrienne Designs and I expanded the Pendant Saddle® line to include 16 different necklace styles. Then, we needed to solve a new problem.”
The problem was, how would people out about find her solution? Everyone who wears necklaces knows about these problems. But have you ever searched for a solution? What words would you use? What exactly would you google? No shared language exists for describing this problem.
How were Cigdem and her licensee going to get the word out about her problem-solving invention?
In reality, this is actually a challenge for all entrepreneurs. Products don’t market themselves, not even the best ones. Your licensee may even request your help getting the word out about your product.
How Social Media Marketing Can Help You Get Paid For Your Ideas
Recently, Cigdem was thrilled to discover her Pendant Saddle® necklace was making a major splash on Instagram and TikTok with the help of a micro-influencer who featured the product in her video. Thanks to this influencer, the Pendant Saddle® necklace has reached nearly a million people in a little over a month.
Whoa! So far, one influencer’s video posted across two platforms resulted in a staggering 981,000 Views, 28,277 likes, 3583 shares, and 998 favorites.
Watch how the micro-influencer showed off the product (along with her radiant smile) at the 32-seconds mark:
“Such a good invention.”
“Genius.”
“All necklaces should be made with that.”
Cigdem began reaching out to influencers on social media after she learned there were popular posts from future brides, young women, and female wedding photographers about using eyelash glue to stick necklaces to the skin on wedding days. The glue ensured the necklace stays in place and the clasp remains hidden, especially in photos. People were referring to this DIY solution as a “wedding hack” or “jewelry hack,” and many of the posts had millions of views and thousands of likes and shares.
The breakthrough didn’t happen overnight. Cigdem said she worked on reaching out to micro-influencers for about a year and half.
“I reached out to many of these influencers through DM on TikTok (and via email when provided), but most did not respond. About a year ago, one influencer responded. I sent her a Pendant Saddle® necklace as a gift. She tried it, liked it, and posted twice about it, but she only got a total of about 11,400 views and 210 likes. Unfortunately, her presentation of the Pendant Saddle® wasn’t very effective. Since it’s important for influencers to create authentic content, it’s best not to interfere with their approach. Unfortunately, sometimes this can result in posts like I experienced that don’t make much of an impact.
The second person who responded was the current influencer, Analiese Danielle Rivera. I also gifted her a Pendant Saddle® necklace. She tried it, liked it, and posted about it. She did a great job presenting and explaining the Pendant Saddle® necklace. I believe her audience was a great match for the Pendant Saddle necklace. Thankfully, the posts are continuing to get good traction.
I primarily reach out to micro-influencers since they’re more likely to accept a gift and post about it. Macro influencers can be quite expensive.”
Cigdem and her licensee decided to gift a Pendant Saddle® Necklace to this micro-influencer in particular because she had featured the DIY eyelash glue hack in a different video.
Smart!
Learn More About How Product Licensing Helps You Get Paid For Your Ideas
Want to learn more about product licensing and how it helps you get paid for your ideas? There are tons of free resources on our website and our YouTube channel inventRightTV.
Ready to license your ideas for new products? inventRight can help. Contact us at +1 (650) 793-1477 or email support@inventright.com to discuss how.
