How to Find Companies That Will Buy Your Invention Ideas

Hello, I'm Andrew Krauss, one of the co-founders here at inventRight. For the past 21 years, we've been coaching and mentoring inventors on how to license their products for royalties, reaching students in over 65 countries. Today, we're going to dive right into finding companies that will buy your invention ideas. If you're here, it means you're searching for ways to pitch your invention ideas to companies. You're in the right place.

At inventRight, our approach might surprise you, but it's important. Knowing how to find companies interested in your ideas is key. If you're just Googling, you might miss out on effective strategies. This guide will get you on the right track. 

One common mistake is reaching out to too few companies. Instead of just a couple, aim for 20 or 30. We'll show you how right here, so keep reading.

Common Mistakes Inventors Make When Seeking Companies to Buy Their Ideas

First, let's talk about what inventors usually ask for. I've been asked this countless times: "Can you give me a list of companies open to ideas for my invention? And can you guarantee they are good, honest companies?" Here's why that request is problematic. If you approach it this way, you'll likely search for websites or manufacturers with a "submit your idea here" button, which is a huge mistake. This limits your list of potential companies, and that's definitely not what you want to do.

Here's the reality of companies with submission pages on their websites. There's nothing wrong with having a submission page, but here's why it's not as helpful as you might think. Many of these portals on manufacturers' websites are like black holes. They don't necessarily want to see your great ideas; they just want a place for those ideas to go.

So, they might reply "no" to everyone, or some of them don't reply at all. These portals are not what you think. Many companies have told me and my co-founder, Stephen Key, that they've never licensed anything from their portal. However, they've licensed many products that came through LinkedIn, email, or phone. Often, they say the quality of submissions on their portal is poor compared to those from professional inventors using other methods.

That's not to say you can't license a product through a company's portal or invention submission page. Some companies do pay attention to their portal submissions and take them seriously. So, this is not a blanket statement for all of them. However, I can't personally think of one of our students who has licensed an invention through a portal.

We advise our students to reach out through LinkedIn, phone calls, and emails, using the techniques we teach. However, I haven't seen many inventors successfully licensing their ideas through portals. That doesn't mean it's impossible, but relying solely on portals is risky. It's crucial to contact companies using LinkedIn, phone calls, and emails directly. Just submitting through portals won't cut it because having a portal doesn't necessarily mean a company is open to ideas. They might have it for various reasons, which could lead your product to be ignored.

Many companies prefer not to engage with inventors or invest their time in reviewing submissions. They might have some interest, or they might be very interested, but if you only submit through portals, your chances of success are slim. It's highly unlikely you'll license your product this way. 

Ask yourself why you're solely relying on portals. Do you need assurance? Do you need a list of companies? Do you need to be sure they won't steal your idea? These doubts stem from the misconception that a company having a portal means they're open to ideas and trustworthy. However, some portals come with unfair submission agreements that should make you cautious.

Strategies for Reaching Companies That Will Buy Your Invention Ideas

Find the Right Companies

Many companies are eager for new product ideas. They rely on them to stay competitive but often lack the resources to generate them internally. So, when you pitch your invention to these companies, you become their free R&D department. However, not all companies openly advertise this opportunity. Some may not even mention it on their websites. Relying solely on companies that do may limit your options. 

It's important to cast a wider net and reach out to companies through various channels like LinkedIn, phone, or email. Don't limit yourself to those who explicitly state they accept ideas from inventors. It may seem daunting at first, but being open to all possibilities increases your chances of success.

Many people make the mistake of thinking that licensing their ideas is too hard because they're not doing it the right way. So, how can you find the companies that will buy your invention ideas? Our coaches teach our students a simple test: look for companies that are already selling products similar to yours in major retailers. Why major retailers? Because you don't license your idea to the retailers themselves, but to the manufacturers who supply them. When you find a company selling products like yours in a big store, it's a good sign that they have the connections and resources to bring your product to market.

Now, here's where some people go wrong: they think they need to find companies selling the exact same thing as their product. But that's not true. As long as the company is in the same product category and selling in a major retailer, they're worth considering.

Don't limit yourself to just the stores you know. If, for example, you're into sporting goods and only look at Big Five, you might miss out. Do a quick Google search to find a wider range of retailers. There might be many more opportunities out there than you realize.

What I've noticed is that international students outside the US might not be familiar with American retailers. It's important not to assume which retailers are relevant based on your location. You should create a comprehensive list of retailers across different regions. Additionally, consider companies that supply these retailers. They might not offer identical products but operate in similar markets and have distribution channels in major stores, making them potential partners to approach.

Remember you don't need a sign on a company's website saying "We're open to ideas" to know they might be interested in what you've got. Most companies these days are open-minded. Sure, you might come across a few that aren't, but don't let that stop you. The truth is, you're going to hear "no" a lot. And that's okay. New inventors often fear rejection, but it's part of the game. Trying to avoid "no" altogether will only hold you back.

Craft Your Perfect List of Companies

Finding companies that will buy your invention ideas can be straightforward if you approach it with the right mindset. It's important to recognize some common misconceptions and pitfalls in this process. Firstly, don't expect a magical deal maker to hand you a ready-made list of contacts. This approach rarely leads to success. Instead, focus on proactive strategies.

At inventRight, we've done the legwork. We've compiled a list of thousands of companies open to new ideas. Plus, we offer a program called Bridging the Gap in which we bring in CEOs and marketing managers to share what they're looking for and how to reach them. It's a direct line to potential buyers for your invention ideas.

So, we have that. That's great, and you might think, "Wait, Andrew, that doesn't match what you said." But it actually does, because I'm about to explain how we work with our students, and that's why they succeed. Yes, we offer resources like company lists and direct connections but do you know what sets our program apart? Our coaches. They assess each student's product and help them create a personalized list. You might not know what the perfect list looks like yet, but we help you make one tailored to your product. 

We believe in the old saying, "Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime." That's why we teach our students how to build their list from scratch, diving deep into the specifics. When our students ask, "Can't I just use the list you provide or ask my coach?" we say, "No, let's build your list from the ground up." Once you've done that and thoroughly researched the market, creating a list like a pro, then you can take advantage of these additional resources.

There are great resources on the membership site, but we always recommend creating your own ideas first. Then, see if there’s anything you might have missed. This approach works best. Don’t just sit around waiting for someone to give you a list or tell you to call Bob at some company. You don’t need that. You can reach out to companies on your own and find the right contacts.

Stay Proactive and Protect Your Ideas

If a company has a portal that says they’re open to ideas and their submission agreement looks fair, that can lower the risk of getting ripped off. Many inventors worry too much about this. In over 21 years, with students from 65 countries, we haven’t had a single student report being ripped off. So, stay proactive, and don’t let fear hold you back.

We're guiding inventors on how to avoid getting ripped off by companies they show their ideas to. Some students have been concerned about this, so I've given them tips on creating doubt in the company's mind. None of our students have reported back saying their idea was stolen after checking the company's website. This shows that not all companies are out to rip you off. Our students haven't been ripped off because they act professionally. For the small percentage of companies that might consider stealing ideas, professional conduct is as effective as a provisional patent application.

We guide our students to use our software to file a provisional patent application for $199. This provides legal protection, allowing you to label your invention as patent pending on your sell sheet. By reaching out to companies directly and professionally, you ensure they respect your approach and don’t waste time with lengthy emails.

Ethical concerns exist, but they are rare—only about 3-4% of companies might be unethical. This estimate comes from 21 years of experience. Even then, it means they might consider unethical actions, not that they will do them. Such companies avoid dealing with professional and prepared inventors like you, targeting less prepared inventors instead. That's why I believe it hasn't happened to our students. 

If you need a list and assurance that companies won't steal your idea, you're being unrealistic. Complete assurance is impossible in business. However, we believe in mitigating risks. File a provisional patent and act professionally. If you're not trained, you might not know how to act professionally. In 21 years, with students in 65 countries, I'm not aware of a single case where a student was ripped off by a company they presented to. We have many students, so the idea that everything is perfectly vetted is a misconception.

Final Words

In summary, don't expect to find a magical list of companies that will make it easy for you. Such a list doesn't exist. Yes, we have amazing extras and supplements, but because we believe in our students and want them to succeed, we guide them to create a list that's perfect for their product. We tell them not to look at our list until they've made their own. Most of the time, they end up with a complete list, so they don't need ours. 

Now, the Bridging the Gap company program is really cool. The CEO or market manager talks about what they want, and we give our students their email address. That's pretty cool because you get insider information on what companies are specifically looking for, which is usually only shared if you have a relationship with them. This is unique, and we do two sessions a month, totaling 24 a year. 

However, we don’t want our students waiting for the next session. If you have a product, the coach will guide you in exploring all other products in that space. I explained the basics: compile a large list of retailers where your product could appear, then license to the companies selling there. There are more details on how to reach out via LinkedIn and phone, but this is the approach for finding companies that will buy your invention ideas.

Don't waste time on invention promotion companies promising easy success. In my experience, I've never seen them deliver. Instead, take control of your invention journey. Our students succeed because they put in the effort. Making your list of companies may take two to six hours, but it's worth it compared to running a business. Reach out directly to the companies you want to license to. You don't need a middleman or a magical list. You can do it yourself.