Скачать или смотреть How Much $$$ Can You Make Licensing Your Inventions? Royalty Checks = Passive Income

How Much $$$ Can You Make Licensing Your Inventions? Royalty Checks = Passive Income

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Описание к видео How Much $$$ Can You Make Licensing Your Inventions? Royalty Checks = Passive Income

Product Licensing is when you allow a company to sell and distribute your product. In exchange, you receive a royalty, which is a percentage of the sales. The royalty rate is usually between 3% and 7.5%, with an average of about 5%.

The annual product volume, or how much the company sells of your product, and the sales or buy price, or how much the product is being sold for, are also factors in determining the potential annual royalty amount.

Negotiating a license deal may also include getting an advance payment, which is an upfront payment that may be deducted from future royalties. This advance payment can help cover expenses related to getting the product ready for licensing, such as obtaining a patent.

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