What is Product Licensing?

Stephen Key and Andrew Krauss at inventRight have been coaching and mentoring entrepreneurs and inventors for the last 20 years on how to bring their products to market through licensing. On inventRightTV, we have over 500 videos helping you commercialize your inventions by licensing your product ideas.

What we teach and guide people to do is called product licensing. You're basically renting or licensing your product idea to a company that's already in business. They're currently selling their own products online and in stores, and they're going to bring your product to market, and in exchange, they're going to pay you a royalty on each and every unit they sell. So they're doing all the heavy lifting while you supply them with the great idea. It's a perfect partnership.

The traditional way to bring a product to market is to start a company. That means you must write a business plan. You've got to raise capital, do the marketing, manufacturing, advertisement, fulfillment. And in most cases, dump everything else you're doing because running a business is all-encompassing.

But there are many people that don't have the time, money, experience, or desire, to start a business. When you license your product to a big company that already has shelf space, they can bring it to market very quickly. And because of their size and distribution, it's the best way to protect your idea from copycats, sell it first and sell it fast, license it. There are simple tools to test the market without spending large amounts of capital, filing expensive patents, or even building expensive prototypes. You do not need to quit your day job.

As with any business, there is always risk, but with the licensing business model, you're putting the vast majority of that risk off onto your licensee and you can work on and test a lot of ideas. And you'll always have the financial bandwidth to move on to your next idea, because you're selling the benefits first, without building prototypes, filing expensive patents, or even starting a business. So, your costs are extremely low compared to manufacturing the product yourself.

You guys are going to learn so much on inventRight TV. You're going to learn how to find companies looking for ideas. You're going to learn how to license your product with a simple one page advertisement we call a sell sheet. You're going to learn how to protect those ideas of the provisional patent application. You're going to learn what's important when signing a licensing agreement. Basically, you're going to learn how to become a professional inventor and learn the licensing business model. Also, you're going to learn from industry experts, giving you the latest tips, advice, and strategies.

So thank you for being a part of our inventing community. And if you need more information, you can also call us at 1-800-701-7993. Or you can personally email me at [email protected]. Take care, keeping inventing, and check out inventRightTV.

Stephen Key and Andrew Krauss are the world's leading experts on how to license a product idea. If you have an invention idea, this is the show to watch. Steve and Andrew are the cofounders of inventRight, a coaching program that has helped people from more than 60 countries license their ideas for new products. Visit http://www.inventright.com for more information and to join the one-one-one coaching program.

If you have questions about how to invent, how to be creative, design, how to do market research, prototyping, manufacturing, negotiating, pitching, how to sell, how to cold call, how to reach out to open innovation companies, licensing agreements, non-disclosure agreements, patents, copyright, trademarks, and intellectual property in general — subscribe to inventRightTV! New videos every week, including tons of entrepreneur success stories.

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“One Simple Idea: Turn Your Dreams Into a Licensing Goldmine While Letting Others Do the Work.” Find it here: http://amzn.to/1LGotjB.

“Sell Your Ideas With or Without a Patent.” Find it here: http://amzn.to/1T1dOU2.

"Become a Professional Inventor: The Insider's Guide to Companies Looking For Ideas": https://www.amazon.com/gp/product/165...

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