First of all, when genius strikes, decide that you’re going to do something! Almost nobody does. Most folks will get a product idea or notion at one time or another and maybe mumble to themselves; “Someone oughta come out with something like this.” – and one day, sure enough, someone does. And when these folks see “their idea” on retailer shelves they’re ready to kick themselves for letting this golden opportunity slip by. The simple fact that you’re reading this shows that you’re not one of those folks. You know you’re going to do something — but what?
If you’re smart and lucky and have plenty of cash reserves, you might make a LOT of money by marketing your new product invention yourself. However, remember that about 60% of new businesses fail within 18 months; usually with dire financial consequences for the inventor and his or her family. Licensing your new invention to an established company and receiving a royalty income based on sales has a lower earning potential – but there’s virtually no risk and your income is passive. You continue living your life and the royalty checks just appear in your mailbox every month.. Most inventors or folks with clever product ideas don’t want to risk their savings and turn their whole lives upside down — so licensing is the popular route. If that’s also your choice, then just follow these 5 simple steps for a guaranteed happy financial result.
The 5 Positively Guaranteed Steps for Cashing in on Your Amazing New Invention or Clever New Product Idea (Without financial risk, chance or debt)
Step #1 – Only invent what needs to be invented.
Inventing is easy — but the hard part of this business is to first uncover what’s actually worth inventing. Most inventors invent for the joy of it, but a successful inventor is also a businessperson, knowing that he must deliver a product that companies are prepared to buy – something so exciting and original – and with so much profit potential – that it’ll be a deal too good to let pass by. Otherwise, no matter how clever the invention – no one will care.
Step #2 – Nobody knows the second guy to discover America.
In theory, everyone knows about first searching for existing products before devoting time and money on a new idea — but most inventors only do it in a quick, cursory manner, virtually guaranteeing that they find nothing – or think that by adding a little tweak to similar existing products they’re making something totally new and wonderful. That never works; don’t kid yourself. So – before just plowing ahead, take the time to search honestly and thoroughly. Any interested company will surely do its own thorough searching — and you don’t get paid for being second.
Step #3 – Understand what you’re expected to put on the table.
Know the difference between having an invention and just having an idea for one. Companies might be interested in the first – but not in the second, The devil is in the details. And if your invention promises to do something, you need a prototype to show how it does it. And if the product is important you’ll probably need a patent to give the manufacturer the exclusivity he’ll demand. He’ll only sign a licensing deal if he has to – your job is to make it so.
Step #4 – Remember – anyone who’s not the boss is your enemy.
If you present your invention to underlings or assistants, they’ll waste your time and break your heart. Know your enemy. These folks do NOT want the boss to see your great new product for fear that he’ll wonder why they didn’t think of it, and so they’ll stall and stall. Show your idea only to the decision maker who can say yes and only do it face to face. That’s how business deals are made. Forget about mail and email. If you want the order, go in person.
Step #5 – Success is in sight – this is no time to go all wobbly.
If you have the right invention and show it to the right person, he will say “Yes!” (Guaranteed) so you have to be ready to close the deal. You’re the seller – it’s your job to lay out the terms that you want. Leave it to the licensee and you’ll have the deal from hell.
Understand the nature of a licensing agreement; know what you’re legitimately entitled to receive, and be prepared to negotiate fairly. Remember the old Wall Street expression; sometimes the bears win and sometimes the bulls win — but hogs always get slaughtered
Harvey has developed and licensed more than a hundred of his own product ideas, not counting those of other inventors – and he reveals his secrets in his best selling book, How to License Your Million Dollar Idea — or if you want Harvey’s personal help, visit him at Money4ideas.com.
Image Credit: http://www.ctlgrantseeking.project.mnscu.edu/