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Licensing vs. Going to Market Alone: Maximizing Revenues for Inventors

Learn the benefits of licensing your product and going to market alone. Warren Tuttle, President of Monashee Marketing, shares his expertise in external product development and licensing, providing valuable insights and advice for inventors. Discover how to prepare a productive licensing presentation, who to approach for licensing opportunities, and when licensing or going to market alone is the right move. Find out how larger companies can help inventors maximize revenues, and explore the checklist for going alone. Make informed decisions based on financial resources, time, passion, consumer research, industry challenges, product manufacturing ability, margins, and personal goals.

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Licensing vs. Going to Market Alone: Maximizing Revenues for Inventors

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  1. Licensing Versus Going to Market Alone Warren Tuttle Monashee Marketing wwtuttle@yahoo.com 203-594-8808

  2. Warren Tuttlewwtuttle@yahoo.com • External Product Development Lifetime Brands • President United Inventors Association • Monashee Marketing

  3. My Background • New York City retail store Buyer…learned housewares industry from ground up • Specialty Retail Store Owner • Independent Inventor Advocate • External Product Development for Lifetime Brands....25 licensing deals past two years • Taken several products directly to retail • UIA President

  4. 32 Brands including Farberware, Kitchen Aid, Cuisinart, Pedrini, Towle, Mikasa, Pfaltzgraf Lifetime Brands 30,000 products 9 Divisions

  5. What is Licensing? • Taking your product to market through others • Leveraging valuable IP • Making a royalty on each unit sold • Establishing a fair royalty amount ($ or %) • Negotiating exclusive or non-exclusive terms • Setting annual quantity minimums • Securing a signing advance • Determining length of licensing agreement

  6. How to Prepare a Productive Licensing Presentation • Taking a professional approach • Understanding industry licensing guidelines • Vetting product at retail • Develop working prototype proving function • CADs and photos • Researching and filing for a patent • Creating a Sell Sheet • NDAs

  7. Who to Approach when Licensing • Research your industry • Retail store and catalog shopping • Internet Searches • Trade Shows • Industry Trade Magazines • Industry Contacts • Determine company with broadest distribution and reach • Seek “Inventor Friendly” companies

  8. When Licensing is the Right Move • When personal resources are limited • When industry standards are stacked against you…the plight of the single sku vendor • When you are working on multiple projects • When running a company is not for you • When your personal creative and business strengths lie elsewhere • When a larger company can simply do it better than you

  9. How Larger Companies Can HelpInventors Maximize Revenues • Product development services • Expanding patent opportunities • Branding • Established distribution • Expanded product assortment • Acknowledging Inventor • Platform for future licensing opportunities

  10. Going to Market on Your Own • Same initial development process (idea, prototype, patent search, marketplace vetting) • What are industry standards and nuances? • What are retailer requirements for single item vendors? • What is price point of the product? High margin and low volume opportunities. • Can you earn a windfall profit early on? • Can you build and sell the business?

  11. Going Alone (Partial)Checklist • Early Development Costs • Tooling • Manufacturing • Inventory • Shipping • Warehousing • Disbursement • Billing • Collection

  12. Summary…What Will Drive Your Decision • Financial Resources…access to $ • Time…quit your day job? • Passion…are you a visionary, or simply crazy? • Consumer Research…sketchy • Industry…challenges within each • Product…ability to manufacture • Margins…high or low volume • Personal Goals…quality of life

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