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Should I license my invention to another company?

The Pros and Cons of Invention Licensing

There are all kinds of ways to introduce a new product to market:

You can sell it door to door
You can create a website
You can offer a promotion through direct mail
You can establish relationships with retail representatives who will pitch your product to their retail customers.
You can buy TV time and sell a new invention that way
All these ways have worked for inventors

Some inventors have used multiple selling methods at once. However, there are a lot of worries you'll have if you take this direct selling route.

You have to deal with production deadlines
Cash flow concerns
Products that get broken during shipping
You have to fund, create and execute ongoing marketing campaigns

Sometimes inventors decide to utilize invention licensing instead of handling all these separate issues themselves. An invention company that licenses your idea will pay you and carry out all these tasks. But, as you might guess, there are drawbacks to this method of selling your new invention, including a fairly dramatic reduction in income from sales (even if the product is wildly successful). Just make sure you research the idea thoroughly, obtain legal advice and never enter into such an agreement orally.

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