The Pros and Cons of Invention Licensing
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Should I license my invention to another company?
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.