So, you’ve got a great idea for an invention, and you want to make money off it. Now what? There are two major ways that investors can make a profit from their ideas. First is licensing the rights so that others can make, use, or sell their invention. Secondly, inventors can manufacture their inventions, bringing them to market directly.
There are substantial differences between these two options, both in how you will make your money and what you will need in order to succeed. There are several factors you should consider when determining whether to license or manufacture your invention.
Licensing is often the easier option. Inventors who have been granted a patent for their creation can license their invention so that others can produce and sell it. This is an agreement between the inventor or ‘licensor’ and a company known as a ‘licensee’ that enables the other party to bring the invention to market, in exchange for a licensing fee and/or per unit royalties as described in details in https://azbigmedia.com/inventhelp-can-help-turn-your-invention-into-reality/ article.
If you choose this route, you can collect royalties and licensing fees in exchange for allowing others to use, manufacture, or sell your invention. ‘Inventing for royalties’ can provide you with a long-term paycheck without you needing to be involved in the production process. Under the licensing agreement, an inventor does not assume all of the risks and expenses related to manufacturing and marketing a product. This requires less up-front funding, and allows inventors to get back to inventing, rather than worrying about the business side of things.
If you want to license your invention, begin by seeking a patent. Most licensed inventions are patented before a licensee is sought. Then, seek out companies that seem to manufacture products like yours, and try to achieve enough funding to build a working model, which can be an important selling point for potential investors. You will also want to determine which rights you wish to assign, and for what time period; you do not have to license all of the rights to your invention indefinitely.
Are you a gifted salesperson and a risk taker? If so, then manufacturing your invention yourself may be the right route. Many inventors do not want to cede control to someone else, and would rather manufacture it themselves. This option does not mean that you must make the product by hand by yourself; it is likely that most or all of the work will still be contracted out to specialist companies. If you have a passion for business and entrepreneurship, this route may be best for you. In addition, it is possible to manufacture your invention without seeking a patent for it. However, you will need some start-up money to make and sell your product, and you assume more risk, since you are responsible for all costs and decisions related to manufacturing and marketing your invention.
There are other considerations when determining the best route to take. If your invention is very complex, or is an improvement on a product that already exists, licensing may be the better option, unless you have a flare for marketing. On the other hand, if your invention is novel yet relatively easy to manufacture, you may be better off taking a shot at bringing it to market yourself and you can see how from this https://www.dailypress.com/news/community/spotlight/dp-ugc-article-inventhelp-provides-the-necessary-help-to-nav-1-2019-01-03-story.html article.
If business is your passion, and you view inventing as a means of acquiring something to sell, manufacturing it yourself may be the right choice. But if you have a passion for inventing and want to avoid the risk and up-front costs of bringing an invention to market, consider licensing agreements instead.