Finding the right licensing partner can be beneficial to both you, as the inventor, and the company you’re working to license with. You can gain access to your licensing partner’s capital, manufacturing contacts, distribution outlets and more to bring your product to market. Your licensing partner can tap into your creativity and gain an edge on their competition with the right product.
If you can bring a company a product that can help them fill a proven niche market, companies can be motivated to pursue a licensing arrangement. Because you hold the patent to the product, the company has no choice but to negotiate with you if they want to add your invention to their product line.
Licensing is a joint venture that should, ideally, benefit both parties. It’s an agreement where both parties are hoping to make a profit from the commercialization of your invention. However, in some cases, a company has to weigh the cons of not licensing your product. Sometimes, if a company doesn’t license your product, they run the risk of you trying to develop your product yourself and becoming their competition.
But, you should be picky with who you decide to license with. There are five ways you can make sure you’re choosing the right licensing partner.
Licensing Tip 1: Look for Companies that Have Product Offerings Similar to Yours
If your product was in stores, where would you go? You would probably prefer to go to Best Buy for technology rather than Publix or Food Lion.
Licensing Tip 2: Use Your Network
Maybe you’ve talked with a buyer for the company before. Or, maybe you used to work with or for one of their largest customers and have a personal connection to someone you’re considering licensing with. Using your network can help you get your foot in the door rather than just making a cold call.
Licensing Tip 3: Be Different, Don’t Just Email
An average office worker receives 121 emails a day and sends around 40 business emails every day. With so many emails being sent per day, it can be difficult to get noticed just through email alone. Sometimes, doing something different can get you noticed. Sending a short, professional introduction through the mail system to the appropriate contact can help make the right impressions.
You can also include marketing materials with your letter to show you far along you’ve developed your idea.
Licensing Tip 4: Always Follow Up With a Phone Call
After you’ve sent your letter, if you haven’t heard back from your contact in around two to three weeks, try to get them on the phone.
Licensing Tip 5: Ask For a Meeting
Your goal in contacting someone at the company is to ultimately get a meeting with them, you want to give them a personal pitch of your product. Sometimes, if you’re not getting a warm response through the phone or in other correspondences, a meeting may bring out a more enthusiastic response.
Licensing can be a great move for many inventors, it just takes a little work find the right partner.
At Alotech, we partner with you to find creative ways to help you navigate the manufacturing world. Because we work with inventors with a range of products and needs, we have the resources and knowledge to help you be successful. Contact us today by calling 919-842-3599, or visit our contact page and fill out the form.