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What to Do After You Come Up With an Invention Idea



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hello everyone and welcome to straight

to licensing with amy-jo I'm in vent

right coach Amy Joe Brogan and today I

would like to talk to you about you have

an idea and now what okay um this is

more for beginners since this shows been

airing on YouTube I've had a lot of

people come to me and say great show

awesome stuff but I don't fully

understand everything you're talking

about because I'm new I'm new to this I

have a product idea but but what do I do

about it how do I know if I want to

venture how do I know if I want to

license

what is licensing so I wanted to kind of

I wanted to address that to everyone

some of you who are very familiar with

licensing or you'll probably already

know all this information but for the

newbies this is gonna be extremely

helpful so the first thing you want to

do when you have a product idea is you

always want to do your research no

matter what whether you want to venture

or you want to license a product you

need to do your research because it's up

to you to be the expert with your

product and in your industry okay um now

the next question is okay well what's

venturing what's licensing so let's

start out with venturing venturing

requires a lot of basically it requires

all of your time all of your money your

skill set and then also skill sets that

you may not already that you may not

have at this at that point in time you

know think about I mean have you ever

ran a business before have you

what do you know about the understanding

of manufacturing or distribution do you

know about marketing do you know who

your customer is and how you can market

to that customer these are a lot of

things that people may think that they

know or they don't even consider when

they're

wanting to pursue venturing and it's you

know it's there's a lot of risk involved

there you when you're when you're

venturing a product you're running a

company and you need to be able to have

the strength to be able to wear many

hats in order to make that successful

and even if that's the case even if

you're capable of doing that it's still

really challenging to venture a product

idea because of how much risk that there

is involved with it um now let's talk

about licensing licensing allows you to

focus on what you do best so if you're

if you're a person that comes up with a

lot of different ideas or even if you

just have this one idea in particular

that you really want to bring the market

but maybe you don't have the skill set

or you're not in the position to be able

to take that risk to venture licensing

maybe another opportunity for you to

still bring your product to market okay

so when you excuse me

licensing is a less expensive

alternative than venturing um there's

less risk involved yeah a lot of people

say well I want a hundred percent of my

profits with my product that's why I

want a venture well there's also a lot

of money a lot of investment that goes

in there again risk that goes into

developing a product and if you don't

know how to do it properly and you don't

have the resources to do it and when I

say resources it's not just money it's

it's a team people that you know you

need have a support team you need to

have be well balanced in order to bring

this to market and that's the beauty of

licensing because when you try to

license your product to a company a

brand they have all of that already set

in place they people know who they are

because they're a brand they're a big

company right they already have

manufacturing facilities set up they

already have distribution set up they

know how to package products they know

how to market it and they already have

shelf space in retail stores so how can

one individual compete with that right I

mean it's very difficult I mean and

venturing is not a bad thing by any

means but there's a lot more that goes

into venturing than necessary I don't

want to say within licensing but

licensing allows you like I said

to to focus on what it is that you like

to do you can focus on being your expert

with your product if you have multiple

ideas it's going to help you to expedite

the process and just keep repeating the

steps over and over and over again so

you can have you can potentially license

several products um so when you're

licensing a product that or when you're

pursuing licensing the roles are a

little bit different than venturing yeah

of course just like venturing you need

to be an expert you need to do your

research you need to know your product

you need to know what your closest

competitors are if they're if there's a

product in the marketplace that tries to

solve the same problem as your product

how is your product different what is

your point of difference there you need

to know that um and then you know

prototype some products can be licensed

without prototypes it happens all the

time but if you have the opportunity to

prototype a product then I recommend

doing that I feel like that helps you

become that much more of an expert and

you don't have to spend a whole lot of

money on prototyping you can

Frankenstein things together we've

talked about this before so prototyping

you put together your marketing

materials acknowledging what the

benefits are of your product and how the

consumer how your customer is going to

benefit so you put those marketing

materials together and if you need if

you want to file a provisional patent

application you can write a provisional

patent application file that for a

patent pending status if your product

you know falls into that if you can file

a provisional otherwise if it's a

novelty product or something that maybe

doesn't solve a problem if you don't

need a patent pending status so again

this is the research that you need to

put together for your product no matter

whether you license or you venture but

with the licensing these are your steps

that you that you need to do be an

expert prototype if you need to put your

marketing materials together get your IP

or intellectual property if you need to

and then you start shopping it around to

companies those brands that we were

talking about that have the system to be

able to bring products to market in an

expedited way I guess in comparison to

what one individual could do so if a

company wants to license your product

now again this is what we're getting

back to when with what how you profit

venturing versus licensing if a company

wants to license your product they are

going to

royalty rate per unit sold okay

now those rates vary depending on the

industry that you're in the category of

your product how many units are going to

be are expected to be sold different

things like that

right how the length of the contract all

of those things cost for manufacturing

retail price you so you have to take all

of those things into consideration but

let's say you know the company says hey

I'll give you five percent royalty rate

per unit sold I like that deal it's

because they take on all of the risk

right and but they know what what

they're doing so their risk is less

risky than our risk would be now a lot

of people say no I want more I want more

I want to be paid more than that on my

product okay

well do you is it worth the risk to you

so I just want to kind of just show you

the pros and cons of both of them what's

like what's the difference what is the

right fit for you okay

so I just wanted I just want to point

out the differences between venturing

and licensing venturing there's a lot

more risk involved there's a lot more

investment involved time stress all of

those things and if it ends up being

successful then yeah you'll probably get

paid more money you have a larger profit

margin on it if you can make it

successful that's a big s and then

licensing if you're able to license it

it's a smaller profit margin for you I

guess you could say which you don't have

to take on that risk and you and you

don't have to worry about being stressed

out you can license that product and

move on to another idea and try to you

know license more products if you'd like

to or life is the same product in

multiple categories like we were talking

about them the other YouTube show though

that we had so I hope this information

is helpful to you if you have any

additional questions on the difference

between the two or if you're you know

debating back and forth what what do i

do what do you think I should do just

put them in the comments section below

I'll be happy to help answer those

questions if you liked the show give me

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forget to watch Steven Keeny Andrew

Krauss an event write TV and David feet

away on ask David thank you so much I

look forward to hearing from you guys

you