Do you want to know 3 keys to invention success?
Of course you do!
So, good news, I'm going to tell you about them right here, right now in the blog.
Ready?
Okay, one small caveat – the 3 keys as you will see are simple – but it doesn't mean that invention success is simple.
Read on.
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Click on the blue button below now to grab your FREE copy of – Keys to Licensing Your Invention – PDF now.
Want to attend a FREE live, interactive webinar all about licensing?
Click on the orange button below to attend the next FREE – License Your Invention for Royalties – webinar.
Get answers to all your licensing questions during the webinar.
Key #1 – Invent Simple, Low-Cost Items
In today's high-tech world, the media bombards us with hype and hyperbole: the biggest, the best, the fastest.
While you may buy something that is simple or inexpensive, it's not something you would talk to your friends about. Right?
Yet, when it comes to inventions or hit consumer products – biggest, best, and fastest are suspiciously missing in action.
Remember the Snuggie?
This simple product is little more than a blanket with cut-outs for your arms and head so you can wear it while sitting on the couch and stay warm.
But, to date, it has sold over 30 million units, generating over $500 million in retail sales. Today, DRTV (direct response TV) is a multi-billion dollar industry. The vast bulk of items sell for less than $30 (usually $19.95) – they're simple and low-cost – but all of them solve some sort of annoying problem that millions of people have.
If you truly wish to succeed as an inventor, why not go for simple and inexpensive? It may not be sexy, but it sells.
Key #2 – Join a Local Inventor's Club
As you well know, inventors are widely viewed by the public with skepticism, or even derision, as sort of odd-ball misfits tinkering away on weekends in a basement instead of king or queen of the prom. Right?
You soon discover it is best not to talk to your co-workers or friends about your invention.
The more you tell them about – how much you've spent, how many prototypes you've built and that your invention still isn't selling in stores – the more they glaze over and shake their heads. They all think you are crazy – and you may soon begin to doubt your own sanity as well.
For all of the above reasons, you need to commune with a like group of crazies like yourself – other inventors. You can find local inventors clubs in most major cities.
What will you find in inventors clubs?
Lots of resources. Most clubs have members who are patent attorneys or agents, prototypers, and inventors who are at all stages of product development. Inventors clubs are the best resource for inventors I have found in my inventive journey. I found mentors. lots of advice and information, and now I am one of the mentors. You will find the same and it will accelerate your path to success – I guarantee it!
Key #3 – License Your Invention – Don't DIY or Venture Your Product
I've met quite a few successful inventors and you know what they all have in common?
They have licensed their invention instead of DIY (do it yourself) or venturing it.
As I mention in my free live webinars for inventors – How To License Your Invention for Royalties – there is a widely held myth that you will make a more money if you DIY your invention instead of licensing it.
Don't believe that myth – it's simply not true!
People fall into this perception trap because they misunderstand the difference between top line-income (or gross sales) and bottom-line income (or net profit). Ready to take a simple test?
Which business would be a more lucrative or better deal for you?
- A DIY venture where your gross annual product sales were $1 million
- A 5% royalty license deal where your product had gross annual sales of $1 million
Of course, your immediate reaction would be to say, “I'd much rather have $1 million coming in every year, rather than $50,000 from product royalties!” Right?
Congratulations! You've just fallen into the top-line/bottom-line trap.
Under scenario 1. above – most of your top-line $1 million would go out the door to pay for product, packaging, shipping, labor, distribution and many other expenses in your business.
If you managed your profit margins and expenses incredibly well, you might be able to net to the bottom line about 5% or $50,000 to go into your bank account.
For that, you'd be working long hours – likely 7 days per week – managing employees and contractors, dealing with returns and much more. You'd effectively have a job with long hours – that probably pays you less than your day job does now – with no benefits or vacation.
By the way, I ventured my product for 8 years, so I know all of this from personal experience.
Under scenario 2. above, your licensee would handle all of the business management headaches described above and provide you with royalty checks of $50,000.
You wouldn't have to do anything once the licensing deal was completed and the product began to sell, but collect a check every quarter. Oh, you could keep your day job as well if you like, complete with benefits and vacation – and additional income.
Now which seems like a better deal to you?
Oh, I should mention. What if your licensee has great sales and distribution of your product and the gross sales were perhaps $5 million. Then, your 5% royalty would amount to $250,000 per year. Perhaps that “tiny” royalty percentage isn't such a bad deal after all!
Stay tuned.
__________________________________________________________________________________
Want to learn about the keys to licensing your invention?
Click on the blue button below now to grab your FREE copy of – Keys to Licensing Your Invention – PDF now.
Want to attend a live, interactive webinar all about licensing?
Click on the orange button below to attend the next FREE – License Your Invention for Royalties – webinar.
Get answers to all your licensing questions during the webinar.