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Hi everyone,
I’m new to this forum and this is my first post here. I’ve been doing massive catchup by reading as many posts here in the forums as I can and have found them extremely informative. this forum really seems like a great community and is what I’ve been looking for for some time.
I’m currently working on a product idea/invention that I think has large potential in a specific market segment. My own patent search hasn’t come up with any IP that would prevent me from achieving a patent on this product. I will be ordering materials soon for building my own prototype (I’m a product engineer, so (initial) prototyping comes easy to me) and will probably look into getting a provisional if it proves out.
My question to all of you is this: what factors do you consider when it comes to deciding whether to license your invention or build a company around it and manufacture/market/distribute it yourself? I know that this topic has been touched on in other posts to some extent, but I haven’t seen one dedicated to it and would love to hear people’s opinions
Hi Sophia,
Welcome! I am going to attempt to license my product over manufacturing it, etc. My main reason for this is time and money :). I am not experienced in business and don’t have much capital. I am a stay at home mom, so time is a big issue for me as well. Licensing seems like it will allow me to have someone with more experience handle the areas in which I am not strong. Before I found out that licensing was even an option, I tried to do it myself and was basically stopped in my tracks by all the details that starting up a business around my product would entail. For my first product, I feel comfortable letting someone else take most of the risk and getting less of a percentage in return.
If I licensed my product I would make $2.45 on each piece. I make $26.00 by being a part of the manufacturing operations.
If I licensed they would probably put some kid on the marketing because it is a costly product launch and the senior marketing people are making much more for the company on higher volume products. I am the driver for all marketing on my product. No one can match my passion in the first place!
If I licensed a manufacturer can push my baby aside for some of their other products. They more or less care about numbers as a priority. This is my baby, even if I was not to make piles of cash I am the one pushing from behind my product, and it is an enjoyable adventure!
If I license my product they could modify and call their own and outright take the idea if they can get around the patent. They surely will try, but that is business. I manufacture because I “sit” right on top of all operations. No one will take it from me! PLUS….being “in the ring” I get to make all kinds of other related products because I am hands on. Maybe a licensor won’t let me fully use their facilities to come up with more ideas.
If I license I can blame them for dissatisfaction. I can kick and scream but I don’t know if they would even care. Manufacturing, I have no one to blame but myself and if I ever I want an answer..I just look to myself and have it immediately!
If I license will they really care about my product’s AND my future the way I wish? NO! Manufacturing I have control of that, I put in for what I want out.
I chose this way to do it myself with this thick-headed mentality to build a bigger empire like Steve Jobs, Ray Croc, Bill Gates, Henry Ford, Ron Poppeil (the infomercial guy with piles of kitchen gadgets 10 years ago), Dave Thomas (founder of Wendy’s), Milton Hershey
How do you think great American companies started? IBM, Microsoft, Apple, Wal-Mart, 3M, McDonalds, Hershey. These thick-headed people like me saddled up their idea and decided THEY would ride their dream themselves off to the sweet land of great success.
Last, a personal reason. Does anyone know the main program that Bill Gates bought for 50G’s to further develop into Microsoft software systems? Does anyone know his name? I’ll answer that….no…maybe he jumped off a bridge cause he made himself sick!
He got 50G’s and Bill got 50 Billion and became the richest man in the world.
Julian,
Great thoughts from the “You should produce it yourself” side. And you are absolutely correct for someone like you.
Sophia,
It all comes down to what you want out of life. Statistically, the odds of success producing it yourself are over 20 times the odds of success trying to license (I read that somewhere). The person who successfully produces it themselves also makes much more money as Sophia mentioned.
However, That success comes with a high price and requires many skills that most people don’t have.
You need to be a marketer, salesman, accountant, businessman, manufacturer, and engineer or have enough money to hire all those people. It’s also a 14 hour a day, 7 days a week job and you have to bet the farm.
If you are like Julian, do it! I, on the other hand, have many ideas I want to see out there and not a lot of money. I have no desire to be the boss. I want to have ideas, prove them out, develop them, and pass them on. A lesser profit on each idea, and time to pursue new ones (which is the part I love) is quite acceptable to me. That’s why I am trying to license mine.Hello everyone,
My reply is a long time from all of the dated post listed here. Just joined. So new to this group.
The way I look at license, sale or mfg is all about money. Money.
If a person has the money for a startup, go ahead start making you product, cost money. Try to launch that great product, again money. Cost of trade shows,etc. more money.
Get that product out there, more money.
Unless a person has big bucks in their pockets, DIY I feel, would not be right direction.
Now, think of license, or sale to a mfg that is accepting new products. Ok, sounds great. Possibly some out of pocket cost,
but I do think, it should not be as much money as do it yourself.
Buy the way, does anyone know where the edit button is to make changes or possibly delete?
There is an edit under profile, but this is for addresses,etc.
So if anyone can help me find the edit to make changes besides address changes, please*** Buy the way, does anyone know where the edit button is to make changes or possibly delete?
There is an edit under profile, but this is for addresses,etc. ***In your account is big button LISTINGS – click on it, then below you see MANAGE click on that and you get to the editing part of your invention ad. Look at this image:
https://inventnet.com/wp-content/uploads/2020/10/edit_ad.PNGMarketing an invention can be a challenging process, but there are several steps you can take to increase the visibility and marketability of your invention:
Develop a clear and compelling pitch that highlights the unique features and benefits of your invention.
Build a website or social media presence to showcase your invention and provide information about it to potential customers.
Create a prototype of your invention and use it to demonstrate its capabilities to potential investors and customers.
Network with other inventors, entrepreneurs, and industry experts to gain exposure for your invention and gather feedback on how to improve it.
Attend trade shows and events that are relevant to your invention to showcase it to potential buyers and investors.
Look for licensing or partnership opportunities with companies that are already established in your industry.
Consider crowdfunding platforms such as Kickstarter, Indiegogo, or Gofundme to raise funding and create buzz around your invention.
Consider hiring a marketing firm that specializes in promoting new products and inventions.
It’s worth noting that having a patent on your invention can give you some legal protection and can help you in the licensing process, which can be a good way to market your invention.
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