Should you make and market and sell the invention yourself or license it to a company
to do it all for you?
The answer is actually easy, because for 97% + of inventors the decision is actually
SELL INVENTION OPTION 1: PRODUCE + SELL IT YOURSELF
This is what it involves
Producing your invention yourself (or get an existing manufacturer to do it for you),
put up all the money for this and risk losing all of it if your invention doesn’t
sell, ensure you have good quality control so the finished invention does exactly
what it’s supposed to, and then locate somewhere to store your newly produced invention.
... design the packaging, promote your invention to selected sales outlets, enter
into all sales negotiations, ship your invention to the various chosen sales outlets,
create a returns procedure for rejects or returned items, manage the invoicing, the
accounting and management accounts, and tax returns.
And oh yes - change your life
so you can do all this, including giving up your day job!
SELL INVENTION OPTION 2: LICENSING
Get the right company to do it all for you!
Partner with a company to do ALL the above for you, and simply take a portion of
their profit paid to you in royalties in return for a licensing your invention to
them. This is called patent licensing.
SELL INVENTION: YOUR CHOICE
So which option should you go for?
Of course, it’s a no-brainer. Unfortunately, with the advent of TV programs like
Dragon’s Den and American Inventor, inventors often get advised steered the wrong
Yes, it CAN make sense to manufacture and sell your invention yourself - but
be warned. First off, you need to have VERY substantial funds and be willing to
lose them if your invention does not sell. Also, you may need to give-up your day
job, as driving forward and managing the whole production to sales process can be
a full-time job.
And last but not least - as well as being an inventor, you need to
be a very good business person and top-notch manager. Yep, it’s certainly exciting
- and indeed it can be more financially rewarding than going the patent licensing
route - but at the cost of more increased risk.
So do ask yourself if you can afford
to lose all your start-up funds (and those of any partner investors). And do you
really have the time, the skills, the drive ... and the temperament?
Of course, maybe
you do, and if you do ... fantastic ! Go for it. Manufacture, market and sell your
invention yourself rather than licensing your invention patent.
IF you succeed, you
may make more profit than by patent licensing, because rather than receiving a portion
of the profit as a royalty, you will be able to keep (after expenses, tax etc) all
of the profit. But, and it’s a huge but ... you may lose everything if you are not
So coming full circle: The right way for almost all Sto seell Invention
- what’s the right way for you? For 97% ++ of inventors, the answer is patent licensing.
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