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Invention Help Overview

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Sell Inventions
manufacture vs licensing

Patent Licensing
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Patent Royalties
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Invention Royalties
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Invention Submission Corporations
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New Invention Ideas
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Although my step-by-step guide to selling your invention goes through the entire process (from idea to sale), this article looks at one particular aspect of it, namely:


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 a no-brainer!


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.

Then ... 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 way.

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 successful.

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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Production vs Licensing
 

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