Every human being has at least one good idea on the inside? That’s why the world is filled with brilliant ideas; but unfortunately, the world lacks savvy entrepreneurs that possess the ability to turn such ideas into a money making enterprise. Are you a creative individual? Do you have the ability to crank out marketable products and ideas spontaneously? Do you have a business idea worth giving a shot at? Then read on as I share with you how to license your million dollar idea and make money fast.
The best financial ventures usually come from a simple idea. Facebook, now a multibillion dollar company that specializes in social media, was started from the simple idea of founder Mark Zuckerberg to connect people in his school (Harvard). Now, Zuckerberg is one of the youngest billionaires in the world.
Bill Gates did not become the richest man in the world because he was a superb programmer; he simply bought the rights to MSDos from a group of programmers and licensed it to IBM. Today, the rest is history and we all know what Microsoft stands for in the world of software. The Virgin Group is a conglomerate of over 400 companies and its owner, Richard Branson is a billionaire. Thanks to the power of licensing. So how did these individuals turn a simple idea into a huge profit? Well, you will find out below.
Before we proceed, I bet you would want to know what licensing means. Well, licensing is a way of making sure that your rights to your creative work or an originally created device is exclusive to you. So if a company wants to apply that idea and turn it into an actual product to sell to the market, the original inventor or the person that came up with the idea; which in this case is you, will be assured to earn a part of its profit. Think more of licensing like paying rent for the usage of the idea. Now since you know what licensing is, how do you go about licensing your million dollar idea and making money fast out of it?
How to License your Million Dollar Idea and Make Money Fast
Well before you rush out to pitch investors or licensees about your new found idea, it is highly important to collect the necessary information regarding that idea. Facts such as market and financial analysis, the possible competitions and the legalities involve if the idea is to be turned into an actual business venture is highly relevant. It is also advisable to research if there is any other person or company that has patented the idea.
The second step to take after the data have been gathered is to turn the idea into something tangible like a prototype or a presentation; so that when the time comes to make a sales pitch to a company, the value and importance of that idea will be easily identified. Now after designing and building your prototype, you are now ready to show off your work to companies and investors. But wait! Don’t be in haste.
Before rushing out to license your million dollar idea, there is one more important step you need to take and that is protecting your idea legally. This is where patenting comes into play. Patenting actually is just the beginning and I want you to note that patents are quite different from a license.
Patent protection only ensures the ownership of the invention or idea, but it doesn’t ensure the profit. The profit comes only after the idea has been licensed to a company. Licensing agreement, like what was said before, is like a leasing agreement. So licensing an idea to a company is how you can make money fast from your idea without spending much money. Instead of going through the hassles of product design, product manufacturing, creating distribution channels, marketing and advertising, customer service, taxes, etc; you can simply sit back, license your idea or product and make money without lifting a finger.
Licensing actually involves a lot of negotiating and haggling. At this point, you can decide to license your idea to only one company (exclusive licensing) or to open it for others (non-exclusive licensing). A company who wants to exclusively license an idea usually pays more since they are the only ones who can use it.
In conclusion, these are the ways on how to license your million dollar idea. At first, there is a lot of research and hard work involved and more or less; you have to personally go from one company to another to make the sales pitch for your idea. But once the idea gets picked up and licensed, all you need to do is to sit back, relax, wait for the money to start rolling and think of the next million dollar idea.