Really appreciate the info, guys. I've recently come up with my very first idea that I truly believe has selling potential. It's a very simple idea, but fills a gap in the industry I work in as well as for every home owner/diy'er. Soon I will begin cold calling and reaching out to companies, but I am completely ignorant on what a reasonable place is to even begin negotiations. I really appreciate you guys making this info available. I've watched hours now of your content.

Well, you learn something new every day. Thanks for the heads up.

This is great! Short and to the point. An idea for a video: different structures of royalties and pros/cons... tiered royalty structure, based off net profit vs. net sales... $ per unit royalty.

By far your best video. Do more of this business stuff.

yes I have done this already just a little skeptical of these types of companies, I admire your willingness to disclose this golden information. I have tooken all into deep consideration. I Thank You

Hello There!!! I just received your book, “ One Simple Idea,” yesterday from Amazon..... It is phenomenal.... it will arm me with more information/wisdom that I will use in communication with several players( design engineers, prototype engineer.patent attorney, potentially licensing companies)... Exactly what I needed to navigate through the process.... I’m a nurse by background and knew nothing about the arena of bringing ideas to market... I do have a log of several ideas... one is patent pending and it’s somewhat a struggle to get a licensing deal so far because I’m told there are a few similar (except for my claim) products out there...just gonna trust my gut like your book suggest on this idea. I won’t give up though.... I believe in my idea and hopefully get it prototyped or manufactured just to try a trial run of it somewhere over the rainbow 🙏🏾. Thank you for writing such an informative & detailed book. I’m on page 125 today(Oct 16th) just got the book Monday Oct 14th.... can’t seem to put it down except when it’s bedtime and even then I switch on my phone to your KZfaq channel which is how I discovered your book was out there. 🙌🏼🙌🏼🙌🏼🙌🏼🙌🏼🙌🏼🙌🏼🙌🏼

That really makes it clear and simple.

Need a little inspiration to keep working on your ideas? Read about Erin Borges, creator of the patented award-winning GoGo Gift Bag. In less than 2 years, she got her reinvention into Target, Bed Bath & Beyond and Cost Plus stores nationwide. How she'd do it? By licensing to a market leader! www.entrepreneur.com/article/307875

You guys put things in a simple form but it seems like a lot.To sell an idea wow not so easy ......thanks for the input

I love you guys....i first wanted to pay for my own manufacturing & everything.. because it's my invention, I have a career in the field of the product, and I just wanted all monies to come to me b/c I know how good it is..until I realized it may get very very expensive...plus, there is a crazy trend right now that my product fits perfectly in and I am very confident it will be a hit!! But I think I'm realizing it just may be too much, so this video is very informative!! Thanks

I just found your channel this morning, I've watched a handful of your videos. I love them all! You both have a lot of good information. Knowing a licensing deal could fetch a small royalty percentage, because the licensing company takes on a lot. Which would be fine. What if the company trying to seek a license deal has already done all of the cad, prototyping, manufacturing, and tooling. This product solves a problem in the plumbing field, there are already customers all over buying it daily. What kind of royalty percentage more would be fair?

Something to look into is a free royalty rate calculator branded via InventRight. Just a thought

I want to see Stephen jam on that guitar and have Andrew sing! Best show on KZfaq

Great information guys. Thank you so much. We have invented a PPE product for COVID19 and will be bringing it to market soon and need some guidance, your videos have been very helpful so we want to thank you.

Such awesome guys!! I love being your student.😀

Thanks, very interesting!

I sold and managed in the manufactured home business for several years. The owner of the first lot I worked at had a needlepoint on the wall of his office. It has stuck with me ever since. It said... "A small profit is better than a big loss". It's good to remember, you've got to leave some meat on the bone.

Yeah I agree with Marc Portney... where the money is venturing😛💰

Thanks great video

I just want 5% royalties thats good enough for me

Thank you guys for all your videos. I have few ideas that I’d like to bring it to live. But for now all I want to know is who are these guys giving you thumbs down? I want to choke them.

Ty sirs💪

Greetings all. I love this! I have an idea that's just a new way to put two already produced things together (in a new way) to be marketed to a new group of people. Kind of like selling guitar pics to movie goers. (Don't focus on the items, it's just to demonstrate a comonly used item, repurposed) I'm providing the logo/design, repurposing and advertisement idea to attract the new customers. (None of us knew We needed a cell phone till someone made it possible to have one. Where/how can I get a step A-Z process to make it happen? Thanks guys!

I do agree with Mr Key You gotta have many ideas to hit something. Some of them may not seem great..... but later on something will show up. Something GOOD! The only problem is TIME!!!! I have 6 kids and full time job I wish I have a full time invention job then...... then the chances of having somthing great will come faster!

I asked for 100 K upfront and 10%. I am learning. :) You guys are great, keep up the good work.

Guys, I love the channel and all the info. It's been pretty easy for me to figure out that most deals land in the 3-5% range, but much more difficult to figure out 3-5% of what. Gross sales, net profit, COGS? Can you clarify?

All I can do is nod my head (yep) 😊 THANK TOU SO MUCH❣️

You guys are so inspirational. Thank you. I do have a question, is it possible to license your invention to more than one company even it they are competitors in the same market? For example, handbags.

Enjoy your videos!!!! Royalties! I have no problem with a small royalty as I believe some of the Pie is better than non. Funny you talk about Disney. I have 2 Utility patents on a bedding product that is perfect for all bedding with great visions for Disney Designs. No luck connecting with manufacture of Disney Bedding to date. Then I have another Utility patented Bedding Product that covers 3 Products I call Secret Side Table, Secret Pet Step and the Bedding Saver. Love to License all. Working hard to make the right connections. Videos encouraging! Thanks!

Fascinating. Hey you guys may be aware that licensing was the key to the Disney Empire. The created the content of course, but then licensed their IP to all sorts of 3rd parties (I.e Mickey mouse ice cream cones). Walt had an early bad experience where an investor stole the rights to his character. So his second big hit (Mickey Mouse) was licensed or franchised to the max. And all profits were reinvested into hiring the best artists and creating the best content. And you could say that model continued forever.

So I have a design patent o a new wearable Sports towel product. Have used Citadel business school too help produce a marketing report. And working with score mentor. The plan is too license product is a business plan required or think its called a tear off sheet. Or is that the term sheet you refeed too in other video Thanks for the video have been very helpful

Thanks for the video! I'm currently reading One Simple Idea right now as well. So based off of what you said.. let's say hypothetically you have a clever little trinket that ends up at every check out lane at Target (who licenses it). Because of the volume, you're (possibly) going to get a lower rate.. it's also only a $3.50 item.. at 5% and 1,000,000 sales, that's only $175,000 (unless there's something off in my assumptions). If it's a really popular idea, what would be the avenue to get a larger take home.. or is that about what you can expect from a really cheap high volume invention?

Thank you for another valuable discussion. Are there typical royalty rates specific to various

Hey Stephen, So I've been reading your book and I noticed that you said you created an LLC. Would I need to do the same? Or can I run all the royalty to my personal accounts?And are there benefits for going with an LLC? Thank you.

I'm curious what the typical royalty rate for a patentable industrial machine product might be, that has significant advantages over the existing machines, and the sales price of the machine is ~250k/machine, and there may be a market for 50 to 200 machines per year.

Is it common to have a deal with an up front payout plus royalties? Or is it typically just one or the other?

Thank you for the great video! The 5% are from revenue, right?

Does a license deals usually exclusive? I mean can you license the product to several companies or usually the first company you cut a deal with wants exclusivity?

Thank you this great video, good info. The variables need to consider: $50 product, sales to 2 million in 24 months. Patented, breakthrough , "next generation" item. Market 4 billion in sales annually, to grow at 4% year for then next 8 years. What should my license fee ask be?

Hi guys, I have many designs and sketches with mechanics and details for different inventions. From shoe designs and pool equipment. I just dont know where I should send the designs. To the company headquarters or Ceos?

such as the invents company?

How well does the beauty Industry do in licensing? I'm a current student.

I have a question. Could you fellows touch on Manufacturing? How to find them? How to negotiate and what to look for?

Great vid, guys. Quick question. I keep hearing "sell 1 a week" and that seems to be the general consensus, which sounds reasonable. But, my question is, let's say your product sells at, Walgreens. If the product doesn't sell one a week at a few Walgreens, does Walgreens can it entirely? Or does it just get pulled from the stores it doesn't sell well in and stay stocked on the other stores? I hope that makes sense.

What if you own the idea and patents plus will be doing to product development, manufacturing, retail packaging and designs. The partner would be handling distribution into 50,000 locations and marketing and sales. Where should the royalties align?

hi guys, I have a design patent coming through in the furniture space, its something that is extremely popular as I sell the item already on amazon. Could you guys point me to like a directory of companies or something to get started on looking into licensing. I believe my product has much more potential than just the 20% i could make. Where it could be sold everywhere and I could make 5-8%

what is the percentage royalty based on? Imagine you had invented the heated rear window system of the car for example. Do the car makers say "well that device costs 30 USD and to put it in the glass another 10 and to mount it in the cars on the production line it costs another 5, so the total is 45 for a heated rear window option, and that's what the customer has to pay when he orders a car with a heated rear window, so you get x% on the 45 usd for example??

i love your show, thankyou fro all the advice i have a question if i get a licensing deal will have to do any kind of work with the company while the development or the sales etc ? or will i directly get the royalty money ?

What’s your opinion on edison nation?

Very informative. What "price" is a royalty rate usually based on? Is it the cost to manufacture, wholesale price the manufacturer sells your idea to retailers, the retail price? Please comment on this question (assuming it is a consumer product). Thanks.

Can you have multiple licenses on a single product from different companies?

hehe stephen! you listened to me lol wow cool!

Are there typical royalty rates specific to various industries? My field of innovation is tightly focused on carpentry and woodworking tools; I tend to come up with practical solutions to problems that extend the capabilities or efficiency of the world class OEM tools I use in my carpentry business. The type of products I have historically developed cost $100 - $200 retail. I have licensed several such products so far, each to relatively small companies (< 100 employees), for a 5% royalty. Do you have an idea of what the typical range of royalty rates might be for such products in my industry? I am hopeful that the set of related inventions covered by my upcoming provisional filings will be of interest to one or more much larger companies. I am presuming that even if a potential product is perceived to have strong market appeal and compelling novelty, and to be disclosed in a professionally prepared pending provisional, including claims, the typical royalty offered by one of the major manufacturers would be substantially less than 5%, given their massively greater costs and sales volume. Am I correct in this presumption? If so, could you offer any educated guess as to a typical best case scenario royalty rate in the big leagues? In regard to your advice not to present an agreement from my side but instead to wait for the licensee's legal department to present one, would that instruction further suggest that I also refrain from proposing a royalty rate or schedule (such as the 7%, 5%, 1% three-tiered option you suggested in another IR video), but instead wait for them to make a proposal? I have the great good fortune of a long friendship with a highly experienced big market patent attorney, now retired, who will be available to help me through the nuts and bolts of the licensing process, should I be lucky enough to need such help. Meantime, your videos are proving to be a great resource along the way. Thank you. Proud to be one of your students.

The thing I never hear is, are these percentages based on gross or net?

Hey guys! Very instructive video. One question: The royalty rate is about the percentage of profit or the levy? For example, let's say that the rate is 5% and the company sells X units and earns (profit) 100,000$ while the levy is 200,000$. So, the cost is 100,000$. Then, will the licenser earn 5,000$ or 10,000$? What is the usual?

Are patent rights a negotiating tool? I have other products to develop, using the same patent. Should I license those at the same time, for more $$. I know this is rather complex, but any guidelines or advice welcome

If you have a product that has worldwide appeal can you do a product licensing say in North America and then apply for utility patents in other countries and then once that product is getting overseas demand then negotiate a better royalty rate for something that has market demand and strong projected sales.

Does an upfront depends on the idea.Are you allowed to ask for upfronts even if you don't know how your product will be .What is the minimum upfront you ask from a company.Do you ask for upfront if you licence to a novelty gift industry.

I am currently awaiting a license agreement offer from a 840million revenue private company. Who to talk to about an evaluation before the offer is presented?

okay I have my provisional filed . I am leading a startup for a new game console with a built-in projector etc that I am trying either to license to a company or to manufacturer. I need your help what do i do?

My question related to the guarantees ? I would assume a big corporation wouldn’t even bother taking my idea unless they were pretty sure it was going to sell 2-5 million in net sales a year? My assumption is that a big company wouldn’t gamble on anything that they thought would perform less than what’s already selling well .

Hello guys, I was wondering is royalty paid wholesale or the retail price paid. Great show .

If I come up with a thing to put out in the store to sail and how do I look at this

do I need to file for non provisional when it comes to prototyping my concept?

I physically went to a company with all material ready to license my idea today but I couldn't even seem to speak anybody in power I have made numerous calls and emails and nothing I'm definitely not giving up but what advice can you give me ?

hello andrew how long teke to distribution film on amazon prime video for a licensing its 3 or 4 years

Are royalty percentages based off of profit or net sales? Is this negotiable? If net sales, I understand the lower percentage. Some products can have some pretty small margins as it is and if a bigger chunk goes to material and fabrication, you can’t take a high percentage or the supplier will be making nothing!

should I trust a patent attorney when initially disclosing my PPA sb16?

I'm in talks with 2 companies for 2 different projects. 1 of the companies I have already created code and made a demo for them and they took that to the government yesterday in order to bid for a government contract. With this company I have not gotten paid at this point. In fact they just asked me if it was possible to do what they wanted, and I showed it to them. They are now asking me my rates and possibly wanting to hire me. But i'm looking at this more like...how can I just license this out? Where do I start? I watched two of your videos so far. But honestly I'm a bit lost. I'm not a businessman. I am an Engineer. I have had jobs only up to this point. I am coming out of a hiatus from raising my daughter full-time at home. I rather like my new freedom. I would rather just do contract work and license product to companies than to be paid hourly.

Hello Steven and Andrew. Are royalties base on cost of good sold or retail?

Who can I sell my invention idea to great idea for product will make a lot of money

can i license a character or is it only a new invention ?

I just want some Damn money for groceries. I wasted all my money on fees and saving money to waste more $800 plus pending $12,500 for patent,licence and copywright. .... Wow! Why can't someone just say WOW! What an amazing idea were going to make Billions. Here is 1 million dollars. Thank you!!! 😇😇😇😇😇😇

I need a help of getting a license for my product

How do i get mentorship with you guys i have a idea but im a rookie at this and would love a chance to soak up your wisdom

I really need help

We have a wonderful travel slogan based a royalty rate of .005 would pay over $108 plus million dollars,I know this is a lot of CASH,but should I pitch their marketing & advertising dept. ? I wiil be watching...

I like you guys.

I am your student and I think 5% is great!! I'm almost there!!!

i'd like to see some hard numbers on the overall profits some students have made who licensed products. otherwise i cannot make a purchase decision about signing up for inventRight

I have an idea and I have a company that wonts to help me get my idea to the market to sail and thay are telling me that that would like 10%of what I would make off of this and how much can I look at make off of my idea

I feel I have a great product I also have a prototype and the volume of this is ridiculous I don’t know what to do now

I have an Idea for a product, but I suck at drawing. Any suggestions?

I have a lot of idea with football cleats what company should I talk to

So what is usually a decent royalty rate to ask for?

When should I just try to sell my patent to a company for a lump sum verses a licensing agreement?

nice

great material but the headset mic for the individual on the right seems to be low quality and makes the audio borderline un-enjoyable. Stephen's audio is great

How do u know how much volume you MIGHT sell?

where do I get a book gentlemen??

I enjoy your videos but whenever one person wears the headphone/microphone and the other does not, the difference in the volume is huge. In order to listen to the video a person must either constantly adjust the volume or keep sitting back and moving up throughout the video. It takes away from the great videos that you guys make.

Is it okay to ask for any money upfront?

You tell me I make something every month. Where do I sign? Not everyone is chasing The Money Train©

I have one can you guys tell me if for sale by inventore legit

How much money you charge for licensing patenting?

Open innovation contests and challenges are increasingly popular, but companies still don't get what motivates people to create. Instead of prize money, they should offer inventors a piece of the pie - aka royalties. www.inc.com/stephen-key/want-truly-great-ideas-treat-inventors-like-entrepreneurs-not-employees.html

3:02 5:20

So could you please tell me how much money an average inventor with an average invention and an average licensee and a typical royalty rate make yearly?I mean what is usual,what is happening everyday.

what is Royalties?

What is a bazillion?