So you invented something new? Here’s how you can sell or license the idea to make immediate money.

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Inventing something that has never existed before is not easy. It takes an equal amount of insight, perseverance and determination to create something new. However, once you have invented something new the work has only just begun. This is because you will then need to figure out a way to profit from the invention.

Fortunately there are a number of companies out there who are willing to pay a lot of money to buy or license good invention ideas. Pursuing one of these options allows you to cash out from the idea without having to go through the expense and hassle of manufacturing the product yourself.

How to License or Sell Your Invention

Inventing a product is a much different skill set than manufacturing and marketing a product. For this reason many of the most successful inventors choose to pursue a licensing route to make money from their ideas.

Licensing gives someone else an opportunity to make and sell the product for you in exchange for a royalty or an upfront payment. Essentially, you would be authorizing another party to produce and market your product in exchange for a payment. This payment is often a set amount per unit sold, although the terms can differ slightly.

Some companies will request an exclusive license which means they are the only company who is allowed to build and sell your invention. Sometimes you will be able to negotiate a non-exclusive license which means you can license your product to many different companies.

Another point to consider is how long the license will last for. It is common to grant a license for the length of the patent, however that is not always the case. Sometimes you will want a shorter license period so that you can renegotiate the contract if you are unhappy with it after a few years.

When you are considering licensing your invention it is important to think deeply about the terms of the agreement. For example, are you comfortable being paid only when a unit of the product is sold? Or would you also like an upfront payment in exchange for giving a company the exclusive rights to sell your product? It is very important to think of these things in advance of signing a licensing agreement otherwise you could wind up with a deal that you regret a few years later.

Who Will Buy or License Your Invention Idea?

Fortunately there are a number of different companies who are always looking to license or buy new invention ideas. This is because they realize innovative new products can come from anywhere and they want to keep their eyes looking for new opportunities that arise.

Henkel Invention Partners – Henkel is a household name in consumer packaged goods. They produce deodorants, soaps, detergents and cleaning products that you likely have in your home right now. Their invention partners program encourages inventors to submit ideas to them which they will later license.

Henkel is most interested in new inventions in the cleaning, laundry, perfume and home care industries as this is where their business sees the most growth opportunity.

3M – 3M has a long standing reputation for being one of the most innovative companies in the world. They have invented products such as post-it notes, adhesives, paints, electrical circuits, abrasives and more. A lot of the industrial products we take for granted were all invented by 3M.

Therefore it should be no surprise that 3M has an Invention Program of their own. Inventors are invited to submit unsolicited ideas to the company which will then be considered for licensing purposes.

Jokari – Jokari is the brand behind some of the most viral products you have seen in the past 50 years. Their specialty is household and kitchen products that you have likely seen on an infomercial in the past.

Jokari Inventors is a program they run to encourage inventors to submit new product ideas to them. If they like the product idea it can result in a licensing agreement or an upfront payment for the rights to produce and sell your idea.

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In Conclusion

If you are an inventor who has come up with a new product the next thing you need to decide is how you are going to make money from it. One of the most highly recommended ways to do this is by partnering with a company that is experienced in building and selling products. This is why many inventors recommend choose to license their ideas.