Licensing IP can take your company from zero to millions of dollars…in some cases literally overnight.
Kids entertainment brands are examples of how fast the right IP can move products to market. A kids movie can suddenly become popular and the demand for products can skyrocket. I had an opportunity to experience this first hand on two the biggest kids properties, the Batman Movies and the Mighty Morphin Power Rangers TV show. These entertainment brands grabbed the kids market and sent them clambering for licensed products, turning these entertainment properties into billion dollar merchandise franchises. When demand exploded, companies who licensed these properties generated millions of dollars in sales. Many of them reached this level of sales in less than two years from the time they secured the license.
If you don’t think this can happen to you, let me share the story of an entrepreneurial couple who licensed the Power Rangers kids TV show. They weren’t a big company, and mostly operated out of their garage. But they did understand licensing and the potential power of a kids TV show to sell merchandise.
They got rights to three or four low cost household products. Because the TV show was so popular, they sold into every major toy retailer. I’ll never forget the day the husband walked into my office, sat down, and pulled out his checkbook. I looked at him and asked what he was doing. He said “I’m writing your royalty check”, and proceeded to hand write a check for $1 million.
They had licensed the TV show the year before and by the second year, their sales had exceeded $10 million. They literally went from 0 to ten million dollars in less than two years.
While this example is more the exception than the rule, it shows you the power of licensing and it does happen with other types of intellectual property.
Licensing is often an overlooked strategy for starting a new company. If you don’t have IP, licensing in (acquiring) rights to an IP is one way to fast track your new business venture launch. Conversely, if you’ve invented a new product, rather than starting a business, license out the rights to an operating business that has all the resources in place to commercialize your IP. They can get it to market much faster (and most likely for less money) than the time (and money) it would take you to start a new company.
Free E-Course 7 Ways to Build Your Business With Licensing
Getting rights to an IP is a fast start strategy to launch your business. Key reasons to license in IP include developing new products (services), improving your technology, or getting access to new markets. During this e-course, you’ll learn about 7 ways you can use licensing to launch new products, create revenues, get financing, start a new business, stand out from the competition and much more.