Who does this apply to?
Any person who has devised or developed their own methods or systems for something. These people can be coaches, consultants, trainers, speakers or any other kind of expertise specialist. There is a good chance that you can turn what you have developed into a licensed product, and leverage your expertise knowledge and processes.
How does this work?
Say you are a life coach. You work with small businesses and find them easier ways to go about their daily business and in turn cutting the cost of their overhead. You could sell the rights to your processes and materials to other coaches, who would pay you an initial fee and ongoing royalties
But, isn’t this a Franchise?
A franchise does involve a license, but the distinction between a franchise and licensing your expertise is the path that the knowledge you are leveraging takes once it leaves your hands. A franchise is a fully formed package with strict branding, marketing and sales procedures, while simply licensing your expertise is an agreement allowing another person to use your knowledge for a fee. What they do with it is up to them, as long as you are compensated as per the agreement.
A license is easier to set up than a franchise, since it does not involve packaging an entire business around the product or service in question.
A license can evolve into a franchise in due course, so it can be a good first step towards a fully packaged franchise.