Seeing $ Signs – How to Put a Price on Your Brand

Putting a value to any product can be a challenge and valuing a brand poses a particularly difficult challenge. The Brand License Valuation™ (BLV) model, another fantastic resource for the world of licensing, explains a specific procedure for establishing the value of a brand. We’ve included a brief summary below, and you can read the full article here.

The valuation of brand extension licenses requires a different orientation than conventional licensing because the consumer purchase decision is different and the integration with the licensee’s business is greater. An effective methodology must reflect these dynamics to accurately assess the brand extension license value

The Brand License Valuation™ (BLV) model brings together brand metrics and market analysis to assess the value of brand extension licenses. ‘Brand fit’ (reflecting category dynamics) and ‘business fit’ (reflecting licensee dynamics) are the two underlying principles in the determination of license value.

The BLV model assesses how the licensor’s brand and business assets or ‘licensor assets’ affect brand fit and business fit for a given licensee. These licensor assets include:

  1. Brand – brand name, logo, trade dress, and slogans/tag-lines
  2. Marketing – communications, media, and support level
  3. Operations – product development, manufacturing, and distribution
  4. Stakeholder relationships – consumers, retailers, employees, other licensees

Implementation of the BLV model requires information from both licensor and licensee and involves a five-step process. Although securing relevant information can be a challenge in any business analysis, the licensor can realize significant benefits from making this effort and using the BLV process for new brand extension license opportunities.

Rand Brenner Author
Founder , Licensing4Profits
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience includes medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the Mighty Morphin Power Rangers. Rand is a featured speaker on licensing at investment conferences, trade shows, colleges and startup events. He’s a published writer with articles appearing in several prestigious trade magazines. Rand also mentors at Cal State Fullerton Business School and is a judge for their startup business plan competitions.

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