Browse Tag: sales

So, you want to license your product, eh?

We get phone calls from inventors every day – and about 60% of them say “well, I just want to license my idea. Will you buy it from me?” A majority of the time, we say no. There are a few reasons:

  1. Selling an idea isn’t as easy as it seems. Potential buyers aren’t interested in purchasing thoughts. They could hire teams of people to do that.
  2. Investors will not purchase something with no chance of return. Of course, as the inventor, you’ll have the thought process of “my product is the best”, but until an investor has seen the sales numbers, they won’t believe you.
  3. It’s difficult to license something without a prototype. Do you have a fully functioning prototype? The likeliness of an inventor selling some notes on a sheet of paper and a drawing to an investor is incredibly low.
  4. Has it been tested? Is there marketability? Will people buy this product? It’s difficult to tell unless your product has been soft-launched!

This short and sweet blog is intended to usher in some realism with new inventors. You probably won’t sell your idea unless it’s been introduced to the marketplace in some way. We suggest that you invest, yourself, into producing a small order of your product and then show investors the potential.

When you watch Shark Tank, you’ll hear the Sharks ask “how many of these have you sold so far?” Even they agree with us – buyers want to see previous milestones met before they license anything. We can help put you in the position to attract potential buyers down the road.

Interested in taking the next step? Email Nathan at Marketing@TheSourceDirect.net today and let him know you found about us on our blog!

Getting a Product on the Store Shelves: HOW TO!

Typically, the final goal for an inventor is to get their product on the store shelves. But….how? There are many things to keep in mind, but we’ve cut to the chase and listed a few of the most important factors:

  • Presentation is everything! If you are going to be pitching your product to a big box retailer, or even a small company, your product presentation must be pristine!
  • A video demonstration. Tons of products are submitted on a daily basis to the big box stores. Yours will stand out if you have a high quality video that shows every function of your product, as the consumer would use it.
  • A realistic price point. You need to understand the market value for your product. Large retailers may not take on your item if the price point is drastically different than products in the same categorization.
  • Persistence! These large companies may receive hundreds of product submissions every year! It’s up to you be as persistent as possible – you know what they say, “The squeaky wheel gets the grease!”
  • Is my product ready? This is a very common mistake. Do not send your product for store evaluation until it’s ready. If you don’t have a warehouse with product ready to go, you may set yourself up for failure if a large retailer wants to put in an order for more than you can handle. Know what your capabilities are – work with your manufacturer to come up with a plan.

It’s very difficult to get a product to take off, initially – but never fear! With persistence, presentation, realism, and goals, this process will be way easier. Planning is the most important thing you’ll ever do as an inventor.