The steps to solicit your idea for a license
arrangement with a company:

It is difficult to secure a license agreement with a company. Chances are they are developing and planning product launches for years to come and the decision makers are not likely to take an idea from someone outside the company, which admits that your idea is better than theirs. So when you present to them, it has to be professional, short and compelling. Our inventors have had the best luck with licensing by going to a trade organization shows where companies associated with your product have a booth. Decision makers attend those shows and are standing around and more likely to accept a pitch by you. With a professional package you can send the ideas to various companies but this is much more difficult to achieve success. Be realistic about your expectations. An idea is not worth much until it is proven. You need to convince a company to put their resources into your product because it is very likely to succeed. If it succeeds, everybody makes money. If not, they lose a lot in time and money to prove it did not work. So expect very little upfront with royalty streams with realistic performance or guarantees.

A license package or presentation should include
the following to give the best impression:

  • A company name (could be a sole proprietorship) with a logo and letterhead (create a logo for under $100 on Logo cafĂ©)
  • A product name (simply and conveys what your product does)
  • A compelling opening summary about your invention
  • How the invention works
  • Estimate to show you have done your homework and offer less work for them
  • Estimated demand for the product
  • Cost to manufacture and estimated retail price
  • Competitive analysis
  • Professional pictures of your product
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