HELP….I’ve been robbed!
ASOTV is the hottest sector in retail at the moment – But Why?
Well the answer is actually pretty simple. In traditional retail your product is placed in categories like House wares, Lawn & Garden, Office supplies. Those categories are then grouped into a retailer defining that retailer by the categories they sell – like an office supply store, or a jewelry store, or a linen store …. So if I had a blanket to sell and I approached an office supply store the buyer would make sure I understood that they don’t sell blankets and they are certainly not going to sell mine.
Or will they?
In ASOTV, the traditional rules for categories are thrown out the window. It’s no longer a blanket, it’s an “ASOTV Product” and it doesn’t fit in the little retail category box buyers have traditionally used. This has allowed the ASOTV products to span retailers with no regard to the other merchandise they carry. The result is not only blankets in office stores (like Snuggie) but the largest single retail products category on the planet.
That’s the good news – the bad news is this huge market has spawned a large number of people claiming to be ASOTV companies. They may have at one point provided individual services to the market, but now they approach inventors trying to convince them they are one stop ASOTV companies ready to license their products, when in fact they are a production company looking to charge the inventor for production services and then pass them off checkbook in hand, to other one trick companies. Before you know it you have spent tens of thousands of dollars on a product that is going nowhere and that company is long gone.
The reality of the ASOTV industry is that there are only about 10 major companies in the industry, and of those 10, 75% of the market is controlled by about 4 companies. I have worked with them all, and I can tell you none of them ask an inventor for a dime. They simply offer a license deal to the inventor and then use their money to develop and market the product.
Bottom Line – if an “ASOTV” or “DR” company is asking you for money, they are selling you just one of many services needed to take the product to market. You may not see them at the time, but there is a long line of their friends standing behind them waiting for their turn.
Real ASOTV companies don’t ask inventors for money….it’s just that simple.
From The Inventor Blog http://inventoropinion.blogspot.com