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Speaking of payouts..
by cejela » Sat Mar 22, 2008 5:27 pm
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cejela - Yellow Belt
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- Location: Austin TX
When I went to the Edison Nation and read the details about submitting ideas for possible pickup from them, the payouts seemed a lot different and higher... so maybe it would be best to go to them outside the show pay the 75 bucks and get paid better.
and whats up with the 60%... I have heard for royalites 2 to 25%.
I am still wondering how to do this on my own to go to companies without doing something stupid. That is if they do not take it...but maybe if they say no, I should go to the other markets to see for myself. Mine is on the jewelry liine of things for any input to that idea.
and whats up with the 60%... I have heard for royalites 2 to 25%.
I am still wondering how to do this on my own to go to companies without doing something stupid. That is if they do not take it...but maybe if they say no, I should go to the other markets to see for myself. Mine is on the jewelry liine of things for any input to that idea.
by chic1 » Sat Mar 22, 2008 6:00 pm
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chic1 - Green Belt
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cejela big companys make millions off people like us. But because they have a big name they give us 10% they make 90 it's like sprinkling down crumbs and we take it, happily.
Now on the other hand there are individuals with money that are actively looking for something to invest in, to put their name on something to get back into the lime light or to be apart of something new.
We all know the George Foreman grill story invented by one of us, Mr. Foreman makes 40% from the grill yet to date has taken in almost $200 million.
The answer to your question is don't seek out the big company's, But seek the individuals where you live that want to be apart of something big, be apart of you and what you have to offer.
Remember the less amount of people involved the more profit to be made.
Sorry for getting long winded
Now on the other hand there are individuals with money that are actively looking for something to invest in, to put their name on something to get back into the lime light or to be apart of something new.
We all know the George Foreman grill story invented by one of us, Mr. Foreman makes 40% from the grill yet to date has taken in almost $200 million.
The answer to your question is don't seek out the big company's, But seek the individuals where you live that want to be apart of something big, be apart of you and what you have to offer.
Remember the less amount of people involved the more profit to be made.
Sorry for getting long winded
by Average Inventor » Sat Mar 22, 2008 8:51 pm
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Average Inventor - Brown Belt
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There is a lot involved in getting a product to market and even the most successful companies have many unsuccessful products. The minimum any well established company invests into a new product launch is 250k and that would be for a product that is extremely easy to manufacture and requires little explanation for customers to understand the benefits. Companies generally spend millions on product launches so they need to be very selective in what they take on. Licensing deals are usually between 3-8% depending on the product and industry. Some industries can be higher when margins are much higher like the medical device field but generally any mass market product is gonna get you 3-8%. It's important to know the facts before you make a decision. So many inventors think big companies are endless fountains of money but in reality they aren't and they need to make good business decisions to stay in business.
If a company offers you a 10% licensing deal structured so that you get back all rights subject to sufficient minimums and the proper incentive to push your product as well as good distribution channels in place... You would be wise to take the deal.
If a company offers you a 10% licensing deal structured so that you get back all rights subject to sufficient minimums and the proper incentive to push your product as well as good distribution channels in place... You would be wise to take the deal.
by chic1 » Sat Mar 22, 2008 9:30 pm
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chic1 - Green Belt
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Well put A.I. But the company's offering 10% usually reserve all rights to the product even after it goes south. Big company's get even bigger by taking advantage of even the smallest ideas. They disburse a little cash to the brain where the idea came from and everyone suppose to be happy.
Last edited by chic1 on Sun Mar 23, 2008 8:14 am, edited 1 time in total.
by Average Inventor » Sun Mar 23, 2008 7:14 am
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Average Inventor - Brown Belt
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Chic1,
That's not what I got from that article. The article says that the guy had an idea and then paid an attorney to do a patent search. The attorney said there was too much prior art and that was that. Later on the guy saw a similar invention on the market and so he went nuts blaming everyone else for his bad luck in life. The lawyer didn't get a patent on a toilet like he was accused of. The guy hounded the law firm and tried to get his money back for services rendered. He then shot and killed 2 people because he felt he was mistreated. It's a sad story and not a good representation of an inventor. Many ideas we think up are also though up by others who sometimes act on those ideas and sometimes do not. If you come up with a lot of ideas you will see many of them come to market before you have a chance to pursue them. That's life, just focus on your best ideas or easiest to get to market and go from there.
That's not what I got from that article. The article says that the guy had an idea and then paid an attorney to do a patent search. The attorney said there was too much prior art and that was that. Later on the guy saw a similar invention on the market and so he went nuts blaming everyone else for his bad luck in life. The lawyer didn't get a patent on a toilet like he was accused of. The guy hounded the law firm and tried to get his money back for services rendered. He then shot and killed 2 people because he felt he was mistreated. It's a sad story and not a good representation of an inventor. Many ideas we think up are also though up by others who sometimes act on those ideas and sometimes do not. If you come up with a lot of ideas you will see many of them come to market before you have a chance to pursue them. That's life, just focus on your best ideas or easiest to get to market and go from there.
by Average Inventor » Sun Mar 23, 2008 8:45 am
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Average Inventor - Brown Belt
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chic1,
Ok I'll take your word for it. Unless the guy had an actual invention I doubt he would have won even if he got an attorney to accept his case. Having a drawing on a napkin usually isn't an invention just and idea. If the attorney took that idea and then created an invention and didn't list the client as a coinventor then yeah that was extremely slimy and the point of sharing ideas with a professional is that they should not be able to steal you ideas, or invention.
Ok I'll take your word for it. Unless the guy had an actual invention I doubt he would have won even if he got an attorney to accept his case. Having a drawing on a napkin usually isn't an invention just and idea. If the attorney took that idea and then created an invention and didn't list the client as a coinventor then yeah that was extremely slimy and the point of sharing ideas with a professional is that they should not be able to steal you ideas, or invention.
What is the toilet story about?
by cejela » Sun Mar 23, 2008 11:21 am
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cejela - Yellow Belt
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or at least what was the invention about..
I know that the company's spend a lot to get the product out there. Now...with the net profits of 5% for the inventor mentioned on the EE show, does that mean that once the products hit the market that the company recoups all the profits until the expences are all paid back before the 5% is handed down to the inventor? Or does anyone know?
By the way I am not trying to sound greedy, just new to this business.
I know that the company's spend a lot to get the product out there. Now...with the net profits of 5% for the inventor mentioned on the EE show, does that mean that once the products hit the market that the company recoups all the profits until the expences are all paid back before the 5% is handed down to the inventor? Or does anyone know?
By the way I am not trying to sound greedy, just new to this business.
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