Leveraging IP: A Faster Way to Building a Business

September 23, 20130 Comments

For ongoing businesses, finding more customers and increasing sales is a continuous challenge. In both cases you can use licensing, which can be done in less time and for less money than starting from scratch.

Here are 7 reasons why:

  1. Profit Potential – Licensing can generate substantial profits from the initial license fee and on-going royalties or service fees.
  2. Licensing Partners – Licensing creates motivated partners who have invested their money and time into successfully commercializing the IP.
  3. Market Expansion – Licensing can develop new markets using the financial and managerial resources of the licensees.
  4. Business Expansion – Licensing eliminates almost all of the costs normally associated with launching new products or opening new distribution channels.
  5. Lower On-Going Expenses – The expenses involved in managing multiple licensees are much lower than marketing the products directly.
  6. Marketing Advantages – Licensors can reduce marketing costs and benefit from the combined marketing activities of all the licensees.
  7. Economies of Scale – The more licensees a licensor has, the greater the number of customers and the larger the amount of revenues that can be generated from the IP.

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About the Author ()

Rand is President / CEO of Licensing Consulting Group, an intellectual property management and licensing company specializing in assisting clients in IP Management, Strategic Consulting, Acquisition of Licensing Rights, and Property Representation. Rand has licensed some of the biggest Hollywood blockbusters, including “Batman” and the “Mighty Morphin Power Rangers”, both of which generated billions of dollars in worldwide merchandise sales. He has lead various international licensing programs as both licensee and licensor, and through consulting projects focused on licensing strategy, brand development, sponsorship sales and property representation.

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