Licensing isn’t the first word that comes to mind when you’re considering how to increase your business, particularly if your niche is a knowledge based service business – coach, consultant, trainer, speaker or some other kind of specialist and you have devised and developed your own methods, process and ways. Creating a license based on your Expertise (otherwise known as Know-How) creates a revenue stream. Professional Expertise businesses who create licenses based on their processes, systems, procedures can increase their profitability without adding to their workload.
Here are five big benefits to licensing your know-how.
- More Work Than One Office Can Handle– If you are finding that new clients are waiting longer for your services, it’s time to consider licensing your expertise. Rather than lose these clients to a competitor who can see them quickly, why not funnel them to one of your licensees? That way you continue to profit from the relationship, without adding more to an already overloaded schedule.
- Geographical Challenges – Getting referral business is great as long as you can deliver your services. But often times, distance is a limiting factor on where you can go to deliver your services. Licensing is the ideal solution when customers want your services yet are further afield than you’re able to travel. By creating licenses, you can expand your geographic range, creating a far larger footprint than you’d be able to on your own.
- Time Limitations – As a service provider, you only have some many hours in a day. Your options for increasing your business is limited by the amount of time you are available. Licensing allows you to make the most of the limited amount of time we all have. If you’re having real trouble meeting all of your professional obligations and keeping a good balance of family and personal time, it’s time to consider how you can make your business more efficient. Licensing is one tool that you can use to capitalize on the finite number of hours in the day.
- Desire to Increase Profitability – If your goal is to increase revenues and profitability, but the challenge is having the time or capacity to do so, then licensing is your opportunity. License arrangements vary: some expertise based businesses sell licenses to use their information, others enter into ongoing arrangements allowing licensees to use the name, logo, and methodologies they’ve created in return for a periodic royalty fee. Depending on your type of expertise, understanding how to develop and manage a licensing program will help you realize more profit.
- Interest from Would Be Licensees – Interest from would-be licensees is a great signal that you are ready to license. Sometimes others are in a better place to see the opportunities that we’re blind to: either because we’re too close to our own businesses or just too busy to notice the profit waiting for you to realize. Be cautious at this point: just because someone has expressed interest in entering a license agreement with you doesn’t mean they’re the ideal person to represent your brand. Knowing the right way to creating a license relationship is the key to making your licensing program profitable.
Turn Your Expertise into a Money-Making IP
Most of your professional expertise value is hidden as intellectual property. Instead of selling clients one-by-one, you can “leverage” your IP and make more money by letting others use and deliver your professional expertise. That’s the licensing model and it’s THE model used by the fastest growing companies … Sign Up »
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