Licensing training courses is a lucrative strategy for generating more revenues without the time and cost of delivering the course yourself. Unlike selling your training course, licensing let’s you control the conditions and use of your intellectual property.
The best approach for negotiating a licensing deal is to first find out what the licensee is interested in doing with the training course. For example, do they want the rights to use the IP as a stand alone course or do they want to include it as part of a bigger training program? Do they want to customize some of the course for a specific situation, or brand it with their company logo or identification? Understanding what they want to do will guide you in negotiating the right type of licensing deal for your course IP.
One of the trickiest parts of the licensing deal is figuring out the royalty or licensing fee. In smaller organizations, a per user or customer fee is often the most common royalty structure. Larger organizations with hundreds of users or customers will most likely want a blanket or volume discount licensee fee for the entire company. This is often the case when a company doesn’t know how many employees will actually be using or attending the course.
The most common ways of licensing course content include Right to Reproduce, Right to Use, or Right to Copy. Which rights will depend on the needs of the licensee. For example, the Rights to Copy often works best for a company that wants to offer the course materials in their own “packaging”. For larger licensees, rights to reproduce is a better option to lower inventory and tracking of each course package.
When negotiating the licensing deal, be sure to clarify how long the licensee can use the course materials, and what happens to your IP when the deal ends. Another important point is the right to updates or revised course materials, and whether these updates are included or need an additional licensing fee. You’ll also want the rights to watch how the licensee is using the course materials and make sure they are abiding by the terms of the agreement.
Keep in mind that licensing your course IP is not a “one time sale” – it’s a long-term partnership. Your licensee’s business is constantly evolving. They will need new or updated courses to meet their changing business needs, and that creates more licensing opportunities for your course IP.
Are you ready to license your training course? Check out our latest audio workshop – From Single Seats to Recurring Revenue: How to License Your Seminars and Workshops.