I often ask the question during my seminars “Does your business have all the resources it needs”? 99% of the time the answer is no. Licensing can help a business find the resources it needs – such as a known logo or formula or technology – to take its product or service to the next level. This is known as licensing-in and it’s a great strategy to use if you are missing some key resources.
Suppose you want to tap into the multi-billion dollar Hispanic market, but don’t have any brand recognition among this consumer group. Rather than spending millions to build a brand, you could license rights to a popular Hispanic TV show, website entertainment, or non-competitive Hispanic brand. In the first case, it could be a popular TV personality, such as a talk show host, or weekly TV show broadcast over the major Hispanic TV networks (Telemundo or Univision). Entertainment online news media outlets are a favorite among Hispanic teens, and sites such as holamun2.com and terra.com feature a mix of content including music, fashion and sports. Another licensing opportunity is popular Hispanic brands, such as Novamex and El Jimador, that can give instant recognition among Hispanic consumers.
A couple of key attributes to consider when evaluating outside brands for licensing include customer trust, how they “fit” your product or service, does it sell into retailers, and most importantly, will it sell through to customers.