When it comes to intellectual property, several types exist. One IP type is called “Evergreen” because it has built its value over time. Examples of Evergreen IPs include major consumer brands, sports leagues, and art designs—many of which have been around for decades and have become household names.
Licensing an Evergreen IP can be a good strategy for small and growing businesses to expand sales or reach new markets in these challenging economic times.
Let’s look at the many benefits of licensing an Evergreen IP.
Proven Track Record
You can leverage a successful brand with a proven track record when you license an Evergreen IP. You don’t have to worry about starting from scratch when launching a product or service with this IP type—it already has name recognition and trust attached. Plus, there will be fewer risks involved since you know that the brand recognition will likely sell consistently year after year. This makes it easier to plan your budgeting and marketing efforts accordingly.
Access to New Customers and Markets
In addition, when you license an Evergreen IP, you gain access to new markets and customers who may not have heard about your business before. A well-known brand with a history of success has more appeal than an unknown one or a brand-new concept—so by attaching yourself to the former, you can gain more attention from potential customers. Furthermore, if the licensed product or service performs well in one market (e.g., online stores), you can use it to expand into other markets (e.g., retail stores).
More Distribution Options
Licensing an Evergreen IP also gives you access to established distribution networks that may otherwise be unavailable. With this arrangement, you don’t need to go through the hassle and expense of creating your distribution system—you need to tap into existing ones instead. Plus, using existing channels means fewer restrictions on how much product or service needs to be sold before any profits are realized—allowing for faster cash flow and quicker returns on investments (ROI).
Summary of Key Points
Licensing an Evergreen IP is often seen as less risky than unknown or brand-new IPs since these products continue to sell consistently yearly, regardless of market conditions. It also provides small business owners with easy access to established distribution networks and potential customers who may not have heard about their business until they see this recognizable name associated with them. In short, licensing an Evergreen IP can be an excellent way for businesses looking to expand their offerings and reach new markets—especially during these challenging economic times!
