Sell your idea to companies that buy ideas is one of the ways in which you can make money through your invention. Sell your idea to companies that own patents. If you want to market your brand, make the idea into a product.
How do inventors make money?
An inventor authorizes a manufacturer to make and sell an invention in exchange for royalties. The royalties can be a percentage of net revenues or a payment for each invention sold. For a shorter period of time, the license may be granted.
Can you get rich inventing something?
If your invention is popular, you can make more money. You get less money in exchange for that leverage. A first-time inventor can expect a royalty rate of 3 percent, and an experienced inventor can expect up to 25 percent of their gross profit.
How do I invent something and sell it?
- Believe in yourself.
- Step 2 is to find a problem that can be solved.
- Before investing money, you should do basic market research.
- You need to build a prototype and test it in real life.
- Your idea should be protected.
- If you want to make or license your idea, this is the next step.
- There are resources for inventors.
Everything you see around you is an idea in someone else’s head. The proof that inventing is for everyone is the greatest thing about starting to see the world as an overstuffed library of ideas.
The process of coming up with an idea or inventing a product requires commitment, dedication, and self-belief. If you are discouraged by negative feedback or give up at the first hurdle, you need to start working on believing in yourself. It’s important to believe in yourself because the “growth mindset” that comes part and parcel with doing so, literally changes your brain chemistry. Ken Beckstead, the inventor of the Butts only Box, and a recycling company that produces electricity from cigarette waste say never to give up.
It is one thing to come up with an idea, but it is also one thing to solve a problem, whether it is your own or someone else’s. This type of experience gives you an in-depth look at the workings of an industry.
Boris Wertz believes that if you have worked in an industry for a long time, you may know something that nobody else knows. I needed a desk with features that would give me quick access to a variety of tools, that was large enough for all my mixed media projects, and that was also sturdy so it could take hammer blows and an occasional brush from a blow torch.
Since I already know all the distribution channels I would need to hit in order to sell it, I would probably start by creating an affordable jewelers workbench. I might find that the need for such desks isn’t high, and that the problem is exclusive to a few.
Finding an idea that you can work with isn’t the only way to solve your own problems. Once you have an idea that you would like to move forward with, it is time to do market research. According to Nolan-Brown, there are six primary reasons you do market research.
Check out what merchandise is taking up shelf space and figure out where your product might sit within a similar store. If you want to learn more about intellectual property, the USPTO is a good place to start. They created a 39-minute video course to show you how to conduct a preliminary U.S. Patent Search.
If you want to get honest feedback, you need to ask people that can be objective. A non-disclosure agreement is a legal document that states both parties intent to keep information confidential if you want to explain your idea to someone in-depth. If you want to gauge interest through online surveys, be sure to be more vague about your idea, as you probably don’t have a patent at this stage. You get information related to people’s pain points if you don’t give away your idea.
Like a book publisher, licensees send you payments in the form of royalties, so for each product sold, you earn a percentage. If you are more interested in inventing things, this may be a good idea, as licensees do all the hard work for you: producing the item, shipping it, marketing it, assuming liability, and so on. The sole purpose of the one-page description is to get licensees, buyers, and trade show attendees excited about the product. The One-Page Pitch feature in LivePlan is used by Palo Alto Software to quickly evaluate new business ideas.
The research process can help you understand the type of customer your product will cater to. According to a study conducted by Blackbox, many tech startups fail because they focus on their product rather than their potential customers.
Many startup start building without talking to their customers. A structured customer discovery process can make a big difference in defining the key features of an early prototype. One form of premature scaling is building a product without finding a solution to the problem.
LivePlan has a lot of features that make it easy for business owners to manage their finances. Many of our customers used excel to keep track of important data before LivePlan.
Our target audience still use our easy-to-use business dashboard to the same end goal despite the fact that it requires a lot more work. Even if you have a solution that is better than theirs, it will be hard to get people to leave if they already have a market share. It is possible to make a functional prototype out of cardboard or paper.
Use a 3D printing company or find an affordable manufacturer if you need a more professional prototype. If you are still researching and worried about someone stealing your idea, you may want to file for a patent. Once your application has been completed and you have received confirmation of having done so, you can use the symbol after the product’s name. By the end of the process, you will have a fancy looking certificate to prove that you own it.
If you discover someone is using your name, you can ask an attorney to send a Cease and Desist letter. Even if you just want to license your idea, the benefit of filing for at least a PPA is that you get patent pending status, a first-to-file date, and a couple of years to test and modify your product. If you anticipate the non provisional patent process taking a long time, you should file for a PPA.
If you plan on approaching a licensee or investor, you might find that they prefer dealing with a product that has some form of protection. If you are pushed to file for an NPA by your attorney, you will not be able to change your product without paying additional fees. If there are changes to be made, you still have the freedom to make them, which is why thePPA is perfect for many people.
Anyone who invents or discovers any new and useful process, machine, article of manufacture, or composition of matter can apply for a utility patent. If you are a person who enjoys taking risks, who can manage people well, and who can clearly convey their idea to the world, owning the process yourself may be right up your alley. If you have the money to make your idea, you might be able to make this decision. Licensing your product eliminates most of the risk of bringing an invention to market and it requires less up-front investment.
If you want to make your own products, you’re going to either have a costly set-up or have to do a lot of work to find a manufacturer you can afford to pay, because manufacturing requires tooling and staffing production facilities. The risk in licensing your invention is the possibility of an agreement going wrong, which could lead to a long legal battle and the price to match. Almost half of the inventors who decided to take control of their invention’s production and marketing claimed that they were successful. If you are still interested in finding a licensee, remember that you do not have to opt into an exclusive contract with them and you can license to other companies first as a way of assessing the feasibility of manufacturing the product on your own later.
It could be possible to begin manufacturing operations if your invention is simpler. At which point manufacturing may be your only option if you can’t get interested parties to license the invention.
If you decide to sell your invention yourself, you will need to continually market it. If you don’t have a lot of marketing experience, or aren’t interested in learning, you might want to go the licensing route. One Simple Idea, Revised and Expanded Edition: Turn your dreams into a licensing goldmine while letting others do the work.
If you don’t know how to use a computer aided design (CAM) program, use sites like Elance to find product designers who do. This is a great place to learn about the product development process, and to take a shot at getting your idea picked from a host of others to be manufactured.
If you want to increase your chances of getting funded, you should browse the library to see if you can find a pattern. Before you start, be sure to check out the ABCs of Inventing section on the site for a list of helpful tips.
How do I sell a product I invented?
You can either sell your invention idea for a large amount of money or you can sell it for nothing. A licensing agreement is the second option. You would get royalties for every sale of your product.