Negotiating a Licensing Agreement (Mock Negotiation)
Вставка
- Опубліковано 3 лис 2020
- How do you approach negotiating anything, like buying a car? Do you go in aggressive and pushing? Everyone is intimidated by negotiating. If you really want to get a deal done, how do you approach it? Investor, entrepreneur, and business advisor Marc Portney tells product licensing expert Stephen Key that negotiation success really comes down to two things: Planning ahead, and taking fear away.
Marc explains why his strategy is different from others. If you have no fear, there's nothing to lose. Yes, that's easier said than done! That's true. But if you practice, you can get there. The minute you'r fearful, you change your behavior, and you cannot win. You have to be able to walk from a deal! Always. No is a very powerful word. Most people are scared to say no though. Where does the confidence come from?
How do you throw the first punch? Who should throw the first punch? Marc describes his strategy for winning hearts and minds and getting deals done.
Only after you've laid the groundwork should you come in with an offer - a reasonable offer!
If you've ever wondered how to negotiate a licensing agreement, this is the video to watch!
Stephen Key and Andrew Krauss are the world's leading experts on how to license a product idea. If you have an invention idea, this is the show to watch. Steve and Andrew are the cofounders of inventRight, a coaching program that has helped people from more than 60 countries license their ideas for new products. Visit www.inventright.com for more information and to join the one-one-one coaching program.
If you have questions about how to invent, how to be creative, design, how to do market research, prototyping, manufacturing, negotiating, pitching, how to sell, how to cold call, how to reach out to open innovation companies, licensing agreements, non-disclosure agreements, patents, copyright, trademarks, and intellectual property in general - subscribe to inventRightTV! New videos every week, including tons of entrepreneur success stories.
Inventing can be lonely, but you don't have to go it alone! Join the inventRight community for priceless inventor education, mentorship, support, accountability, hand-holding, honesty about the invention industry, and so much more.
Contact us at #1-800-701-7993 or www.inventright.com/contact.
This is the book you need to license your product idea: “One Simple Idea: Turn Your Dreams Into a Licensing Goldmine While Letting Others Do the Work.” Find it here: amzn.to/1LGotjB.
This is the book you need to file a well-written provisional patent application: “Sell Your Ideas With or Without a Patent.” Find it here: amzn.to/1T1dOU2.
Determined to become a professional inventor? Read Stephen's new book "Become a Professional Inventor: The Insider's Guide to Companies Looking For Ideas": www.amazon.com/gp/product/165...
inventRight, LLC. is not a law firm and does not provide legal, patent, trademark, or copyright advice. Please exercise caution when evaluating any information, including but not limited to business opportunities; links to news stories; links to services, products, or other websites. No endorsements are issued by inventRight, LLC., expressed or implied. Depiction of any trademarks/logos does not represent endorsement of inventRight, LLC, its services, or products by the trademark owner. All trademarks are registered trademarks of their respective companies.
Reference on this video to any specific commercial products, process, service, manufacturer, company, or trademark does not constitute its endorsement or recommendation by inventRight, LLC or its hosts. This video may contain links to external websites that are not provided or maintained by or in any way affiliated with inventRight, LLC. Please note that the inventRight LLC. does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
I always love hearing Marc's take on things. He is ALWAYS direct and doesn't waste time in providing the answers we need.
This interview & and roll play is gold! Thank you Stephen & Mark!
Great video on negotiating. Planning and having nothing left out... so crucial! Important to talk with multiple companies and be able to come up with a fair decision. Always treat people with great respect because no matter what, it pays off in the end!
Wow. What a spitfire of an interview! I love their intensity and their tips!
We agree!
EXCELLENT mock negotiation...go for chapter 2 😉
This guy is a G. Keeps it so real 😂
@@420BudNuggets thank you!
I LOVE Mark!!! 😂 He is not a joke! 💪🏽👏🏽👏🏽👏🏽 I learned a lot in that quick interview.
Mark gives me that wolf of wall street energy!! i love this guy, i need negotiating skills from mark. thankyou stephen and mark for all the no bs content. amazing!
I’m glad you enjoyed it. I think Marc is amazing!
Thank You Marc! It was great to see/hear you....I’m a bit shy but when I do communicate, It’s straight to the point. I need that straight to the point Honesty. Would have loved to have more than 12 minutes of you but, I’m still thankful for what we got!
Thank you Steven!
💚🕊
WOW! This was fabulous Stephen and Mark. This is a real, "in the trenches" look at how things work. I could imagine myself up against a tough negotiator like Mark. Make a decision or get out of my face type of scenario. LOVED IT. Thanks Stephen for bringing this great knowledge to folks like me. Bravo!
I'd take the 5% on my 1st, 2nd, 3rd licencing. Just to build a good income and feel safe.
But I have many ideas.
And new ones keep popping. I'd start negotiating on my 4th requesting a variable percentage: 5% sounds good, but I'd claim 7.5% for when a certain sales volume is reached, then 10%. Also, a 3rd royalty level should the product happen to go viral.
He's buying my idea 'cause he knows it'll make him good money, not because he wants to do me a favor! Let's define "good money". If the product goes bigger than that he will get more money. I should too.
If he doesn't agree I'll take my idea elsewhere. If no one agrees, then I'll just give it away publicly so that anyone anywhere can use it anytime without any eclusive rights.
I could even try to manufacture the product myself (see Headblade's story), depending on what the idea is. Or find an investor.
If you have a great idea you can make millions of dollars with 5%
I'm alot like Mark. I went to buy a car and the salesman started playing games and didn't take me seriously, so I walked and said no. His loss, not mine. Afterwards I went elsewhere and negotiated a deal for a vehicle for 1/3 of the 1st saleman's asking price.
Great advice!! Another QUALITY video!!!
So it IS possible to obtain a better deal if you do some extra work other than having an idea. For example, as an engineer, I've put in a lot of work into developing my idea into the best version of itself, I've considered a lot marketing and manufacturability while building prototype after prototype. That does cost a lot of time and effort... anyone who decides to license or venture it will also benefit.
Up until now I thought companies didn't care about how much work you've put into your idea because they would also invest into it with their own team of engineers and most likely make something better than the idea/prototype I've presented them.
Am I correct? (Yes/No)
This video was really helpful and barely halfway through!
I have another (yes/no) somewhat relevant question. Is it possible that within the negotiation contract to "ask/request" to be part in the companies development of the mass produced version of my product? I dunno maybe that's a thing.
I've heard Stephen talk about being involved in the evolution, but I would think that needs to be in the contract, or else you could be out. In fact, I would make it a line item that any development involves me to some level and I can walk away with that development after the contract is over.
Great segment Mark and InventRight, this was excellent preparation advice!
Great episode, the mock deal was very insightful
This is one of my favorite Key vids I've watched
Great Guy .....Honest....... Shot every Idea down I have ........... Im not stopping ....... we will be doing business together soon Mark!
Damn. I thing im gon prepare for every call to be like this
I’m gonna drop crazy F BOMBS 💣 next time i go to negotiate!!😂😂😁.
Jk. Loved Marc’s knowledge and got a ton from this short video!
😂🤣
That was fun! Stop the drama for your mama. No BS here!
Excellent 👌
Great insights!
This would make a great series...keep more of these coming in the future
Thank you for your feedback!
The gut with glasses I just hope I don't get a deal with someone like him.
Great video! Question: Are royalty rates usually quoted on net profit or gross? I’m guessing gross as with net the company could potentially fudge the numbers a bit if they were shady. Please let me know! Thank you!
Thanks MARK!
soo many GEMZ shared throughout this dialogue . Thank you for your verbal contribution to the society of American Hustlers 👍🏿🔥 #ItsLit
Mark and Steven good work
I love this guy
That's some great advice thank you Stephen thank you Mark😃 I love the straightforward attitude mark you don't fuk around LOL
Great!
The key is the find the right person to do a license with. If you feel the one person who is going to give you 8% not not do what you feel is necessary to blow this up, vs the person that is going to give you 6% will, that is extremely important.
One company may have a huge product line in the fitness industry for instance and yours will be one of them but they won't get out there and make your product known.
Another might be a smaller company that really believes in very aggressive social media and influencer marketing and has incredible reviews online for the way they do business and they are all about remaining relevant. That is who you want.
Thank you for watching and commenting!
Love u Stephen u are doing a Great job
I love the role play! thanks for this content Invenright~!
I’m so glad you enjoyed it. Thank you.
I bought a ring light at Hobby Lobby for $ 10.00 it does wonder on finding the magic the star holds. Lol ! ;-)
When you ask for X percent, is that of gross sales or net profit?
Mark is a mad-man! Good to know the truth though, however it is received.
Ty sirs💪
🤣🤣🤣 I love it!!!!
A great look into negotiations. The goal is not to take all but to find a fair midpoint.
Marc may I ask, have you ever felt an inventor had asked/bargained for too little royalty? If so, have you ever made it up? 😆
You mentioned you have never gone beyond 5%.
In Shark Tank, an inventor gets funding, markets... etc, and gets to keep an average of 60%. So why would one choose to commit business with your company, for less reward, be preferable?
Thanks.
Great question. Licensing is completely different than venturing. Less risk, less reward.If you have a lot of ideas licensing is a better path I believe. If you have the time, experience and funding to start a business and you should consider it.
Thanks, Sir.
True someone with lots of ideas 💡 may do better at licensing.
I work best with a guy like this.
Make a decision. Exactly..
Is the 6% to the inventor based on sales or profits. It didn’t seem clear.
Confidence is intoxicating.
When you have the right to knowledge, confidence follows.
Stephen
Im curious about a sliding compensation agreement? If I start out at 5% and once my product hits a certain $$ in sales I slide up to 6% and so on until an agreed maximum of say 9%. Is this a potential negotiating strategy ? Getting rewarded for the popularity and success of your idea seems reasonable🤷♂️
Anything is possible but I’m not seeing this royalty structure before.
you mans soo cool.
The royalty rate for a cell phone has to be more than 5%, right?
excuse my inexperience.
so... 5% the inventor comes up with the idea and he gets 5% ok.. so now we have 95% left.
can someone break down where all the other percentages go?
how much would Marc get?
thanks
Can you guys add these to Spotify please that way we can listen in the car, also you’d get paid for the streams!
For now, you can find episodes of inventRightTV on Apple Podcasts: www.inventright.com/help/irtv-podcast
We'll look into putting the episodes on Spotify!
I would like to get a hold of Mark.
In a licensing deal, who monitors, protects and enforces the patent against infringers ?
That is defined in the licensing agreement.
Hi, this is Dr. Walia. I have an idea about improving cell phones. It’s going to be a revolutionary idea, nothing has been done in that aspect of cell phones. Which company should I approach? Please help.
We can help you answer this question. Contact us! +1 (800) 701-7993 and support@inventright.com
I have a foodproduct in Portugal.. another guy from Amsterdam (who used to work for me) will come here next week and wants to get the rights for the Netherlands and Belgium for my product. He will do production small at first, and try and sell
It to the bigger supermarkets later down the line. In the meanwhile I’m working on a nestle startup program and if I win they will help me make it big in Spain and Portugal.. if that shows good Sales..the world will follow.. how do I settle this on paper with the Dutch guy? Or is it wise not
To give him the rights? Thanks
will have to negotiate with him a product which he still needs to promote in The Netherlands.. say he finds a partner who will help him produce, and maybe get the product in the supermarkets..
We'd love to help. Contact our office and we will customize a plan for you.
Apparently when you sit down at the table to negotiate a licensing deal with a rep from a company you should bring a bag of coke and maybe it will go over better. That guy has the sniffles, but it's only in one nostril and he's in the mood to talk a lot. He barely let's Steven get a word in.
I think your boy missed the point of your exercise. I could tell it in your responses when he just wanted to play bad cop and you seemed to want to exercise of applicable negotiations and how to weave around them. His way is to be a douche during negotiations apparently. " I do this every day.". I for certain wouldn't work with this guy. Reminds me of Bluetooth guy in Breaking Bad .It's ok bud. Get someone else to do the exercise.
💞💓💞
I bought a conversion van years ago (2001)and my wife was apologizing to the finance guy at the used car dealer, because I explained to him that I didn’t need the van but I wanted it and what that means is, it was his job to fuck me but it was my job to minimize the fucking. Most people feel uncomfortable when they are faced with that level of directness. I had left a 200.00 deposit on the van and filled out the application. Finance guy came back with 13% interest , I explained that it was not worth it for me to cross the bridge to pick up my deposit so keep the 200.00 and take his wife out to dinner on me. He back the next with 10.9 %. I said the same statement to him. He told me he wanted to do the deal for me as refused. He called me two days laters and said this was the best deal he could get
With the bank at 8.29 % and it in line with other rates I got but I like the van that he had for sale and I still have today with very low mileage. Because I did like it but I was willing to walk away until I got the deal I liked. Thanks Eric
Me (thinking): 'Inventors probably make a few dollars per item sold......NIIIIICE!!!!'
*Watches video*
Me (thinking): '.………reality sucks…………….'
Welcome to the real world. LOL
I absolutely Love this Channel, I love Stephen and Andrews Professionalism, I even very much enjoyed Ward Law candid and intense interview that gave us a no nonsense - this is how it is... But, this is the second video I have viewed with Mark... Mark looks like he has just come off a 5 day binge and didn't take the time to remove his Party Tag on his left arm and Clean Himself Up. Not to mention his constant mouth naughty in between his response. Look... This one was not a Good look. I'm understand that Mark is established and has clout, obviously... But any observer can see this wasn't InventRight standard and takes away from everything many of us who have followed InventRight. Maybe it was just a bad day all around.
It takes all kinds, I hear what you're saying but you know what? You're going to run into all kinds of folks out there and you/me don't get to decide on who those people are. Mark doesn't have to be involved yet he chooses to share his knowledge, attitude and personality and I think it's great! I can see myself up against a tough negotiator like Mark. Most people would get crushed, easily. It's a good lesson and an excellent video.
HardCore NYarker.....
Put Mark on Shark Tank!! Pleeaassseee!! He’s awesome.
You guys jump straight to the negotiations, how about the very first step of contacting a potential licensee who might be using your idea, how does that conversation start, the initial phone call or email.."Hello, my name is..., owner of patent...I believe your company is practicing my invention and I would like to enter into an agreement (collaboration) with you..."
Scary
since I don't offer any company exclusive licensing rights for my inventions, I could do 7.5% for a shorter term. then if you're not equitable to 9% then I have to go bye bye. it's not personal, that's the point.
numbers 13:33 - they saw us as grasshoppers because we saw ourselves as grasshoppers first.
that's the point this guy's trying to make stop seeing yourself like a grasshopper see yourself like a. giant. this guy sees himself as a Giant. that's why you think he's a giant.
🎯
If Marc gives a 5% and Licensing averages around 5% also why would I deal with him and not with Licensees? Licensees can outreach the masses of people Marc keeps mentioning in all his interviews. They have a done-for-you system that takes care of everything and you just collect royalties. I don't understand the value of dealing with him (the manufacturer) when he can never outreach the customers the big players can easily reach. Can you please explain that to me. I thought he manufactures, markets, and so on, but offers more than 5% to partner up with inventors. This just doesn't make any sense.
To be clear, by featuring Marc on our channel, we are not saying that working with him is better or worse than a licensing agreement. Each inventor needs to determine their go-to-market strategy. Our channel is devoted to licensing because that's the business model that produced the most success and enjoyment for our cofounder Stephen Key. We appreciate Marc's honesty and that's why we keep bringing him back on. Thank you for watching!
I don’t think that was great negotiating.
I think it showed what you're up against in the real world.
Lol
I just entered into the licensing stage of my invention
Don’t stop … congratulations in advance
This speaker was horribly off brand. I cuss all the time. But I wouldn't cuss on @InventRighTV out of respect. Cringe.
Thank you for sharing your feedback.