How To License Your Product

Many entrepreneurs with innovative new products can benefit from product licensing. Product licensing is when the brand of one organization is used in association with the product of another organization. When the characters on your favorite TV show reference or use a specific product that is example of product licensing. While most startups don’t have their products featured on TV shows, here are a few tips from product licensing pro Travis Lubinsky that entrepreneurs can use to facilitate product licensing:

(Curated from Inc.com)

1. While any kind of product licensing sounds like it would be useful, you should make sure you’re partnering with a brand relevant to your audience.

“Make sure you are hyper focused on who actually needs and will use your product. Otherwise, you are just wasting your time and money. Lubinsky says, "Your product needs to be targeted at a specific demographic that will pay top dollar to own it."

2. You also don’t want to partner with a brand that has a bad reputation.

"It is important to ensure that the brand you are looking to reach a deal with is established, respected, and most importantly, popular. If they don't meet that criteria, there is little benefit in partnering with them."

3. Before you approach any brand with a product licensing pitch, make sure you do your research.

“If you are trying to do a deal with an established brand name, you better come prepared and have a marketing plan that will sell the product. "Demonstrating that you have a plan can alleviate concerns that these big brands have in working with young entrepreneurs," says Lubinsky.”

4. It’s unlikely that you’ll be able to get an established brand interested in your product if you don’t have sales.

“The more sales you have, the more influence you can have on the licensing negotiations. Brands like to be linked to successes; showing that you are already successful can greatly increase your chances of a successful licensing agreement. On his success, Lubinsky says, "I quickly learned the biggest factor to a successful licensing campaign was distribution and sales."

5. After you get your first licensing deal, you may find more opportunities become available to you.

“The entire goal of one licensing deal should be to leverage that to get another deal. Lubinsky says, "Use each license as a stepping stone to the next biggest thing." With forward momentum you can constantly get bigger licensing deals with bigger brands.”

Do you have a good product licensing story to share with other entrepreneurs? Let us know!