You have a new product idea that you want to sell to a manufacturing company or license for royalties. For licensing or selling to work, you need to contact companies rather than wait and hope they contact you.
There are numerous websites to post your invention. Some of these companies tell you they will match your invention to their thousands of companies in their database. Don’t hold your breath.
For example, let’s say your invention is a new power tool. The manufacturers of power tools are easily known. Go to Home Depot or Lowes and you’ll see Skil, Black and Decker, Dewalt, and the others. These are the companies you need to contact. Otherwise what’s the chance these companies will call you first? Maybe one in a billion.
Contact Companies Directly
Calling companies is not that hard. Be prepared with what to say. Talk about the benefits your invention has to offer the end-customer. And talk about how your invention can benefit the company such as high profit margins, easy to manufacture, and easy to package and sell.
When they ask for more information, send a Product Proposal. A Product Proposal is a brief document like a mini business plan. The Product Proposal clearly states the market need, product description, benefits, advantages over the competition, profit potential, and other information as requested.
Companies need new products to grow. Companies are often busy with daily tasks and have less time to be creative to come up with new product ideas. Companies need new products to increase profit, get to market quicker, beat the competition, and provide more of a selection to their customers. And with companies cutting back on staff, many are looking to the outside for new ideas.
Avoid the Invention Help Submission Companies
Maybe you’ve seen TV commercials, websites, or ads on the radio for invention submission help companies saying how they will help you introduce your invention into the industry.
The first thing they do is get you to buy a market report for about $700. The report is a basic template with basic information – basically worthless. With the report in hand, they tell you that the market research indicates your idea has big potential.
Then for $10,000 to $15,000 they say they will get your invention introduced to manufacturers. They also try to hit you up for marketing programs such as videos and exhibiting your invention at tradeshows.
Manufacturers receive these submission packages all the time, and then throw them straight into the trash. The submission company is off the hook because they said they would submit your ideas to the industry. Don’t waste your time and money with these submission companies.
Contacting a company yourself is a much better strategy than posting your invention on a website and then hoping a company will find you. Start by making a list of 10 companies that you can contact right now.
For information on a better way to sell or license your product idea, go to Product Coach.
Written By Matthew Yubas