The Licensing Jungle
The Licensing Jungle Welcomes Eric Huber UIA Board Member Product Licensing Professional and Brilliant Inventor.
July 24, 2017
The Licensing Jungle
The Licensing Jungle Secrets with Guide Jeffrey Mangus
July 27, 2017

 

Watch the podcast here!

YouTube generated podcast notes, please excuse any typos.

1
0:00I invented Launchpad family this is
0:03Colin danesco your host for inventors
0:07launchpad roadmap to success I wanted to
0:12get in touch with you guys and talk a
0:14little bit about some questions that
0:16I've been fielding about some of the
0:18other shows on our network and how those
0:22questions came about a lot of times and
0:25this is true even with myself when I
0:28have a good idea when I have an
0:30invention idea I guess you would say I
0:32don't really start with the end in mind
0:36a lot of times I'll have an idea I'll
0:39get to work I'll start designing and
0:41I'll start prototyping it start testing
0:43you talking to people about this idea
0:45but I won't really think of it as a
0:48business until sometimes it might be too
0:51late a lot of times I'll get further
0:54down a path that I wanted to without
0:58really having a plan or a strategy in
1:00place and these are some of the
1:02questions and some of the things I
1:03wanted to talk about today as some of
1:06you may know our listeners we have it
1:10been adding several shows to the
1:13inventors Launchpad Network we've been
1:17launching different shows in order to
1:20help inventors move their products along
1:23make the right decisions maybe having
1:26that strategy or getting that plan
1:28together because it is a lot of work to
1:32take an idea from your head move it all
1:34the way through to having a success with
1:38the product actually selling it
1:40licensing it making money with that
1:43product and turning it into a business
1:45so I wanted to talk a little bit about
1:47the different ways that you can have a
1:50strategy and have a plan a projection on
1:55what you want to do with that product
1:57maybe with that end in mind because it's
2:00not as easy as people think about it is
2:02a lot of work it is hard there are some
2:04people that have an idea have a product
2:07have us have a prototype and they get
2:10very lucky and their product maybe gets
2:13on
2:13market gets into a retail store or onto
2:16some TV shopping channels very quickly
2:18there are products that that happens is
2:21no doubt about it
2:22but a lot of times those big products
2:24that we talk about those talked about
2:25those big products that we hear about
2:26making millions and selling hundreds of
2:30thousands of units you know those
2:31products have been along around those
2:34products have been around for a long
2:37time it's just that you're just now
2:39hearing about it a lot of times that
2:41overnight success that you hear about
2:43it's really a 10-year overnight success
2:47it's just that you're hearing about it
2:50at that time and that's why you believe
2:52that it's an overnight success but
2:55people who have taken those products to
2:57market most of the people most of the
2:59inventors the companies it's a bit a
3:02long road and I just want you not to get
3:05discouraged not to think hey why is
3:07everyone else putting their products on
3:10the TV putting them into retail stores
3:12or or you know putting them on to a see
3:17on TV or moving them along even
3:18e-commerce sites and Amazon eBay it's
3:22not that easy
3:23and I want people to realize that it's
3:25not it really is a lot of work and again
3:28you have to have the right product to
3:31make it and you have to target the right
3:36market with the correct product if you
3:39have a great product a great idea but
3:41you're targeting the wrong market talk
3:43targeting the wrong niche or in most
3:46cases if you're targeting everyone it's
3:50going to be a lot tougher for your
3:53product to catch on for your product
3:55would be successful so the trick would
3:57be is to have a strategy and that was
3:59going to be some of my point today is to
4:01try to put a strategy in place in the
4:06direction that you want to go the
4:07success that you want to have could
4:10might be multiple strategies but a
4:12strategy a plan is very important I am a
4:16big believer
4:19in just trying things throwing things
4:22against the wall seeing how they work
4:26experimentation I say beats planning
4:30every time in a lot of cases that is
4:33true but in the long run planning is
4:37very very important
4:39experimentation can get you answers
4:42quickly okay but it's not good for the
4:45long run and that's why you need to have
4:47a plan you need to have a strategy when
4:50you have an invention when you have an
4:52idea for a product when you want to get
4:54to a certain place from point A to point
4:55B you need to have that plan now
4:58certainly experimentation can give you
5:00the idea on which route to take which
5:03road to go down
5:05a lot of times we'll experiment with an
5:07advertisement or packaging we'll create
5:11three or four different types of
5:12packaging we'll send them out and we
5:15will see what kind of feedback we get
5:17overnight or within a couple of days
5:20whereas if we were trying to plan on
5:23which type of packaging we should use
5:25they could take a month or two months so
5:27a lot of times I will say an outside an
5:29experimentation does B planning but only
5:33in some circumstances planning is very
5:35important so so first thing I want to do
5:37again we're getting a lot of questions
5:39on the different types and different
5:42directions that you might want to take a
5:45product if you have an idea or have an
5:47invention and there are several
5:49different routes to take some of them
5:51could be multiple type of routes so you
5:53need to have a product that can go maybe
5:56on a TV shopping channel say like HSN
5:58QVC the jewelry channel but you can also
6:01take that product maybe to retail so
6:04there are different types of paths to
6:07take with a product but it's good to
6:09just plan on one and let the product or
6:13let the public take it down the other
6:15path as it grows and gathers momentum
6:17it's very important to just go and find
6:20one route one path so that you don't
6:24overextend yourself so that you don't
6:26get your resources too thin these truly
6:29have a good product the product that's
6:31going to catch
6:32on you don't have to worry about talking
6:36to everyone you don't have to worry
6:38about trying to sell your product to
6:40everyone in the world you don't have to
6:42give that that speech that all of us
6:44know about where if you sold to 1% of 1%
6:47we'd all be millionaires you don't need
6:50to say that the trick is and I shouldn't
6:53even say a trick
6:54the plan is you can find your niche
6:56market find out where they are who they
6:59are where they buy things why they buy
7:02things what they like what they don't
7:04like and go after that niche market from
7:07there your product will grow your
7:10product will extend out of that niche
7:12market because it's a good product so
7:14other people are going to notice they're
7:16going to take notice and they are going
7:18to want to buy it also but if you try to
7:21talk with to everyone as the saying goes
7:25no one listens so again I just want to
7:28let you know that planning is very
7:30important if you need help and a lot of
7:32people do I mean there's nothing wrong
7:34we're talking to someone who's in this
7:37industry about putting together the
7:39right plan going after the right
7:42demographic the right niche it is very
7:45very important and and that's kind of
7:47why I'm talking about this process so
7:50much because there are so many good
7:53products that are out there so many good
7:55inventions that are out there that they
7:57were just their resources were just too
8:00thinned out by going after everyone
8:02saying everyone loves this product
8:04everyone's going to want one and you
8:06cannot sell to everyone until your
8:10product catches on and let everyone know
8:12even somebody like Apple or coca-cola or
8:16some of the largest brands in the world
8:20they're not selling that everyone maybe
8:2330% of the market maybe 40% of the
8:26market there are still other brands that
8:28are taking bites out of that percentage
8:30of the market you cannot sell to
8:32everyone and I tell you the truth you
8:34don't want to sell everyone you want to
8:37build up your following your tribe your
8:39family of loyal followers the ones that
8:43will buy whatever you put out
8:46that is who you want to sell to I mean
8:49when people stand on line as they do the
8:52Apple product when people stand on line
8:54or sleep overnight for the doors to open
8:57to come and buy your product you've made
9:00it my friend that is a brand following
9:04that is a family that will follow you
9:07and buy your products and that's what
9:09you want you try to sell to everyone and
9:12you may cost a factor okay and you make
9:17your product a commodity then you're
9:20dealing with price and you're not
9:22dealing with your family your brand you
9:25need to sell to people who are going to
9:28buy your product they're not going to
9:30ask how much it cost they're not going
9:32to ask when is it going to be on sale
9:35they're going to line up and they're
9:37going to buy your product but it's very
9:39tough to do that not all products and
9:41fall into that category I don't want you
9:43to think that if you have a product that
9:44is a seasonal item or something that is
9:48you know specific to a certain small
9:51demographic that that's going to happen
9:53I'm just using as an example of building
9:56your brand going after your correct
9:59niche market and then let it expand from
10:02there and that's the reason I'm using
10:04Apple as a as a experimentation or a
10:10product that is unbelievable
10:15when they come out with a new product
10:16and to have people sleeping or standing
10:20on line and buy just to buy their
10:23product to give the company money
10:25they're standing on line and sleeping
10:27there it's amazing to me so so let's
10:29just just go ahead and end and go
10:32through the different types of ways and
10:35planning that you may want your take
10:37your product to market there are four or
10:39five different ways and again you can
10:42have both there are four or five
10:44different ways to take a product to
10:46market and I just wanted to go over
10:48these because let me just start the
10:50clock to yours I don't want to talk too
10:53long and guys Elissa can be talking
10:56there are several different ways to take
10:58your product to market and I don't want
11:01you to thin out your resources I want
11:02you to say this is the best for this
11:05product I'm going to go after this
11:07demographic and this is how I'm going to
11:09do it because it's very important to do
11:11that you only have a certain amount of
11:13time especially if you followed a
11:14provisional patent application you have
11:17maybe a year to go after the correct
11:19demographics before you have to dish out
11:21the money for a full patent or maybe
11:23just give up or see what's happening in
11:27roll the dice and say hey I'm not going
11:28to file a full provisional patent a full
11:32patent application because I do the
11:34provisional I didn't get too much
11:36traction but have some interested
11:38parties and I'm going to wait and see so
11:40there's a lot of things you have to do
11:42and that within that year and a year
11:43goes by fast my recommendation would be
11:47before you file and again I'm not an
11:50attorney I'm not a intellectual property
11:53attorney but if you are going to file
11:56and a provisional patent application
12:00where you get a year to claim
12:04patent pending I would wait to the last
12:07possible second to put that application
12:10in meaning that gather up all of your
12:12paperwork if you have samples if you
12:15have prototypes cell sheets maybe even
12:18setting up appointments but not giving
12:20out all the information needed and then
12:24the day before that you're actually
12:26going to start showing this product go
12:28ahead and file that provisional patent
12:32application so you get a full amount of
12:35time that you will need because again a
12:38year ago does go by pretty fast so so
12:40the first a first category that I want
12:44to talk about that you may want to go
12:48after with your product idea is
12:50basically the easiest one one we all
12:52know about is ecommerce whether you are
12:55going to sell your product on your own
12:58website on Amazon on eBay or any of the
13:03large e-commerce sites that allow you to
13:06do this most the most common being your
13:09own website or a site like like eBay or
13:12Amazon which is huge ecommerce selling
13:16your productivity commerce is not an
13:19issue but you will have to have
13:21inventory so if you have an idea or you
13:23have an invention there will be some
13:26steps that you have to go through to try
13:30to sell your product online on
13:32e-commerce so the first thing would be
13:34is you're going to want to prototype it
13:35you are going to want to test that
13:38prototype make sure your product does
13:40what it's supposed to do the worst thing
13:43that you can do is is go ahead and get a
13:46product made because you believe it's
13:47the greatest thing since sliced bread
13:50get that prototype made not test it not
13:54put it in the hands of your intended
13:56user again your niche market I'm going
13:59to say that word a lot guys you're going
14:00to get sick I mean here in niche market
14:02or demographic but it is very important
14:04to get your prototype or your fully
14:07produced product before you've gone to
14:09mass production maybe you made 50 or 100
14:12and you're testing that product it's
14:14very important to get that product in
14:17the hand
14:18of your target market homes though who
14:20is going to use that product you don't
14:22want to stand over them you don't want
14:24to stand behind them and say okay you do
14:25this you do that give them the product
14:28and let them use it like if they bought
14:30it in the store or they bought it online
14:32and it got delivered to their house okay
14:35that means it's got to be very
14:37self-explanatory the packaging isn't as
14:40important to unny commerce or Amazon
14:43which is great but if you need to have
14:46instructions pictures tools whatever the
14:51accessories are I mean this product has
14:54to be complete I don't care if it's in a
14:55white box but if the product has to be
14:59assembled it has to be some kind of
15:02instructions make sure that the product
15:05is ready for testing so again ecommerce
15:09is great because you don't have to spend
15:11as much money on packaging it's very
15:13nice to get packaging there's a little
15:16trick to that so I'm going to talk to
15:18about you it's about the packaging in a
15:19second but ecommerce is good what you
15:22will have to have inventory depending on
15:25how much product you need to buy so
15:28there's a couple different strategies
15:30for that so you can go with prototypes
15:31talk about how great the product is if
15:35the prototype is good enough to show on
15:39camera or on video you may want to do
15:42what we call a dry test which means you
15:45use the prototype in the pictures in the
15:48videos you talk about how great it is
15:50you throw it up on your website or maybe
15:53even on eBay for sale you discuss the
15:59pricing or maybe you can do a split test
16:01where people on the west coast are going
16:03to get one price people on the East
16:04Coast are going to get a different place
16:06and you see if anybody wants to buy your
16:08product at those prices now when they do
16:11go to buy your product obviously you
16:13don't have any you haven't manufactured
16:15it yet but if they do go to buy the
16:17product as they go to check out your
16:21website is going to say sorry we are out
16:24of inventory right now we've let us know
16:27if we would like to be notified when the
16:31inventory
16:32is fill when we get more more product in
16:34stock so that's what's called a dry test
16:37and if you wanted to do a dry test you
16:39can use your prototype as long as it
16:41works and shows good and that's a way to
16:43do that
16:44so again ecommerce you just need to put
16:47a plan in place and that's what I mean
16:49about planning certainly I would say
16:53certainly go ahead and get a few if you
16:56can get them you have to have
16:58manufacturing in place so if you're
16:59going to do this dry test there are
17:01something you need to have in place like
17:03you're manufacturing your prototypes if
17:06you need molding if you need any kind of
17:09specialty equipment to manufacture that
17:11product you're going to want to be ready
17:14to go because you don't want to you
17:16don't want to waste all of the
17:18information all the stuff that you did
17:19that if the dry test test
17:22the dry test works out where your
17:25product is going to be a big hit but you
17:29can't manufacture it because you didn't
17:30do any of the preparation you're
17:33probably going to lose out because
17:34there's a lot of people watching to see
17:37new products that hit the market and if
17:40it's going to be another six months or
17:43four months before you can actually
17:44deliver real-world product where you can
17:47stock inventory it might be too late
17:50so that's what I mean about planning and
17:52strategy I'm going to go through these
17:54somewhat quick because I don't have too
17:56much time and there's a lot of things to
17:58talk about if you need more information
18:00on any of these strategies just go ahead
18:03and get in touch with me at inventors
18:04launchpad comm you can get me on social
18:08media linkedin on facebook and then as
18:11long as you care we run several sites
18:13several groups on Facebook and obviously
18:16I'm LinkedIn you can search for me there
18:18also so if you have questions on what
18:20I'm covering or if I miss something
18:22because I'm going through these quickly
18:24I'll just reach out and I will cover
18:26them either through you directly or I'll
18:29jump on on our next podcast and cover
18:31them at the beginning of the show so
18:33that you know we can get you answers to
18:35your questions so again the e-commerce
18:37side is is a great way to to test your
18:41product and if you have a hundred units
18:43or maybe you did a
18:45a small batch run and you get some some
18:50good feedback or you get some people to
18:52buy you know again you're going to sell
18:54sell your product is this tricks though
18:56on the e-commerce side also you got to
18:57drive traffic to your website it isn't
18:59the if you build it they will come
19:02world anymore there are so many websites
19:06so many people that are stealing traffic
19:08or directing traffic to of some of the
19:12larger ecommerce sites that is very hard
19:15to get just organic visitors to your
19:20website so as you see on the e-commerce
19:25side there are a lot of things we can do
19:29but it's not that's cut and dry as
19:33people would think but it is a way to
19:35test your product if you plan it
19:40correctly and again planning this is
19:43very important to have that strategy
19:45when you have a product next the next
19:48product the next item I want to talk
19:50about that we hear about and you guys
19:53talk about is huge its its retail
19:55everyone wants to get their product into
19:58retail and now I don't want to say
20:01everyone some people or a good
20:03percentage of inventors dream of having
20:06their product in Target Walmart
20:09Walgreens a lot of the big retailers out
20:13there and I can tell you that it is a
20:16pretty pretty cool thing to have your
20:19product walking into a store like Target
20:22or Walmart and seeing your product on
20:25the shelf it's a great feeling we have
20:28seen products that we have developed
20:29here for our clients make it into retail
20:32and being able to call and say hey you
20:36know your products should be out on the
20:37shelves go ahead take a look send us a
20:40picture if you see it and it's just a
20:42great feeling to see that product it's
20:45like a living thing it's like a you know
20:47it's like a dream that the clients have
20:50these product their inventor is that you
20:53know just it was in their head recently
20:55and an idea and they came to us here at
20:59venez on Japan and we got to develop
21:02their product it's out on the store
21:04shelves which is pretty fantastic but
21:06there are some issues again with going
21:10after retailers 12 and again we'll be
21:13planning it will be a strategy and what
21:17a lot of people don't realize is that
21:19it's very costly to have a product land
21:23on a retail space unless you go with a
21:26wholesaler or someone who is going to
21:29handle all of the steps and things that
21:32you need in place in order to get a
21:35product retail ready retail ready
21:38meaning is your product is fully
21:40developed it is tested it is done every
21:43claim everything you talk about has been
21:46tested and made sure that it functions
21:49as it is talked about as its said to be
21:53also the packaging for a fully retail
21:56ready product is much different than
21:58selling on e-commerce as you know a lot
22:01of times you get a product from Amazon
22:03or Ebay or one of the larger ecommerce
22:06store sometimes they come in just a way
22:08pop which is a good saving a cost saving
22:12way to get a prior to you but on retail
22:15but on a restore shelves in retail the
22:18packaging has to be very very complete
22:24as when I say the design of the
22:26packaging is so important because you
22:28will be going up against a lot of the
22:30products in your category even though
22:32your cookie even though your product is
22:34different it's the only one like it out
22:37in the market I can guarantee you that
22:39they're going to put it on the Shelf
22:41that if your packaging is not nice it is
22:45an eye-catching
22:46people will people's eyes will go to a
22:50different product or they just won't buy
22:52it so the trick with going to retail is
22:57packaging and is very important so again
23:01but but the big thing is this with
23:03retail okay so with retail you're going
23:05to have your product you're going to go
23:06show it to a retail buyer he's going to
23:09say I love this product again it's the
23:13very few and far between I congratulate
23:15you if you have taken a product to
23:18retailers and you've made it out into
23:21the market it's very tough to get a
23:23product in retail because shelf space is
23:26so hard to come by now retailer is going
23:30to say you know I like your product and
23:33you're going to say ok great and they're
23:35going to tell you we're going to do a
23:36test even if they do a test and you get
23:39a large retailer I'm not even talking
23:40about Walmart but if you get a large
23:42retailer like Target or or Walgreens and
23:45they say we're going to do a test in
23:49Florida or the southwest region of
23:53California or New York it could be
23:56several hundred stores and even if they
23:58buy a hundred units you know you have to
24:01fill that order of ten thousand 50
24:05thousand a hundred thousand units of
24:06your product and then you have to not
24:09only fill that order but you have to
24:11ship the product to their warehouse so
24:13the product lands in their warehouse and
24:16then they distribute it amongst the
24:18stores and then it starts being sold now
24:21as it's being sold they start getting
24:23returns maybe of one or two two or three
24:27percent return is a is a normal scenario
24:30I don't care if your product is perfect
24:33I don't care if your product is is
24:36developed under the strict strictest
24:38guidelines someone's going to return
24:40your product these that are not happy
24:42with it they really didn't want it they
24:43got it as a present whatever it is the
24:46returns will be charged back to you is
24:50just it's not a big deal but it happens
24:52so now you have several months or three
24:55or four months that your product is
24:57going on the market now you're going to
24:59get paid by the retailer it could be a
25:0260 or 90 day payment terms in the
25:07interim there's going to be some other
25:08things that have to be done you have to
25:11either order more product they may want
25:14to go to national rollout now all of
25:17that money that you put out for the
25:19local test you're going to hopefully get
25:22that money back but here's the trick do
25:24you have the money even for that local
25:26test
25:27so sale 10,000 units 50,000 use 100,000
25:30units for local tests that you're not
25:32going to get back maybe for 90 days or
25:35more so the trick will be is if you want
25:38to go to retail you have to have the
25:41ability to fill purchase orders now when
25:44I say fill purchase orders you have to
25:47have that money liquid where it does not
25:49have to get back into your bank for at
25:53least 90 days I'm talking minimum 90
25:56days you might get paid sooner but just
25:59to be on the safe side it's got to be
26:01minimum 90 or even 120 or you know try
26:05to get as much time as possible if
26:07you're not going to fund it yourself and
26:08you're going to go with purchase order
26:10funding or you're going to get a loan or
26:12maybe a venture capitalist some kind of
26:15investor just you know let them know
26:18that because you don't control the
26:21vendors or you don't get you don't
26:24control how the vendors get paid even
26:26though they say they're going to pay you
26:2790 days something can happen a check can
26:29get lost but sometimes you're going to
26:33get a check right away I'm kind of again
26:35jumping through here real quick because
26:36there's a lot to cover so so sometimes
26:38you may get a check for the first
26:40payment I have seen that happen where
26:44you get checks I've seen electronic
26:46checks I've seen Bank wires it all
26:48depends on how that particular company
26:52pays their vendors their first time
26:55after that they are going to want to set
27:00up electronic communications with you
27:03now that is a software that they will
27:07not only place orders with but they will
27:09also pay confirm in order to receive
27:12when product is received Oba to tell you
27:14how many units they sold so there's a
27:16software that they will expect you to
27:19have if you're going to deal with a
27:20retailer that costs money it's not a lot
27:24of money but it is a software that
27:25you're going to have to get set up and
27:27maintain in order to process orders from
27:31retailers okay maybe you only have one
27:34retailer but you could have Walgreens
27:36you could have CVS Target and maybe some
27:40other stores
27:41all placing orders to you they are not
27:43they don't call you or they don't email
27:44you with a purchase order they place the
27:47orders through a software and you need
27:50to have that software so that you can
27:52process those orders you can accept
27:54those orders and then you can get paid
27:57through that software but again for the
27:59first time the first orders a lot of a
28:02lot of the retailers will not set you up
28:07in the system until they make sure that
28:10you can not only deliver the product you
28:12can accept payments the products
28:13delivering on time is it's like it was
28:16supposed to be they do a test with it so
28:18they don't want to go through all the
28:20trouble setting you up within the system
28:23until you have actually delivered the
28:27product successfully so it's very
28:29important in that first order that you
28:31get so retailing going to retailers is
28:35it's fun but it's very very expensive to
28:39fill orders with retail especially large
28:42retailers it is very expensive once you
28:45get rolling it's all part of again your
28:47strategy your business plan to be able
28:50to keep that company functioning be able
28:53to keep rotating from inventory getting
28:57the funds in placing orders you'll have
28:59an order in China being manufactured
29:01you'll also then you'll have product on
29:03a boat being delivered you could have
29:05depending on where you make the product
29:07whether it's in Guatemala China Honduras
29:09the Philippines
29:12wherever that product is being made you
29:14have to maintain the manufacturing you
29:17have to maintain the logistics of the
29:19product being delivered and then you
29:20have to maintain the inventory so again
29:23going to retail is fun but it is a lot
29:26of work I'm not saying not to do it but
29:28you have to put a plan in place a
29:29strategy in place to make sure you will
29:31have the capacity to be able to deliver
29:35retail ready product constantly because
29:38you don't want to miss that opportunity
29:40if a large retailer wants your product
29:44but you do have to have the resources at
29:46hand to be able to complete the orders
29:49so so again that's a retail so we went
29:52through e-commerce
29:53we went through II went to retail which
29:56again feed into each other if you go to
29:58retail and they say hey how many units
30:00have you sold you know watch Shark Tank
30:01the first question they usually ask one
30:04of the first questions is how many units
30:05have you sold so same things going to
30:08happen when you go to the retailers
30:10retailers going to say hey listen we
30:12like that product how many have you sold
30:13and if you say hey I sold 10,000 on my
30:16website or I sold 5,000 Ramazan just
30:19this month the retailer is going to like
30:21that answer but if you say oh no we
30:23haven't sold any the retail is going to
30:25be a little iffy about it so selling on
30:28e-commerce first going towards going to
30:32ecommerce selling some product is very
30:34very important you're going to want to
30:36be able to report sales to retailers
30:41when they have so okay recruit we're
30:45cruising through here pretty good
30:46as I said I'm going a little fast so
30:48might be talking over myself might be
30:50repeating myself just because I'm trying
30:53to get through this within a certain
30:54amount of time without boring you what
30:56giving you as much information as
30:57possible I can't answer your questions
30:59if you email them to me I'll be able to
31:03either get back to you directly get us
31:06on inventors launchpad comm linkedin
31:09social media of facebook you know hit
31:12one of them ask this question if i'm
31:14missing something or if you think i'm
31:15saying something wrong or if you don't
31:17agree with me you do agree with me
31:18either way i would love to hear it
31:20either either way I would love to hear
31:22from you guys the inventors Launchpad
31:25family has been growing exponentially
31:26over the last several months so we have
31:30thousands of listeners I get a lot of
31:32emails a lot of questions I try to
31:35decipher I do answer all of them
31:38but I do try to pull out the questions
31:40that are repeated all you know several
31:42times because then usually means that
31:45you know there's people out there who
31:46even haven't sent in questions they
31:48probably want to know something in with
31:51either the exact question or something
31:53close to it so that's one of what I'm
31:55covering now is the different ways of
31:57getting your product out there I'm
31:59trying to answer how to get that product
32:02ready and the basic planning involved
32:05it's used I could spend
32:07I could spend hours on one of these
32:10subjects and I'm trying to cover five
32:13different ways in which to get your
32:15product to market within half hour 45
32:19minutes so that's why I'm going through
32:20this quickly so the next one we've
32:21covered e-commerce we've covered retail
32:23the next thing I want to talk about is
32:26you guys see all the time on TV as seen
32:29on TV so when you talk about an As Seen
32:33on TV product we're talking about a
32:35product that you see on the infomercials
32:38could be a long-form infomercial maybe
32:4110 minutes 15 30 minutes you guys know
32:45exactly what I'm talking about but wait
32:47there's more.they constantly pushing the
32:50products making outrageous offers and
32:54the product is is a cool product I mean
32:57it's something that you know catches
32:59your eye the script the video the
33:02commercial itself sticks in your head
33:04you talk about the product you see it
33:06out there kids are buying on parents are
33:08buying you go to the beach and the
33:10product you see the product there
33:12there's ads seen on TV aisles in retail
33:15stores but the as seen on TV industry is
33:20huge I mean it's really really big now
33:24the problem being is that there aren't
33:26enough products well there are a lot of
33:28products but the ones that are good for
33:32as seen on TV are very very few and far
33:35between I mean we're talking about you
33:37can go through hundreds of products
33:39maybe to get one that might work I mean
33:43even ourselves here at a venez launch
33:44pad we've actually tested products on
33:50acid on TV and they didn't work we've
33:53had products that did work but we've had
33:55multiple products that we thought were
33:57great products and they just think they
34:00were okay they sold okay but not they
34:03didn't hit that benchmark as a as seen
34:06on tv product that is going to make
34:08money because it is so expensive for
34:11television airtime the product has to be
34:14gangbusters it has to a certain number a
34:16certain cheap key number for it to be
34:20considered
34:20are a success and some products have
34:24made it and ones that we thought we're
34:25going to be huge or gangbusters they
34:27just didn't make it and and we find out
34:30why and we can change the product and
34:32reinitialize it and run it through again
34:34or we say hey listen let's just go to
34:36retail with it or let's go to e-commerce
34:38with it but there's always again that's
34:40where that plan comes into place where
34:42if you say hey this is an As Seen on TV
34:44product if I ever saw one and also you
34:47find out didn't didn't really work that
34:49greater than I've seen on TV it's still
34:51a good product so you have a plan to go
34:54somewhere else with it
34:55you go to retail you can you know you go
34:59to e-commerce you maybe license it out
35:01to someone a larger company of something
35:05in that sense but the ASEAN TV product
35:07is a huge market it's a lot of fun to go
35:10on set and watch them film these as seen
35:13on tv products and just see the
35:15excitement in the air I mean they
35:16actually as exciting as those
35:18commercials are that's how exciting it
35:20is when they're actually creating a
35:22commercial because you know you're
35:24looking at these products that no one
35:25has seen before and you know when it
35:27hits the airwaves that you know people
35:29going to be watching that they're going
35:30to be call and they're going to be
35:31emailing they're going to be connected
35:33online so you get this product and it's
35:36a lot of fun so I've seen on tv products
35:39again are very few and far between now
35:42the trick with AD see on TV a lot of
35:45times if you if you break even if you
35:48see and I'm just going use round numbers
35:50so you can spend a million dollars in
35:52airtime a month on an as seen on tv
35:56product if you break even and you make a
35:59million dollars that's actually good
36:01you're actually doing very good if you
36:04break even if you make more money dollar
36:08for dollar if you make a dollar ten and
36:10you maybe say you made $100,000 you
36:13spent a million dollars on airtime and
36:15you made a million million one hundred
36:17thousand dollars that would be
36:19phenomenal now the trick is and the
36:21reason being is that if you break even
36:24with a product it's all to go to
36:28see now retailers want people to know
36:31about that product so just say if there
36:33was some crazy product out there like
36:36the chia pet okay now the chia pet took
36:38off on as seen on TV it's sold for years
36:41on asking on TV and it was so easy for
36:43them to go to a retailer and say hey
36:46listen we want to sell our product in
36:49your store is that okay and they said of
36:52course I mean everyone knew was a
36:55household name people knew that if
36:57they're walking through the store and
36:58they saw the chia pet that people would
37:01know what it did they heard it they knew
37:04about it and instead of having to go
37:06online and order it or we're ordering
37:08over the phone they could just pick it
37:09up for almost the same price in some
37:11cases maybe even less but the trick is
37:14with asking on t v-- is to either make
37:17money obviously again it's all part of
37:19the plan or get it to where it's a
37:22household name not really lose any money
37:25great even and then move it into real
37:29retail so that as people foot traffic in
37:32the store see the product you're not you
37:35don't have that huge amount of money in
37:37ads spent in television airtime spend so
37:41that the product being at $10 or $20 or
37:441995 whatever it was you don't have that
37:49so now your margins are higher you can
37:51actually make money on the product but
37:53it's already embedded in people's heads
37:55so that's the fun part about an ad see
37:57on TV product it's all part of that
37:59strategy so a part of that plan to make
38:03it a household name maybe make some
38:05money on it
38:06even if you break even you move it to
38:09retail and now retailers are selling the
38:12product at a great price all of those
38:15costs all of that advertising costs all
38:18the things you did to get that product
38:19into people's houses at whatever time
38:23for 30 minutes at a time all that cost
38:25is gone and in the retailer's everybody
38:28wins because you know you said oh man I
38:31want to order that product and now I see
38:34it here and I could buy it now you don't
38:35have to give away to like wait there's
38:37more if you order now we're going to
38:39give you a second
38:40whatever eg a pet
38:42had an all pay for the shipping okay you
38:44don't to do that anymore you sell one
38:45product you sell it make your money and
38:48and you're done so the I see on TV
38:51industry is awesome it's a great
38:54industry it's a lot of fun a lot of
38:56times people think hey I want to get
39:01this product on TV I want to be an asset
39:03on TV product now don't get me wrong
39:06there's products that make gangbusters
39:08maybe for every million dollars a month
39:10sold and making four million dollars a
39:12month or three million dollars a month
39:13there are products that are out there
39:15that will stay on a/c on TV and they're
39:18going to sell and sell and sell they'll
39:19still going to move it into retail but
39:21they'll just keep selling the Nayan seen
39:23on TV because it's doing great it's a
39:25great product it works perfectly for
39:27that market there are some products that
39:29don't and the people that are big and
39:31asking on TV they can spot a product
39:34very very quickly and and no I mean I
39:40would say within minutes now if not even
39:43if it's a product for the as seen on TV
39:45market or not I can tell you that our
39:48friends that somebody has some of the
39:50larger as seen on TV companies we send
39:54them hundreds of product ideas and as I
39:58said maybe one out of a couple hundred
40:00they'll even look at just because not
40:03only is a product been done before or
40:06something close to it but it just won't
40:08fit their exact specifications for that
40:13for a product for as seen on TV it's so
40:15important for it to hit be exactly what
40:18they need those marks for them to spend
40:22the amount of money they have to spend
40:24to try and get that product to be a hit
40:28so the ad see on TV industry is a lot of
40:30fun it's very very tough to get a
40:32product and to be asking on TV space but
40:34when you do it could be it could be a
40:37pretty big hit alright moving on we've
40:43covered ecommerce you covered retail
40:46we've covered as seen on TV we're now
40:50going to cover the TV shopping industry
40:52which as all of you know
40:55or should I say as all of you may know
40:58is television networks I only want to
41:04say shows because there are actual
41:06networks like QVC HSN the jewelry
41:10Channel different different other
41:12shopping channels throughout this
41:14there's many many shopping channels QVC
41:17HSN are probably tops on the list but
41:20there are a lot of shopping channels out
41:23there some are trying to make their mark
41:25still so they're easy to get on those
41:27shows but the great part about TV
41:30shopping is that it's 24 hours a day so
41:33they need products they always need
41:36products for these shows they may test
41:39your product they might put it on a two
41:41o'clock in the morning or we're going to
41:43say hey listen we like your product come
41:45back to us in six months or three months
41:47because we're doing a special on
41:51barbecuing and your product just happens
41:53to be an outdoor picnic or outdoor BBQ
41:56type products so the great part about TV
41:59shopping is that they always need
42:02products it's just trying to get into
42:04the into the into the see the buyer so
42:07that your product can be seen there are
42:09some nuances about TV shopping that you
42:13might want to know about and HSN is
42:16doing a great job to help the American
42:18inventors and we'll talk about that in a
42:19second so with with TV shopping I don't
42:23know when you're listening to this show
42:24but just recently QVC announced that
42:29they are taking HSN over they're doing a
42:32full stock purchase of HSN so QVC will
42:38be the I guess the owner of HSN they're
42:44going to they're going to run each as a
42:46company I don't think they're going to
42:47break it up I think they're going to
42:48leave the two companies separate the two
42:52channels separate because they do cover
42:55different demographics HSN is a little
42:58bit older of a demographic as where TVC
43:01of the younger demographic so I think
43:03they might just keep them impacted and
43:05just run them autonomously so but anyway
43:09that was just
43:09that was just announced about a week or
43:11so ago but so what are we getting back
43:14to TV shopping channels there are some
43:18myths about TV shopping that you may
43:21have heard may have enough you haven't
43:24heard and maybe you want to get your
43:25product on an HSN or QVC - Jewelry
43:28channel or or one of these channels so
43:32so it's kind of going to like going
43:35after retail or e-commerce okay so you
43:38can't get onto TV shopping with a
43:41prototype or a sample of your product it
43:44has to be retail ready packaged it has
43:47to have a great price point and you have
43:50to have inventory in some way now when
43:54you go to talk to the buyer at one of
43:56these shopping channels you don't have
43:58to have inventory at that time but you
44:01have to have an actual product or you
44:05don't want to blow your chance with just
44:06a prototype and in case the buyer says
44:08hey I love this product
44:10when can I put it on TV and you go oh
44:13this is just a prototype I don't really
44:17have any other products the the buyer
44:20might not be too happy about that or you
44:22may say well listen let's get this
44:23product moving in which case you're
44:26going to have to get going pretty
44:27quickly and get full manufacturing so so
44:30with TV shopping you don't want to
44:33approach a buyer with a sample or a
44:36prototype you want to have a
44:39manufacturing ready I'm not saying you
44:41have to have you know 100,000 units of
44:43your product but you should be able to
44:45manufacture your product pretty quickly
44:49and and the only real way to do that is
44:51if you have a few hundred units or maybe
44:53a few thousand units maybe you're
44:55selling on e-commerce or you know you've
44:58gone to retailers and you sold some but
45:01you want to break into TV shopping it's
45:05a great way to roll into TV shopping
45:08category and get rid of some extra
45:10inventory so a lot of these these TV
45:14shopping channels will be good if you do
45:16have some inventory you are already
45:18selling your product they're a great way
45:21to
45:22to get some extra sales TV shopping I
45:27want to say that that they're good to
45:31break into but if you have e-commerce
45:33going or retailers going it's kind of
45:36good in a way now the trick with TV
45:38shopping in most cases is that the same
45:41thing with with retail is that you you
45:46are going to deliver your product just
45:48use around number of somebody at the QVC
45:51or HSN says they want 10,000 units
45:53they're going to do a test next month
45:56they're going to run your product at 7
45:59o'clock at night on a Tuesday they need
46:0110,000 use in their warehouse by next
46:05week within 10 days they want so you
46:08have to send that product into their
46:10warehouse it's going to sit there in the
46:12warehouse until it goes on air now
46:16whilst before you send a product there
46:19they're not only going to test the
46:20packaging they're going to test any
46:22claims that you make on the packaging if
46:24you are going to have to prove that
46:26those claims that your product does what
46:29it says on those claims it does if it
46:30doesn't you're going to change the
46:32packaging or you're not going to get on
46:35they they have very stringent QA Quality
46:38Assurance on TV shopping channels is
46:41very very important they want to make
46:43sure that the people are going to get
46:46what they buy because they're not going
46:48into a retail they can't just go in
46:50there and read the packaging they can't
46:52put it in their hand so they're trusting
46:55the TV shopping channels to deliver what
46:58they say the product does so it's very
47:01important Quality Assurance
47:02in TV shopping is huge so again any
47:06claims that are on your packaging you
47:08will have to make sure that your product
47:10does what it says the packaging itself
47:13is very stringent there's going to be
47:15certain things that have to be on your
47:17packaging and probably certain things
47:19that they will not want on your
47:21packaging if it's a retail ready
47:23packaging and you're already selling the
47:25product in retailers it's probably fine
47:28I don't mean to scare you
47:29again packaging means is very important
47:31so again if it's retail ready and you
47:34are selling your product ready
47:36probably okay so again with with the TV
47:40shopping channels is that let's go back
47:42to our example they want 10,000 units
47:45they're going to sell a product soon now
47:48you're going to deliver that product
47:49into the warehouse once it gets to that
47:52warehouse it's just going to sit there
47:54until they try to sell it you don't get
47:56paid for the product until after it's
47:58sold after it airs I should say after
48:02the show airs and then also there could
48:04be a 60-day wait or for 30 days 60 or 90
48:08day wait before you get paid for the
48:11product that you delivered so just check
48:14the contracts talk with whoever you have
48:15to and just go through it make sure that
48:18you can handle the timeframes of the
48:21delivery of the product and waiting they
48:23also will hold some money back for
48:25returns because some people when they
48:27get the product they have a certain
48:29amount of time before they can return it
48:32to get their money back so they will
48:34hold some money back on that to the TV
48:38shopping channels are great most people
48:40are super nice it's like a machine don't
48:43think that if they're pushing you or
48:45they're trying to get things done quick
48:46is because they're mean or they don't
48:48know they're just trying to trick you
48:49they just have to get things done quick
48:51it's a 24 hour a day operation and they
48:54can't mess around so you know as they
48:57ask you for things make sure you get
48:59them as quickly as possible because it's
49:01very important for them to follow the
49:03strict guidelines that they have to sell
49:05things on Telus I do want to talk about
49:08one item that HSN is doing and HSN is
49:13doing an awesome job trying to help the
49:17American inventors they do have a show
49:19on HSN
49:21it usually airs earlier in the morning I
49:24don't want to say too early probably
49:26between 7-9 or maybe even a little after
49:28or maybe all different times and it's
49:30something you can look up but it's
49:32called the American American Dreams show
49:36and it's on HSN it's hosted by Bob
49:39Circosta
49:40he's been around on HSN for for a number
49:44of years he's a legend Award winner from
49:48HSN but he's
49:50great guy and he hosts the American
49:53Dreams show on HSN what's great about
49:55the American green show is all the
49:57things that I just talked to you about
49:59all the stringent guidelines all the
50:01things that are I want to say roadblocks
50:05but all the things that are very tough
50:06for us inventors to to adhere to because
50:12of either resources or funds or
50:14inventory whatever it is shipping
50:18fulfillment all of those things are
50:21taken care of for the American Dream
50:23show so if you have an idea and you have
50:25a product the only trick is you do have
50:27to have some inventory okay it has to be
50:29packaged it has to be retail ready but
50:33it doesn't have to be huge amounts and
50:35here's a good part you don't have to
50:37wait you know 60 90 120 days to get paid
50:41the show itself says hey we're going to
50:45take 500 units we're going to take a
50:46thousand units 5,000 units and they pay
50:48you for the product it's totally
50:51separate from the other systems away the
50:54HSN and QVC run and again it's nothing
50:58wrong with the way they do it it's just
50:59a talisay be done by the American Dream
51:01show is basically built around helping
51:06the American inventors get their
51:08products on television get them sold and
51:10then either launching them into the
51:13standard HSN time slots because their
51:17product does good or moving them into
51:19retail because they said hey we sold
51:215,000 of these in 10 minutes or sold the
51:23thousands we sold out in seven minutes
51:25whatever that whatever that is whatever
51:27that product success is you can take
51:29that success and move to e-commerce you
51:33can move to retailers or all of the
51:36above so again the the HSN American
51:39Dream show is an awesome show if you
51:41want to know more about it up we're
51:43doing a podcast with Bob Circosta to
51:46host the American green show on the
51:48inventors Launchpad Network so go ahead
51:50and scroll through the shows and you'll
51:53see some podcasts that are explaining
51:56the show you're going to have people
51:57pitching their products right to Bob on
52:00our podcast if you have a product and
52:01you want to pitch it to us
52:04you want to pitch it to Bob's or for a
52:06chance to get on the American Dream show
52:08on HSN go ahead and send me a note go on
52:11two minutes launchpad comm in the
52:12contact section go to Bob Circosta comm
52:16but get in touch with one of us and let
52:18them know that you heard about the
52:20podcast you want to pitch your product
52:22and it's a great it is it's a great show
52:25it's a great thing that HSN is doing I
52:28think I mend them for really helping out
52:31the American inventors because it is so
52:34expensive to take a product to market so
52:36much so much resources are involved so
52:39many things are involved that I think
52:42they're doing a great job so so that's
52:44kind of the TV shopping model I wanted
52:47again it went through that very quickly
52:49there's a lot involved again if you have
52:52questions on that get in touch with me
52:54and the last but not least there are
52:56other things the last thing I wanted to
52:57talk about a little bit is is for
52:59getting all the things I just talked
53:01about and trying to license your product
53:04okay
53:05licensing is a whole different animal as
53:08to selling your product in any way or
53:12fashion licensing your product and
53:15basically you developing an idea and in
53:19any stage of it giving it to a company
53:22or a wholesaler or someone who's going
53:24to take all of that read all the things
53:28that we've been talking about take it
53:30off your hands and give you what's
53:31called a royalty it's going to be very
53:33small or or large depending on how much
53:37you have done to prepare that product
53:41for the licensing industry so so let's
53:44just go through it so you you developed
53:47an idea for a widget you haven't done
53:50too much you've thought about it you
53:53maybe done some drawings you've done
53:55some research online you realize there's
53:57nothing really out there like it you
54:00haven't done a provisional patent you
54:03haven't done really any prototyping you
54:05haven't proved the actual theory you've
54:08proved that there's really nothing else
54:09out there like it and you've done that
54:12much and you want to go and license it
54:13you're going to get a very small amount
54:15if anything if
54:18company picks it up now if you go a
54:20little further you have done a
54:22provisional patent or maybe a full
54:24patent you have a prototype you're
54:26approving the product works or your idea
54:29works and you go to somebody and you say
54:32hey listen here's my idea blah blah this
54:34is it myself sheet this is this is what
54:37I've done it does work here's the market
54:40the niche market this is who you know
54:42targets the more work that you do the
54:44more you may Realty payments you would
54:48get a standard is probably anywhere from
54:502% maybe to 7 or 8% and anywhere in
54:54between I can tell you that 7 or 8
54:56percent will be phenomenal if you ever
54:59even get to that much percentage of a
55:02royalty because there's so much money
55:04that has to be laid out to make that
55:06product reality that the margins and and
55:11costs are super expensive so licensing
55:15is a great way to have ideas develop the
55:19ideas as far as you really need to
55:21develop them depending on who you're
55:23going to talk to you who you're going
55:24after the type of product develop them
55:27just to the point where it gives you the
55:30ability to license it now licensing
55:34means that you don't control that
55:36product anymore you had the idea you
55:38took it to this stage and you're handing
55:41it off to a company that is going to do
55:44whatever they want for if you design the
55:46product and it was blue and you think
55:48blue is the greatest color in the world
55:50and you license your product to them
55:52unless it's written in the contract that
55:55they can't change the color and they
55:57want to make it red you can't do
55:59anything about it nor that nor she
56:01didn't matter to you as long as they're
56:04paying you you're royalty and they're
56:06selling the product now we could go into
56:09the contractual issues of Licensing you
56:14know for four hours because it's very
56:17important that the contract is written
56:19in a way that you're going to get paid
56:21you know licensing your product is very
56:24very important but that's just the
56:27beginning
56:27you get somebody who license and signs
56:29that licensing product that licensing
56:31deal with
56:32it's really just a beginning you got oh
56:34you're going to want to make sure that
56:35the product is being sold you make sure
56:39that the amounts of product that they're
56:42reporting to you or their correct amount
56:44that they're even working on selling
56:47your product that is even being marketed
56:49as being manufacturer that's being you
56:52know shipped correctly I mean there's
56:54just so much because again you don't
56:56have anything to do with that but
56:57everything that happens it goes against
57:01your royalty payment so you want to make
57:02sure that that product is going to be
57:04sold and not just shelved somewhere for
57:08years I mean while you aren't able to
57:11you know take that product back no one's
57:14selling it so you're not getting any
57:16royalty payments and and you both lose
57:19out because another product that's
57:20similar to it comes out on the market
57:22and it's selling like gangbusters and
57:23because you license and you didn't go
57:25through that documentation correctly
57:28you've got you know you just stalled so
57:32so the allow licensing agreements I've
57:35heard likes horror stories about
57:36licensing it's very important to to know
57:40what you're talking about with licensing
57:41if it's not if it's not written down it
57:44was never said so you got to make sure
57:46that that licensing contract is set
57:49correctly we also do a podcast with
57:52Jeffery mangas who runs the licensing
57:56jungle go ahead if you're interested in
57:59learning about licensing go ahead
58:00through our podcast
58:01there's licensing podcast a lot of
58:03information in these in these podcasts
58:05to help if you do have other questions
58:09you can contact me at Amanda's Launchpad
58:11calm or again get get a hold of Jeff
58:14from Magnus at the licensing jungle or
58:16product coach usa.com if you have
58:20questions about licensing you know and
58:23again that's that's the five items that
58:27I wanted to cover today because I did
58:29have questions about several those over
58:31the last week that came in from some of
58:34our podcasts and I understand that I
58:36want to is pretty quickly because you
58:39know I just I just wanted to cover them
58:41an overview if you have a specific
58:45question on either ecommerce retail as
58:49seen on TV TV shopping or licensing go
58:53ahead and get in touch with me I would
58:55love to answer any questions you have if
58:57any things I said you agree with you
59:00don't agree with get in touch with me I
59:01would love to talk to you about that
59:02because it's very important that we
59:04convey the correct information out to
59:07our listening base I appreciate the
59:10vendors Launchpad Network family for
59:13supporting us for getting in touch with
59:15us passing our show out to everyone we
59:18get some great feedback about the show
59:20and we just want to keep delivering good
59:23information so if you have ideas for any
59:27upcoming shows send them over to me I
59:29would love to hear your ideas about them
59:31and until then this is Carmine danesco
59:35your host for the inventors a launchpad
59:38Network signing off and we will talk to
59:41you soon you take care