Hugh Ballou
World Renown Author, Speaker and Transformational Leadership Strategist the Name Hugh Ballou is Music to Inventors and Entrepreneurs
April 10, 2017
Warren Tuttle
Warren Tuttle, United Inventors Association President, Talks Free Patent Legislation and More
April 19, 2017

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Over the past thirty years Ms. Crompton has startedor helped to start no less than five successful businesses in four distinct and unrelated industries. Because of her superior marketing skills and the business relationships she has established and nurtured in the national marketplace, Ms. Crompton and her company, FLeCusa International, provide a unique service to clients wishing to enter the marketplace or grow their business to a new level, nationally or internationally. During this adventure, Ms. Crompton has delved heavily challenges inventors face as they enter the world of due diligence/manufacturing/funding/marketing/selling their product.
www.inventorlady.com

The Inventors Launchpad – Roadmap to Success Series is presented by Inventors Launchpad in beautiful Tampa Bay, FL and hosted by Carmine Denisco. Carmine is an accomplished Author, Entrepreneur, Inventor and Co-founder/Managing Partner of Inventors Launchpad. Along with his business partner Rick Valderrama has changed the face of the invention industry and look forward to helping inventors from all over the world move their ideas forward. For more information please visit www.inventorslaunchpad.com

Podcast Notes

1You Tube generated podcast notes, please excuse any typos.
0:00
hi everyone and welcome to inventors
0:04
Launchpad roadmap to success this is
0:07
common dennis go your host for today's
0:09
episode and today on the launchpad we
0:12
have a licensing expert he's an inventor
0:15
she's an inventor advocate she really
0:18
really loves educating inventors on the
0:21
way to move forward whether they're
0:23
going to go to retail going to go to TV
0:25
shopping but her main focus is licensing
0:27
products which is one of the things that
0:29
I get questions about all the time
0:32
everyone not everyone but most inventors
0:35
and most product developers want to
0:37
license their product because they don't
0:38
want to be in business they don't want
0:40
to be a business person they just want
0:41
to go about inventing and developing her
0:44
name is Rita Crompton and I think she's
0:46
on the one line now are you there either
0:47
I'm here well hello and thank you for
0:51
being on the show today how's it going
0:53
out there it's nice and sunny today yeah
0:55
that's good you're out in the colorado
0:57
area i am right just west of the Front
1:01
Range there so I give an ICU the
1:03
mountain oh yeah it's some nice area
1:05
we're out here in the Clearwater Florida
1:07
and we enjoy the sunshine as I know that
1:09
you do and again I'm glad you're on the
1:12
show um you're talking about license of
1:15
questions sent to us at the launchpad
1:18
about licensing and it's so important to
1:21
get the right information licensing is
1:23
such a great outlet for an inventor and
1:26
that's what so I was excited to have you
1:28
on the show first off let's see a step
1:30
back whether I could get into what
1:32
you're doing oh yeah okay that's kind of
1:36
funny because I always say that God was
1:38
actually talking to me one day and I
1:39
shut up and listen you know and when I
1:42
look back over my history I was kicked
1:45
out of the Girl Scouts in the fourth
1:46
grade for selling too many cookies I
1:48
invented going around and taking orders
1:49
I have been an entrepreneur all of my
1:52
life and so you know i look at the steps
1:55
and my skill set is helping people kind
2:00
of get out of their own way it's seeing
2:01
the bigger picture it's getting out of
2:03
the traditional sandbox and saying well
2:05
what if we used it this way well how
2:08
about going here and helping inventors
2:10
really see that bigger picture and
2:13
to keep them on track you know life gets
2:15
in the way for everyone it does me too
2:16
and then the goal is to get back on
2:19
track you know how do you get come a
2:21
time table set and then stay on track
2:23
and that's my skill set is to see the
2:25
bigger picture and keep them on track
2:26
yeah well looks fine you don't take
2:30
shortcuts I don't let people drink a
2:31
little umbrella drinks into ET you know
2:33
when we still got a lot of work to do
2:34
I'm glad you think that because doing
2:39
this in the right sequence is one of the
2:41
most important things at an inventor to
2:43
do but to try to leapfrog or jump there
2:47
are no shortcuts I do not have a crystal
2:49
ball I can't make promises on that
2:52
something is absolutely going to happen
2:53
so it's a very sequential you know one
2:56
step we mix it mix the next set of
2:58
decisions based on the information we
2:59
gathered at the previous step very
3:02
logical yeah so when you when you
3:05
started getting to this was there was
3:08
there something i don't know i don't
3:09
know how many years you been how long
3:11
have you been doing this i'm not going
3:12
to tell you all dates me know over 10
3:15
years over 10 years unselect that have
3:17
been an entrepreneur and have multiple
3:19
businesses in your industry over the
3:21
years rather than dip decades but I've
3:25
been around for a while well again I
3:28
read that you did have several
3:29
businesses and that's kind of even in
3:31
the same way I mean as you progress
3:32
through your business and gathered
3:35
knowledge it's so much fun to to help
3:38
other entrepreneurs are inventors with
3:40
your knowledge and education but
3:42
bringing them back down to earth and
3:43
getting them in that sequence as you
3:45
said is so important it really is
3:47
because they have and I don't want to
3:50
say anything bad i mean inventors were
3:51
all inventors we were getting excited i
3:53
get excited about my own product yeah i
3:56
need somebody to pull me down and say no
3:58
you know you can't do that you can't go
4:00
that fast so when you're looking at four
4:02
products are looking at a product what
4:04
do you what do you look forward you look
4:05
at the inventor first do you look at if
4:07
they have a team together or do you look
4:09
at just a product oh it really depends
4:13
the first thing I look at is the product
4:14
does it have some length you know we do
4:16
some due diligence is there anything
4:18
else out there you know they always say
4:20
oh there's nothing else out there like
4:21
it it's like you know what's give me 15
4:22
minutes and it's like you know you might
4:25
want to buy that one on amazon for
4:26
2495 because it's going to be a lot
4:28
cheaper than filing a patent like oh no
4:30
there's nothing else out there well you
4:32
know a lot of concern is now having a
4:34
better widget is a good thing having
4:38
something that is totally new and novel
4:40
is not always a good thing because now
4:42
you have to pay a lot of money to
4:44
educate the consumer that you solve a
4:46
problem they didn't know they had and
4:49
that can be really expensive so you know
4:51
a better flashlight everybody knows what
4:53
a flashlight is for but now you've got
4:55
one that wraps around a pole instead of
4:56
having to hold it so sometimes that's a
4:59
good thing it's faster into the
5:00
marketplace so we look at those types of
5:02
things is a disposable non-disposable
5:04
you know what is the potential market
5:06
place the guy gets dumb in southern
5:08
Colorado get an amazing full-size
5:10
functioning tractor limited market as
5:13
opposed to the person who did the really
5:15
cool baby teeter we look at those kinds
5:18
of things on you know what is it what is
5:21
the potential point to be and for a lot
5:24
of folks that's the big thing is you
5:26
know it's easy to go to a trade show and
5:28
launch a product when it's a baby
5:30
teether or i can carry it in tractor not
5:32
so much and again like you said it's it
5:36
could be a limited market I mean you
5:38
don't want to go after a market that's
5:40
very small even though most inventors
5:43
you probably hear you ask them who their
5:45
who their client database is who the
5:47
target market is and they say everyone
5:49
right and you know then I want to know
5:51
what have they done so far and we always
5:53
say you know do as much digging around
5:55
as you can try to find you know websites
5:57
then when they get to the point where
5:59
they've done their own version of a
6:02
prototype duct tape cardboard Legos pipe
6:04
cleaners I don't care what they've got
6:06
laying around the house they can get
6:07
something out of their head and in
6:10
three-dimensional and so for some people
6:12
are better at drawing than they are
6:13
actually doing something out of play-doh
6:15
that first one is just really really
6:18
rough and then we look at doing a
6:19
professional search and this is
6:22
professional search in patent and
6:26
product because there's a lot of things
6:27
as you know that are out there that are
6:28
not patented but they become part of the
6:30
public domain so that would influence
6:32
somebody's ability then to go ahead and
6:34
successfully file a patent so that's the
6:37
next step we look at is that
6:38
professional search
6:39
not something that is necessarily done
6:41
by an attorney just because they tend to
6:43
charge a lot more um but you know giving
6:47
them the inventor another set of eyes
6:49
it's going to be looking through the
6:50
USPTO the international filings and then
6:54
product filings it is amazing how many
6:56
science students made a public
6:58
disclosure and now they're in you know
7:01
there in the marketplace even though it
7:03
was just a science project and I saw oh
7:05
because they're in the public eye as
7:08
soon as they presented that's right yeah
7:11
i just got done judges judging the state
7:13
science fair last Thursday and for any
7:15
of those kids that had a potential
7:17
product they made a public disclosure at
7:18
that science fair oh yeah and they're
7:21
not getting everybody there to sign an
7:23
NDA so it's kinda psychic preferred yep
7:26
and so you know those some of the things
7:28
that we look at is you know the due
7:31
diligence you know that bet search what
7:33
comes back in the search you've been
7:35
done in other countries it doesn't
7:37
matter where it was done if it's been
7:39
done at any time in history any place in
7:42
the world it affects your ability to
7:44
file successfully in the US yeah and
7:47
it's super important that you're going
7:49
to try to license I mean a company that
7:52
you're going that's going to want to
7:53
take over your product is really how
7:55
deep into it how much due diligence do
7:58
they complete you know once you know if
8:01
when they have the professional search
8:04
done alright that's kind of one step
8:06
removed so I tell people you know look
8:08
dig around on the USPTO website they've
8:10
got a very good tutorial you know when
8:12
your eyes kind of roll back in your head
8:14
then it's time to move on and get that
8:17
third party search done we've got a
8:19
pretty good company that nobody it
8:21
worked with that's what you take in to
8:23
your attorney you know whichever one
8:25
you're but there's again no shortcuts
8:27
they're going to file a provisional it
8:30
needs to be a good one you don't get to
8:31
hire somebody that filled in the blanks
8:33
I can circle the words they filled in
8:36
and if I can do it somebody else can and
8:37
I had a guy do that he says let me send
8:40
you what I filed like okay and I said I
8:43
can circle the words this isn't going to
8:46
stand up in court and it's someone then
8:47
we get to the point of Licensing they
8:50
need to know that they can defend it
8:51
because they're going to take on that
8:52
respond
8:52
Tony yeah that thing each step is so
8:55
important and someone else is going to
8:58
be giving you money for your product
9:00
it's so important it really isn't so I
9:02
mean it so you go through and you find a
9:05
product and then you're going to go dot
9:06
your i's and cross your T's what about
9:09
their product itself I mean have you
9:11
gone through ones that we're just
9:12
drawing ones that we're functional or
9:15
just prototyped those do companies you
9:19
know it's funny because you know ask
9:20
somebody will how many prototypes you
9:22
having I've got a museum full of
9:23
prototypes because you know you build on
9:27
it they'll have their first one that's
9:28
you know out of Legos or play dough or
9:30
pipe cleaners or whatever and then they
9:31
not go and get a 3d printed one then
9:34
they test it then they know they've got
9:35
to make some changes in the size or this
9:37
part doesn't work just right 3d printing
9:39
is wonderful because you can make
9:40
corrections for a few hundred dollars
9:42
now instead of thousands of dollars and
9:45
so we look at you know getting that sexy
9:47
prototype finished up and to go to you
9:51
know that first kick of marketing and
9:52
launching a product we need patent
9:54
pending and a sexy prototype do not need
9:57
inventory yeah unlike something not the
10:00
licensing them nope now it's great if we
10:03
do if we get to the point now where
10:04
we've gone to a trade show we know
10:06
there's some due diligence there there's
10:07
an interest in the product um you know
10:10
packaging isn't going to be too terrible
10:11
we can sell on amazon you cancel orders
10:14
maybe do a Kickstarter campaign for some
10:16
folks we go to a trade show we launch
10:17
the product we come back we launched a
10:19
Kickstarter campaign so we've got more
10:21
options now as far as building towards
10:24
that licensing goal that's that's a
10:27
that's a good point so what about when
10:29
you're going after these licensees if
10:31
you're going after multiple you'll want
10:33
to have either more than one prototype
10:35
or if like you said you did a small run
10:37
and you have some manufactured it's
10:38
easier to send it out do do companies
10:41
ask about sales because it or you do you
10:44
tell them this is a brand new product we
10:45
haven't made sales we're looking the
10:47
license that you are you tell them right
10:48
off the bat yes we tell them right off
10:51
the bat exactly where we are that we you
10:53
know we've got sexy prototypes and Alexa
10:55
property filed we haven't sold any
10:58
because we have a manufactured any yeah
11:00
if we need to do then a Kickstarter
11:02
afterwards just approved sales
11:04
Kickstarter is great on you know
11:06
to go though because now they they pay
11:08
for it upfront so the inventor is not
11:10
out you know the tens of thousands of
11:12
dollars from manufacturing you know we
11:14
can usually get moles covers and a lot
11:16
of times the licensee will buy the molds
11:18
or the tooling and any inventory that
11:20
you may have for some of that is that's
11:22
great but I've got any letters going to
11:24
the national hardware show where their
11:25
money was put into a single prototype
11:28
and that is all we've got to work with
11:29
and I've license with that mmm sexy
11:33
prototypes in and for a lot of them
11:35
that's what they're needing a good
11:37
licensee they don't necessarily need to
11:40
they know what they're marketed they can
11:43
get a good licensing they can look at it
11:45
and know basically a ballpark of what
11:46
it's going to cost them to manufacturing
11:48
know their their book of business and
11:51
who's going to buy it when they get down
11:53
to that minutiae of it's like well you
11:56
know it's going to how much does it cost
11:58
you to manufacture it I say run because
12:00
they should know how much it's going to
12:02
cost them to manufacture and it's always
12:04
going to be cheaper than it cost you yes
12:06
know that there's no doubt about that
12:08
you're you're exactly right boy there's
12:11
so many questions when you're getting is
12:12
because and we get only cry yeah you
12:15
know we get so many times that want to
12:17
know about licensing and and you're just
12:19
hitting this stuff so fix it so fast
12:21
that's great um so so when you're
12:24
approaching a licensee and and do they
12:29
sometimes are going so so I'm just
12:32
trying to think of us we put so there
12:34
are they going to make changes to it oh
12:35
so it so you don't worry want to order
12:37
10,000 units because they may make
12:39
changes they may just want be though
12:41
they might just want the intellectual
12:43
property right and we look at you know I
12:46
worked with attorneys in the password
12:49
you know they understand that skill set
12:51
that it's got to bump up against and
12:53
that's why the search is so important
12:54
because they want to know that ballpark
12:56
of what's out there and then if they
12:57
need to fine-tune the search they know
12:59
which classification to go to I talk to
13:01
my hands so I'm moving around too you
13:03
know vacations to go to right away to
13:05
fine-tune that if they need to and then
13:07
we want that intellectual property to
13:09
bump up against whatever else is there
13:11
so the inventor has got you know some
13:13
wiggle room in making changes to the
13:16
design that still will be covered a good
13:19
patent is not
13:20
industry-specific right it is not sighs
13:23
specific it is not material specific so
13:26
I had somebody one time they said well
13:28
we want to make it out of a
13:29
biodegradable material and I said well
13:31
you can and they said well why not I
13:32
said because your attorneys that it was
13:34
made out of aluminum that'd be pretty
13:36
much that's it right there oh you know
13:38
they were able to go back and file a CIP
13:40
and correct that but inventors need to
13:43
be aware that you know you say something
13:45
made out of but not limited to so in
13:47
five years a new material comes down
13:50
that makes your product better you don't
13:51
want to be obsolete vitally yeah you
13:53
know and as Venters and what we learn is
13:56
to be specific and it's so hard to
13:59
change those tides when you're doing a
14:01
patent because you don't want to be
14:03
specific and there's a difference
14:04
between the patent drawings in the
14:06
manufacturing drawing patent drawings
14:08
are very broad you know their their
14:10
labels to match the elements of the
14:13
patent but your manufacturing ones
14:14
they've got to be right down to
14:17
millimeters it's right and so you know
14:20
different mindsets and so I get in
14:22
better sometimes that are hard to
14:23
understand that but you're exactly right
14:25
a licensee is renting the right to use
14:29
the intellectual property mmm all right
14:31
and if they go in and it's going to be
14:33
cheaper to make it by making some
14:35
changes it's not it's your end up eating
14:38
your inventory you can still go and sell
14:40
it and a lot of times they will buy that
14:41
inventory and they will go ahead and go
14:43
to market with that unless there's just
14:45
some really serious material changes
14:47
because they don't want that gap in
14:49
selling they want to be able to you know
14:51
get to market as smoothly as possible so
14:56
that's kind of what we look at is in
14:58
getting the products out there but
15:00
companies come to professional trade
15:03
shows it's when you say I contact them I
15:05
look for them in a trade show yeah they
15:07
look for me at a trade show they come
15:09
shopping in our space at a trade show
15:10
and to see what is their next project
15:13
going to be it's something that they
15:15
usually picked up in a trade show trade
15:17
shows are like their mold where they're
15:18
going to go shopping hmm get to them
15:21
after the show they've got layers of
15:23
gatekeepers to keep you out is not
15:28
working on the project that they got it
15:29
the last trade show tips that's where
15:31
they go shopping so yeah I mean
15:34
and we I was going to definitely going
15:36
to get into that real quick so so the
15:37
best thing to do I have a product and
15:39
i'm not sure what to do with it try to
15:42
either locate and we'll go through your
15:44
contact information or the end to end of
15:48
the show but but just to go to a trade
15:50
show walk around do you take your
15:51
product do you take a sale sheet I mean
15:53
what's the best thing to do yes and yes
15:56
we had we just got back from entries
16:00
which is home health care and I went out
16:02
there with nine inventors and one of one
16:05
of the inventors was in there featured
16:06
showcase and I said okay you've got a
16:11
motorized wheelchair that starts out
16:13
with a hoverboard so cool now you can
16:15
take an old wheelchair and set it on top
16:18
of a hoverboard and you have got for a
16:21
few hundred dollars now a motorized
16:22
wheelchair that is just so stable and so
16:25
easy to use but it was sitting in a
16:28
showcase well you had another one there
16:30
and I did you need to get out and ride
16:31
this around he won third place for
16:34
innovation um but it was only because he
16:36
got out there and showed it around now
16:38
he is going to the national hardware
16:40
show with us he's out of Boston and the
16:43
hoverboard buddy system is he starts out
16:46
with a platform that goes on to any
16:48
hoverboard but he has different
16:49
accessories that go on to it so while he
16:51
was at meant trade with the wheelchair
16:54
he's going to the national hardware show
16:56
with a two wheel dolly that is now
16:58
motorized Wow and a golf cart maybe I'll
17:03
show both of those in the product launch
17:05
area the you know the showcase premier
17:08
area to be out there but you will also
17:11
ride those around the entire convention
17:14
hall to get people's you know and the
17:16
media's attention about this and what
17:18
he's licensing then is that platform
17:21
that goes over the over the hoverboard
17:24
and that way then he's got about a half
17:26
a dozen different accessories that go
17:29
with it that will turn it into a
17:31
different work items so he's taken up a
17:33
fun toy and turned it into a work horse
17:37
yeah yeah wow talk about innovation
17:39
that's and being able to put like you
17:41
said put it on a stable base oh it's
17:44
it's amazing i I've ridden it many times
17:47
on
17:47
you know farmers market and at the
17:50
hardware show last year and it is so
17:52
stable and it just it's just zoom yes
17:55
wonderful that's so there are a lot of
18:00
shows out there yeah and is there a
18:03
place that people can find out where the
18:04
shows are or should they just contact
18:06
you or do you have it on your website or
18:07
should they get is there somewhere else
18:09
to go the easiest place to go with you
18:12
know when you look at who's going to be
18:14
selling your product all right so if
18:16
it's a baby product you know there's
18:18
somebody know off the top of my head
18:19
there's the ABC Kids Expo there's med
18:21
trade for home health care but there is
18:23
a show for everything yeah the national
18:25
beverage shots okay and I'm going with a
18:28
client to that one so there is a show
18:31
for everything now the national hardware
18:32
show is kind of all-encompassing it's
18:34
just a gigantic show you've got
18:36
everything there from home and garden to
18:38
car accessories and the pet products and
18:42
you know outdoor products anything that
18:45
you would find in your target walmart if
18:48
you're looking at your home your
18:49
basement your outdoors your garage your
18:51
kitchen anything so it's one of the ones
18:54
that's all encompassing it's easier
18:56
easier certainly easier for us to get
18:57
you I've been to the National asphalt
18:59
shell oh that was fun but very
19:03
successful for the inventor because he
19:05
had a cool way of putting those glass
19:07
beads down into go on asshole and he had
19:11
people actually coming in and buying his
19:13
prototypes and wheeling them out the
19:14
door and they were not cheap um but very
19:18
cool so the best way to find your trade
19:21
show is to look at you know where would
19:24
your product to be sold and then to
19:27
contact that sore and ask them for a
19:29
name of a Salesman or a distributor you
19:31
know the other way to do it is to you
19:33
know if the ideal licensee is pepsi-cola
19:36
bottling then you call them up and say
19:39
what trade shows do you go to hang all
19:43
right so some of it is you know you
19:44
better do a little reconnaissance you
19:45
got to dig around um because the trade
19:48
shows they're all over the country you
19:49
know the asphalt one was in Nashville
19:51
I've been to the global pet expo in
19:53
Orlando fashion shows in New York arm
19:57
the outdoor living show in Chicago
20:01
so they're all over the country and you
20:04
just never know some of them move around
20:05
some of them stay in the same place
20:06
every year but the best thing to do is
20:09
to start asking questions yeah I want
20:11
you know once to talk specifically about
20:13
their industry more than happy to point
20:16
them in the right direction or to let
20:18
them know if I've been to one of those
20:20
shows I don't have my travel with the
20:23
inventor to go to a specific show
20:24
because to work a show you cannot go by
20:27
yourself got to have multiple people
20:30
there to get the benefit out of it see
20:33
that's why I you know I would recommend
20:36
and I know you're giving out the
20:37
information and just allowing people you
20:39
know to make that you but anyone is
20:41
listening I would recommend speaking
20:43
with readers beforehand because they are
20:45
vast and a lot of times an inventor
20:48
buoys their product is for a certain
20:50
segment or certain market and you find
20:53
that sometimes you're like wait a minute
20:54
we have a better market to go after
20:56
exactly and the other thing is they're
20:58
expensive hmm you know going to a
21:01
professional show is expensive you know
21:03
you've got your space but you have to
21:05
pay it to rent everything right down to
21:07
the trash can and a lot of times they've
21:11
got rules about how you get it into
21:13
there so you've got higher Union help to
21:16
get it in the door I hate going to
21:19
Atlanta because they've got different
21:21
rules than Las Vegas and in Las Vegas I
21:24
can wheel everything in on a two wheel
21:26
dolly and so I line up my inventors and
21:28
we unload it on the curb and we push it
21:30
in the door you know Chicago isn't
21:34
easier to work with um but you know
21:37
different different cities have
21:39
different rules and where you can find
21:41
yourself real quick at a
21:42
ten-thousand-dollar mark yeah that's why
21:45
I againi you may think you're saving a
21:47
few dollars by not you know bringing
21:49
somebody on like Rita but in long run if
21:52
you serious about your product you know
21:54
contact somebody who knows yeah the
21:57
gentleman we went to the National
21:58
asphalt show he was getting there a day
21:59
ahead of me and I said do not talk to
22:01
anybody if you don't know who they are
22:04
and so I got there any goes well you
22:07
know these guys offered they were so
22:08
nice and I said don't tell me how much
22:12
your invoices and heat afterwards
22:14
said it was twenty-five hundred dollars
22:16
for that invoice and so yeah you've got
22:19
to be very much aware it's not nice it's
22:21
business and everybody is going to
22:22
charge you something yeah and and of
22:24
course the guys were nice they charging
22:26
popular yeah yeah nice twenty-five
22:28
hundred dollars worth film yeah yeah so
22:30
no no I totally agree and if you can
22:32
pick and choose the right shows I could
22:36
see it being very beneficial because you
22:37
don't have to go to a mall you don't
22:38
want to do a shotgun approach if you get
22:39
somebody like yourself who knows which
22:41
ones to target and even then going to a
22:44
professional trade show is far more
22:47
valuable dollar for dollar to your
22:49
market research and selling your
22:51
products than doing a marketing campaign
22:53
with an advertising agency because
22:56
they've got no skin in the game they're
22:57
going to send you an invoice you don't
23:00
know if it's going to be successful in
23:01
infomercials are probably the worst stay
23:05
away from there always somebody calls
23:07
you on the phone and says oh you know
23:08
we've got this TV event I know your you
23:10
know your blood starts you know pumping
23:11
and you get real excited first question
23:13
out of your mouth is how much is it yes
23:16
always ask how much is it it's amazing
23:19
how they hide that down in the fine
23:21
print yeah it's great advice because
23:23
they're getting you excited because they
23:24
know you're mostly attached yep but if
23:27
you know you've got a product for
23:29
serving breakfast and it airs at two in
23:31
the morning anybody serving breakfast is
23:33
still asleep that's true exactly and if
23:36
it is common sense and again in most
23:38
inventors you gotta really step back
23:40
don't make quick decisions it's usually
23:43
not going to benefit you in less again
23:44
you got some good education you talk to
23:46:00
somebody you really need to get someone
23:48:00
who's not emotionally attached to is all
23:50:00
about business you know again somebody
23:52:00
like Rita who will make the right
23:53:00
decision because again read out how do
23:55:00
you work with your inventors you charge
23:58:00
your money up front how does that work
23:59:00
no I do not charge you a frenzy because
24:02:00
I cannot guarantee we will get to deal
24:03:00
then it takes time and persistence and
24:05:00
patience that we end up having a pretty
24:08:00
close relationship I charge a percentage
24:10:00
of the royalties from the licensing exam
24:13:00
so the easiest way to look at it is for
24:16:00
every dollar royalty that we are paid
24:18:00
for the product I get 20 cents and the
24:21:00
inventor gets 80 cents and for that
24:23:00
twenty cents then we do the legal and
24:26:00
financial review so that we know
24:28:00
the licensee is doing what they're
24:30:00
supposed to be doing what they promised
24:31:00
and they're doing it in a timely manner
24:33:00
so we go out and we kind of look at you
24:34:00
know if they say they only sold this
24:36:00
many but we know that they sold out at
24:38:00
several ace hardware stores then we want
24:40:00
to go in and do an audit and then we're
24:43:00
looking at you know the numbers since
24:45:00
you know the previous audit or for a
24:47:00
period of time so that we know that
24:49:00
they're being straight with us sure
24:50:00
they're moving on to their next idea
24:53:00
they won't use me I want to have to deal
24:54:00
with that I don't charge upfront simply
24:56:00
because i can't make you urine tea yeah
24:58:00
well the twenty cents that sounds way
25:00:00
more than fair i've heard some some
25:02:00
stories where the cost you know again 50
25:04:00
50 or even i know it's crazy that's that
25:08:00
that sounds great now what kind of time
25:10:00
frame you know and I know the every
25:12:00
product is different you know somebody
25:13:00
comes on board you say hey we like your
25:15:00
product this is what we're going to do
25:17:00
is there you know this obviously time is
25:20:00
going to go by I hear let licensing
25:22:00
takes a little bit about it does i mean
25:24:00
i always tell people look at somewhere
25:26:00
between nine and twelve months I've seen
25:28:00
it happen in a few weeks we have
25:30:00
gentleman that had a very cool product
25:32:00
that went on the back of an RV and his
25:35:00
first time at a trade show the CEOs wife
25:38:00
was there and she called her husband she
25:40:00
knows you need to get down here and see
25:41:00
this she had a signed deal and roughly
25:43:00
about eight weeks and I mean it was they
25:47:00
were very good to him that was you know
25:49:00
a very fair deal he got everything that
25:51:00
he wanted out of that um I've seen
25:54:00
nightmare cases where you know there was
25:56:00
a good offer made but the inventor
25:58:00
wanted to bring in a separate attorney
26:00:00
that is like the kiss of death it took
26:03:00
us two years to get a signed deal and
26:06:00
their royalties eventually were cut in
26:08:00
half because the licensee said no and
26:11:00
then they got a twelve thousand dollar
26:12:00
invoice from the attorney is my job
26:16:00
negotiating the deal and not being an
26:19:00
attorney now I have attorneys behind me
26:21:00
that cover our backs that they don't sit
26:23:00
at the table because then you're
26:24:00
negotiating with the CEO they were if
26:27:00
you don't bring your attorney to the
26:28:00
table they don't bring their the deal is
26:31:00
between us and the CEO it's the
26:34:00
attorneys job to say all right well you
26:36:00
know you need to talk about this these
26:38:00
are the risks and then you decide which
26:40:00
risks you're willing to accept
26:41:00
and which ones you're not willing to
26:43:00
accept but as soon as those attorneys
26:44:00
sit down all you're going to be doing is
26:46:00
generating billable time well right
26:49:00
there that is a huge piece of
26:51:00
information because the first thing an
26:52:00
inventor would do is oh I'm getting it a
26:54:00
lesson di better contact my attorney
26:56:00
which obviously now you say is a huge
26:59:00
mistake you want to do everything we
27:00:00
believe and right but you put those
27:02:00
attorneys together the only people that
27:04:00
will make the money is the attorneys and
27:07:00
there's nothing wrong you're asking the
27:08:00
attorney to protect you they're doing
27:10:00
what you're paying right and like I said
27:12:00
we've got them in the background but
27:14:00
they're not setting a stable yeah very
27:16:00
important very important I I would
27:18:00
totally agree with that because as soon
27:19:00
as you pull your hand like that the
27:20:00
other company or the CEOs as well yeah I
27:22:00
have to do it because I would think that
27:26:00
the companies that want to license your
27:28:00
product and I could be wrong they want
27:29:00
to get into that product they wouldn't
27:31:00
waste their time they want that product
27:32:00
for a reason they want to get a gun
27:34:00
exactly they don't want to waste they
27:36:00
don't want to waste the time they don't
27:37:00
want that heartache the lessening of
27:42:00
their stomach lining by getting into
27:44:00
hardcore negotiations and I usually see
27:47:00
them you know sometimes it's taken us
27:49:00
longer there's been a couple of clients
27:50:00
that we worked out longer um can't be
27:53:00
afraid to pull a deal if it's not
27:54:00
working out and move on we look at the
27:56:00
size of the company the ratings of the
27:58:00
company and that's sometimes an inventor
28:00:00
is so excited they don't think about
28:01:00
going and looking at the financial
28:03:00
ratings of a company and you know are
28:06:00
they registered with their local Better
28:08:00
Business Bureau do they have any
28:09:00
complaints filed against them you know
28:11:00
are they manufacturing other products
28:13:00
that have really bad ratings hmm so
28:15:00
that's my job yeah yeah well again
28:17:00
that's one and that's why when you say
28:19:00
twenty twenty cents i doubt it you know
28:21:00
and again those i think it's a great
28:24:00
deal i think it's a great deal for an
28:26:00
inventor to be able to give some give
28:27:00
their product or somebody like yourself
28:29:00
who's been doing this a long time you
28:31:00
know what you're doing you have all the
28:32:00
contacts so twenty twenty cents i think
28:35:00
is well worth it well i know what i'm
28:38:00
talking to talking to Rick about it you
28:40:00
guys how do you even do that at that
28:43:00
rate and it's like you know I gotta be
28:45:00
able to sleep at night and the secret in
28:46:00
life is to not be too greedy and you
28:48:00
know what you're doing there's a big
28:49:00
difference when somebody asks for a lot
28:51:00
of money up front you have to wonder why
28:53:00
they doing that you're
28:55:00
now you have skin in the game because
28:57:00
you know that you can deliver it's a big
28:59:00
difference that's right it really really
29:02:00
is really is so going back to the
29:04:00
contracts because these are questions
29:05:00
that I get all the time and having
29:07:00
somebody like you want i'm trying to get
29:08:00
get the answers that i can give make it
29:11:00
sound like I know what I'm doing when
29:15:00
you talk about licensing a product and
29:18:00
the amounts that the inventors might
29:21:00
make on those contracts what is the
29:23:00
what's the average percentage that
29:25:00
someone is going to get average is five
29:28:00
to seven percent of the wholesale price
29:30:00
that is the only thing a licensee can
29:32:00
control it got no control over retail
29:35:00
because that's going into a store the
29:37:00
store page wholesale for it so figure
29:39:00
five to seven percent of wholesale
29:41:00
alright so you know for a lot of
29:44:00
inventors they say and this is really
29:46:00
key deficit I can do better than that
29:47:00
myself you know i do myself i get to
29:49:00
keep all of it all of what exactly
29:52:00
alright you're looking at a multiple of
29:54:00
five for manufacturing that means if
29:55:00
you've got a suggested retail price you
29:59:00
know where it fits in at ten bucks all
30:01:00
right that that's all in consumer is God
30:03:00
when it comes to pricing you don't give
30:05:00
a well I'm going to charge fifteen
30:06:00
dollars for a ten dollar item the sewers
30:08:00
not going to buy it so consumers is okay
30:11:00
this is a ten dollar item that means you
30:12:00
have got to make it package it in shirt
30:15:00
for two all right because the
30:18:00
distributor is going to buy it for 250
30:19:00
they're going to wholesale it to the
30:21:00
store and the store is then I'm going to
30:22:00
sell it for ten and one piece that wall
30:24:00
do it you cannot do it all yourself you
30:26:00
just can't there are not enough hours in
30:27:00
the day you do not have enough stomach
30:29:00
lining for this right or the book of
30:31:00
business store owners all right they
30:35:00
don't know you they don't know if you're
30:37:00
going to be able to steal your orders
30:38:00
they want to deal with a distributor
30:40:00
they know so now a distributor is in
30:42:00
there right so when you're looking at
30:44:00
that pricing and now you've sold it to a
30:46:00
distributor for 250 you've only got
30:48:00
fifty cents left for your marketing and
30:50:00
marketing can cost more than everything
30:53:00
else combined marketing is this nasty
30:56:00
animal out there that you can spend
30:58:00
forever so you know in better go to the
31:00:00
bank and they take money out people that
31:03:00
license it go to the bank and they put
31:05:00
money in which side of that do you want
31:06:00
to be on okay yeah and
31:09:00
what inventors don't really account for
31:11:00
is the time they're going to spend doing
31:14:00
all this there no and they don't what I
31:17:00
when I talk to our inventor the command
31:18:00
I said this is a great product but
31:20:00
you're giving yourself a job if that's
31:23:00
what you want to do then that's great
31:25:00
but dealing with somebody like yourself
31:27:00
for you now they can go and concentrate
31:29:00
on something else they're going to get
31:30:00
that paycheck they're going to get the
31:31:00
right documentation it's going to be
31:33:00
said you're you're behind that and for a
31:36:00
lot of inventors you know that royalty
31:38:00
check that comes in every quarter is
31:40:00
extra disposable income you know when
31:42:00
you've got a better widget all right
31:44:00
you're going to get something that may
31:45:00
be tased for a family vacation it pays
31:47:00
makes a car payment I we had a gentleman
31:50:00
down arsonist gets really nice private
31:51:00
schools based on the royalties um but it
31:54:00
doesn't always mean you're going to get
31:55:00
to quit your day job ends on do you have
31:58:00
a game changer in a particular industry
32:00:00
and for a lot of inventors you know they
32:03:00
don't all right but going in and this
32:06:00
fantasy would start doing a start-up is
32:08:00
just crazy because you can't do
32:10:00
everything you cannot be your salesman
32:12:00
and you cannot be the business runner
32:13:00
you've got to pick one or the other well
32:15:00
that means then you've got to bring in
32:16:00
somebody else well are you bringing in
32:19:00
somebody who knows that particular
32:21:00
industry or not and so there's so many
32:24:00
there's so many hurdles to get over to
32:27:00
do a start-up going inventors are you
32:29:00
know they may try it eventually they
32:32:00
call me and they say oh forgot thanks
32:34:00
take this off my back and I had one
32:35:00
gentleman we licensed his product he had
32:38:00
sold over a million units but it never
32:40:00
quite done big enough to be on its own
32:42:00
and his wife was his distribution
32:44:00
network and every night at the dinner
32:46:00
table after dinner she was the marketing
32:48:00
about the packaging and pension me
32:50:00
apartment and everything and she finds
32:52:00
it I'm going to Florida see the ramekins
32:54:00
you can come with me or you can stay
32:56:00
here but I quit yeah close like know
32:59:00
what and you know I always tell people a
33:01:00
good invention is like a child you can
33:04:00
see that you nurtured it sucks you dry
33:06:00
you throw it out and until you throw it
33:08:00
out it is not going to grow up and take
33:10:00
care of you my daughter get a little
33:12:00
cranky when I say that but you get the
33:14:00
idea yeah try to be able to get it out
33:16:00
there so it grows legs of its own or
33:18:00
it's never going to pay you enough to
33:19:00
make it worthwhile yeah that's great
33:22:00
advice it really is
33:23:00
it's just setting proper expectations
33:25:00
you know we get a lot of methods as you
33:27:00
do they want millions and millions and
33:29:00
millions of dollars and you know it's
33:31:00
just it's just not going to happen if it
33:33:00
grows to that that's great but you know
33:36:00
i would think that even a company
33:38:00
licensing a product they're taking a big
33:41:00
chance also probably right oh absolutely
33:43:00
and gives i want money upfront well
33:45:00
you're not going to get money upfront
33:46:00
the reality is they're putting in
33:47:00
somewhere between a quarter and a half a
33:50:00
million dollars to get some
33:52:00
manufacturing the tooling to get it out
33:53:00
there to do the marketing part of it and
33:55:00
most inventors do not come to me so you
33:57:00
know I've got 250 thousand dollars to
33:59:00
throw this can you help me they're on a
34:00:00
budget you know they've got limited
34:03:00
dollars to spend and so when they expect
34:05:00
then that are going to get this
34:06:00
outrageous amount upfront well no you've
34:08:00
got skin in the game with them they're
34:10:00
willing to take a risk on your product
34:12:00
because they think that they can make a
34:13:00
pop from it and you share in that you
34:16:00
share in the risk you took the risk our
34:17:00
front now they're taking the risk
34:18:00
everybody kind of shares in the pain and
34:21:00
the reward yeah yeah well it sounds like
34:24:00
you have a lot of fun was what you're
34:26:00
doing there's no diet and the reason you
34:28:00
have a lot of fun i think is because
34:29:00
again i'll say it you know what you're
34:32:00
doing you know we have seen so many
34:34:00
wonderful products help that products to
34:36:00
the big garden we've got two wheel girls
34:38:00
going to the hardware show this year and
34:40:00
they both have very different functions
34:42:00
on products of course that's a
34:45:00
hoverboard buddy product and you can go
34:48:00
to the inventor lady website and see the
34:50:00
products now that we're teeing up to
34:52:00
take with us but step further the yard
34:55:00
stuff for the car stuff inside the house
34:57:00
outside the house babies and dogs and or
35:02:00
the pet industry is something i think is
35:04:00
a big industry we get a lot of pet
35:05:00
products here and there's a huge pet
35:08:00
section at the national harbor show Wow
35:10:00
yeah that's what I've heard and I'm glad
35:13:00
you're kind of confirming to the
35:14:00
hardware show looks like a comment
35:16:00
emulation of a lot of different products
35:19:00
and it's one of the ones that it's a
35:20:00
must must attend it seems like it is
35:23:00
it's huge about 4,500 exhibitors Wow at
35:26:00
the show and just a lot of fun a lot of
35:30:00
energy Tuesday Wednesday and Thursday we
35:33:00
actually I rent a house out there for
35:36:00
me in the staff and then we drive the
35:39:00
products out there and and and
35:41:00
everything so yeah it's a big deal next
35:43:00
one it's great Super Bowl yeah yeah it
35:46:00
sounds like it in and again you know
35:47:00
you're making it fun because you never
35:49:00
know what you're doing you're organized
35:50:00
you know what to do you have the
35:52:00
connections you know nobody takin
35:54:00
advantage you guys when you get there
35:55:00
it's a lot different than going there on
35:57:00
your own and saying okay holding a
35:59:00
product and walking down the aisle is
36:00:00
gone now to what I did that's that's so
36:02:00
hard to go by yourself the first time it
36:04:00
is so hard and where we've got you know
36:07:00
multiple people that have been there for
36:08:00
years I actually take someone who I say
36:11:00
all right this is the bouncer if someone
36:12:00
comes in and harassing you this is all
36:14:00
you have to say and then he knows what
36:16:00
to do so that you know you can move on
36:18:00
and be talking about your product get
36:20:00
out there show your product we've got
36:21:00
you know snap think it's a sign product
36:23:00
so it's some you know a lot of people
36:26:00
really learn and then they can grow up
36:28:00
and get their own space then you know
36:30:00
maybe they'll come with us one year or
36:32:00
two years and then there then they're
36:33:00
ready now they've you know kind of
36:35:00
geared on that it is not unusual that
36:37:00
people will go to trade shows every year
36:40:00
that they're trying to sell their
36:41:00
product because they get the biggest
36:42:00
bang for their marketing dollar that's
36:44:00
great now you go there with products you
36:47:00
walk around and kind of go I want that
36:49:00
part can you go talk to them oh
36:50:00
absolutely hey that's great you know I
36:54:00
get more people that come to me just
36:56:00
because of the advertising network and
36:58:00
asked if I will help them you know for
37:00:00
next year yeah now all that I believe I
37:02:00
mean just you know again just your
37:04:00
success stories I mean we'll definitely
37:06:00
bring people in and and that's when the
37:08:00
greatest part about it we're kind of
37:09:00
running out of time I had so many other
37:12:00
questions but we'll we'll catch up with
37:14:00
those but I do want people I would i do
37:16:00
want to you to let the people know how
37:18:00
to connect with you if they have a
37:20:00
product if they have questions is is
37:22:00
there a best way to connect with you i
37:24:00
nearly every website we got our website
37:26:00
inventor lady calm that was a funny
37:28:00
story because i was down at the chamber
37:29:00
one day and this guy goes i know you
37:31:00
you're that inventor lady that works for
37:33:00
me lady calm was available so inventor
37:38:00
lady is the easiest way to find me
37:39:00
inventor lady calm you can google reader
37:41:00
compton i come up i'm on facebook i'm on
37:43:00
linkedin easy to find my phone number is
37:45:00
everywhere but you can put that out on
37:47:00
your
37:48:00
your website yeah yeah and all of this
37:50:00
information will be on our show notes on
37:52:00
event is Launchpad also and you know I
37:55:00
would definitely encourage anyone that's
37:58:00
what since our show that had some
38:00:00
questions about licensing certainly send
38:02:00
them to me but send them over to read at
38:03:00
inventor lady calm which would be
38:05:00
awesome and if you have a product you're
38:07:00
looking to license it I mean definitely
38:09:00
look into utilizing rita services
38:11:00
because as you can see very
38:13:00
knowledgeable and experienced in this
38:15:00
industry so and this was done a ton of
38:18:00
fun thank you so much i look forward to
38:20:00
doing it again and you know if you've
38:22:00
got a product you need to get at the
38:23:00
artichoke give me a call yes thank you
38:26:00
so much rita and we will catch up with
38:28:00
you soon would definitely get invite you
38:29:00
back on the show maybe I give us a
38:31:00
little report on what happened at the
38:33:00
hardware show absolutely all right you
38:36:00
take care have a great day alrighty you
38:38:00
too thanks so much bye-bye

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