The Do’s and Don’t When Approaching a Company

Quirky
Quirky is Back, Let’s Start Inventing!
September 22, 2017
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Christina Daves, Award winning Inventor, Best Selling Author, TV Show Host and PR Expert, Talks How to Generate Buzz and Get Noticed.
September 29, 2017

 
The Inventors Launchpad Network – Is proud to present The Licensing Jungle, Co-Hosted by licensing expert Mr. Jeffrey Mangus of Product Coach USA and Carmine Denisco, Managing Partner with Inventors Launchpad. As a Product Licensing Coach Jeffrey’s greatest strength is that he can simplify what you would like to accomplish into an easily implementable step-by-step plan. Helping you without the need to for him to have extensive knowledge in your product or area of expertise because you are the inventor, the expert. Jeffrey’s expertise is in knowing the product licensing process, the inventing sequence and how to move people forward, which usually involves overcoming many common obstacles. Let this Podcast help you get over the bumps, steer clear of the sharks and get you where you and your product deserve to be.

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Podcast Notes

1You Tube Transcription
that's really good welcome to the jungle
0:01
post hurricane and we're getting it
0:04
together we're trying you know trying
0:06
and hi everyone this is called my Dennis
0:09
ko from the vendor's Launchpad Network
0:12
I am currently porting to you and
0:15
putting our show on from a remote
0:18
location today ship the licensee jungle
0:23
with my co-host friend and licensing
0:26
expert mr. Jeffrey mangas I believe he's
0:29
on a line with us hey Jeff you over
0:31
there I'm here Carmen thank you so much
0:33
I'm glad to see that everything is well
0:35
your way and I know it was a pretty
0:37
scary down down there and really praying
0:40
for all the people that were affected by
0:42
that hurricane just wanted to address
0:43
that on the recording today so yeah
0:46
thanks man everything you know I was
0:48
definitely one of the lucky guys you
0:50
know we got our our generator up and
0:51
running and we got some things going on
0:53
but it was pretty crazy man it was you
0:56
know it wasn't like I thought I thought
0:59
it would be like oh we're gonna get some
1:01
wind and but it is gets get scary when
1:04
that wind really starts bearing down you
1:05
know and it's continuous too it's not
1:07
like a couple gusts you know when it
1:08
gets closer right and we didn't get that
1:10
much rain here where I am in the
1:14
outskirts of Tampa but the wind was
1:16
insane man it was really crazy so you
1:19
know we have a lot of friends and family
1:20
all scattered throughout the throughout
1:22
the state
1:24
luckily everyone's okay but there's a
1:26
lot of damage around by us and so I had
1:28
to gather up all of our equipment from
1:30
our office because that is totally down
1:32
move it over to remote location get our
1:35
podcast going and as they say the show
1:38
must go on and I know we've got a cool
1:40
show planned for today so I'm gonna kind
1:43
of hand it over to you and and we'll get
1:46
going sounds good thank you very much
1:48
guys welcome to the licensing jungle
1:50
podcast we really appreciate you
1:52
everyone listening out there if you're
1:54
new to the show please subscribe to the
1:56
channel and then please share with your
1:58
friends and family today I have a great
2:00
guest on as a gentleman by the name of
2:03
Jim do betta Jim you're over there today
2:06
yeah yeah we were you know in Atlanta
2:08
and nothing like what carmine had
2:11
we just had a look like a rainy day but
2:14
yeah we're up and running good
2:16
everything's going sounds good glad to
2:19
good to see you thanks for being on the
2:20
show today's show I wanted to talk about
2:23
a really really important topic and it's
2:26
a topic it seems to be kind of running
2:29
rampant with might with my students and
2:30
inventors I talked to you and that's how
2:32
to approach companies the do's and
2:35
don'ts on pitching to companies so I
2:38
wanted to ask you Jim you know with your
2:40
experience and the other inventors you
2:43
talked to um what do you think the
2:46
biggest fear of that is what do you
2:48
think where do you think it's begins
2:50
well I think the big thing is you know
2:54
when when people approach companies and
2:56
whether it's licensing or going to
2:58
retails or anything you know it's a
2:59
sales it's a sales process right and I
3:02
think a lot of people are afraid because
3:04
they don't know what to say and so they
3:07
don't have the confidence to know what
3:09
to say so all right they get you on the
3:10
phone Jeff you're the you're the
3:12
potential licensee you're the company I
3:13
want to pitch to and I get you on the
3:16
phone and it's like deer in the
3:18
headlights kind of a thing where uh hi I
3:20
just want to talk to somebody about my
3:22
idea and then and then it just falls
3:25
apart from there because they haven't
3:26
practiced or even worked on a little bit
3:29
of a script or anything like that so you
3:33
know it's a hindrance for people they
3:34
can't go on they can't confidently
3:36
convey what they want to convey and
3:39
these companies expect you to I mean
3:41
look it's people but they expect you to
3:43
be professional and they expect you to
3:44
be you know on point and they know what
3:47
to ask and and be ready to chat about
3:49
things so that's a big issue yeah that
3:52
is a you're right you know that's one of
3:54
the biggest issues that I see too you
3:57
know not knowing what you're doing is
3:59
really where the fear begins and I'm you
4:02
know me personally I mean I coach you
4:07
know how to how to approach companies
4:09
the right way and you said one key word
4:11
there's being professional and with with
4:14
that beat well not the worked
4:16
professional in this in this realm
4:20
involves a lot of things you know
4:22
there's a lot of responsibility you need
4:23
like you say you need to know what to
4:24
say
4:25
know the lingo know you know know how to
4:28
approach them so so they so they know
4:33
that you are so they know that you are
4:34
professional that I mean someone on the
4:36
other end licensing a license e they're
4:39
going to sniff you out like you say
4:41
really quick if you don't know what
4:42
you're doing you know so you know what
4:45
do you think about you know what would
4:48
be one of the first steps you would
4:50
advise an adventurer to do when when
4:52
approached when ready to begin to
4:54
approach companies what do you think
4:56
well I think it you know it helps and
4:58
this may sound so cliche or
4:59
old-fashioned or something that
5:01
everybody's heard but it seems to always
5:03
be important to remind people about I
5:06
think people should just take an index
5:08
card or a sheet of paper write down what
5:12
it is they want to say and practice it I
5:15
mean I don't care if you do it on your
5:16
phone and you record it or you do it in
5:18
front of somebody in your family or
5:20
friends just get your pitch down if you
5:22
say it eight 10 15 times you know you
5:25
may still be a little nervous because
5:27
you know there it's high stakes here
5:29
right you're pitching to a company to
5:30
get a licensing deal but you'll feel a
5:32
lot more comfortable and going
5:33
completely cold so if I practice this a
5:36
few sentences you know hey Jeff my name
5:38
is Jim do better I understand you're the
5:40
person that I can speak to about my
5:42
product idea as a potential licensee you
5:45
know and so like a that could be the
5:47
first line that you practice and if you
5:48
say that over and over it becomes more
5:50
comfortable to say Jeff are you the
5:52
right person indeed that I can speak to
5:54
you about my product yes Jim you are the
5:57
right person and then here's where it
5:59
kind of falls apart where the inventor
6:01
typically will get into their whole
6:02
story about why they have invented it
6:05
and you know the problems associated
6:06
with it that comes later that comes
6:09
after there's interest and the licensee
6:11
wants to just hear more from personal
6:14
interests standpoint not from a business
6:16
standpoint so it's hey Jeffrey is it
6:18
possible I get your email so I can email
6:19
you some more information about my
6:20
product and also to exchange a
6:22
non-disclosure with you simple Nuggets
6:25
like that or non-threatening - licensee
6:28
but if I'm listening to that you know
6:31
I'm agreeable to that but if an inventor
6:33
gets me on the phone and I'm being
6:34
pitched and they say well Jim listen you
6:37
know I want to tell you why I invented
6:38
this
6:39
you know I might just tune out I mean
6:41
that's that's a reality so you got to
6:43
keep it short and sweet few sentences
6:45
but practice it write it down and and
6:47
just go over and run it through a
6:49
handful of times it's you feel
6:51
comfortable pitching that's excellent
6:55
advice exactly right did you want to say
6:57
do you want to ask a question Jim I
7:00
couldn't agree more and I guess there's
7:03
a saying that I like is that no plan
7:05
survives first contact with the enemy
7:08
and you know practicing is so important
7:11
because your plan will fall apart you
7:13
know you're you got the wrong person or
7:15
you you dollar on that whatever it is
7:18
you need to practice so you can get 80%
7:21
of your plan right or if you don't
7:23
practice you will it will fall apart -
7:26
no doubt about it so I like that part
7:28
that you said about planning and and and
7:30
something else that I want to ask you
7:31
about how important is it to know who to
7:35
make contact with I mean there are so
7:37
many people at some of these large
7:38
companies are there certain people that
7:41
are that are the decision makers to move
7:43
on or you know where should you start
7:46
yeah and you know and and Jeffrey can
7:49
definitely attest to this I think it
7:51
depends on the size of the organization
7:52
I mean if you're pitching a fortune 100
7:54
company I mean it could be endless
7:57
layers of people you have to go through
7:59
but if it's a small cut let's say it's a
8:00
100 million dollar company for example
8:03
that yeah that that potential will build
8:09
that person in the organization could
8:11
wear many hats it could be the vice
8:13
president of sales it could be the VP of
8:15
Sales and Marketing it could be the CEO
8:17
it could you know you know not every
8:19
company has you know a licensing or you
8:22
know division or group of people
8:24
dedicated to you know reaching out or
8:27
hearing from people who have products so
8:30
it just depends on the size I mean a lot
8:33
of times the sales and marketing people
8:34
are a good place to start
8:36
I know Jeffrey does is involved in this
8:39
is quite a bit as well but I do think it
8:42
depends on the size of the organization
8:43
and it's okay to call up or reach out
8:45
and ask you know listen you know I have
8:47
an idea for a product that I'd like to
8:49
potentially license who in the
8:51
organization should I speak
8:52
I mean if they're remotely friendly
8:55
they'll tell you who that might be or
8:57
you can go online and go to places like
8:58
LinkedIn or other resources and try to
9:00
get some contact name but you know
9:03
identifying the exact person might not
9:05
always be crystal clear or obvious yeah
9:09
that's that's that's exactly what I
9:11
coaches well Jim and you know the you
9:14
can you know just being prepared and
9:16
doing homework finding those key people
9:19
using LinkedIn even social media you can
9:22
do it if you just get in the game and
9:24
get get going that way
9:26
but one thing you addressed that I want
9:28
to you know a lot of inventors overlook
9:30
and that's not only being is called
9:33
being prepared and what I mean by that
9:35
is being compared completely with having
9:37
all your materials together having your
9:40
everything ready to go because when you
9:41
get on the phone and you finally reach
9:43
out and you do that you're right you can
9:46
end up talking to someone immediately
9:48
who wants to see your stuff and you
9:50
don't want to be caught you know with
9:53
with not having your stuff ready to go
9:55
and I see that a lot with inventors do
9:58
you see that a lot on as well a lot of
10:00
people you talk to not be yeah and you
10:02
know I think this is one of those like
10:03
less is more really comes into play here
10:06
I think a lot of inventors whether it's
10:08
like say a licensing deal or retail deal
10:10
again you're trying to sell something to
10:12
somebody right I think a lot of people
10:15
say too much on the phone I have found
10:18
it's much more effective since at the
10:20
end of the day say the potential
10:22
licensee is gonna have to review
10:23
something physical right whether it's a
10:25
cell sheet which you know we all
10:27
advocate as as the lead collateral piece
10:30
that you want to send somebody to review
10:32
your product write a non-disclosure
10:34
write you know you know if the company's
10:37
agreeable to signing it which you'd want
10:39
them to be that has to be emailed right
10:41
so I always like to tell people listen
10:43
if you're really uncomfortable trying to
10:45
sell on the phone which I don't think
10:47
you should do you're not gonna make the
10:49
sale on the phone so to speak right
10:50
that's right
10:51
licensing deal on the phone I say keep
10:53
it short and I just say it like we said
10:55
hey Jeffy if you're the person that I
10:57
need to speak to is it okay if I get
10:58
your email address so I can send you
11:00
some more information for you to review
11:01
non-threatening right chances are you'll
11:04
say okay but now you get there
11:06
permission you've got their email
11:08
address you email them a sell sheet
11:10
non-disclosure whatever else other
11:12
details maybe a little bit about what
11:14
you're seeking and then you can follow
11:16
up and you can follow up via email you
11:17
can follow up your phone but at least
11:19
now that person you've sent it to has
11:21
had an opportunity to at least
11:22
understand what your product is
11:24
and then when you have that next
11:25
conversation it could be it's really a
11:27
follow up it's warm right
11:29
Rush's you trying to get the whole thing
11:31
done on the phone right it doesn't work
11:33
usually not in this business I mean
11:34
other businesses you know that could
11:37
work where as sales are made on the
11:38
phone but typically in this business
11:39
there's got to be an exchange of product
11:42
information in details and then from
11:46
there it tends to flow better yeah
11:48
that's that's exactly right and you
11:51
heard what you just said three times
11:54
already to say the word non-disclosure
11:55
agreement and that that's a really
11:57
honestly a sticking point to with a lot
11:59
of inventors I see a lot of inventors
12:00
are too aggressive and immediately go in
12:04
and try to you know they they want to I
12:07
call it the NDA flag they start raising
12:09
it hey I want to NDA I want to I want a
12:12
non-disclosure before I send anything
12:13
well that's where the fear comes in of
12:16
being ripped off and you know honestly
12:19
it doesn't work that way so with that
12:23
said you know do you see that a lot as
12:25
well do you see a lot of inventors being
12:26
too aggressive you know in that trying
12:29
to be too pushy do you see that well of
12:32
course I mean and yes the non-disclosure
12:34
thing you know it's
12:35
see that's like where I was saying yeah
12:37
get on the phone ask them if you could
12:38
send more information and you know right
12:41
if you just send a non-disclosure
12:43
without making a big deal out of it
12:44
you're much better off right because I
12:46
think they're expecting that but you're
12:48
not shouting it out you know you got to
12:50
do this or yes and there does that
12:52
invent a paranoia that we all are
12:53
familiar with and you know look to a
12:56
degree excuse me to a degree it's
12:58
understandable I mean you come up with
13:00
this idea it could be a potential
13:02
moneymaker for you and if you don't
13:04
protect it in your own mind you you
13:06
could risk losing it to somebody else
13:09
but I always say to inventors that you
13:12
can't get anywhere with your invention
13:13
unless you share information about it
13:15
with somebody right so if you want to go
13:16
and get a licensing deal if you don't
13:19
share information with
13:20
licensee you know again anywhere right I
13:24
think where the event that gets too
13:25
aggressive is yes on that front where
13:27
they really get very worried about
13:29
everything but more importantly is that
13:31
they're trying to make the cell on that
13:34
phone call instead of just exchanging
13:36
that cell sheet with the potential
13:38
licensee and seeing if there is interest
13:40
I mean let me get into patents and
13:42
trademarks and non disclosures and it
13:45
was as we always say those documents are
13:47
only as good as the people and companies
13:48
signing them so if you've got a
13:50
reputable you know corporation you know
13:53
fortune thousand company or a company
13:55
has been in business for fifty years
13:56
then uh this is that long because
13:58
they're taking advantage of people left
14:00
and right so you know you go to these
14:03
big companies you know like a black &
14:05
decker or you go to you know whoever you
14:08
know they're they've been around and
14:11
they're not doing this to people all day
14:14
long right so at some point you have to
14:16
kind of just just get information to
14:19
them without overdoing it and without
14:21
being too aggressive on the the
14:23
storytelling side I mean they don't
14:25
doesn't help them to potentially make a
14:28
profit from your product if all you're
14:30
talking about is why you did it the
14:32
licensee is looking for how can I make
14:34
money from it right and that's at the
14:36
end of the day that this is a business
14:37
and that's what they care about that's
14:39
right
14:39
that's exactly right then you know what
14:42
I've coached my students is when they
14:45
get on the phone their net like you said
14:47
they're never going to license something
14:49
over the phone there and the other
14:51
person on the other end can't bite them
14:52
through the front they can't hurt them
14:54
but what their goal is is to get their
14:57
sale sheet in front of their potential
14:58
licensees eyes that's your only goal I
15:01
had one student who made a mistake and
15:03
got into a heavy conversation with a
15:05
potential Isis II and it went to a lot
15:08
of it went into areas he didn't even
15:11
understand about his own product and he
15:12
got he thought he blew it and and that's
15:16
when I told him I said remember you
15:17
don't ever get into a long conversation
15:19
just your selling yourself sheet that's
15:22
what you're doing you're getting your
15:23
sell sheet in front of them nothing else
15:25
and then those conversations can happen
15:27
later on after there's interest you you
15:29
just nail you said it exactly right so
15:32
this is all
15:33
great information so we've talked a lot
15:35
about it you know what not to do some of
15:38
the do things that I think we should
15:40
talk about going to get yourself ready
15:43
to pitch to companies what what do you
15:46
think is one of the one a positive thing
15:48
that a inventor can do to get themselves
15:51
ready to pitch to companies Jim well you
15:53
know again this kind of falls into that
15:55
mindset area that you know is such a big
15:59
topic today I think one of the things
16:00
you know after the after the research
16:02
potential companies that are a fit and
16:04
by the way this is this is well this is
16:07
a positive thing but this is a way to
16:08
look at it from a positive standpoint in
16:10
terms of having a better chance of
16:12
success a lot of inventors always go to
16:15
the largest companies in the world where
16:18
it might be more difficult sometimes the
16:20
best deals happen with small companies
16:22
right because they may be more flexible
16:24
or they may have a need more for what it
16:27
is that the inventor is offering so a
16:29
positive prep thing is to identify a
16:33
variety of companies so this way it
16:34
increases your odds of getting a better
16:36
reaction from those companies so if
16:39
you're just gonna like you know the
16:40
largest companies in the world like you
16:42
know and then you know you don't think
16:44
that the little companies can do a big
16:46
deal they can but you know from a
16:49
positive perspective this may sound kind
16:51
of counterintuitive to what we're saying
16:53
but if you expect that everybody you
16:55
reach out to is going to be interested
16:57
you're setting yourself up for a letdown
16:59
so I think a way to get more positive
17:01
positivity out of the whole process is
17:03
to understand that it's a numbers game
17:05
and you are going to pitch five
17:07
companies or ten companies or whatever
17:09
20 up whatever it is that that you know
17:12
that you could possibly do that's
17:14
reasonable understand that you may only
17:16
get a handful that may have interests
17:18
and it's but if you go into this
17:20
thinking I'm gonna call 10 companies and
17:21
everyone's gonna love what I've gotten
17:23
as my invention is awesome you're gonna
17:25
you're gonna feel real crappy you may
17:28
get nine or ten knows but if you go in
17:31
there take a look if I can just get up
17:32
two or three solid interests you know
17:35
from from these some of these companies
17:36
I'm doing well right I mean it's like a
17:40
baseball player we always say for people
17:41
that you know like the sports analogies
17:42
you know if you're a baseball play and
17:44
you hit three
17:45
you're an all-star that's only three
17:47
hits out of every ten times you get up
17:49
to bat right because it sounded but it
17:52
is impressive and in sales so to speak
17:55
that's a great number so if people can
17:58
hold to that and get themselves prepared
18:00
for the realities of it you know really
18:03
they'll have a much more positive
18:04
experience versus going into this
18:07
thinking that everyone's gonna love what
18:08
they're doing not everyone's gonna love
18:09
what you're doing and they're not gonna
18:11
want what you have
18:12
yeah hey that's good yeah it's
18:16
definitely the way to talk about it that
18:17
it's a numbers game I'm glad you said
18:19
that I've license a few products and
18:20
what I try to do and I know Jeff Jeffery
18:23
talks about this too is I used to make a
18:25
list of all the companies that I wanted
18:27
to approach and then pick some that I
18:29
knew really wouldn't be interested but I
18:32
would work backwards so I would get some
18:33
practice call the company that I didn't
18:36
think if they were that's great but I'd
18:38
get practice talking about my product
18:40
finding out what questions they were
18:41
gonna ask me because you know as you
18:43
know some of these big companies that do
18:44
this all day and if you're a new license
18:46
or your trial is your product kind of
18:49
follow their lead they're gonna ask you
18:50
for things and then you follow their
18:52
lead you don't just jump in there trying
18:54
to shove things down their throat so I
18:56
used to always work backwards and and go
18:58
after companies I knew weren't going to
18:59
be too interested if I got to sell them
19:01
that was great but then after I pitched
19:03
ten times I started getting into the
19:05
companies that I wanted to approach and
19:07
now I had my pitch down pat because I've
19:09
already went through it 10-15 times yeah
19:14
that's excellent
19:15
that's excellent carmine you know all
19:17
this stuff is great and and what I what
19:19
I coaches is exactly what you guys are
19:20
saying Jim is talking about putting you
19:22
know information on index card giving it
19:24
and practicing it you know I coach um
19:26
you know to actually write out a script
19:28
okay and I know I hate the word script
19:31
I'll say that all the time but it's a
19:33
necessary evil but you know put it on a
19:35
Word document
19:36
put it on your computer screen put it in
19:38
front of you practice it and get it down
19:40
to where it sounds natural you doesn't
19:42
sound like you're just reading off a
19:43
script and doing that is important you
19:47
know it's I mean because once you once
19:50
you know the flow and once you know the
19:52
scenarios that are going to happen
19:54
because the only certain scenarios are
19:56
going to happen when you call companies
19:57
but
19:58
going back to what you just said Carmen
20:00
talking about as many companies as you
20:02
can and talking about the smaller guys
20:05
and you're right I you know I'm a big
20:07
advocate on picking companies that you
20:09
really don't even really want a license
20:10
to you know practice going you know
20:13
because you never know who's going to be
20:15
interested it is a numbers game the more
20:17
you pitch the more the the better your
20:20
average like Jim said you know it may be
20:22
Ruth had a lot of home runs maybe also
20:24
didn't he also did not hit a whole lot
20:26
of home runs to you but he's up to bat a
20:28
lot and that's that's the key you know
20:30
one of the things I've done at events
20:33
you know live events is I and it was
20:36
people love this right so we did some
20:38
role-playing so I would call up somebody
20:40
he from the audience and I would say
20:43
okay I'm a retail buyer I mean there's
20:45
like a thousand people out there
20:47
whatever they're up and now I call them
20:49
up to like a table I sit on one side on
20:51
the buyer and you want to sell me your
20:54
product you've got this is the meeting
20:56
this is the meeting you asked for go and
20:58
then and I say look what I'm gonna do is
21:01
I'm gonna make this really hard on you
21:03
and it's funny because you know like you
21:06
would say so like Jeff you'd say hey Jim
21:08
you know thanks for meeting me today hey
21:10
I've got this this great product I
21:11
appreciate you allowing me to come on
21:13
way out here I'm like you know what Jeff
21:15
listen you know I appreciate you taking
21:16
the time flying all the way out here but
21:18
yeah you know what you know I looked at
21:21
it and I just really don't have any
21:22
interest like I'll shut you down and we
21:24
do these one way then everyone in the
21:26
audience would kind of laugh and then
21:27
you'd say and I'd say well Jeff come on
21:28
you gotta come back with something and
21:30
you'd say you know well Jim listen you
21:32
know you know we we talked on the phone
21:33
and you know you thought it was a really
21:35
good friend yeah you know Jeff I don't
21:37
really think it's that great of a
21:38
product you know what you know I've got
21:39
I've got six things like it so so
21:42
anything like the the inventor was
21:44
frozen and I say you know if you do that
21:47
with like somebody in your family or a
21:48
friend and you go through that it's
21:51
you're anticipating what's the worst
21:53
that somebody can say to you on the
21:55
phone so it's kinda like what you two
21:56
are saying pitch to companies you know
21:58
you don't necessarily have a shot at
21:59
although you might get lucky right but
22:01
if they ask you questions and you just
22:04
know like you're not getting anything
22:06
done here but you can kind of play with
22:08
it you know what if they what if they
22:10
get on the phone with you Jeff
22:12
like Jeff what kind of royalty rate you
22:13
looking for you know or you know what do
22:16
you want you know what do you think is
22:18
gonna happen here Jeff right no and you
22:21
got you know if you don't have the
22:22
answer what are you gonna say so I think
22:24
you have to have somebody play like a
22:25
funny role play with you and you'll
22:27
laugh about it those are the things that
22:30
happen I've been in a lot of body
22:31
meetings where buyers are like no I just
22:34
I really don't I don't I don't think
22:35
your products that good I don't see if
22:37
it's way too expensive or whatever but
22:39
that's a fun way to kind of work it out
22:41
before you get on the phone that's
22:43
exactly right you know when talk tell a
22:45
little story about myself really quick
22:47
when I you know went to license my first
22:50
product well chest lock I had a meeting
22:52
with 10 medical executives in a room and
22:56
it was like shark tank but for real okay
22:59
I mean shark takes real but I'll talk
23:01
about 10 medical executives sitting in
23:04
the exact room together all staring at
23:07
me and me giving them information on my
23:10
product and that that really happened
23:12
and I you know was i sweating yes I was
23:15
sweating I admit but I was prepared I
23:19
was prepared I knew I knew my my
23:22
presentation I knew my material I knew
23:25
the market
23:26
I knew my product and it took it didn't
23:28
did I did that happen over weeks it took
23:31
it took months to do that okay actually
23:33
years you know studying the marketplace
23:36
knowing that you know and that's why I
23:38
wanted to bring that to to this to show
23:40
today it's being prepared guys getting
23:43
yourself ready - where - to do what
23:45
you've got to do in front of these
23:47
companies and getting and get yourself
23:49
in front of them yeah but one of the
23:51
other things that both you guys are
23:52
talking about is taking the emotion out
23:54
of it when somebody says they don't want
23:58
your product a lot of inventors and
24:00:00
myself all of us all of our inventions
24:02:00
it's an emotional issue then you have to
24:05:00
figure out a way to take that emotion
24:06:00
out and as Jim said use numbers use
24:09:00
logic because that stuff doesn't lie if
24:11:00
you truly believe in your product you
24:13:00
don't have to be emotional about it you
24:15:00
have to give true fact true information
24:17:00
and be prepared as Geoffrey said being
24:20:00
prepared can shut down a lot of
24:21:00
questions and as Jim said the buyer
24:23:00
might just be testing you
24:26:00
they they you know they have questions
24:28:00
and you know Jeffrey to your point if
24:32:00
you know as much or even more than the
24:35:00
people you're pitching to and believe me
24:36:00
that happens there are times when I've
24:38:00
been in front of buyers on the retail
24:40:00
side who got switched from another
24:42:00
product category or maybe they're just
24:44:00
new buyers or they got promoted from
24:45:00
being an associate by to a senior
24:47:00
merchant and they just don't really know
24:49:00
a lot they don't hey but if you know as
24:52:00
much or more than them then you're
24:54:00
always going to feel comfortable when
24:55:00
you pitch alright cuz then you honey
24:56:00
you're not pitching anymore you'd have a
24:58:00
conversation right Carmine's a new buyer
25:00:00
you know comment look I've studied your
25:03:00
stores and this is what's out there and
25:05:00
here's how my product fits in oh well
25:07:00
that buyer might be like this is awesome
25:09:00
because I didn't look before I had the
25:11:00
meeting and now Jim's telling me
25:13:00
everything I need to know to make a
25:14:00
decision so being prepared that way
25:17:00
you're not sweating as much right you're
25:20:00
just going in but once it once you start
25:23:00
talking it you're not pitching anymore
25:24:00
it's a conversation between two people
25:27:00
who are hopefully trying to find a fit
25:29:00
that's when it works that's right and
25:32:00
again it's everything we're saying is
25:34:00
going right back to to learning and and
25:37:00
being prepared knowledge knowledge will
25:40:00
decrease fear when you have that when
25:42:00
you have that know-how in your in your
25:44:00
head you're right once you start calling
25:46:00
companies and you actually get a
25:49:00
conversation started you they've seen
25:51:00
this is after they've seen yourself
25:53:00
sheet this is after again when I touch
25:56:00
my students when you're when they're
25:57:00
making calls your only goal is get your
25:59:00
sell sheet in front of them those
26:01:00
conversations can happen later and
26:02:00
that's what you want later after there's
26:04:00
interest and yeah but having knowing
26:07:00
your product knowing your market knowing
26:09:00
even studying how a company operates is
26:12:00
going to get you even more leverage and
26:14:00
a higher our return on getting yourself
26:17:00
a license yeah and Geoffrey like it's
26:20:00
like what you teach in your courses is
26:22:00
it's not you know the pitch is just the
26:24:00
beginning it's also like you said oh now
26:26:00
they're interested you send them a sell
26:28:00
sheet are you gonna be able to speak the
26:30:00
language right and even more I mean it's
26:33:00
one thing also just to teach somebody
26:34:00
the lingo which right it's not terribly
26:36:00
difficult but the realities of these
26:40:00
so you know royalty rates well right you
26:42:00
could tell somebody in your course with
26:44:00
what a royalty rate is got it
26:46:00
but what's expected what's what's
26:49:00
realistic and that's those are the
26:51:00
things that when you get deep into these
26:52:00
deals the companies will take advantage
26:56:00
of you they will that's exactly right
26:58:00
and if you do not know and understand
27:01:00
what's normal and expected you lose they
27:04:00
win right that's right and you should
27:06:00
get as much out of a deal as you can
27:08:00
that's fair uh and you know the
27:11:00
companies are gonna they're gonna try to
27:12:00
so you should be armed with equal
27:15:00
knowledge and an experience so that's
27:18:00
why you know doing you know doing things
27:20:00
like working with you helps people
27:23:00
because it's like you said anybody can
27:24:00
go on the internet and read up on some
27:27:00
of the terminology of what a licensing
27:28:00
deal is but it's knowing how to handle
27:31:00
yourself
27:32:00
in one of these situations that it can
27:34:00
be the difference between getting a deal
27:35:00
not getting a deal or getting a good
27:37:00
deal and or getting a really bad deal
27:40:00
that's right and you said the word hand
27:42:00
all these situations you know when when
27:45:00
that when that situation does come and
27:47:00
you you're offered you know a term sheet
27:49:00
and again you need to know what you're
27:52:00
doing because you can't yeah it's
27:57:00
amazing how how quick you could you you
28:01:00
could blow a deal by again not knowing
28:03:00
you know by asking for too much top
28:06:00
loading these deals again when you're
28:09:00
when you're not you don't know the
28:10:00
process then it's easily you can blow a
28:12:00
deal and it happens every day and
28:16:00
unsaddle II you know we we want
28:18:00
inventors to be successful but the way
28:21:00
to be successful is learning the
28:22:00
processes knowing knowing what you're
28:24:00
doing and I'm sure we've all between the
28:26:00
three of us have blown a few deals on
28:28:00
their own not knowing you know so you
28:32:00
know what people don't have to go
28:34:00
through that I did I probably made most
28:36:00
of my mistakes in my first couple years
28:38:00
carmine right Jeff I mean that's when
28:41:00
you do it so I always say don't people
28:43:00
you know I'll cut this short because I
28:45:00
know we have to wrap up shortly but you
28:46:00
know there's one thing I always see
28:48:00
these people posting online where they
28:49:00
say you know you have to completely flat
28:52:00
out fall in your face
28:54:00
fail to succeed now I don't subscribe to
28:56:00
that I do agree that when you make
28:58:00
mistakes you you learn from them and you
29:00:00
then don't make those mistakes again and
29:02:00
that's how you can grow but if you just
29:05:00
listen to people that have been doing
29:07:00
this for a long time who have succeeded
29:10:00
at it many times doesn't mean they
29:11:00
succeed every time but follow their
29:15:00
advice do what they do do what
29:16:00
successful people do and then you it's
29:19:00
harder to fail versus just saying I'm
29:22:00
gonna go Nicole 20 licensing companies
29:23:00
just to fail just because just just just
29:26:00
to do that and then and then I'll work
29:29:00
work up being sessile know learn what
29:31:00
you're doing first maybe get a couple of
29:33:00
failure knows but then you get a deal
29:35:00
done that's right that's right yeah I
29:38:00
agree what what are some of the myths
29:41:00
that you guys hear from your some of
29:43:00
your inventors that people believe you
29:45:00
know when they get a licensing deal a
29:48:00
good or bad myth you know do they think
29:50:00
they're gonna get 50% do they think
29:52:00
they're gonna get money up front what
29:53:00
are some of those nuts that's it that's
29:54:00
the big one up front money they'll say
29:57:00
they want it they say that it's almost
30:00:00
like they expect it Jim I you know I got
30:03:00
a product here's what I here's what I
30:04:00
want I want you know 100 grand up front
30:07:00
like it's a ransom note or something
30:09:00
like you're not gonna Jeffrey you can
30:11:00
you could agree comment in my experience
30:14:00
in 20 years in this business it's it's
30:16:00
not common to get upfront money not for
30:19:00
us everyday invention
30:21:00
you got a software product or some kind
30:23:00
of medical device Jeff right you see
30:25:00
more of that but if you just have a
30:27:00
widget something that's sold in Walmart
30:29:00
or Target you don't see upfront monies
30:32:00
or very much upfront monies I don't I in
30:35:00
my experience it's rarely see big
30:38:00
upfront monies that that's exactly right
30:40:00
I want to tell a quick story I know we
30:42:00
got to wrap up what talking about
30:44:00
mistakes and then time talking about
30:47:00
expecting advances my first mistake was
30:50:00
I had a product we were not I had this
30:52:00
was when I first got started inventing
30:54:00
years ago and I ended up getting myself
30:57:00
in front of Chevron I'll even say the
30:59:00
company Chevron I was the guy actually
31:02:00
we were at a point he said Jeff what do
31:04:00
you want what do you want and
31:07:00
I said well this is again an adventure
31:10:00
who did not know what he was doing and
31:12:00
I'm telling on myself and I said I want
31:14:00
three hundred and fifty thousand dollars
31:15:00
that's what I want he laughed at me and
31:17:00
hung the phone up and that was it I
31:19:00
could get him back on the phone
31:21:00
that was my first fail okay that's when
31:23:00
I realized well I need to know what I'm
31:24:00
doing here I mean if I'd have said hey I
31:27:00
like ten grand he probably would have
31:28:00
done it know if you have you said five
31:30:00
million he would have respected you more
31:33:00
a million shares so long story short
31:43:00
that guy were now friends were now
31:45:00
friends on LinkedIn he reached out to me
31:46:00
now but anyway but anyway the reason I
31:50:00
said that story does throughout this
31:51:00
time spent a great show
31:53:00
you know guys if you're listening to
31:55:00
this show if you're inventor out there
31:56:00
this is these are Nuggets you definitely
31:59:00
want to take to heart learn what you
32:01:00
need what you need to learn whether it's
32:03:00
books we just get a coach get a mentor
32:06:00
you know like Jim said follow someone
32:09:00
who's already successful and follow
32:11:00
their path don't try to reinvent the
32:13:00
wheel follow the path but don't do
32:15:00
exactly what they're doing find yourself
32:16:00
find your find what you're good at and
32:19:00
do it the best you can and and get
32:21:00
yourself in front of these companies and
32:23:00
do it the right way they will respect
32:24:00
you as a professional and you will get
32:26:00
further so our mind is anything else
32:29:00
you'd like to ask Jim today no no I
32:32:00
think that as you said Jeffrey that's
32:35:00
we're not just here talking and reading
32:38:00
out of a book the information that's
32:40:00
been presented here is huge I mean you
32:42:00
can actually save you from losing a deal
32:44:00
and it I'm hoping it it gives some
32:46:00
people some some realization that
32:49:00
there's light at the end of the tunnel
32:50:00
that they are gonna get some failures
32:52:00
they are gonna mess up they are gonna
32:53:00
screw up their deals and that's okay but
32:56:00
they need to keep trying there's so many
32:59:00
companies out there now they're getting
33:00:00
into the innovation world and they're
33:02:00
looking for products from inventors such
33:03:00
as the people that we know there's a lot
33:05:00
of information out there and Jeffrey and
33:07:00
Jim you guys are really really doing a
33:10:00
great job helping the inventor helping
33:13:00
people get those products to market and
33:15:00
we're just hoping that people listen
33:16:00
these podcasts they get some information
33:18:00
if we can help one person each time it's
33:20:00
pretty good
33:21:00
yeah I agree with that so we are gonna
33:24:00
wrap up this episode of the licensing
33:27:00
jungle from my co-host mr. Jeffrey
33:30:00
Magnus the licensing expert and for Jim
33:32:00
Tibet I thank him for being on the show
33:34:00
today
33:34:00
he's a retail expert he's got numbers
33:37:00
and numbers of years reach out to him
33:38:00
you can he's on social media all
33:40:00
replaced and I thank both you guys for
33:43:00
doing the show today and everyone out
33:46:00
there thanks for listening and we'll
33:47:00
talk to you soon thanks a lot thanks