The Licensing Jungle Welcomes Jim Debetta Inventor, Author and Legend in the Retail Product Market.

The_Banker_Who_Saved_His_Soul_by_Baldo_Minaudo_Amazon_Cover
Are You Looking for an International Investor, Advisor, Coach or Consultant, Mr. Baldo Minaudo is your Guy.
August 2, 2017
Juicebox Moms
CoSleeping with a Yoga-riffic Toddler
August 4, 2017

Download Inventors Roadmap to Success on Google Play and iTunes!

Google Play Apple iTunes


Watch the podcast here!

 
 

Podcast Notes

1You Tube generated podcast notes, please excuse any typos.
:00we go hi everyone and welcome to the
0:03licensing jungle
0:04I am carmine danesco your co-host with
0:06Jeffrey mangas the licensing expert and
0:09today on the show we have a true legend
0:12in the industry his name is jim de
0:15Bettis and i have him on the line with
0:17us now
0:17let me introduce him real quick hey
0:19Jimmy over there yeah he said it was a
0:21true legend I wasn't sure we were
0:23talking about okay I'll take it I'm just
0:26reading off the screen I didn't write it
0:27don't worry that's bet this is we listen
0:29playing we're good well no no it's great
0:33and you know it's funny Jeff Jeffrey and
0:35I we just came off taping the show we
0:37were talking about everything in
0:39licensing industry we're so excited to
0:41have you coming on and I know that you
0:44know you've done so much I'll kind of
0:46let Jeffrey jump in and and get started
0:49man because we were excited to have you
0:51on the show today oh yeah as well yeah
0:53I'm really excited thanks Jim for being
0:55here it's really great to have you I
0:56really was excited because Jim's got
0:58this vast amount of knowledge and I'm
1:00just really looking forward to getting
1:02into it so if you don't mind I got just
1:04got a couple questions I want to get
1:06started with Jim what do you find is the
1:08biggest challenge in licensing for a new
1:10inventor for new for an inventor who
1:12wants to pursue licensing what do you
1:14what do you where do you the ones that
1:16come you come across what do you think
1:18is the biggest challenge for this is a
1:20tough one well I think the one thing one
1:22thing I've learned over years is a lot
1:24of people don't even know what licensing
1:26is they they think it's like is that
1:28private labeling your product like a
1:30retailer puts your name on it or they
1:33don't understand it and I think that
1:35there needs to be believe it or not more
1:37just one on one information about what
1:40is licensing what what is it how does it
1:42work what does it look like for the
1:44typical inventor because when they go
1:46online they read about how a
1:47billion-dollar company works with a
1:49billion-dollar entity or brand and I
1:52think they kind of get thrown by the
1:53complexities of that so I think that's
1:55the big thing just the old basic
1:57education people really don't know what
1:59licensing is and then beyond that I
2:01think a lot of people think it's just
2:02easy like oh yeah you know what I'm
2:04going to go license my idea - you know -
2:07Black & Decker and yeah this is going to
2:09send me to money ole every week and they
2:11have no idea how hard it is
2:13potentially to get the deals especially
2:16if you don't know what you're doing you
2:17don't know how to approach all that
2:19stuff I just think the basics are really
2:21misunderstood more than we think they
2:24are I totally agree dude we were just
2:27talking about that how you know that
2:29licensing is not a get rich a way to do
2:33it it takes patience it takes a lot of
2:35Drive and it takes it just not gonna
2:37happen overnight and a lot of that for
2:40me and from the people that I come in
2:42contact with they it is lack of
2:44knowledge and they just don't know they
2:46think it's going to happen they can just
2:47go out and do this and yes you know you
2:50mean maybe you can but honestly you know
2:53learning process is learning how to do
2:54it and be a professional is crucial I
2:57know I've seen some of your posts in the
2:59group about being professional and how
3:01you know keeping yourself together and
3:03being patient and our patience that's
3:06the key I mean people think it happens
3:08in a week or a month I mean you know
3:10it's a numbers game you got to approach
3:11a number of potential licensees and you
3:14know get a couple of you know people
3:15interested and then you got to start
3:17working the deals and then you know
3:19that's a whole nother process of it it's
3:20like anything else it doesn't matter
3:22what business you're in there's a
3:23process there's basic information you
3:25have to learn yeah a few people will get
3:28registered there's no question but
3:29that's what sways everybody everyone
3:31thinks they're going to get rich and I
3:32always say listen there's nothing wrong
3:33with being a thousandaire you don't
3:35always have to strike the millionaire
3:37right I mean I don't think everyone
3:39thinks if they can't make millions well
3:41what's the point what's wrong you know a
3:43lot of inventors we all know this do
3:44this part-time if they have a full-time
3:46career or a job and they're dabbling
3:48with their product ideas and I say
3:50listen there's something wrong making an
3:51extra few hundred or a few grand a month
3:53with your product you don't have to try
3:55to go crazy and make a gazillion dollars
3:58just to have your product you know come
4:01to fruition and get licensing to get
4:02some royalties and do a deal is is a
4:05success and that's good to do that I
4:07totally agree with you I just had this
4:09conversation with a student yesterday
4:10the student asked you know what what
4:15kind of money do I think she's going to
4:17make well the what my question when I
4:20answer that question was I said look you
4:22know it's okay think about if you make
4:24even if you make 30 grand
4:25extra
4:26a year on your product right that you
4:29didn't have you know and then you have
4:31then you work hard and license another
4:33product you make another 30 grand per
4:35year you're making some making a little
4:37bit of money and you're subsidize you
4:39know whatever your situation is it's
4:41better than no money at all and no
4:42product out there on the market of
4:44course I mean that's all day long all
4:47day long you know and so that's exactly
4:50right I personally am NOT a millionaire
4:53you know and I love that you know I've
4:56got money coming in from my products and
4:57I feel excited about you know and my
5:00family is fine and my coaching program
5:03is all about that it's about keeping it
5:04real keeping it keeping it you know to
5:07the level of hey we can do this but
5:09you're not you know yeah if you make a
5:11million on your idea that's perfect
5:13that's great but because I hear it
5:14inventors say oh man this is a million
5:17dollar idea I'm gonna make millions
5:18immediately I'm not even a company's no
5:20licenser idea I immediately know some
5:22things already it's a red flag that they
5:25they haven't done research they're new
5:27at this game that's really great yep so
5:31um really quick what do you feel you
5:35know is the best place to start when
5:37your new inventor in the licensing where
5:39do you feel as inventor should start you
5:42know as far as you know with their ideas
5:44you know what what do you as you as an
5:46expert well again beyond the basic you
5:49know learn the basics learn the 101
5:51stuff and talk to people who are
5:53competent in the business like you guys
5:55I mean that's key so beyond that I think
5:59we all can agree about what I'm going to
6:00say is having a great sell sheet for a
6:03very small deck is critical because this
6:07has to speak for you initially when
6:08you're reaching out I know a lot of
6:10people still get on the phone I'm a big
6:11email I finally get a lot more results
6:13emailing or even texting buyers or
6:17potential exit then I do getting on the
6:20phone nobody pick I don't pick up my
6:21phone unless I know what you guys I'm
6:23not I'm not answering right and for the
6:26same reasons these companies don't
6:28answer because they know they're going
6:29to get solicited and they don't want to
6:31listen to it they get trapped on the
6:32phone and that's it and it's an issue so
6:36having good like being able to have a
6:38sell sheet that clearly explained
6:41what the product is how it can benefit
6:44them not telling a two-page story of
6:47your story why you invented it your
6:49hardships you know I mean people care
6:52about that but this is a business and
6:53ultimately the company is not going to
6:55really care how why it's going to be can
6:58they make money can they sell it can
7:00they make a profit you know whatever and
7:02so having good collateral is key and you
7:06mentioned it just having managing
7:08expectations not going into this
7:10thinking now I'm going to make a
7:12gazillion dollars don't want to this
7:13thinking look this is a challenge you
7:15know a lot of people don't get deals for
7:17various reasons but to go in there be
7:19prepared and then also understand how to
7:22do a deal if you send a associate out to
7:25a particular company and they have
7:27interests you know you have to know the
7:28basics like signing non-disclosures and
7:30understanding you know if I have a
7:32patent or if I don't have a patent is
7:34that really urgent enough for me to say
7:36you know I mean there's different
7:38schools of thought when it comes to
7:39patents you know some people will take a
7:40product - licensee without any patent
7:43protection and still get a deal I've
7:45always been more like well if you have a
7:46patent obviously have more leverage
7:48because now it can't be readily copied
7:50so easily so you know in that particular
7:53case you know having IP is not always
7:56not needed but it definitely gives you
7:57more leverage in that in that deal but
7:59really again it comes full circle to
8:02understanding what the process is you
8:05know that's it that's exactly right I
8:08mean and that's what I coach and you're
8:10it's almost like you scripted this for
8:12me Janet because honestly really I am a
8:15big big huge advocate on you know I I
8:18trained my students to niche down their
8:20sales sheets to focus in on that sell
8:23sheet to be in your 70-mile fire
8:25billboard it's they've got to get it in
8:26seconds okay they don't want it yeah and
8:29inventors say well I need to tell my
8:32story no they don't need your story
8:34because you've already talked to them on
8:35the phone you've already gotten some
8:36interest and then you're going to send
8:37your sell sheet to them and they just
8:39need to understand it immediately
8:41you know and it's having a great picture
8:43of your product really fine it's fine
8:45tuning the benefit of your product that
8:47you just you said it people don't care
8:50about your story they care about how
8:52they can make it how they're gonna make
8:53money and how
8:54that how it benefits therefore their
8:56customers that is it in a nutshell yes
8:58thank you guys a question for a gym
9:01question for you and and and the
9:03information that you guys are given out
9:05is if people will listen and open their
9:07mind will be so much easier for them to
9:10move their products forward how how do
9:14you handle a client that comes to you
9:16that is so emotionally attached to their
9:17product that they can't stop themselves
9:19from just going on and on about it and
9:22you you try to help them you know narrow
9:24down their pitch first of all you know
9:27again this is one of those things right
9:29the first thing I tell people is listen
9:31you want to be passionate about what
9:33you're doing but you can't be emotional
9:35about it
9:36there's a big difference there's a
9:37difference between and I tell people
9:38listen to me this is not me it doesn't
9:42matter what I think it's what the
9:44potential licensees think this is a
9:46business they don't care about all your
9:49stores they may care later because if
9:51you know they're just human human you
9:53know you want to hear people that have
9:55gone through something and have
9:57succeeded that's always good to hear I
9:59mean that's the human element but this
10:01is a business transaction
10:02I've got something do you want it and if
10:06you want it you know why do I want it
10:08and why should I really feel like I need
10:10to invest in that product and pay
10:13royalty so I really it always just it
10:16always comes down to that kind of a
10:18thing where people just you know they
10:20call it and they're very excited and
10:21they tell me they put their life into it
10:23and they've invested everything I always
10:26tell listen you know this is a this is a
10:28high-risk business it's a cutthroat
10:30business like a lot of businesses and
10:32you got to be prepared to hear a lot of
10:34no before you hear some yeses you may
10:37never hear a yes you may hear five yeses
10:39but you got to just be methodical in
10:42your approach you have a like you said
10:43you know 70 mile an hour billboards sell
10:46sheet you're prepared to have a
10:48discussion you're prepared to do a
10:51business deal they're going to arrange
10:52it and they send an offer sheet they're
10:54going to send you a deck of paper that
10:56is a lot of legalese that you may not
10:58understand and that's when your story
11:01becomes nothing and it all becomes about
11:04doing a business deal so I always tell
11:06listen it's important to manage
11:08expectations it's important for me to
11:10manage your expectations and let you
11:11know that right off the bat this is a
11:14tough gig to go through but if you
11:16listen to me and you work with me or you
11:18know you work with Carm I work with Jeff
11:20whoever if you just trust in the process
11:23that we know has worked because we've
11:24done this a million times your odds of
11:27success are going to be much greater and
11:29if you go in there and just try to do it
11:31on your own and you know I know there
11:32are a lot of people would say no you
11:34know everything can be done in your own
11:35and I think if you're taught you you can
11:38do those things but you need to learn by
11:41people who have done it
11:42they also people the best way to learn
11:44is to learn from people who've done it
11:45failed and succeeded and live by their
11:48wisdom and experience but yeah I lot of
11:50times like how people operate deniz come
11:52on I'm like wizard stop stop it's not
11:55what's going to go here's what's going
11:56to happen when you send a sell sheet out
11:58you're gonna send out you send out ten
12:00emails and you're not going to get an
12:01email back in ten minutes I promise you
12:03if you do I'm going to fall off my chair
12:05but waiting and following up and calling
12:09and calling and emailing and once you do
12:11then you got to know how to react to
12:13that email and what to say and again it
12:16becomes all business at that point
12:18that's exactly right I mean yes you know
12:21again that's what I coach and I'm really
12:23glad hear from you that it's reaffirming
12:25for me that I'm giving the right
12:27knowledge because I told people you've
12:29got to know exactly what to say even
12:31even on a follow-up you got to know what
12:34to say and how to handle these
12:35situations with with these companies
12:37when they offer you term sheets and they
12:39want to move forward you got that you
12:40need to know the process and and you
12:43can't really yeah you can do it on your
12:45own but you really need someone to guide
12:46you through whether it's an attorney
12:48with this coach doesn't matter you still
12:50need help you know and you cuz it's just
12:53one of those things you have to do just
12:55happen to know like my kids like you
12:57know right um you know a family tell us
13:00here on vacation and the air
13:01conditioning way and you know one of my
13:03kids is why you just go out there and
13:05just just go fix it just go fix you a
13:07Guinness justice just go out there and
13:08just take it apart no it's it's like a
13:11thousand little friggin pieces in there
13:13I hear that I know what I don't know and
13:15so I either will call somebody who does
13:18know what they're doing to do it
13:20professionally I saved more money by a
13:22somebody come in and do it right and me
13:23trying to Home Depot it and you're
13:26creating chaos and then an eyelid I once
13:29spent money but I spent my time and then
13:31I still have to call somebody and so now
13:33it's twice spend twice as much money so
13:35no matter what it is that you're doing
13:36it doesn't matter what business it is if
13:38you just don't know you don't know and
13:41you have to work with people or learn
13:43the process from somebody that knows
13:45what the hell they're doing bottom line
13:46that's it and you said something earlier
13:48on it I kinda want to go back to if you
13:50don't care talk about dealing with
13:52rejection dealing with knows you're
13:54going to get them and inventors that I
13:56mean I see it a lot I talk to them a lot
13:58that you know they they don't really
14:00know how to handle it you know they
14:02think of it they get one no they're
14:03going to stop they got to stop and there
14:05they go into hibernation and forget
14:07about their product you know but I
14:08encourage them you know hey you're going
14:10to get a lot of those you're going to
14:12get a whole lot of them if you're doing
14:13something that you know you got to be
14:15proud of yourself that you're doing
14:16something at least you're doing
14:18something moving forward with your
14:20product and that's what it I do you
14:22agree with me that you better just got
14:23to keep going
14:24they just got to keep pushing look you
14:25know I use I use a baseball analogy for
14:28those people that you know watch
14:29baseball like if you hit 300 right as a
14:32hitter you're only getting a hit three
14:34times out of every ten times your at-bat
14:37you're an all-star right you're you're
14:40you're an amazing player that's only
14:42three you know yeah I always tell people
14:45listen this is this is a business of no
14:48it is a business of know if it was that
14:50easy everybody that had a product would
14:52be on the cover of entrepreneur Fast
14:54Company Inc everybody would be
14:57gazillionaires everyone be would be
14:58floating on yachts and the Caribbean all
15:00day long it's the tough businesses of
15:02you know I mean the biggest gross
15:04domestic product entity in this world is
15:07consumer products I mean they're
15:08everywhere I think there's there's so
15:10many products out there how hard it is
15:13to get your product in the mix of all
15:16these other things and the big companies
15:17that you license to know how to do it
15:19better than we do let's face it I mean
15:20they've got the brand the money the
15:23marketing process they've got the retail
15:24placement they're already there so
15:26they've got a huge leg up but yes if
15:29you're not willing to accept nine and a
15:31half knows out of every ten times you
15:33pitch and especially the beginning
15:35you don't belong in this business you
15:37know belong pitching you don't belong
15:38talking to people and you just gotta
15:40like I said he has the emotional thing
15:42put it away who cares it's a numbers
15:45game : ten twenty thirty fifty cup
15:47whatever you got to do but pick the
15:49right companies that are fit but again
15:51if you know what you're doing you know
15:53how to pitch you know what to say your
15:56odds go up a little bit you have a
15:58better shot and when someone does react
16:00you know what to do with that very
16:03important that's exactly right and so
16:06yeah you have an experience that you
16:09have and you deal with live inventors
16:10what do you just give us us take ask a
16:14question of when let's say someone gets
16:17a offered a term sheet where do you
16:19think inventors fail at that point what
16:22is what even would have you seen the
16:23most well they don't they either don't
16:25know how to understand the terms of the
16:28term sheet or they immediately get
16:30offended and they say what I got to do
16:32this or I only get that I only get this
16:34in royalties and there's no guarantees
16:36they get very upset or or emotional
16:39about what's in there and I say look
16:42again this is a back-and-forth
16:43negotiation if you understand how these
16:45deals are typically done
16:47what's negotiable what's not what you
16:50can expect and this is rare sometimes I
16:52get into the IP like the patent stuff
16:54where if you have a solid utility patent
16:56or multiple patents you can drive more
17:00of that deal or maybe get a higher
17:02royalty percentage or maybe get some fun
17:04dollars or get some minimal royalty
17:07guarantees and and things of that nature
17:09again this all comes down to knowledge
17:12if you people get these terms you stay
17:14on its leave their legal doctrine they
17:16don't understand them they understand
17:17what to do or what's normal
17:19it's a lot of people email and say hey
17:21Jim I'm I'm in the middle of talking to
17:22XYZ company they sent me this I don't
17:26know what's right what's wrong with are
17:28they taking advantage am i getting it up
17:30and then yeah you got to talk them
17:32through those things and it depends on
17:33the product the company the category I
17:36mean you guys know this it all depends
17:38on a lot of things but yeah it's it's
17:41they have to understand how to deal with
17:44and understand the terminology that
17:46comes along with these deals and how
17:48affects the long-term I've had clients
17:50where you know they I tell Michael
17:52listen a lot of times licensees will
17:54take your product and they'll show the
17:56concept for a year or two just to get
17:58you all you know that competitive
17:59product potentially off the market and
18:01you don't have any guarantees that there
18:03will be any payout for you now you've
18:05not only signed your life away there but
18:08you're going to get nothing and now are
18:09you going to go fight them legally a
18:11much bigger entity you're ready lost
18:13you're already losing are you to lose
18:15more so there's so many intricacies I
18:17mean here I know it sounds easy for
18:20people listening say oh I'm going to
18:21call up you know XYZ company and do a
18:23deal it's just so much that goes into
18:26selling selling it to a company is just
18:29the first step in having a successful
18:32people get licensing deals they're not
18:34always successful I can get is real
18:37crappy for me I want to get a deal
18:39that's big for me you know and that says
18:41there's another level of work well I'm
18:43gonna telling myself here real quick and
18:45then I'm sure carmine asked some
18:46questions I'm gonna tell myself when I
18:48was a brand-new inventor when I see
18:51brand new this was 2005 I had no clue
18:53what I was doing I did develop a product
18:56and I pitched it - it was it was in the
18:58gasoline industry at oil industry I
19:01pitched it and yes I get I had no clue
19:03what I was doing and I got to the point
19:05when the company actually ought they
19:07actually called and said what do you
19:08want and as a novice inventor I had this
19:12astronomical amount that I threw at him
19:14and when I threw that number at him all
19:16her was crickets I mean it was like
19:19immediately that I was shut down if I
19:21would have known what I was doing I
19:23believe if I would have understood what
19:25the terms were and understood I probably
19:26would have had a successful deal but
19:28that didn't happen because I call it top
19:30loading loading it real oh my what you
19:35know and that's what I wanted to bring
19:37that attention to mistakes are made but
19:39you can learn from it and I learned from
19:41that state so yeah good stuff yeah well
19:46that's kind of where I was going and I
19:48just love about as Jim's talking about
19:50education knowledge and experience and
19:53100% I mean if I'm looking to better
19:57myself my family's life and I have this
20:00idea that I believe is going to be big
20:02I wouldn't i educate myself higher bring
20:05on somebody like Jim or Jeffrey and
20:07utilize that to my advantage I mean I
20:11could never go into a company cold and
20:14think that I knew everything when you
20:15know this product I mean how many
20:17chances do you get Jim you know you walk
20:19into a company and you blow it I mean
20:21are they gonna know a kindergarten
20:23you're done and I tell people look I've
20:25said this on many a podcast or
20:28interviews but it's always rings true
20:29you know when I want my taxes done I
20:32know people will show it I go I go to an
20:34accountant I know I'm gonna get I have
20:36to pay but I'm gonna get more money on
20:39my return than if I tried to do a my own
20:41if I'm sick I go to the doctor I don't
20:44try to self medicate or so noce you know
20:47whatever it is it's the air conditioning
20:49store the air conditioning breaks I call
20:51an air conditioner Pro it doesn't mean
20:52that I can't attempt to learn what
20:55they're doing or if it's something minor
20:57I could try to do it myself I'm not I'm
20:58not suggesting to people that they have
21:00to fully realize everybody else because
21:03ultimately what we want to be able to
21:04teach people and help them do is to be
21:06able to if not the first time the second
21:09or third time be able to do it on their
21:10own and but they but you need to
21:13learning there is nothing better nothing
21:14better than learning from people who do
21:17this every single day and feels it well
21:19yeah but you could cost money
21:21of course it costs to my everything cost
21:22money I wake up spending money the
21:24lights are on you know you eat
21:26everything has a cost to it but you know
21:28what's the cost of doing it incorrectly
21:30what's the cost of car mind blowing that
21:32deal you can't go back to them now they
21:35know your don't know what you're talking
21:36about they'll take full advantage if
21:37they even talk to you again and you're
21:40screwed right from the beginning so
21:42having that knowledge and experience and
21:46access to it it doesn't cost a fortune
21:49it's worth investing anybody that
21:51successful on care if it's any CEO any
21:53entrepreneur from the Bill Gates or
21:55Warren Buffett run down they will all
21:56tell you the same thing they invest in
21:58knowledge they invest in experts they
22:00reach out to people who know more than
22:02they do they know who when they don't
22:05know what they're talking about and they
22:06surround themselves with the best
22:08possible people you know and and people
22:11like us try to minimize the cost we're
22:13you know we always actually I try to be
22:14inventor friendly I try to
22:16that I was there too and so yes I feel
22:19like I could charge more for things
22:21because I feel like my experiences
22:23weren't that but we also all have
22:25programs and things that are low cost I
22:28mean from books to audio downloads to to
22:30little basic programs to help people to
22:34learn and then either do it on their own
22:36ultimately or have us just kind of hold
22:38their hand through the process and
22:40that's important in any business but
22:42whatever you're in as you're doing that
22:44is exactly right my coaching program at
22:46that's what I take pride in is is
22:48teaching them the process so they can do
22:51it on their own but yes I'm always their
22:53coach I'm always their friend at the end
22:54of the day to help them out you know
22:56even after the program ends and that's
22:58important to be able to have that just
22:59like your people that you come in
23:01contact with if you get to a point where
23:02you don't understand you need to have
23:04somebody you can reach out to to get you
23:07through it I totally agree with you so
23:09be another question real quick what you
23:13know what is your recommendation if
23:16someone's brand new to you know that it
23:19doesn't even have an idea but once the
23:20license what what did your
23:22recommendation work to where they start
23:24where does the very first place they
23:26start yeah well I mean the first thing
23:27you have to make sure is that that idea
23:29isn't somebody else's idea so I always
23:31tell people look you can you can first
23:33go on you know the US Patent and
23:35Trademark Office website which is when
23:37USPTO org and do a basic patent search
23:40oh and a trademark search if they
23:43already have a name for the product and
23:44it can be a little tricky and sometimes
23:46very difficult to understand what search
23:49terms and how to navigate the searching
23:52of that but I mean if you type in
23:54whatever and then it pops right up and
23:56somebody either possesses a patent or
23:57you know whatever you know you might be
24:01getting your tracks right there what a
24:03lot of people make the mistake of doing
24:04is they go online they go to Amazon or
24:06Walmart and they look for that their
24:08product I didn't they say hey Jim listen
24:10I went on you know I have an idea for
24:11product I went on the internet I looked
24:13for it and I don't see it I'm like
24:15that's a huge mistake I said because a
24:17lot of people that file patents don't
24:20follow through they need to file the
24:22patent they just abandon it they go back
24:24to their day job they just lost interest
24:26they didn't have the money to make it
24:27happen so a lot of things that don't
24:29exist
24:30doesn't mean that there is a patent or
24:32patent pending for it
24:33so either you do that or you know you
24:36hire you know a patent attorney or agent
24:38or even use you know sites like
24:40LegalZoom or whatever to do a thorough
24:42patent search if you're free and clear
24:44then I think what the next question I
24:46always give people is what's it going to
24:48cost me
24:48if is not going to do the licensing
24:50about so they're going to do the route
24:52that I usually help people with which is
24:54to get it development sold to retail
24:55let's say what's it going to cost me
24:57from start to finish or I don't know but
24:59we got to get quotes you got to go to a
25:01product design firm we're going to see
25:03what it costs to get you know the CAD
25:04drawings the mechanical drawings of your
25:05product which a factory needs in order
25:07to quote to make it mass no mass produce
25:10it you've got to find out what it costs
25:12per piece to make your product you got
25:14it you got to have a website you got to
25:16have you know I mean there's a lot of
25:18little thing you have a package made fee
25:20of product there's all sorts of costs
25:22that are involved with it so the next
25:23step the first step would be to make
25:24sure you're free and clear second step
25:26is if you are you've got to reach out to
25:28the particular vendors who will help you
25:30develop and make the product and find
25:32out what it costs to do that and then
25:35once you understand that then you can
25:37proceed if it's licensing obviously you
25:39still want to make sure that that
25:39product is not taken by somebody else
25:42but then they you have to find out what
25:44does it cost to have somebody help me
25:45you know make a sell sheet or help me
25:47understand the process and take me
25:49through the process so those are the
25:51first few things a lot of people skip
25:52that step they just I've seen people
25:54make products and not even what I'm
25:56supposed to do a patent search I've had
25:57people say that more than a few times
25:59and I'm like you are lucky that somebody
26:01hasn't hasn't done that but people do
26:05that prevent very common so yeah you got
26:07you got to do your homework first check
26:09around and make sure well that's exactly
26:10what we just were just talking about
26:12earlier I that's the first step that I
26:14encourage my students do is research the
26:16market I mean I'm talking about
26:17don't just glean over it and I mean dig
26:20in dig in and look and do a lot of it
26:22yourself you can but if you didn't if
26:24you're still not satisfied
26:25yes hire a patent attorney or someone to
26:27do a prior art search get in but you
26:30want to know and then also you one
26:32determine where the market is you know
26:33if there is even a market in period and
26:36you're right I get I see that just like
26:38you do I mean they develop products they
26:40patented they spent a lot of money on
26:43prototypes and patents
26:44and they still don't even know who the
26:45market is if they're easily in this one
26:47and then they're kind of discouraged and
26:50they're kind of almost like they're dead
26:51in the water so yeah you know another
26:53side problem to that is people sometimes
26:56say Jim I have an idea that's so novel
26:58it's so unique it doesn't exist and they
27:00say isn't that great I'm like sometimes
27:02that's not great because like retail it
27:04isn't there's no product category for it
27:07there's no buy effort there's no shelf
27:10space there's no internet space if you
27:11come to me I always think of like
27:13commodities like toothpaste or razor
27:15blades where there's you know ten
27:17different brands I'm like yeah there's
27:19other people competing with you but
27:20there's a category so if you make the
27:22new and improved or a better version of
27:24that then a there's an audience for it
27:26there's a potential licensee for it
27:28everybody wants what's new that's how
27:30retail thrives I mean we they're not
27:32selling nuts on VCRs anymore right we've
27:35got everything evolves to the next thing
27:38so if you've got the next latest and
27:40greatest or something that improves or
27:42solves a problem that the old product
27:44didn't have there's a market for that
27:46and that's a better shot than coming up
27:48with a widget that no one's ever seen
27:50heard not to say that that still can't
27:51do well because they obviously products
27:53to do well there too but I think you
27:55have a better shot at having a product
27:56that's an improvement or a variation on
28:00a theme that people can readily accept
28:03and understand what it is without deep
28:05explanation through a sell sheet for
28:08example and and the retail community
28:10understands that there's a category for
28:12this product and they can just push it
28:14into their assortment if it's something
28:17that is really you know better or more
28:19advantageous than what they have now you
28:21know and touching going back to
28:23something real quickly I want to bring
28:24that you brought to the attention of the
28:26audience is that at some point an
28:29inventor has to decide which path to
28:31take to our license the product or do I
28:34go to manufacture and and either way you
28:37need to know that what's going to be
28:39involved in either path and it's
28:41important you know to do the research
28:43and do you know learn what you got to
28:45learn to either take each path do you
28:48agree with that yes I mean there I've
28:50talked about this many times this risks
28:52and rewards to both and I always tell
28:54people the quick answer is when you
28:56license is very little
28:58upfront cost sometimes no cost so to
29:00speak other than the basic associates
29:03and education whatever but it's minimal
29:05cost but the reward potential is
29:09potentially and it can be great but it's
29:12not as great as the reach outside now
29:14flipping to the retail side these
29:16disadvantages there's a lot of up front
29:18course you're paying for everything so
29:20you got to have some money to go that
29:21route but if you are selling your own
29:24products and you're making $5 for every
29:27$10 sole versus a 5% royalty making an
29:30example the potential to make money can
29:33be greater now there's always you know
29:36things in there that change I mean you
29:39could license something it can be a huge
29:40hit and the company that's licensing it
29:43could be a big brand and they could sell
29:44millions of millions of millions and you
29:46could make a lot of money so it could go
29:49either way but there is some people who
29:51are risks and rewards if you don't have
29:53the time to run a business you should
29:55license if you don't want to be hands-on
29:57and you're an idea person and you have
30:00something that's unique that people want
30:02license if you want to be in your own
30:03business you want to go to legacy you
30:05want to have your family get involved in
30:07it you want to just run and be natural
30:09running business then going the retail
30:11route is the way to go - there's no
30:13ideas a wrong answer I think a lot of
30:14times it's what's appropriate for that
30:16person you know what age they are what
30:18their life situation is what they want
30:20from it
30:21they're all good paths you just have to
30:23understand which one is best for you I
30:26totally agree with you and that's you
30:28know because I do talk to a lot of
30:29inventors who lot of times they are
30:32confused as to which way to which path
30:34to take
30:34and then they worry about investors they
30:36worry about all these things that they
30:37honestly at the stages are in they
30:40shouldn't worry about yet you know those
30:42are things that I feel that when you're
30:45first starting out you really need to
30:47you know learn the basics and get
30:50someone who's going to help you you know
30:51before you give them to worry about
30:53getting an investor you know getting cat
30:55funding and crowdfunding and create all
30:57this stuff that I hear them worry about
31:00you know so here I'm a gym real quick
31:03and and you know I listening to what you
31:06guys talk about engines I live every day
31:09just like you guys so it's just like wow
31:10and it just
31:11so nice to be talking with people that
31:13kind of understand the whole ins and
31:14outs of all this and I don't know if
31:16inventors or prize developers realized
31:19going to a retailer the costs that are
31:22involved even for the retailer side you
31:24know I think that people think oh the
31:26retailer's going to love my product but
31:28there's so much money that the retailer
31:30would even have to put out if they take
31:32your product probably like advertising
31:33how you going to get people to the store
31:34to find the product like there's a lot
31:36of other things that I don't think the
31:37inventors realize when a retailer takes
31:39on a product yeah I mean there are again
31:42it's a business I mean these companies
31:43are layered they've got requirements
31:46they've got to have they gotta have
31:47winning products they can't afford too
31:50many losing products and yes when you
31:52approach a retailer that I mean it gets
31:54people will return things right there's
31:56a cost in bringing something back
31:58whether it's defective or not they've
32:01got a they've got advertised and they
32:02want you to help participate through
32:04co-op to advertise their brand not your
32:08product per se but you know if Target or
32:10Walmart wants to remain in the forefront
32:12of consumers mind they've gotta run
32:15commercials they've got to be online
32:16they've got email blast you to death
32:17whatever they got to do you have to help
32:20participate in that and like you said
32:22there's just all kinds of cost that I
32:24mean the hires they've got tens of
32:26thousands of store employees they've got
32:27to pay for those people there's signage
32:29there's I mean it's endless cost
32:31involved and even if your license
32:34ultimately the product is going to wind
32:36up at retail so that the retailer's cost
32:38is the same regardless of how they
32:40achieve the product I think it comes
32:42into their hand I think the big thing I
32:44want to make sure I say even if it's a
32:46little off here is you know we all work
32:49with inventors every day and I think
32:51that it's important that we all tweet
32:53and I know we do this that we don't
32:56promise people things we don't say
32:58you're definitely going to be a hundred
33:00percent successful I'm telling you Jane
33:03or Joe that you're gonna make it we want
33:06to encourage people we don't want to be
33:08negative but I think being realistic is
33:10what we all do well and and like I said
33:13if this is a it's a tough tough business
33:15and I think a lot of inventors I don't
33:18think I know they get very upset and
33:20they get upset with whether it's us or
33:22the industry at large or anybody when
33:25their product doesn't succeed well and I
33:27and I'm very careful to tell people like
33:30I know you guys are that this is a risky
33:32business the odds are that you may not
33:35succeed and it's a business of no and a
33:38lot of times people give up too soon
33:40inventors will look they'll try for a
33:42couple months and they stop they don't
33:43realize that sometimes six months down
33:44the road is where the where the glory is
33:47and it's just I want people to
33:49understand this because you know I run
33:51into this occasionally with more people
33:53get upset they feel like you know we
33:55haven't done something right but if we
33:57do what we say we're going to do and we
34:00let them know of the risks and rewards
34:02of the business this is the emotional
34:04attachment side they get very upset that
34:06their product didn't make it and we
34:08listen if that's the way it goes I mean
34:10you know it's like anything you do any
34:12business I don't care what business it
34:14is the odds are against you but you you
34:16increase the odds by having people help
34:19you that know what they're doing and
34:20it's but that doesn't guarantee anything
34:22we all want everybody to be successful
34:25you want to help people there's no
34:26question but it's a tough thing for
34:28people to swallow and then you know
34:30Blaine gets assigned everywhere but you
34:32can't you have to sometimes look at
34:34everything and it's a holistic
34:36approaches did we try hard enough it was
34:39the product good enough was the pricing
34:41right was the packaging right did the
34:42buyers at retail just not like the party
34:45will feel like they have something
34:46that's too similar maybe it's not the
34:49right timing there's lots of reasons why
34:51but people have to know that okay you're
34:53pitching to licensees or you're pitching
34:55to retailers it's it's a tough road and
34:57you have to have a thick skin and you
34:59have to be willing to stay at it and and
35:02understand that those few yeses can be
35:05the launch pad pardon the pun come on
35:07but get you to the next level and
35:10sometimes that's all it takes you get
35:12one deal or whatever and it allows
35:15things to Domino forward and that's how
35:17I think this business works like a lot
35:19of businesses and it but you have to be
35:21ready for that and I think that's what
35:23we all do a good job of telling people
35:24that it's not easy you know it's not
35:27well that's you know that's exactly I
35:29mean that is the one of the first things
35:31that I say to a students I tell them I
35:33cannot ever guarantee you a licensing
35:35agreement
35:36I don't ever guarantee you anything well
35:38I am going to guarantee
35:39he's going to get the tools that is
35:40going to help you be successful help you
35:43okay
35:44and it sets the tone right off the bat
35:45did so there's expectations already is
35:47set I'm gonna do everything my power to
35:49help you
35:50yes but I can't guarantee anything so
35:53it's really good but Jim has been
35:55absolutely fantastic having you on this
35:57information you've given is just made my
35:59mind spin I got something questions like
36:01crazy but I've been really great thank
36:04you very much being on and I know thanks
36:07for having me guys I'm glad I think the
36:08more we get the message out about how
36:10this business works it just benefits
36:13anybody yeah yeah hey Jim real quick and
36:16and and I know that you focus more on
36:18getting products into retail and and how
36:21should somebody get in touch you if
36:22that's the route they wanna take yeah
36:24well as I always say it's not hard to
36:26find anybody these days I've got a
36:28couple of websites the one that we built
36:31last year is you know it's we know
36:33business buddy we know business info not
36:36Commodore but we know business info or
36:39my name Jim do better calm I'm on
36:42facebook I'm on Twitter
36:43I'm on Instagram I'm on LinkedIn they
36:46can they can go any of those places and
36:48connect with me I answer I think every
36:51email ultimately every text message
36:54every no you know private message that
36:58comes across I try to respond to people
37:00and at least you know acknowledge that
37:03they're reaching out so I'm good that
37:05way
37:06you know and like you guys I mean you
37:08know we're there we're visible we try to
37:10make sure that people can see what we're
37:12doing how we're helping so I appreciate
37:14it
37:14no excellent man excellent we really
37:16appreciate your time today I know that
37:19it helped the listeners out there
37:21because it is it's just educating giving
37:24out the knowledge and letting people
37:25know that there are people like you like
37:27Jeff like us that are willing to help
37:29them so for myself calming the disco for
37:32Jeffrey Magnus and a licensing jungle I
37:34appreciate you spending some time with
37:36us Jim and we'll talk to you soon my
37:38friend we got it thanks guys yeah