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

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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
4:26a 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
24:30doesn'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
35:36I 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
35:44and 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
37:06you 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
37:14no 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