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This page was updated on:

08/20/2010

You can get wealthy by manufacturing and selling your own product!

Learn how to Create and Manufacture your own Product

When you create your own product, you have to make some very important decisions.  How will you make money from it?  Should you license it to a third party, or manufacuture the product yourself?  This will affect how much financing you need to continue.

Please Note

***If you have a unique product/idea that is not currently on the market, you need to apply for a Provisional Patent.  If your product is patented, you are the legal owner of the idea/product.  If anyone else tries to to profit from your idea/product you can sue them in court and be awarded any profits that they have made from your idea/profit.  You can start the application process by Clicking Here to get a Provisional Patent Application Kit

Option #1 - Inventor-for-Royalties

You can license or assign the rights of your invention for cash.  This is much easier than manufacturing and selling your invention.

• Licensing - This is a simple agreement where you let someone else use or develop your invention for a certain period of time. In exchane, you receive money(either a one time payment or continuing payments which are called Royalties).  This is an attractive option because the licensee assumes all of the risks of manufacturing, marketing, and patent infringements.  This allows you to sit by the mailbox and wait for your royalty checks.

To be successful Licensing your product, you need to:

1. Find the right people to review your great idea
2. Get the money to develop and protect your invention
3. Present the invention to possible licensee's in a marketable manner.

• Assigning - You can also assign all rights to your invention for cash. This is a permanent transfer of ownership rights, so you will no longer have any rights to the invention. You may receive a lump sum or royalty payments over a period of time.

*Royalties can range from 2% to 10% of the net revenues.

Option #2 - Manufacture the product yourself

Manufacturing the product yourself is harder, but the profits can be much larger.  You also have much more control over the product.

*Some recent studies show that almost half of the inventors who manufactured their own invention were successful. 

Differences in Financing

Licensing usually requires much less capital than the manufacturing and marketing the product yourself.  Your decision is will probably be influenced by your product.  The more complex the product is, the harder it will be for you to manufacture it yourself, so licensing might be better. 

If you license the product, you will need money for:

1. Creating the prototype
2. Marketing the product to possible licensees.

If you manufacture the product yourself, you will need money for:

1. Creating a prototype
2. Creating Tooling or Molds
3. Mass Producing the product
4. Finding Distribution
5. Collecting Payments
6. Enforcing Patent Rights

Learn how get wealthy by creating your own product!

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