I am going to tell you the reasons that it is very unlikely that you will see
real money by licensing your idea
so this subject has been coming up a lot in the comment section and I want to
talk about it again I've been doing a little bit of research and have been
seeing that if you go out and try to license your invention idea you're going
to get about three to five percent for your invention now when I say three to
five percent what do I mean there's an old trick in the movie industry and I
think it applies here to young filmmakers would go out they get excited
they write their movie script and a few of them would go to let's say wanted to
film festivals and then a movie studio would come along and buy their script
the typical range that a studio would pay for those scripts is anywhere from
twenty-five thousand to let's say three hundred thousand up front for the script
and for the filmmaker who is broke that's a lot of money right there but
they would also sign a contract that would say that they would get say
anywhere from one to three percent of what they call the back end
well that back end is an interesting thing so let's say the movie gets
released and it makes a hundred million dollars there have been quite a few
low-budget films over the year that have been very successful and there were
young filmmakers that had license their script to those movie companies so
imagine the movie does a hundred million dollars in this filmmaker is all excited
because he's doing the math and he says 100 million dollars he's gonna get three
percent oh my god he's getting three million dollars he's rich
did you know that even George Lucas got involved with a product licensing deal
just watch the documentary on Netflix called the toys that made us it took him
a long time to get back the rights and make real money on his products that's
the trick so here's how it really works so remember the movie made a hundred
million dollars but that was in ticket sales it's changed a lot now but years
ago it was typical that the box office would split the proceeds with the studio
so a hundred million dollars would basically be 50 million for the studio
and a million for distributors but here's
where the math even gets worse so we're at 50 million there's also a lot of
marketing and expenses to go into making that movie popular not to mention a
distribution of the film's back then and now video but back then it was film
reels and by the time you were done with all the expenses you're looking probably
at about twenty million dollars on a hundred million film that the studio
made but then don't forget you have all the business expenses that go along with
that we're talking about the overhead at the studio the employees the expenses
for the graphics the television commercials - everything that had to do
with making that film down to the catering so think about that every
single expense came off the top by the time the young filmmaker got their
paycheck it was only a few dollars and actually not a few dollars he's probably
a couple of thousand maybe a hundred thousand if they were lucky but that 3%
really turned out to be a lot less than they had anticipated and when we're
talking about licensing our product ideas we're talking about the exact same
thing so you go out there and you license your product idea let's say you
are lucky enough to get five percent what does that five percent mean is that
five percent of the gross is that five percent of the net is that five percent
of the profits read your contract you might be surprised so let's take an item
it sells for and when we're talking about licensing I'll pick a typical
number let's say we're talking about an item it sells for $25 that's a retail
price but maybe it only cost $10 to make in China or whatever we'll just use that
number remember you have a whole distribution chain in between so really
you're talking about a $10 product that it costs you to make that we're selling
to distributors probably for between 12 and 15 dollars and then they're
retailing at 25 so you're really only making a few dollars on each item even
when it's selling for 25 if a company is making a product for $10 they still have
the cost of distributing it that's all the employees that were used to
advertise the product to potential resellers that's all the advertising
that goes into them marketing them online television radio print material
however they do their marketing all the employees that were used to you know
sell your product to stick it into boxes to put it on trucks the expense of the
gas to get the truck from one distribution to the other the expense of
the Union truck driver to get him to drive the truck from one distribution
place to another by the time you get any money for your invention idea from
licensing there is nothing left and I'm actually gonna do another video about
this and it's gonna be about the taxes as a small business owner and when I say
small business that can be a business that's making you know 100 million
dollars in America that's still probably considered a small business if they're
making a hundred million a year even if that business is making all kinds of
money selling products unless they're publicly traded the last thing they want
to do is to claim a profit on anything because that means that they have to pay
taxes on that money so as a business owner it is a business person's job to
take any profits from the things that they make or do and to reinvest them in
the business to make the business grow so that they can make more revenue keep
the money within the business and pay little in terms of profit now for you
guys that are all about you know greedy corporations and you don't want to hear
this I'm sorry but that's the way it works the more revenue that my company
makes the more money that I begin to spend on the business and as a country
wherever you're located that's what you want businesses to do because we can
spend the money better than our governments we can hire people we can
buy real estate we can invest in technology we can invent new things
that's what we do with money that we keep instead of paying taxes and
where does the money that we pay taxes go really think hard about this are we
investing in the future of our country or are we investing in the future of our
government because if you pay taxes you know that your money is better spent by
you than anybody around you in government you know if the guys from all
these other inventions shows haven't found my channel yet they're going to be
hearing a lot of me pulling the curtain away and showing what they are doing to
you is the inventor and I hope you're listening I hope you hear what these
people are doing to you yes they may be making you a little money but you can
make more for yourself just like you can spend your money better than the
government can you can earn your money better than
those licensing people can help you to make money
you
Không có nhận xét nào:
Đăng nhận xét