Negotiating a Licensing Agreement (Mock Negotiation)

[@michelew802]

I always love hearing Marc's take on things. He is ALWAYS direct and doesn't waste time in providing the answers we need.

[@CourtneyLaschkewitsch]

Wow. What a spitfire of an interview! I love their intensity and their tips!

[@inventRight]

We agree!

[@terryomara806]

This interview & and roll play is gold! Thank you Stephen & Mark!

[@CameronManu]

Mark gives me that wolf of wall street energy!! i love this guy, i need negotiating skills from mark. thankyou stephen and mark for all the no bs content. amazing!

[@inventRight]

I’m glad you enjoyed it. I think Marc is amazing!

[@lorettabrail7806]

Great video on negotiating. Planning and having nothing left out... so crucial! Important to talk with multiple companies and be able to come up with a fair decision. Always treat people with great respect because no matter what, it pays off in the end!

[@AlbertoHernandezD]

EXCELLENT mock negotiation...go for chapter 2 😉

[@SimilarFrequencies]

Thank You Marc! It was great to see/hear you....I’m a bit shy but when I do communicate, It’s straight to the point. I need that straight to the point Honesty. Would have loved to have more than 12 minutes of you but, I’m still thankful for what we got! Thank you Steven! 💚🕊

[@420BudNuggets]

This guy is a G. Keeps it so real 😂

[@inventRight]

@@420BudNuggets thank you!

[@queengemicarter4597]

I LOVE Mark!!! 😂 He is not a joke! 💪🏽👏🏽👏🏽👏🏽 I learned a lot in that quick interview.

[@sylviapomazak1249]

That was fun! Stop the drama for your mama. No BS here!

[@ImbentongBentongTrimond]

I love the role play! thanks for this content Invenright~!

[@inventRight]

I’m so glad you enjoyed it. Thank you.

[@smx3084]

WOW! This was fabulous Stephen and Mark. This is a real, "in the trenches" look at how things work. I could imagine myself up against a tough negotiator like Mark. Make a decision or get out of my face type of scenario. LOVED IT. Thanks Stephen for bringing this great knowledge to folks like me. Bravo!

[@jaya8352]

This is one of my favorite Key vids I've watched

[@hqopie9091]

Great Guy .....Honest....... Shot every Idea down I have ........... Im not stopping ....... we will be doing business together soon Mark!

[@travisjazzbo3490]

The key is the find the right person to do a license with. If you feel the one person who is going to give you 8% not not do what you feel is necessary to blow this up, vs the person that is going to give you 6% will, that is extremely important. One company may have a huge product line in the fitness industry for instance and yours will be one of them but they won't get out there and make your product known. Another might be a smaller company that really believes in very aggressive social media and influencer marketing and has incredible reviews online for the way they do business and they are all about remaining relevant. That is who you want.

[@inventRight]

Thank you for watching and commenting!

[@DJ80s]

I'm alot like Mark. I went to buy a car and the salesman started playing games and didn't take me seriously, so I walked and said no. His loss, not mine. Afterwards I went elsewhere and negotiated a deal for a vehicle for 1/3 of the 1st saleman's asking price.

[@TheCrazyMachinist]

Great episode, the mock deal was very insightful

[@adettler1]

This would make a great series...keep more of these coming in the future

[@inventRight]

Thank you for your feedback!

[@monteiroinnovations1328]

Great segment Mark and InventRight, this was excellent preparation advice!

[@deanlongthon4963]

Excellent 👌

[@christopheraraiza4211]

So it IS possible to obtain a better deal if you do some extra work other than having an idea. For example, as an engineer, I've put in a lot of work into developing my idea into the best version of itself, I've considered a lot marketing and manufacturability while building prototype after prototype. That does cost a lot of time and effort... anyone who decides to license or venture it will also benefit. Up until now I thought companies didn't care about how much work you've put into your idea because they would also invest into it with their own team of engineers and most likely make something better than the idea/prototype I've presented them. Am I correct? (Yes/No) This video was really helpful and barely halfway through! I have another (yes/no) somewhat relevant question. Is it possible that within the negotiation contract to "ask/request" to be part in the companies development of the mass produced version of my product? I dunno maybe that's a thing.

[@smx3084]

I've heard Stephen talk about being involved in the evolution, but I would think that needs to be in the contract, or else you could be out. In fact, I would make it a line item that any development involves me to some level and I can walk away with that development after the contract is over.

[@-30h-work-week]

I'd take the 5% on my 1st, 2nd, 3rd licencing. Just to build a good income and feel safe. But I have many ideas. And new ones keep popping. I'd start negotiating on my 4th requesting a variable percentage: 5% sounds good, but I'd claim 7.5% for when a certain sales volume is reached, then 10%. Also, a 3rd royalty level should the product happen to go viral. He's buying my idea 'cause he knows it'll make him good money, not because he wants to do me a favor! Let's define "good money". If the product goes bigger than that he will get more money. I should too. If he doesn't agree I'll take my idea elsewhere. If no one agrees, then I'll just give it away publicly so that anyone anywhere can use it anytime without any eclusive rights. I could even try to manufacture the product myself (see Headblade's story), depending on what the idea is. Or find an investor.

[@noulafrantz8589]

If you have a great idea you can make millions of dollars with 5%

[@Me-m1ne]

Damn. I thing im gon prepare for every call to be like this

[@ricksgarage8069]

When you ask for X percent, is that of gross sales or net profit?

[@ouissaleelansari2749]

Mark and Steven good work

[@gwendolenmccloud8771]

Great advice!! Another QUALITY video!!!

[@ronyoung1270]

Im curious about a sliding compensation agreement? If I start out at 5% and once my product hits a certain $$ in sales I slide up to 6% and so on until an agreed maximum of say 9%. Is this a potential negotiating strategy ? Getting rewarded for the popularity and success of your idea seems reasonable🤷‍♂️

[@inventRight]

Anything is possible but I’m not seeing this royalty structure before.

[@kefek6992]

The royalty rate for a cell phone has to be more than 5%, right?

[@atlasfueloilinc.2421]

Is the 6% to the inventor based on sales or profits. It didn’t seem clear.

[@timothynwanwene4378]

A great look into negotiations. The goal is not to take all but to find a fair midpoint. Marc may I ask, have you ever felt an inventor had asked/bargained for too little royalty? If so, have you ever made it up? 😆 You mentioned you have never gone beyond 5%. In Shark Tank, an inventor gets funding, markets... etc, and gets to keep an average of 60%. So why would one choose to commit business with your company, for less reward, be preferable? Thanks.

[@stephenkey3137]

Great question. Licensing is completely different than venturing. Less risk, less reward.If you have a lot of ideas licensing is a better path I believe. If you have the time, experience and funding to start a business and you should consider it.

[@timothynwanwene4378]

Thanks, Sir. True someone with lots of ideas 💡 may do better at licensing.

[@OnlyThe1Son]

excuse my inexperience. so... 5% the inventor comes up with the idea and he gets 5% ok.. so now we have 95% left. can someone break down where all the other percentages go? how much would Marc get? thanks

[@BryerTheKing1]

The gut with glasses I just hope I don't get a deal with someone like him.

[@phil5569]

Great video! Question: Are royalty rates usually quoted on net profit or gross? I’m guessing gross as with net the company could potentially fudge the numbers a bit if they were shady. Please let me know! Thank you!

[@sethlebeau8447]

Thanks MARK!

[@vsblmiami2004]

Great insights!

[@jaspreetwalia7745]

Hi, this is Dr. Walia. I have an idea about improving cell phones. It’s going to be a revolutionary idea, nothing has been done in that aspect of cell phones. Which company should I approach? Please help.

[@inventRight]

We can help you answer this question. Contact us! [phone] and [e-mail]

[@sansaccount]

Love u Stephen u are doing a Great job

[@MilGrip76]

Mark is a mad-man! Good to know the truth though, however it is received.

[@imhoteplewis9761]

soo many GEMZ shared throughout this dialogue . Thank you for your verbal contribution to the society of American Hustlers 👍🏿🔥 #ItsLit

[@freshoxygen2176]

I’m gonna drop crazy F BOMBS 💣 next time i go to negotiate!!😂😂😁. Jk. Loved Marc’s knowledge and got a ton from this short video!

[@whobutroo]

😂🤣

[@CognitiveDissident.]

Confidence is intoxicating.

[@inventRight]

When you have the right to knowledge, confidence follows. Stephen

[@Chillbanna]

That's some great advice thank you Stephen thank you Mark😃 I love the straightforward attitude mark you don't fuk around LOL

[@aleksandrvorotnikov4583]

I have a foodproduct in Portugal.. another guy from Amsterdam (who used to work for me) will come here next week and wants to get the rights for the Netherlands and Belgium for my product. He will do production small at first, and try and sell It to the bigger supermarkets later down the line. In the meanwhile I’m working on a nestle startup program and if I win they will help me make it big in Spain and Portugal.. if that shows good Sales..the world will follow.. how do I settle this on paper with the Dutch guy? Or is it wise not To give him the rights? Thanks will have to negotiate with him a product which he still needs to promote in The Netherlands.. say he finds a partner who will help him produce, and maybe get the product in the supermarkets..

[@inventRight]

We'd love to help. Contact our office and we will customize a plan for you.

[@mikep.coplin6800]

I bought a ring light at Hobby Lobby for $ 10.00 it does wonder on finding the magic the star holds. Lol ! ;-)

[@Twoply2]

I work best with a guy like this. Make a decision. Exactly..

[@InnovatewithLes]

🤣🤣🤣 I love it!!!!

[@kevinvaughan4596]

I love this guy

[@kristopherlarsen4572]

Apparently when you sit down at the table to negotiate a licensing deal with a rep from a company you should bring a bag of coke and maybe it will go over better. That guy has the sniffles, but it's only in one nostril and he's in the mood to talk a lot. He barely let's Steven get a word in.

[@SNEAKVS]

Can you guys add these to Spotify please that way we can listen in the car, also you’d get paid for the streams!

[@inventRight]

For now, you can find episodes of inventRightTV on Apple Podcasts: www.inventright.com/help/irtv-podcast We'll look into putting the episodes on Spotify!

[@xm8909]

Great!

[@nathanielroberts480]

I would like to get a hold of Mark.

[@TheKidKnowsSports]

Put Mark on Shark Tank!! Pleeaassseee!! He’s awesome.

[@pdub2762]

Ty sirs💪

[@atlasfueloilinc.2421]

I bought a conversion van years ago (2001)and my wife was apologizing to the finance guy at the used car dealer, because I explained to him that I didn’t need the van but I wanted it and what that means is, it was his job to fuck me but it was my job to minimize the fucking. Most people feel uncomfortable when they are faced with that level of directness. I had left a 200.00 deposit on the van and filled out the application. Finance guy came back with 13% interest , I explained that it was not worth it for me to cross the bridge to pick up my deposit so keep the 200.00 and take his wife out to dinner on me. He back the next with 10.9 %. I said the same statement to him. He told me he wanted to do the deal for me as refused. He called me two days laters and said this was the best deal he could get With the bank at 8.29 % and it in line with other rates I got but I like the van that he had for sale and I still have today with very low mileage. Because I did like it but I was willing to walk away until I got the deal I liked. Thanks Eric

[@hkntkr9795]

you mans soo cool.

[@guitarguy382]

Me (thinking): 'Inventors probably make a few dollars per item sold......NIIIIICE!!!!' *Watches video* Me (thinking): '.………reality sucks…………….'

[@smx3084]

Welcome to the real world. LOL

[@donnabeattiedreamerbydesign]

💞💓💞

[@609_]

since I don't offer any company exclusive licensing rights for my inventions, I could do 7.5% for a shorter term. then if you're not equitable to 9% then I have to go bye bye. it's not personal, that's the point. numbers 13:33 - they saw us as grasshoppers because we saw ourselves as grasshoppers first. that's the point this guy's trying to make stop seeing yourself like a grasshopper see yourself like a. giant. this guy sees himself as a Giant. that's why you think he's a giant. 🎯

[@thevulgarone4]

I think your boy missed the point of your exercise. I could tell it in your responses when he just wanted to play bad cop and you seemed to want to exercise of applicable negotiations and how to weave around them. His way is to be a douche during negotiations apparently. " I do this every day.". I for certain wouldn't work with this guy. Reminds me of Bluetooth guy in Breaking Bad .It's ok bud. Get someone else to do the exercise.

[@BlkFireHawk427]

I absolutely Love this Channel, I love Stephen and Andrews Professionalism, I even very much enjoyed Ward Law candid and intense interview that gave us a no nonsense - this is how it is... But, this is the second video I have viewed with Mark... Mark looks like he has just come off a 5 day binge and didn't take the time to remove his Party Tag on his left arm and Clean Himself Up. Not to mention his constant mouth naughty in between his response. Look... This one was not a Good look. I'm understand that Mark is established and has clout, obviously... But any observer can see this wasn't InventRight standard and takes away from everything many of us who have followed InventRight. Maybe it was just a bad day all around.

[@smx3084]

It takes all kinds, I hear what you're saying but you know what? You're going to run into all kinds of folks out there and you/me don't get to decide on who those people are. Mark doesn't have to be involved yet he chooses to share his knowledge, attitude and personality and I think it's great! I can see myself up against a tough negotiator like Mark. Most people would get crushed, easily. It's a good lesson and an excellent video.

[@ajg1791]

You guys jump straight to the negotiations, how about the very first step of contacting a potential licensee who might be using your idea, how does that conversation start, the initial phone call or email.."Hello, my name is..., owner of patent...I believe your company is practicing my invention and I would like to enter into an agreement (collaboration) with you..."

[@samlyons3552]

HardCore NYarker.....

[@Grejegando]

If Marc gives a 5% and Licensing averages around 5% also why would I deal with him and not with Licensees? Licensees can outreach the masses of people Marc keeps mentioning in all his interviews. They have a done-for-you system that takes care of everything and you just collect royalties. I don't understand the value of dealing with him (the manufacturer) when he can never outreach the customers the big players can easily reach. Can you please explain that to me. I thought he manufactures, markets, and so on, but offers more than 5% to partner up with inventors. This just doesn't make any sense.

[@inventRight]

To be clear, by featuring Marc on our channel, we are not saying that working with him is better or worse than a licensing agreement. Each inventor needs to determine their go-to-market strategy. Our channel is devoted to licensing because that's the business model that produced the most success and enjoyment for our cofounder Stephen Key. We appreciate Marc's honesty and that's why we keep bringing him back on. Thank you for watching!

[@y019_9]

Scary

[@joshuamarran6966]

I don’t think that was great negotiating.

[@smx3084]

I think it showed what you're up against in the real world.

[@danmyself5341]

Lol

[@keepemwet]

blah blah blah

[@andyt3233]

I just entered into the licensing stage of my invention

[@AlahjeLLC]

Don’t stop … congratulations in advance

[@expensivetechnology9963]

This speaker was horribly off brand. I cuss all the time. But I wouldn't cuss on @InventRighTV out of respect. Cringe.

[@inventRight]

Thank you for sharing your feedback.