The Licensing Game

[Vigilante]

Here's a listing of the TOP 100 licenses. And, I can guarantee you, if you had the right idea... you could get a license deal with ANY of these companies if they did not already have a license in place with someone in your space. Now, these top 100 are going to cost more than normal (because they're the top 100...) but this should be interesting reading for anyone interested in this field. These should get your ideas cranking anyway...

TOP 100 Licensors - License

For extra credit, can you guess whom the top licensor is on this list? Hint... it was mentioned a few posts back, and not by me!

 

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[PatrickP]

Ok thank you.

I guess I was looking at the examples above where people were talking about licensing a famous person as opposed to an already recognized brand.

Who knows maybe a famous person would be the same.

 

[Vigilante]

I think getting celebrities on board is possible. I think creating the product is possible. I think protecting yourself legally is difficult and/or might just take an expensive lawyer to handle it all for you.

BUT i would pay money to sit in front of you and tell me all about distribution strategies and how to get products in the proper sales channels as fast as possible. Im sure you can just go through your cell phone at this point, but this is what i wanted to do at a young age, what an amazing and exciting business to be in.

Think about when a reality show star is rising.... you can just go find them, or email them on facebook, or connect with them on twitter, obviously presentation is important but im sure you can have some home runs getting lucky with the right people. One of my old teachers used to create products in china and then sell to Disney and always bitched about how his margins were so bad, how long it took to get patents and all sorts of things, really shied me away from the industry.

To get the license agreements is relatively easy. To get the retailers attention is harder, and that's why you need some degree of industry expertise in what ever area the license is in... or at least a fundamental awareness of how to align yourself with people that can penetrate the sales channels you want. That's a whole separate topic.

 

[Vigilante]

I think getting celebrities on board is possible. I think creating the product is possible. I think protecting yourself legally is difficult and/or might just take an expensive lawyer to handle it all for you.

BUT i would pay money to sit in front of you and tell me all about distribution strategies and how to get products in the proper sales channels as fast as possible. Im sure you can just go through your cell phone at this point, but this is what i wanted to do at a young age, what an amazing and exciting business to be in.

Think about when a reality show star is rising.... you can just go find them, or email them on facebook, or connect with them on twitter, obviously presentation is important but im sure you can have some home runs getting lucky with the right people. One of my old teachers used to create products in china and then sell to Disney and always bitched about how his margins were so bad, how long it took to get patents and all sorts of things, really shied me away from the industry.

By the way, Disney is always ranked as one of the top licensors in most categories from electronics to sporting goods, toys, clothing, and practically everything else. And I imagine Disney would be a huge pain in the a$$.

 

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[PatrickP]

Here's a listing of the TOP 100 licenses. And, I can guarantee you, if you had the right idea... you could get a license deal with ANY of these companies if they did not already have a license in place with someone in your space. Now, these top 100 are going to cost more than normal (because they're the top 100...) but this should be interesting reading for anyone interested in this field. These should get your ideas cranking anyway...

TOP 100 Licensors - License

I am definitely slow on the uptake on this subject.

So in that list Disney would be getting a percentage for putting their name the disney faries?

Let me see if I understand. A person or company made dolls or had a company that would. They went to Disney and said hey I pay you 5% of what we sell them for and we use your name Disney.

We take care of the manufacturing, packaging, shipping to resellers, distributors etc.


Does that sound correct Vigilante?

 

[Vigilante]

Ok thank you.

I guess I was looking at the examples above where people were talking about licensing a famous person as opposed to an already recognized brand.

Who knows maybe a famous person would be the same.

The most recent one I helped the gal with that started this thread was a famous person. She's counting on the fact that the famous person has enough fans that will buy her product that it will create the business from his existing fan base.

The #1 sales outlet in the country for our Dale Jr. GPS was his store in Charlotte, NC.

 

[PatrickP]

Two things.

1. You should do a call/show about this subject

2. Why do you find it better to have put your time and attention into the business you now do as opposed to this sort of licensing?



Thanks

 

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[Vigilante]

I am definitely slow on the uptake on this subject.

So in that list Disney would be getting a percentage for putting their name the disney faries?

Let me see if I understand. A person or company made dolls or had a company that would. They went to Disney and said hey I pay you 5% of what we sell them for and we use your name Disney.

We take care of the manufacturing, packaging, shipping to resellers, distributors etc.


Does that sound correct Vigilante?

Yes. That's the guts of the license model.

 

[PatrickP]

WOW I am so glad you posted your reply tonight. I can go to bed thinking I am not quite as slow as I thought I was lol

Seriously thank you!

 

[Vigilante]

Two things.

1. You should do a call/show about this subject

2. Why do you find it better to have put your time and attention into the business you now do as opposed to this sort of licensing?



Thanks

I have probably sold $10m worth of licensed products to one national retailer in the last 12 months on behalf of one of my clients. That's not a ton of dollars in low margin products like televisions, but it's enough to keep my "continuing education" credits going. I am making a sales commission on it only, so it's nothing to write home about. We have a meeting at another retailer in a few weeks to try and do another license deal.

When the next brilliant inspiration hits, I will do it again. It takes a lot of time to get all the pieces in place.

I have my hands in a lot of things. My plate's pretty full right now.

I think the license topic is a pretty deep topic... it requires a LOT of study by anyone that would ever get involved with it. You can get a good overview by reading this thread, pretty much exhausting what I would cover in a call.

Someone asked for good books on this topic, and I haven't read any. I learned this by trial and error, using someone else's money.

 

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[PatrickP]

Very impressive man!

oooohhhhh Do we see a 'need' here? A need for a book hint hint

 

[Vigilante]

The book would have to be about three pages long (plus a few sample contracts) as most of what I know was in this thread, and that could have probably been cut down by 50%. Thanks Patrick. Have a great night.

 

[nzerinto]

Awesome thread - cant believe I missed this for so long.

My old boss in Japan got screwed by a licensing deal that was based on celebrity. He licensed the likeness of a band that was massive globally at the time, got the rights to create dolls for each member (because he ran a toy company), had them manufactured and was going to sell them at the concerts. Merchandise at concerts sell like hotcakes in Japan, so it sounded like a killer deal.

A month before the Japan tour was to start, the band broke up and the tour cancelled. The band was the Spice Girls.

 

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[PatrickP]

What year was that?

 

[Vigilante]

When did the spice girls break up

 

[PatrickP]

Yea they broke up twice I think.

One was the reunion tour and the other was their regular tour.

 

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[InMotion]

Vig...licensing in this fashion, who would be on the hook for going after IP thieves; I would think if the product cycle is short lived maybe its not a big deal.

 

[Vigilante]

We've never had that happen so I am not sure. Probably the licensor (as it is the integrity of their brand they would be protecting for the long haul... if someone was using your name or your brand without license, that would be your job to shut it down.) As a licensor, you are just "leasing" the brand for a specific use.

I would think product based IP infringement would be easy to shut down in the United States, not easy in Asia.

 

[theBiz]

What a great thread, appreciate it Vig thanks. This is what im here for, better than what you learn in college any day.

 

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[InMotion]

We've never had that happen so I am not sure.

Well, that's actually encouraging. The amount of IP you hear about being ripped off; this is good news.

 

[Vigilante]

This is the license deal that was the subject of the first post in this thread.

Git R Done Button & Pen | Gitrdone Desktop Motivational Buttons

http://www.amazon.com/dp/B0098LWDQQ/?tag=tff-amazonparser-20

http://www.youtube.com/watch?v=ru76fUDW2ZQ

 

[Vigilante]

Yes I know the site isn't optimized. Yes I know she used a .co. Tons of issues... not my deal. I am not working on this project on an ongoing basis other than connecting the dots for her.

 

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[PatrickP]

HA! He lives down the road from my house.

He actually does dress like that and drives a beat up old truck. Nicest guy in the world. Sure doesn't seem as if fame and fortune has gone to his head.

 

[PatrickP]

YIKES! All around that is rough to me. The site, amazon product page and the youtube video.

Music is not quite what I think fans of cable guy would find most appealing Git R Done Button and Pen Bundle - YouTube

To me none of it follows the theme of what Larry is famous for and is expected by his fans.

My unedjucated view is I do not see how a single dime of profit will be made without drastic changes.

And I emphasize uneducated view.

Of course I hope it makes her rich.

And if this makes money I have GOT to get into doing one of these lol

 

[theBiz]

OCTOBER 3rd

JOIN
-Hunting forums
-Nascar forums
-Beer forums?
-Fishing Forums
-Make intros, start contributing

OCTOBER 4th

-Set up PPC
-Optimize Sales page for two keywords
-Contact top 3 results on google and try to directly buy banners through them

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OCTOBER 5TH

-Try to contact media outlets and get some free PR
-Try to get this into big chain stores/distributors for smaller stores (PM Vigilante and beg for free advice)

Sit back, and play with your pen.....

 

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[Vigilante]

YIKES! All around that is rough to me. The site, amazon product page and the youtube video.

Music is not quite what I think fans of cable guy would find most appealing Git R Done Button and Pen Bundle - YouTube

To me none of it follows the theme of what Larry is famous for and is expected by his fans.

My unedjucated view is I do not see how a single dime of profit will be made without drastic changes.

And I emphasize uneducated view.

Of course I hope it makes her rich.

And if this makes money I have GOT to get into doing one of these lol

Patrick, I agree with all of your points, but I also think that 99.9% of her sales will probably come through a brick and mortar retail distribution with retailers like Wal-Mart. If she was hoping for a .com business, I don't see it not only from the existing effort, but from the targeted demographic. This is an impulse buy at a cash lane checkout by a Larry fan. The other places that it will sell well is at his online store, and at the Blue Collar Comedy Tour merchandise booths with the tee shirts.

 

[Vigilante]

OCTOBER 3rd
Sit back, and play with your pen.....

Quote of the day.

 

[jon.a]

A friend of mine licensed the Curtis Mathis brand. He then assigned his exclusive license to Kmart Corporation. Kmart then under the license agreement made Curtis Mathis televisions. The guy did nothing but sit back and watch it happen. He made several million dollars over three years. The girl who was the subject of my original post is trying to sell her idea and her exclusive license now to a retailer.

I remember my old fooggy Father-in-Law being soo excited about buying his Curtis Mathis television from K-Mart some time back.
I couldn't understand how such a respected name got there.

Now, I know

Brilliant friend you have

 

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[InMotion]

Vigilante, how much do you charge for a 30 minute phone call? I have two topics I wanted to ask your opinion on since you have knowledge in both fields. PM me if that's a possibility.

 

[Vigilante]

Time is crazy this week but if you post here, either me or someone will come along that might be able to help.