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Making Money from Your Invention


Some people try to invent things for the sheer pride in doing so while others do it to make money. There are also those that fall into both categories. You can follow three different paths to make money from your invention. You can sell the rights or patent outright; you can license your invention or you can make, market and sell the invention yourself.

Selling


When you sell your intellectual property patent, you are transferring the ownership of your property permanently to another individual or company for an agreed upon fee. Any future revenue or commercial opportunities or royalties will go to the new owner.

Licensing Your Invention


When you license your invention, you are renting out the rights to make, use or sell your invention while you will still be the owner. Licensing has both its advantages and disadvantages. You have the choice to license it exclusively to one party or give a non-exclusive license to more than one party. With licensing, you can also set a time limit if you so choose.

In exchange for giving them the rights to your intellectual property or invention, you can choose a flat fee, a royalty for each sale or both. One thing you may wish to keep in mind is that most inventors will only get a small percentage for royalties, typically under 3% for first-time inventors. The main reason for this is that it's a financial risk for the licensing party to attempt to manufacture, market, advertise and sell/distribute your product.

Do it Yourself


Do you have what it takes to be a entrepreneur? You better if you plan on doing it all yourself. You'll be in charge of manufacturing, marketing, advertising and distributing your own intellectual property if you choose this option. If you're considering undertaking this on your own, you may want to check out Entrepreneur Tutorials.

You may decide to hire outside help for marketing, advertising and other important aspects of getting your invention promoted. Before you hire anyone or sign anything, always check on the reputation of the company or firm you're considering. Not every firm you find will be legitimate. Avoid firms that cost too much or promise too much.

Some inventors wish to try to make money on their invention before they get a patent. Although there are various opinions on this issue, many successful inventors choose this router. Read ahead for some interesting tips on this option.