If you are an entrepreneur who wants to know how to sell your invention idea you’re not alone. This is a common question for entrepreneurs. As an entrepreneur, you are probably very innovative. You probably have a continuous flow of ideas. You are probably constantly thinking of new inventions to improve your products, services, or processes. Most entrepreneurs don’t struggle with inventing new products or ideas. The real challenge is how to sell your invention idea to make money and grow your business. Let me share with you some great insights into how to sell your invention idea that I’ve discovered as I’ve worked with entrepreneurs who’ve succeeded in this process.
Monetizing Your Invention
People are inventing things all the time. But unless you are an engineer or work in research and development for a major company, chances are you are going to struggle to sell your idea. It’s not that your idea is bad. It’s that major companies are very reluctant to purchase outside inventions. There is also the idea of turning your invention into a small business. But this too is very difficult, especially if you don’t have experience in creating a start-up. But there are some great options to consider for selling your invention idea, and it starts locally in your own backyard.
What Doesn’t Work to Sell Your Invention Idea
I’ve had several entrepreneurs come to me with great ideas that they want to sell, or at least want a chance to get it front of a major company. Often times they have gone on-line and found a third-party brokering service. Whereas these services are usually very professional and provide an honest and legal service, they don’t have a great track record. Any legitimate company will be very open with their success rate, which usually is very low. In my experience, going through a brokering service for your invention ends up costing money but doesn’t get results.
What Does Work to Sell Your Invention Idea
If using a third party professional service doesn’t work and most major companies won’t work directly with a small scale or first time inventor, then what does work? The secret is instead of thinking big, focus on small and mid-sized companies. Your local Chamber of Commerce will have a great list of small and mid-size businesses to work with. Here’s why it works better to go small and go local:
- Local small businesses want to work with you. They are looking for solutions to their problems and are usually very excited to partner with other local entrepreneurs.
- Local small businesses don’t have their own research and development departments. It’s very expensive to do research and development. If you can provide R&D services on a contract or project basis it becomes a win-win for both.
- There is limited competition. Major companies receive hundreds, if not thousands of solicitations. Small businesses don’t. Which means that you could sell a good invention idea instead of having to have an exceptional invention idea to get noticed.
- It’s a great way to build a reputation. It’s not likely that you will hit a home run your very first time you invent something. But as you work with several small businesses you will get better and gain a better reputation to enable you to start working with bigger companies.
A Quick Example
Last year I had an entrepreneur come to me. He had created several inventions and was working on selling his ideas. He had currently sold his invention ideas to several small businesses. They were all happy with the product but because they weren’t buying in large quantities he wanted to move on to big businesses. However, he was spending excessive time and had paid over $1,000 to just get started with a company that over that past 30 years had successfully connected inventors with a major company less the 1% of the time. I gave him this advice. There are millions of small businesses. If you’ve already had success you can easily expand. I know that bigger seems like it should be better, but it is easier and more effective to sell to small businesses. These are businesses with money, who are looking for new invention ideas.