Get your foot in the door – and make millions! I’m certain I’ve written this line before, probably more than once. Isn’t it every inventors dream? Is it the one that keeps you going? The idea that you could make millions year after year, on a single invention… The truth is, it shouldn’t. Because that hope is far from reality- very far. You cannot expect to make a million dollars off a single product idea. I have seen it happen, but it’s extremely rare. Don’t chase that goal, because it will elude you again and again. With hard work and patience, you can make a million dollars off of many different product ideas. But in all honesty, not off one.
Do you understand what normal royalty rates and practices are? This also helps erode the myth. Royalty rates are generally between 3 and 5 percent, taken off the wholesale price of the product – not it’s retail price. There’s a huge price difference between wholesale and retail. So what you see in the marketplace and envision receiving a percentage of isn’t real at all. If your product’s wholesale price is a dollar, and you’re receiving 5%, you’d have to sell 1,000,000 units to make 50,000 dollars. That’s a sizable check. But you have to remember. Some products sell well. Some don’t sell at all. It’s impossible to predict the success of your invention. Achieving success in the marketplace demands that you try to stay involved and aware throughout the entire process. There an unbelievable amount of steps that take place between signing a licensing deal and receiving a royalty check. Don’t fool yourself. As many things can go wrong as they can right.
InventRight: Helping You Bring Your Product to Market