You may have heard people say (including me) that ideas aren’t worth anything. An idea just sitting in your head can’t truly help anyone, and you definitely cannot make money from it until you execute and create.
Well—today’s guest on The SPI Podcast, Stephen Key (who you may remember being mentioned in The 4-Hour Work Week by Tim Ferriss) would most likely disagree, because you can get paid for your ideas. He has, and with over 30 different ideas that he’s licensed to other companies, he’s making millions.
Have you ever heard of the Teddy Ruxpin bear, or perhaps Lazer Tag? That’s Stephen’s doing, plus he’s got a whole lot of other product ideas that he’s earning royalties from. [The 4-Hour Work Week link leads to Amazon. Full disclosure: I earn a commission if you purchase through that link.]
The primary focus of this episode is mainly offline products, however he’s generating a massive amount of passive income (in one of the truest forms) by licensing his ideas and having other companies create those products, and then pay him royalties when those products sell.
After this interview, the gears in my head were definitely turning.
Stephen helps break down the process of licensing your ideas in this episode, and shows us that it’s not actually all that far-fetched, and not all that expensive either.
As he says:
“There’s no business that can return this high of revenue for under $200, guaranteed.”
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Today’s Guest
Stephen Key
Today I’m talking with Stephen Key about getting paid for your ideas.
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Website:
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Twitter:
You’ll Learn
- Why ideas ARE worth something, and how you can get paid for them without having to create a new company.
- What provisional patent applications (PPA) and sell sheets are, and why they are important.
- The most important tool to use when licensing your idea to another company.
- Why you don’t need a prototype or a patent.
- Steps to take when you see an opportunity in a marketplace.
- Why you shouldn’t call yourself an inventor when contacting companies, and what you should call yourself instead.
- The most critical element of your sell-sheet (hint: it’s only one line).
- Stephen’s thoughts on companies that can help you get your invention created.
- How to increase your chances for success in the product licensing world.
- Why you shouldn’t worry about other companies stealing your ideas.
- The exact strategy to find companies to reach out toto license your ideas.
- That types of companies that actually need and want your ideas.
- Which industries are great for those starting out, and which ones to avoid.
- Typical royalties, and the importance of the minimum guarantee.
- Plus a lot more!
Resources
- Stephen’s Website: InventRight.com
- Elance.com (now called Upwork)
- Fiverr.com
- USTPO.gov
- Google Patents
- One Simple Idea by Stephen Key [Amazon affiliate link]
- One Simple Idea for Startups and Entrepreneurs by Stephen Key [Amazon affiliate link]
