Are you a sports fan? Here is a test for you.
Which football team won the Super Bowl this year? Who did they play?
Who won the Stanley Cup championship in hockey this year? Who did they play?
Odds are you can easily remember the winners of each contest: the Philadelphia Eagles and the Washington Capitals, respectively. But I'll bet you can't recall their opponents: the New England Patriots and the Vegas Golden Knights, respectively.
Why does this selective memory happen? It happens because we focus on winners in sports, in business, and in other venues and quickly forget those who came in second or third place.
But your license deal doesn't have to be a Super Bowl contract – you can do quite well with a modest success. Click on the green button to grab your free PDF – Invention Licensing Tips & Tricks.
I am a fan of licensing inventions, rather than venturing them. I have done both and so far, licensing has been a much better deal for me, both financially and in terms of lifestyle options.
But, what are the odds if you license your invention, that you will make $1 million or more in royalties?
Honestly, the odds are extremely low that will happen – metaphorically, you are probably not going to get to the ‘Super Bowl' with your invention. But, if you license your invention, what are the odds of your achieving small to moderate financial success? The odds of that success are good because a company will license your invention only if they believe they may achieve significant sales in the marketplace.
Let's look at three licensing achievement levels and how they might change your life.
Your invention yields $2,000 in monthly royalties
You might initially look at this scenario as a rather disappointing outcome. After all, it is unlikely this income level will allow you or your spouse to quit your job and stay home to work on a business or personal interests.
Your day-to-day living is likely to remain much the same as before. But, that modest sum of money can go into an investment account for you or a college fund for your son or daughter. Maybe you could use it for a family vacation every year – or reduce your debt. So, $24,000 per year is not a sum to scoff at.
How else might you gain an additional $2,000 per month? You could start a small business on the side that could bring in that much or more per month. You might get a big raise at work that could garner that for you – stress on might. But, would you still be paid in either of those circumstances if you quit what you were doing? Of course not. Licensing royalties don't require any further action from you.
Let's look at another modest success.
Your invention yields $6,000 in monthly royalties
Many inventors receive royalty payments that amount to $6,000 per month or more – or $72,000 per year.
Now, your lifestyle options will definitely improve. This sum might be sufficient enough for you or your spouse to quit their job and still maintain your current lifestyle. Also, you would certainly be able to either reduce your debt or, perhaps, eliminate it entirely in a short period of time. Also, 6 grand each month could really boost your financial or retirement assets – or provide a nice college fund for your children. This modest licensing success level would definitely change your life in a positive way.
Also, it is very unlikely that your boss is going to give you a $6k/month raise or that your side business may yield that much if you are working full time.
Your invention yields $10,000 in monthly royalties
This could be a game changer for you. According to USA Today, the overall average annual household income in the U.S. in 2014 was $66,000 with married filing jointly families topping out at $118,000.This modest licensing success could double or triple your gross family income.
Depending upon your situation, both you and your spouse may be able to leave your jobs and pursue other interests. If one of both chooses to stay at their job, your family will have financial choices that few other people have.
Perhaps you can buy that vacation home you have only dreamed of up until now. You can finally secure your retirement or insure your kids can graduate from college without the burden of student debt. You may pay off all your debt (except mortgage) or if you have little debt, you might pay off your mortgage if you choose.
Of course, there is certainly no guarantee that any of the above three scenarios will come to pass for you. On the other hand, it is quite possible that one of the above scenarios could happen for you if you are able to license your invention. It is up to you.
My friend, Josh Malone, had no way to know in advance that his play-time inspired invention Bunch O Balloons would become the largest selling toy item in the US yielding over $200 million in gross revenues (so far). I have enjoyed modest success with my invention the Wonder Wallet – so far.
You'll never know if you don't try. Your invention, quietly sitting in the garage, just might become the ‘next big thing.' So, why not give it a chance – see if you can license your invention?
If you'd like to know more about licensing your invention, be sure to check out my online course for inventors Land Your License Deal.
Click on the green button below to grab your free PDF – Invention Licensing Tips & Tricks.