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THE ONLINE INVENTOR -- October 2000
(c) 2000 Market Launchers, Inc.
http://www.marketlaunchers.com
Publisher: Paul Niemann
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Some Famous Infamous Quotes …
"There is no likelihood man can ever tap the power of the
atom," -- Robert Milken, Nobel Prize winner in physics, 1923
"Heavier than air flying machines are impossible," -- Lord Kelvin,
President Royal Society, 1895
… and my personal favorite, whether it's true or not …
"Everything that CAN be invented has BEEN invented," -- Charles Duell,
Director of the U.S. Patent Office, 1899.
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In this issue:
Article # 1: "INVENTOR PROFILE: Curtis Batts, Inventor of the
Tilt-A-Roll," by Paul Niemann
Article # 2: "Using the Internet to Market Your Invention," by
Paul Niemann of MarketLaunchers.com
Article # 3: "Licensing: Negotiation," by Mark Davis, inventor
of the Eggsersizer �.
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Article # 1: "INVENTOR PROFILE: Curtis Batts, Inventor of the
Tilt-A-Roll," by Paul Niemann
EDITOR'S NOTE: The following success story is one that you're sure to
enjoy. It's the story of Curtis Batts, who solved the age-old problem that husbands &
wives have had for years: Should the toilet tissue go OVER or UNDER the roll? Curtis has
been a customer of ours for over 2 years now, having his own Invention Web Page on our
site at http://www.marketlaunchers.com/batts.html. He has worked hard to get an extensive
amount of media coverage for his invention.
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Curtis is an industrial engineer for a telecom company in Houston. He has been working
on his Tilt-A-Roll for 4 years now, and he got the idea for his new product when he heard
about the "OVER & UNDER" issue on a radio talk show; he knew within 2
minutes of hearing about it on the radio that he was onto something! The lesson here is to
keep your ears, eyes & mind open for new ideas, and to do your research. You never
know when a good idea is going to hit you.
When Tilt-A-Roll was in a patent-pending stage, Curtis did his market surveys in malls,
interviewing over 500 people. Eventually the patent issued. After a lot of ingenuity and
persistence at this point, it all started to click in October and November, 1999. The
story of his invention was picked up by an organization called "Wireless Flash
News," which provides its broadcast media and print media subscribers with the daily
advance of pop culture news. News stations subscribe to this service just like newspapers
and radio stations subscribe to the AP, UPI and Reuters newswires. This led to more than
40 radio interviews for Curtis, which he personally conducted from the comfort of his home
and/or office. Radio stations as far away as Australia and Canada interviewed Curtis.
Here's a list of media outlets that ran Tilt-A-Roll stories so far:
TV:
The "Your New House" show on the Discovery Channel in February (as mentioned
at the beginning of this issue), as well as another talk show on November 25 in San
Antonio.
NEWSPAPER ARTICLES:
Global Products, an import/export company out of New York, found Curtis' web page on
the MarketLaunchers.com site and is interested in licensing & manufacturing it.
To get this kind of media attention, Curtis continues to call reporters and sends out news
releases. Now he's trying to get on Oprah's TV show; he has sent out 10 letters so far.
Oprah & Ann Landers talked about the OVER & UNDER issue on Oprah's show 4 years
ago.
Curtis is working on getting the Tilt-A-Roll sold in Home Depot, starting with his local
Home Depot store with in-store displays. If that works well, then there's a chance that
local Home Depot stores nationwide will carry the product.
Curtis said it was tough at times up until this past year. He has 2 favorite sayings about
his inventing success: "You won't know until you try" and " If I can do it,
anybody can do it."
He is currently developing 2 additional products.
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Pictures of the Tilt-A-Roll can be seen at: http://www.UniqueBathroom.com and at http://www.marketlaunchers.com/batts.html. Tilt-A-Roll comes in white or bronze and is available for $19.95 plus $4.00 S/H by sending a check or money to:
Curtis Batts
407 South Alexander Ave.
Duncanville, TX 75116
E-mail: [email protected]
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Article # 2: "Using the Internet to Market Your Invention,"
by Paul Niemann of MarketLaunchers.com
I received a phone call last week from an old college friend who had called me way back in
the late 1900's (OK, it was last year) to suggest working with him on a videotape project.
Earlier this summer we started writing a proposal to obtain funding for the project; then
about a month ago he told me that he was taking a new job and would not have time to work
on this project any more. That was fine with me, since it can be done as a one-person
project anyway.
To make a long story short and to get right to the point -- and there is a point to this
story -- he called me on Tuesday to tell me that the company for which he now works
produces video for cable and the Internet, and they asked me if I could film a 5-minute
video clip or -- as they call it in their industry -- a 5-minute pilot. If I could do
this, they said, they could then put it on their web site in order to attract the
attention of potential customers for them, as well as to have a sample to show to
potential funders for me (in this case, corporate sponsors). The video clip would serve as
a nice sample of what they would be buying or sponsoring.
So here's the point: It's much easier for a person to sell his idea if he has a sample of
it on the Internet, on a video tape, or in a brochure. Now when I explain this project to
corporate sponsors, I will be able to show them exactly what it is that I'm asking them to
invest in, rather than trying to explain some abstract idea over the phone.
It's easier for me to sell it this way and, more importantly, it's easier for any future
corporate sponsors to buy into it this way.
So if you have a patented or patent-pending product and you're looking for a licensee, put
it on a web site, especially if you don't have a brochure or a video clip that shows how
your invention works. Even if you do have a brochure or a video, having it on the Internet
allows you to show it to your potential licensees INSTANTLY, while you're on the phone
with them, as opposed to making them wait 3 days while your brochure goes through the mail
and risk them losing interest or forgetting about you in the meantime. Plus, some people
cannot visualize things well; rather they need to see a picture(s) of it before they are
able to fully comprehend its value.
Sure, I'd like to recommend that you put it on OUR site, but you could also build your own
web site. Plus, there are also other sites out there that do what we do. Here are a few of
them to consider, in addition to MarketLaunchers.com:
Check them out, and if you like the idea of having your own Invention Web Page to
showcase your product, then shop around and see which one best satisfies you. Many
inventors have benefited from having their own invention web page on the Internet. The
Internet is growing so fast -- some people estimate that it's doubling every 90 days --
that some will be left out unless they carve out their own little piece of cyberspace.
Companies from all over the country (and in other parts of the world, too) search the
Internet for new products. Having your invention on the Internet increases the number of
companies who will see it and, as a result, pputs your invention in front of more
potential qualified licensees. I've served as a Product Scout before, and searched the
Internet almost exclusively in my search for new products. As a result, I appreciate the
benefit of using the Internet to showcase one's product.
Best of all, you don't have to learn how to build a web site, and, with most companies,
getting your own web page for your invention costs much less than building your own web
site. If you're considering building your own web site or hiring someone to build one for
you, be sure to send for your FREE copy of "Seven Things to Look for When Building a
Web Site." Just send me an e-mail with the words, "Web Site Tips" in the
subject line, and you'll receive it via e-mail the same day.
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Article # 3: "Licensing: Negotiation," by Mark Davis,
inventor of the Eggsersizer �.
LICENSING: NEGOTIATION
To arrive at the license negotiation stage, obviously, a lot of things must have gone
right.
Your hard works seems about to pay off. Naturally, this boosts your confidence.
Enjoy the emotional high -- very briefly. Then firmly anchor yourself to Earth. Plenty
remains to be done before you can cash any royalty checks.
Now, the stakes have become much greater. You have reached the Big League. Things
definitely are going to become more challenging. Your skills must handle the rigors of
bargaining effectively to walk away from it as a winner.
At this new level, having your paperwork in order and your presentation polished remain
important. Yet self-preparation for what "negotiating a license" means is no
less crucial.
In all likelihood, the upcoming scenario will be something like this: Little you will be
taking on a big corporation. The prospective licensee's team of lawyers, engineers, and
marketing analysts will confront you -- all focused on obtaining the best bargain for
their employer. Meanwhile, your focal point will be bartering a deal that supports your
interests. Somehow, together, they and you must forge an agreement that serves both
parties' goals well.
THE EVALUATION OPTION:
Do not be surprised if the company requests a period of time in which to evaluate your
invention -- which most inventors agree to. They want an opportunity to look at your
product from every angle. During the examination, they will determine whether they have
the equipment and staff to manufacture and market it, how to market it, what the
competitions' reaction might be to it, and whether the company can service it.
While all this scrutinizing is going on, the licensing candidate probably will not want
you to show the device to anyone else. That could mean weeks of losing opportunities to
present the invention to other prospective licensees. For this you deserve to be
compensated. Therefore, ask the company for a letter of intent along with compensation.
The letter of intent details specifics about the evaluation period. It also states the
compensation amount to be paid to you for halting your efforts to license the product
elsewhere.
In addition to the compensation payment, the "evaluation period" could benefit
you in other ways. After all, would you really want a licensing agreement with a company
that did not do its homework? Worse yet, would you want to find out, after the agreement
is signed, that the company could not get the product to market? The latter would be
particularly bad news if your royalties were based on a percentage of profits generated by
sales.
Nonetheless, permitting the analysis involves acceptance of certain risks. As your object
is being studied, the company might discover how to make a better product, get around your
offering, take a product to market and never pay you a cent for a license.
Horror stories about such happenings circulate throughout the invention community. These
make some inventors so distrustful of companies -- so fearful of their inventions being
stolen -- that they never show them to anyone. Obviously, that overprotection does not
benefit the inventor either.
Instead, let common sense prevail in determining who sees your invention and when. Until
someone who can produce the device sees it, your brainchild has no chance of its potential
being realized.
What is your best protection when selecting a prospective licensee? Research. Learn as
much as you can about the candidate. Be thorough enough to be satisfied that the firm
merits your trust.
Next, reinforce this confidence. Engage an attorney with appropriate experience to draw up
good, intellectual property protection along with submission and/or non-disclosure
agreements.
After your patent, other legal protection and knowledge of the company are in place, you
are ready. Take that leap of faith. Disclose your product to the licensing candidate.
AT THE BARGAINING TABLE:
During the negotiation process, try to keep from feeling intimidated. You must deal with
stress because it might prompt you to give away too much.
Mentally tell your muscles to relax. Take a deep breath a couple of times. Hold each
breath in at the top for a few seconds before slowly exhaling all the way.
Before going into the meeting, get psyched up -- like a football player, moments before a
big game, listening to his coach's pep talk and the crowd's roar of anticipation. Over and
over, mentally review all the reasons why the company should license your product -- and
why you are the person to convince them to do it.
In a football game, being the sole player opposing a formidable "other side" is
suicidal. So, don't enter the strategic maneuvering arena alone. Take along someone who
can help level the playing field. Enlist the services of an attorney experienced in
negotiating licenses to reinforce your position in the meeting.
Has your patent been granted yet? If not, you and the prospective licensee should sign a
formal document specifically identifying the intellectual property to be discussed. Do
this before any business and commercialization discussions take place. This agreement
will, for a stated period of time, provide some protection for your invention. However,
recognize that preventing non-signers with access privileges from leaking of information
about your invention may be difficult.
Part of your preparations for this meeting requires fine-tuning your foresight. What
questions or problems do you anticipate might be brought up by the company in the meeting?
What would be the worst case scenario? How might things go wrong? If reality begins to
reflect this, how could you diffuse the negatives?
Pre-evaluate possible concessions. What do you want that would cost the potential licensee
little to give up? What might he want that you could concede easily? Discuss your
decisions on these points with your attorney. This type of strategy planning pays off. In
the actual negotiating situation, you have well-thought-out offers and counter-offers to
make. Such preparedness enhances your image for being "reasonable."
Every "deal" is different but not the overall goal: The inventor wants to obtain
a fair price from the right company to produce his or her product.
Decide before the meeting what your bottom line is. You should not reveal it too early in
the negotiations; what is offered to you might be more than you anticipated.
Also prior to negotiations, run a reality check on the feasibility of requests you plan to
make of the company. For this, use your colleagues as sounding boards.
In the negotiation, you may be asked to justify your evaluations, including the
assumptions on which they are founded. Have that information where you can find it
quickly.
Any data you give about your product's potential market size or the impact of its selling
price on the quantity demanded, must be creditable. Know how much the production costs
should be at various output levels.
Having such factual information shows the licensee that you are not in the dark about the
potential worth to him of your product. This provides a foundation supporting the payment
amount you can reasonably demand.
Such in-depth planning for the meeting has several benefits: Your confidence in your
ability to make this sale will increase. You may avoid making hasty decisions you might
regret later. Your well-considered answers to tough questions reflect well on you in the
negotiations. In addition, your lawyer knows ahead of time what considerations are
important to you. This helps him to prepare for the meeting.
Your analysis of the other negotiation participant probably is not a one-sided endeavor.
Before the meeting, the company probably spent a while contemplating what your
requirements might be and what trade outs they might make to conclude the negotiation in
their favor.
Statistics have the magical property of elasticity, depending upon who is doing the
calculating. Be prepared to view that. Several of the client's estimates might be more
conservative than yours. For example, his sales figures may be lower and his profit and
cost projections higher. Such divergent interpretations are usual fare for negotiation
gatherings.
By anticipating this situation, you are half way to handling it. Have answers ready in
case the company's representatives ask you about the following:
* Can you give a personality profile of the type of consumer to whom
your invention will appeal?
* How many of these buyers are there?
* How much will they pay for the product?
* What does the competition offer and how can that be beaten?
* Can you identify at least three significant differences between your
product and that of your competition?
Be ready to demonstrate why prospective customers would choose your product over someone
else's. Can statements supporting your assertions be obtained from potential customers? If
so, presenting documentation supporting your projections of your invention's market value
could be very helpful to your cause -- particularly if it was done by a professional
marketing firm or comes from a recognized authority in the field. However, expect the
company to conduct its own market survey.
In negotiating, remember these points:
* Be ready to walk if you must, but not too quickly.
* Do not make threatening statements!
* Do not take the negotiations personally.
* Do not get mad.
* If you say "no" to a proposal, explain why.
* If you are outraged, say so -- nicely -- and tell why.
* Be sure your facts are indeed facts by reviewing the data together
with the company's negotiator.
The company's financial clout in this discussion probably is much greater than yours.
Awareness of this may intimidate you somewhat. However, keep in mind that the firm's
financial risk also significantly exceeds yours. In fact, the average licensee's
substantial distribution expenses are estimated at 50 to 75 percent of sales by some
studies.
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This article is from Mark's book, "From Mind to Market." Mark's first product, the Eggsercizer, sold more than one million units at outlets such as QVC, the Home Shopping Network, and various retail stores. It was also featured on CNN, ABC's 20/20, Wall Street Journal, NY Times, Inventors' Digest, Inc. magazine, People magazine, and others. To purchase his book, go to: http://www.amazon.com/exec/obidos/ASIN/0966351509/qid=973376600/sr=1-3/103-9027718-9827846 or just go to: http://www.amazon.com and type in "From Mind to Market" under the heading of BOOKS.
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http://www.marketlaunchers.com/archives.html. Thanks.
Until next time, Successful Inventing To You!
Best Regards,
Paul Niemann;
President of MarketLaunchers.com
(800) 337-5758 (within the U.S. and Canada)
(217) 224-7735 (outside the U.S.)
Copyright 2000
All Rights Reserved
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Click here to read the August 2000 issue.