I have *another* "make-ah-million" idea that I'd like to "sell.
This idea isn't electronics and actually is very simple but seems no one has thought about it(although there is a similar product that has a similar idea so there might be a possible issue here but I doubt it because there are some major differences).
In any case this idea can surely make millions quite easily because of the market... and in this case I know there is a market. (although I guess with the current economic issues it is smaller).
The problem if that for me to do it is much more trouble since I have to by a product from some guys and I cannot make much money off it becaus they already over-inflate the price. And chances are someone else will steal the idea anyways once they see it.
The companies who make the product I use can easily modify their product with virtually no trouble and reap the benefits. (actually there are several companies that might want this idea)
I'm not sure if it's patentable(although it seems like anything goes at the patent office).
I'd rather not start a business to do such a thing because I'd rather be doing other things(And I'm not a business person). The companies that make the product already have the infrastructure without virtually any modification.
(over a million(probably like 10M world wide) of these products are sold each year from a few hundred to a few thousand dollars each)
I know several of you said that you can't approach these companies(it's not worth it or you can't trust them) but surely there is some way to make a profit off a good idea?
With all your "make-ah-million" ideas, why aren't you a millionaire ?:-)
...Jim Thompson
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"Jim Thompson" wrote in message news: snipped-for-privacy@4ax.com...
cause it takes money to make money... Although I don't understand all the sarcasm and doubt when you guys don't even know the ideas ;/ Hell, if someone can make a millions off a new flyswatter or some pantiehose then this idea can do it. (I do think I have some ability to judge the usefulness of something along wtih the market... not like these ideas are just random things. Sure I might over/under estimate things at times but thats not the point.)
Ultimately it's not the idea but the marketing that makes the money. A good salesman can sell you a rock and you'll think it's the greatest thing you have brought. Fortunately this product would sell itself although I'm not sure about the cost/profit ratio if I do it myself but for a company that already has the infrastructure it's a no brainer.
I'm the idea man but I can't implement them all by myself. (I'm not an entrepreneur and don't have enoug money/time to do it myself(and there is much more inherent risk if I do))
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Ultimately, its customers willing to part with their money that makes the idea worthwhile! And that is the first, and possibly only, thing you really need to know.
I recently sold an idea to a mid-size company. I'll email you the Agreement I made with them. WIth a few edits, you can probably use it for your ideas. Depending on your comfort level with the particular idea, you could file the Patent App and then sell the rights (assign) that application to the Buyer. This can occasionally add value to a non-savvy buyer. But in reality adds very little.
Overall, it's difficult. More difficult than you imagine. A lot of companies don't even want to hear about outside ideas becuase they fear that may already be working on somthing similar, and don't want to raise intellectual property theft concerns with the outside world. Among other reasons. All you can do then is move on to the next Buyer in line.
BUT, if you're willing to play by THEIR rules, and your idea has enough merit, you can probably strike some sort of deal with someone. But do not expect to get rich overnight. Isn't going to happen. You can also expend more time, energy and money trying to market the idea, than anyone is ultimately willing to pay you for it, so keep that in mind. Your time is valuable.
I suggest the following: Buy a number of the items at the lowest inflated price; use a bulk price breakpoint. Modify them, rebrand them and do a test market. You might not make a lot of money this way, but you get the business started and get a *real* feel for the market, which is extremely valuable. At the next go-around, you may have to work at the inflated price bit a larger quantity breakpoint, which will help some. Depending on the initial response, a lowering of the sales price might be in order to (1) be more competitive with the cometition, and (2) get larger sales volume per month. On the basis of volume now, contact the manufacturer for a wholesale deal; they should listen if the quantity is right. Initially, have some *other* company make the changes. Reduce sales price again (some). Meanwhile, file the preliminary patent notification (whatever it is called) because that is cheap and covers you for a year. Now that you are rolling with good volume, negotiate with the manufacturer for a different product (ie: *your* product) in order to cut out the expense of modification. Or have some different company NOT in that particular business to make them.
I suggest the following: Buy a number of the items at the lowest inflated price; use a bulk price breakpoint. Modify them, rebrand them and do a test market. You might not make a lot of money this way, but you get the business started and get a *real* feel for the market, which is extremely valuable. At the next go-around, you may have to work at the inflated price bit a larger quantity breakpoint, which will help some. Depending on the initial response, a lowering of the sales price might be in order to (1) be more competitive with the cometition, and (2) get larger sales volume per month. On the basis of volume now, contact the manufacturer for a wholesale deal; they should listen if the quantity is right. Initially, have some *other* company make the changes. Reduce sales price again (some). Meanwhile, file the preliminary patent notification (whatever it is called) because that is cheap and covers you for a year. Now that you are rolling with good volume, negotiate with the manufacturer for a different product (ie: *your* product) in order to cut out the expense of modification. Or have some different company NOT in that particular business to make them.
There is essentially no way you can convince these companies to take up your idea. Most companies won't even take ideas from their own employees, let not alone someone who just phones them up. That's how company management works. And if they DO happen to like your idea they'll just steal it and take credit, once again that's how management and big business works.
The ONLY way you are going to make money from your ideas is to do it yourself. If you don't have the time, money and enthusiasm to start out small and give it a go yourself then forget it - go buy a lottery ticket instead.
To milk a cash cow you have to buy into it first, you can't just tell people to pull harder and faster.
Ideas are practically worthless, you have to bring something else to the table - like money or expertise.
Ultimately, its customers willing to part with their money that makes the idea worthwhile! And that is the first, and possibly only, thing you really need to know.
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Well, obviously... that a precondition in any sale.
============ I recently sold an idea to a mid-size company. I'll email you the Agreement I made with them. WIth a few edits, you can probably use it for your ideas. Depending on your comfort level with the particular idea, you could file the Patent App and then sell the rights (assign) that application to the Buyer. This can occasionally add value to a non-savvy buyer. But in reality adds very little.
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Cool, I'd appreciate it. Would you mind expanding on how it went? I don't have any doubt that for the right price the company will implement the idea. The problem I have is that I have no leverage unless it is patented and even then I imagine they can get around it.
I'll have to look into the patent though... this is the first idea that I would actually spend the money on the patent if I knew it would protect the idea from being ripped off. (unfortunately I have been researching the cost of the components and for a "fancy" version of my product would be quite expensive unless I could buy in bulk
========= Overall, it's difficult. More difficult than you imagine. A lot of companies don't even want to hear about outside ideas becuase they fear that may already be working on somthing similar, and don't want to raise intellectual property theft concerns with the outside world. Among other reasons. All you can do then is move on to the next Buyer in line.
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Well, it might be more difficult but that's not the issue. It's not as difficult as doing it myself. To be honest I don't really want to make a business out of it because I have other things I'd like to work on.. but I surely would like to make a nice profit off the idea and to see it implemented. If I were going to do it I might as well go all out and create a new product from scratch(in fact I have wanted to do that but in no way do I have the infrastructure for it and it would be a full time thing).
============ BUT, if you're willing to play by THEIR rules, and your idea has enough merit, you can probably strike some sort of deal with someone. But do not expect to get rich overnight. Isn't going to happen. You can also expend more time, energy and money trying to market the idea, than anyone is ultimately willing to pay you for it, so keep that in mind. Your time is valuable.
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Well, obviously it would be part of the negotiations. I do not know how much the idea is worth but if I look at it optimistically then it can easily be a multi-million dollar product(revenue). If I estimate, say, 10k sold with each one making a profit of 50$ then thats 500k. IMO that is extremely under-estimated and my best guess estimate is at least 100k sold which of course is 5M. This probably would be annual so it's a good investment. (not sure the long term profitability of it though)
I'm not sure how to estimate such a price for the idea based on those figures. (specially when there is so little work involved in modifying the product) Seems 10k is way to low for them to potentially make millions of it(out of all my ideas(1000's) this one has the most potential to make the most money). Of course I doubt they would be willing to pay 500k for just an "idea", although I already have the basic circuitry needed and I'm probably going to try to get a prototype up sometime.
I thought about maybe a "royalty fee" of, say, 10% for everyone sold but I imagine this is hard to enforce.
Really the biggest problem I have doing it myself is to be undermined by some other company. I could start by just selling them on the net one at a time but without some patent(and even with one) I imagine the idea will be copied. I also wouldn't be able to make much because the cost of buying the product from the company(Which is why I'd rather have them do it in the first place since it's more efficient over all).
Anyways, I'd really appreciate your experiences as it could help me determine how to go about it.
I just did a patent search and there are many similar ideas... although almost all use a different method. Being that there are many similar based ideas that have patents and that mine is a bit different I think it would work.
One could start by buying the overpriced stuff in a quantity that helps reduce overhead, modify them, rebrand them, and start selling. Internet space and ads may help; the price is right. This initial sales "push" will give valuable information concerning the market. If sales are great, the "next round" might be a larger quantity price break and outsourcing the modifications. Next is contact the OEM for a wholesale deal; might be a million for
12 month period; usually that means the pricing could get better if the quantity goes beyond the contract number and little if any penalty if less. Get and read "Tested Sentences That Sell" by Elmer Wheeler.
Well, that was my idea ;/ Should have known it would have already been done(usually they are). Although mine is slightly different it basically does everything I was thinking... although mine is better ;) but basically an extension of that idea. Probably not patentable ;/
Your problem is not being granted a patent at USPTO it is enforcing it.
You could always go on "American Inventor". The UK one "Dragons Den" is sometimes interesting though most entries are dross even if their proud inventors think they are the next Edison. The last one I can recall that sold itself was what would become "the Bedlam Cube". The guy unboxed one wooden prototype and put it on the table in front of the dragons.
Chances are they are already doing it then.
Find someone who has the money and the marketting expertise to make a partnership. They will want more than half of the proceeds if they take all or most of the risks. Business angels have not entirely vanished.
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