This transcript was generated from the episode audio and may contain minor errors.
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Lots of people have great ideas. Far fewer take the next steps to test, validate and bring those ideas into the world. Here at Side Hustle School, we're all about encouraging people to not just come up with ideas, but actually do something about them. That's why sometimes I say inspiration is good, but inspiration with action is better. So today we got a question from a guy who is an inventor, or at least he's an inventor of ideas.
He has a bunch of invention ideas, but doesn't want to start a business for each one. So let's consider the reality of licensing product concepts. Can you actually go out and license your product ideas without going all in on patents, prototyping or high risk invention platforms perhaps? Or is it just the case that execution matters more than creativity? Let's talk about how this process really works and where the opportunities lie if you're willing to go just a little bit further than most people do.
And I know our listeners are self-starters, motivated people, eager to do something for themselves to hopefully advance their position in the world or at least create some economic freedom for themselves. So how does this look? Can you come up with ideas and license them without doing much more work? Detailed question and my answer coming right up. [Music]
I've had a million random product ideas over the years.
Some are pretty wild and others I think could actually be useful, but I'm not an engineer or inventor by trade, but I do love coming up with gadgets or tools that solve specific problems. I don't want to start a full business for each one, but I've always wondered if there's a way to sell or license these ideas to someone else. Is that even realistic? I've heard mixed things about those submit your invention companies. What's the best way for an everyday person to get paid for ideas without going broke filing patents?
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Brandon, the good news is it is possible to license product ideas. The bad news or let's just say the catch, you usually have to go beyond just having the idea. There are lots of people who have smart, practical product ideas, but you need to demonstrate more than just, hey, this is a cool idea. You actually do need to create some kind of prototype or proof of concept or just go beyond, hey, isn't this a cool thing? So let's just kind of begin with that cold hard truth, which is that ideas are everywhere.
Execution is what makes them valuable. A company is not gonna pay you just because you think of a cool idea. They'll pay you if they can see how it works, if they can imagine it on a shelf and feel confident that people will want it. So there's some more steps to make that happen. But my suggestion is, okay, you don't want to be in the business of starting all these businesses.
That's okay, focus on one idea. Like don't try to license a list of 10 ideas, choose your strongest, most clearly understood product, ideally something that's simple but solves a specific everyday problem. Number two, create a sell sheet. So this is your pitch. This is your one page or maybe a few pages visual summary that includes like the problem it solves, the mock-up, the drawing, the key benefits or differentiators, how it might be made.
You know, the more detail you can provide, the better. That's actually more useful than a full prototype when approaching companies. You don't necessarily have to make the full prototype, but you do often have to go beyond just here's the idea. And then next, identify license-friendly companies. You can find those companies at industry trade shows, sometimes even online lists or catalogs.
Look at product packaging. Look at online databases like Open Innovation Portals. That's a good place to start. There's some platforms like Quirky, Edison Nation, but the best success stories often come from direct pitching. So I do think you're right to be skeptical of generic invention submission.
There are some companies that will take an upfront fee, but they don't actually deliver much in return. Licensing work really takes persistence. It's a whole business model of its own, but it also shouldn't require thousands of dollars just to be taken seriously. So Brandon, that's, as I said, the good news and the catch. Your ideas won't license themselves, but if you can just go like a couple of steps beyond where most people stop, then you might be able to, in fact, turn your idea into income, which is what we are all about.
Even if only one out of 10 of those ideas gets traction, it might be all you need. Good luck, let us know how it goes. Listeners, let us know how it goes with you as well. sidehustleschool.com. Every single episode available there for free download.
Subscribe or follow wherever you get your podcasts for new episodes. Much more to come. Thanks for tuning in today. My name's Chris Guillebeau. This is "Side Hustle School." [Music]
From the "Onward Project."
