Product Design & Patent Licensing

Product licensing earns 3-10% royalties on manufacturer sales.

Successful inventors license 3-20 products earning $75,000-$2,000,000 annually.

In 2025, inventors license rather than manufacture products.

Initial investment $15,000-$100,000 includes product development, prototype creation, patent filing ($8,000-$15,000 per patent), licensing agreements, and marketing to manufacturers.

Revenue from licensing royalties (3-10% of wholesale), upfront licensing fees ($5,000-$50,000), minimum guarantee payments, and multiple product licensing.

Categories: Consumer products, tools, gadgets, household items, sporting goods, toys.

Successful licensors create marketable products, secure patent protection, pitch to appropriate manufacturers, negotiate win-win licensing deals, and build product licensing portfolios.

Manufacturers and brands as licensees.

Marketing through invention trade shows, licensing agents, manufacturer direct pitching, industry connections, and inventor organizations.