Get Paid As an Inventor

An inventor is a person who is different from the average person since he looks at things differently in life. He or she takes the objects, technologies, and another process quickly into the blueprint of creation which is the foremost thing that comes before manifesting the object.

In order to become an inventor you have to identify something new which is not available in the market as a product. It might not be that much effective, expensive, designed poorly or inconvenient. Start thinking about everything you see as they are waiting for you to discover it.

You organize your life first by programming your mind and planning your each and every day. Once you start organizing your days then you have started thinking of invention exploration. Think about the steps to accomplish the task of work by changing the elements of a product.

• How do I Succeed as an Inventor?
• Does an Inventor Get Paid?
• What Are The Benefits of Being an Inventor?
• How do I Get Paid For my Invention?
• How Much Money do You Make as an Inventor?
• How do I Start an Invention With no Money?
• Can You Get Paid Inventing Something?
• What Companies Buy Ideas?
• Can You Sell an Idea to Google?
• How Much Money Can You Make Off a Patent?
• How Does an Inventor Make Money?
• How to Make Money From Your Invention
• 5 Ways to Profit From Your Patent
• Companies That Pay For Invention Ideas?
• How Much do Inventors Make on Royalties?
• How Much Can I Sell my Invention?
• How Much Money Can You Make From a Patent?
• Where do Inventors Work?
• How to Invent Something And Get Rich
• How to be an Inventor
• How Much do Inventors Make in South Africa?

How do I Succeed as an Inventor?

You are already an inventor so start thinking things differently instead of seeing things with the same eyes as others do. Believe in the words “I am an inventor” which are true. Take the steps to place yourself in the opportunity of making things differently before anyone outsmarts you.

Take things in different directions and apply your innovative ideas to discover something new which does not exist at all. While working with your ideas, you may get criticized or get discouraged by someone else. At that time never take those words into account until you think it as a valid point.

Read Also: Make Money With Film Distribution

Since these words will make you pause your work for some time and allow you to have a look on your idea and you will start thinking in a different angle. This will give you the opportunity to do corrections if you find any drawbacks.

Better advice to overcome destructive criticism is:

• Questioning others since all professionals won’t think in the same way. They obviously have different thought of mind on different things.
• You should be firm and stand by your own principles and ideas to challenge other people.
• Keep on moving even if your idea is faulty. Make a pause, do corrections, do re-analyzing and move ahead with your task.

If you are ready with your idea and searching for marketing, better you have to deal with more focused and willing to take risks companies than preferring large corporations since bigger companies are more bureaucratic and easily lost focus.

For new inventors, the following steps will help you in stepping forward with your ideas:

• Being focused and documenting – Always write your invention in paper by defining ideas, its purpose, limitations and benefits. Don’t over complicate your idea, take a step back, do re-analyzing and make the things simpler. Documentation will help you to expand your ideas. Always focus on your original ideas and always try to ignore adding the extra superfluous features since it may muddle your vision. Later you can do these things to shape your invention
• Check for uniqueness – Do some legwork, surf internet and hit the libraries to find whether your idea is unique. Before arranging a patent lawyer by allocating large amount of payment, better to do initial research by yourself and save big lawyer fees. If you find your idea already exists, don’t get discouraged but take it in the positive way that someone else has come out with the similar conclusions. Thus you have a competition which is far good and healthy. It will make you more careful and gives extra work to do research on that product to find out how your product can be differentiated from it. Know its limitation and how your competitor is successful with marketing, work on it.
• Safety – Whatever your product is, you should take care of potential hazards associated with it. Work on improving the safety of your product and check for the products operation from going wrong. Recheck the product materials you have been used, list out the safety features of your product and fix your design before marketing it.
• Target audience – Prepare answers by yourself for the questions like what age of people are going to use your product, when and where it should be used and for which gender is it suitable. By correctly answering these types of questions will help you in staying away from abreast of the competition. It will help you in putting finishing touches for your product and you should also target the geographical region for your target with desired characteristics.
• Model of the product – It is very important to produce a working model of your product. This real life model will help you in identifying the limitations, correcting the errors and final enhancement of your design. Its physical touch will help you psychologically and you will feel better with your own mind creation. It will motivate and boost you more. Draw the final version of your product in paper in a 2D or 3D effect so that it will help you in thinking under different angles. Make your initial drawing into highly technical engineering drawing with the help of technical person with drawing skills. Select the materials you are going to use for the construction of your product. Material selection is the most important thing since product cost is completely depended on production cost.
• Cost – Benefit analysis of your product will help you to work out with the cost estimation of your product.
• Marketing – Success of your idea wholly depends on your marketing strategy. When you are going with the marketing company, it has two groups. One group of company is expensive having specific knowledge and link with broad range of industries. They might be frauds so you have to be careful while dealing with them. Another group of company will give you complete freedom and give respect to your ideas and suggestions.

Does an Inventor Get Paid?

There are three paths available for you to Get Paid As An Inventor:

• Selling – Selling your product out for a large amount of fee will transfer the property to the company and you won’t get any future opportunities. It is the complete transfer of ownership even the royalties is no longer yours.
• Licensing – It will help you to continue the ownership quality of the product and you can earn money by renting or giving a license to more than one party with or without time limit. You can charge for the royalty for each unit sold. It has some financial risks.
• Doing it yourself – You have complete independence with your product since manufacturing, marketing and selling are completely your action. You will be having complete ownership of your product and it will give you most satisfaction and pride.

Difference between an inventor-of-royalties and entrepreneurial inventor:

• In case of inventor-of-royalties, invention will be sold out to a third party company but you will get your royalties and property is no longer yours. You won’t be having any rights to do changes with your projects at anytime. So better have an agreement with the company so that they will allow you to add some inputs to your product.
•  In the case of an entrepreneurial inventor, full ownership of the product will be retained. You should be the good businessman in order to challenge the mass-producing of your product. You are supposed to know the ins and outs of the trade and you should have a big amount of money to produce your product in the market.

To avoid the most repeated mistakes by an inventor, do follow the below-listed points:

• Do the best to your product and also allow others to give their ideas on your product.
• Don’t completely focus on patents since they will take a long time to issue your products in market. Prefer small company instead of trying with big legal department.
• Don’t have the fear of stealing your invention since it is a waste of time. No one will copy your idea and stand for competition. If they come out with your copied idea to the market, you will be presenting your net model at that time.
• Presenting your product to the industry through the companies will charge you thousands of dollars and their job won’t be that much perfect as your interest. So better you can try to present your product to some good industry with passion.
• Spend some money to make your product perfect with the help of customers’ feedback. Do your own testing before selling your product.
• Invention of the product is just the small part of the overall effort. A further arrangement requires great attention.
• Don’t make your product price as low as possible because your product is so special and you won’t be getting the chance to change the price.
•  Large companies won’t steal your ideas always but also it gives best opportunity for you to succeed in life with your product.
• Large retailers will get your product only if it makes them the most money.
•  Don’t become complacent and get excited with your own hype but think it like your competitors.

What Are The Benefits of Being an Inventor?

• Your invention will make your personal resume the special one and make it to stand out from the rest of resumes. It will show your inventory, creative and problem solving skills to the interviewer. Most of the employers believe those skills as important skills in this corporate world. It will make your employer to remember you as a unique and exciting person.
• It opens door to launch a business and it will give confidence in you to start up with the business with your promising idea. It will be the great deal of money if your plans go well.
• Get Paid as an Inventor by selling or licensing your product in the business world. Earn healthy income through your ideas.
• It will develop your problem solving skills methodically and systematically. It will enhance your mind by developing innovative thinking power.
• It will give opportunity to meet new people which can result in many ideas by setting brainstorming sessions. It will help you in thinking outside the box and you people will start supporting each other.
• It will give complete freedom to explore your ideas and won’t stop you in reaching your goals. This is entirely free and does not require any financial backup. It provides you rewards and make you feel proud.

Serious advice to escape from stealing is to obtain some form of patent protection before promoting and advertising your idea. A patent is a legal protection given to your idea against unauthorized use. It can be sold out but the owner of the patent is not the owner of the product.

To get patenting for your invention your product is supposed to have the necessary attributes and there should be a definite need for taking up the product in the market. You should also be aware of a confidential agreement that is legally binding between you and the third party member which has only limited use and is not suitable for advertising and publishing your product.

How do I Get Paid For my Invention?

The ways you might make money from your invention fall under three basic paths. You can sell the patent or rights to your invention outright. You can license your invention. You can produce and market and sell your invention yourself.

Selling Outright

Selling your intellectual property patent means that you have permanently transferred ownership of your property to another person or company for an agreed-upon fee. All future commercial opportunities including royalties will no longer be yours.

License Your Invention

Licensing means that you will continue to own your own invention, however, you rent out the rights to make, use, or sell your invention. You can give an exclusive license to one party, or a non-exclusive license to more than one party.

You can set a time limit on the license or not. In exchange for the rights to your intellectual property, you can charge a flat fee, or collect a royalty for each unit sold, or a combination of the two.

It should be noted that royalties are a much smaller percentage than most inventors would guess they should be, often under three percent for first-time inventors. That fact should not be surprising, the licensing party is taking a financial risk and it is quite an undertaking to manufacture, market, advertise, and distribute any product. More about licensing in our next lesson.

Do It Yourself

To manufacture, market, advertise, and distribute your own intellectual property is a large enterprise. Ask yourself, “do you have the spirit necessary to become an entrepreneur?” In a later lesson, we will discuss business and business plans and provide resources for conducting your own. For those of you who do wish to become your own entrepreneur and start and raise capital for a serious business, this may be your next stop: entrepreneur tutorials.

Independent inventors may decide to hire help for marketing or other aspects of promoting their invention. Before making any commitments to promoters and promotion firms, you should check on their reputation before making any commitments. Remember, not all firms are legitimate. It is best to be wary of any firm that promises too much and/or costs too much.

How Much Money do You Make as an Inventor?

The average annual pay for an Inventor in the United States is $60,523 a year. Just in case you need a simple salary calculator, that works out to be approximately $29.10 an hour. This is the equivalent of $1,164/week or $5,044/month.

While ZipRecruiter is seeing annual salaries as high as $98,500 and as low as $27,000, the majority of Inventor salaries currently range between $43,000 (25th percentile) to $72,000 (75th percentile) with top earners (90th percentile) making $84,500 annually across the United States.

The average pay range for an Inventor varies greatly (by as much as $29,000), which suggests there may be many opportunities for advancement and increased pay based on skill level, location and years of experience.

How do I Start an Invention With no Money?

It’s agonizing when you see a product you had thought about creating for years in the market doing very well commercially and making someone else wealthy. The more successful the invention the more gut-wrenching it would feel as you go down the “it could have been me” lane.

How to Invent Something With No Money and Make Millions?

1. Brainstorm ideas

The first phase in creating an exclusive and valuable product is to brainstorm ideas. Ponder on the area you want to invent in and also what are you most interested in, as you will need to think through a whole lot of things. To effectively do this, you may consider making a list of all the things that catch your attention.

These could be pastimes, jobs, or products that you use on a regular basis. After that is done, you would need to look at the problems that exist in these areas and think of how they can be solved through your inventions.

2. Keep a journal

One of the things that you would also need to do this period is to keep an active journal. This is because you would need to continuously add new items to your possible invention list, while keeping your ideas all systematized in one place. One other beauty in keeping a journal is that it helps you to remain intellectually clutter-free and allows you to review your ideas at a later date.

3. Resolve on an idea

After you have done a lot of brainstorming, now you can be satisfied that you have got options. You now have to look at choosing your best idea for an invention. To achieve this, you have to spend time thinking through the details of the project.

You will need to ask yourself some very important questions like; is the invention special that people will feel compelled to bring it into their lives? Why is your invention so great? Think about changes that might need to be made. What parts of your invention are superfluous or unnecessary? Is there any way to make it more efficient or cheaper to produce?

4. Sit under the Tutelage of an Expert

One of the ways to possibly set the ball rolling for you to invent something useful is by sitting under the tutelage of an expert. You may want to consider choosing an expert in the field of invention that you are looking at. It is very vital that you choose a similar field so that you can be watched at a close range by the guru.

5. Create a prototype

You can’t just say you have invented something useful if you don’t have a prototype. Indeed you need to have proof of when you came up with the invention idea. This is why you need to write down everything you can think of that relates to your invention, from what it is and how it works to how you will make and market it. This is the first step to patenting your idea and keeping it from being stolen. You will need to research your idea from a legal and business standpoint.

Report has it that more than 95 percent of all patents never make money for the inventor. So, before you invest too much time and money into patenting your invention, do some preliminary research on your target market. You need to ask if this is something people will actually buy?

Once you know there is a market, make sure your product can be manufactured and distributed at a low enough cost so that your retail price is reasonable. Have it in mind that you can determine these costs by comparing it with similar products currently on the market.

6. Ask Yourself Some Pertinent Question

• Has your product/service been through any internal testing processes?
• Has the product been through external testing, certification, approval or registration?
• Have technical support documents been written e.g. specifications and instructions?
• Have you documented the features and benefits of your new product/service?
• Are you getting professional intellectual property advice e.g. from an IP lawyer or patent attorney?
• Have you used a confidentiality or non-disclosure agreement to protect IP at this stage?
• Have you developed an intellectual property strategy to protect your IP into the future?
• Do you have seed funding in place for research and development (R&D) and IP protection?
• Have you used customer feedback in the development of your product/service?
• Is product development complete and is the product ready for customer sales?
• Is the product ready to start commercial production in volumes that can meet demand?

7. Protecting your ideas and invention

Immediately you believe you have come up with a unique idea for a new product, you should take steps to protect it. A lot of people who want to protect ideas think first of patents. There are good reasons for this.

Indeed you will find it hard to license your idea to other companies, should you wish to do so, without patent protection. But, getting a patent is a lengthy, complicated process, and one you shouldn’t embark on without professional help; this makes the process expensive.

If you wish to pursue a patent for your ideas, contact a registered patent attorney or patent agent.
A lot of businesses choose to protect ideas using trade secrecy. Note that this is simply a matter of keeping knowledge of your ideas, designs, processes, techniques or any other unique component of your creation limited to yourself or a small group of people.

Have it in mind that a lot of trade secrets are in the areas of chemical formulas, factory equipment, machines and manufacturing processes. The formula for Coca-Cola is one of the best-recognized and most successful trade secrets. When planning to protect your idea or product, your IP needs to become legally protected. A range of options are available and you should get professional advice.

8. Research your market

When planning to start a business that sells or markets any useful product or idea you must have invented, you need to make sure that your product fills a need and has a competitive advantage. You also need to evaluate its viability. Things to consider may include;

• Has your market research identified market size, key players and potential customers?
• Has your market research confirmed there is a clear need for your product/service?
• Does the product/service have a competitive advantage over already existing products?
• Have you undertaken a financial evaluation of the viability of your product/service?
• Have you scoped an early Business model and identified options to be researched?
• Have you completed trials to confirm the strength of both the product and the market?
• Have you identified your target market and worked out your market entry strategy?
• Do you have a well-developed pricing strategy/model that is ready to go?
• Do you understand the distribution channels needed to achieve market entry?
• Can you recognise the ‘influencers’ in the market that will assist your market entry?
• Are financial projections for three years completed to support the commercialisation stage?
• Is funding in place to support set up costs and working capital for early commercialisation?
• Is your business model finalised, and based on market research and financial assessment?
• Is your business structure registered, and ready for trading activity and tax purposes?
• Have management and staff resource planning been completely developed?
• Have you completed your commercialisation plan with a focus on market entry strategy?
• Are your financial, accounting and reporting systems ready for the commercialisation stage?

9. Choosing your Business Name

When you are about to sell a product or idea you developed or invented, then you need to know that your business name is your public name – the moniker that consumers and other businesses will use when contacting you. Note that once you have picked a legal name, you must decide whether you also want to use it as your trade name.

For a lot of inventors, the simplest thing to do is to use the same name for legal and trade purposes. This is especially true when you haven’t even begun marketing your invention. If you are a sole proprietor, this means you will use your personal name as your trade name.

If you are a partnership, corporation or Limited Liability Company (LLC), you will use the name you have chosen as your legal name. But, if you are more concerned with the marketing and sales of your invention and you think your legal name is too dry, you may want to create a trade name that is more attractive and exquisite.

10. Financing your business

Note that as an inventor that has plans to sell or license products based on your inventions, you will need to pay various up-front costs before getting your business off the ground. Start-up expenses are expenses you incur before you actually begin your invention business.

Such expenses have tax ramifications. Unlike business operating expenses, start-up expenses cannot all be deducted in a single year. This is because the money you spend to start inventing, or any other business is considered a capital expense. It is, in other words, an expenditure that will benefit you for more than one year. This is where you can get proper financing.

• Funds from Personal savings
• Getting loans from families and friends
  Investors
• Taking small business loans
• Getting microloans
• Attract an angel investor

The truth is that most people have the ability to invent something during their lifetime but only a few people get to achieve this feat. There are a lot of people who have had successful ideas in the past but they couldn’t do much with it because they lacked the required motivation and gave up somewhere along the line.

Inventing products/services is not an easy feat because there are a lot of ups and downs involved. There are times that things just wouldn’t work the way you expect them to, even after giving in your absolute best and it is during times like this that most would-be inventors give up on their ideas completely. However, the inventors that are able to stay focused and motivated are the only ones who make it past this stage to become very successful.

Can You Get Paid Inventing Something?

Inventing a new product, method or device is not easy. As most inventors will attest, it takes both creativity and tenacity. But even after you invent an innovative new product, your work is not done.

When it comes to making money from an invention, much of the work comes after the invention is complete and your patent application is in the mail. After all, you won’t sell anything if only you and the patent office know about your invention.

Part of the research you should do before you finish your invention should be finding out who will want your invention. This could mean certain kinds of consumers or companies in certain industries, depending on what you’re inventing.

This lets you decide how to advertise your invention and whom to approach. You should also know whether you want to sell, license, or use your patent so you know whether to market your invention with customers or with the manufacturers that will make your product.

Marketing an invention takes a lot of time and money on its own. You need to contact the right people and create a presentation and a prototype to show interested customers, investors, buyers, and distributors. You also need to practice your presentation so you don’t stumble during the meeting. You need hard numbers for costs and market analyses to make your case, and you’ll need a business plan if you want to run a business.

Unless you plan to market directly to consumers, keep in mind that businesses care more about profits and efficiency than whether your invention is better than what they already have. You need to compare your invention to the competition and explain why it can make them more money.

It can do this by taking up less space per unit, costing less to manufacture, or having a more interesting design or package. It helps if your invention is a better product, but you have to think about more than just that.

The exact amount you can expect for your invention depends on risk levels and who takes on that risk. These questions can help determine the numbers:

• How much did the inventor do, and how much did the manufacturer and distributor help with redesigning the invention for sale?
• Who is spending the most to get the invention to market?
• How unique is the invention compared to the competition?
• What is the expected profit margin for the invention?

The more the inventor does and spends, the larger his or her payment and royalties will be. You can figure some more exact numbers by comparing the gross profit per unit with the expected size of the market and the life cycle of the product. If you know the product won’t last long, it helps everyone make intelligent long-term decisions.

A long-term invention is safe for investment, while a short-term invention can be a profitable fad and then disappear — at least if you time things right. Figuring the life cycle is also important when it comes to finding out whether you can expect to make back all the money you invested in bringing your invention to market.

What Companies Buy Ideas?

Below is a list of companies that will pay you to invent stuff. The companies fit a variety of industries, including outdoor, petcare, supplies, medical, etc. Let’s get into it.

Henkel

This is the parent corporation of the producers of Right Guard and Dial soap. They also operate the Henkel Partnership Program. This is a contest that they sponsor for budding inventors and innovators in technology.

Those with new ideas and inventions are encouraged to submit their ideas to the program. The Kenkel Partnership Program is most interested in new ideas in the area of laundry products, home care, cosmetics, as well as adhesives.

They also encourage ideas that are environmentally friendly.

Sharper Image

This is a company that focuses on staying ahead of the game when it comes to technology, toys, and innovative gadgets. They assign teams to do nothing but sift through the ideas that are sent to them by new inventors.

When you submit a new idea to Sharper Image, the company asks that you send them an email with a description of your product, as well as a picture or video.

If you have already started producing your product, they would also like you to include information on sales numbers and where your invention is being sold.

3M

If you are familiar with 3M, you are probably not surprised that this company would be open to ideas from new inventors. 3M is always coming out with new products.

This company produces everything from electronics to office supplies, and health care products. You can submit your invention idea to 3M.

BD

This is a company that specializes in medical technology. They bring new medical research to the general public to improve the outcomes of patients all over the world.

For those interested in submitting their ideas, the company offers an Acceptance of Terms form that you will have to agree to and sign.

You will need to mail the form to the address listed, along with the ideas for your product.

Dorman Products, Inc.

This company specializes in hardware, houseware, as well as automotive products. Dorman is mostly a distributor of products but they are always looking for new items to add to their lineup.

If you are already producing your product, you can send them a 3D sample for consideration by their review team.

Jokari Home Solutions

If you are looking to sell invention ideas that fall under the category of houseware, Jokari Home Solutions is always looking for innovative ideas to bring to the market. For those who have developed a new kitchen gadget or home organization product, you’ll want to consider submitting your idea here.

Jokari Home Solutions has a form on their website where you can fill out your information and submit it for consideration.

Coastal Pet Products

This company is dedicated to bringing the best pet collars and leads to the consumer. For pet lovers, this may be the perfect place to pitch your idea.

They are always looking for new product ideas that make life better for pets and their owners. If you have an idea for a new type of pet collar, this company will welcome the chance to look at your invention ideas.

Hearlihy & Company

Hearlihy & Company produces educational supplies for everything from drafting tools to Life Education and technology.

If your invention falls in this category, this would be a good company to submit your idea to.

Builders Inventions

If you are a tradesman and have an idea for a new tool, there are companies that buy ideas, such as Builders Inventions. This company specializes in producing tools that are invented by builders and tradesmen.

If you have an idea for a tool that would be useful for contractors and builders to use on their job sites, you can contact this company to ask about the process of submitting your idea.

Coleman

If you have an idea for a gadget that would be useful for outdoor recreation, Coleman is one of the companies that you will want to look at. Coleman produces outdoor products such as camp stoves, tents, lanterns, and even camp trailers just to name a few of their products.

If you have an idea for an outdoor product that would fit with this company’s offerings, you can contact them and offer your idea for review.

Wild Planet Entertainment

Wild Planet Entertainment produces toys that encourage children to be creative. Their products are meant to promote a child’s imagination and encourage them to explore the world they live in.

Wild Planet Entertainment is dedicated to manufacturing products that are safe, as well as durable and fun for kids of all ages.

If you have an idea that fits within this company’s spectrum of products, you are encouraged to contact them and ask about their idea submission process.

Pro Performance Sports

This company produced the best in sports training products. If you have an idea for a product that you believe would be a good fit for Pro Performance Sports, you are encouraged to print a copy of their submission form and return as directed on their website.

Can You Sell an Idea to Google?

Android’s Google Play has about 2.5 million apps. This is the largest app store in terms of the number of apps published. If you say “i have an idea for an app” and it is unique, it might be a good idea to check the Google Play Store to see if there is anything similar.   

Google does not state they don’t accept ideas. They do accept them, however, just like Apple, they don’t pay for your submitted proposals, but treat them as their own. So, if you feel altruistic, you can submit your idea through an online form, but don’t expect money in return. 

If you want to make money and sell your app to Google, you will firstly need to develop your high-quality app, market it, and make sure Google notices it. 

Very often, you see the news that big corporations like Google, Apple or Facebook buy smaller companies to help them compete against each other. Recently, it was reported that Google was planning to acquire “Firework” – an app similar to TikTok.

TikTok with its format of short 30-second videos became a favorite platform for younger video creators, potentially threatening Youtube dominance. Facebook is also building a similar app for short videos called “Lasso”.  

For Google (or any of the big tech guys), to notice your app, the product needs to have the quality to help the corporation fight and outperform its rivals. Another option is to develop a solution that would help the company improve its own products.

In 2016, Google purchased the Israeli startup, Waze. It was a navigation app having 50 million users. One of the advantageous features Waze had was a possibility for users to interact and report on the road and traffic situation in real-time.

How Much Money Can You Make Off a Patent?

If starting your own business isn’t the best approach for you, you can still earn a handsome amount by licensing your patent.

Patent licensing is a practice that lets you transfer your patent rights to a party that can use it for making or selling a product or service.

There are two types of patent licensing:

• Exclusive Licensing: The patent owner transfers all the ownership rights to the licensee.
• Non- Exclusive Licensing: The patent owner/licensor can also produce the invention along with the licensee.

The benefits of licensing your patent rights

• Your brainchild, your invention, sees the light of a day in form of a product.
• Lack of resources or funding won’t stop your invention from going to market.
• The trust and brand value of the licensee could help you build a legacy.  
• Your licensee may sell your product worldwide faster than you would have been able.

Patent licensing as a number of complexities and intricacies.

Filing for a patent isn’t cheap, so it makes sense that if you went to the trouble of protecting your idea, the next step is to figure out how to profit from it.

According to Forbes, in 2014, 95 percent of the 2.1 million active patents weren’t licensed or commercialized: they didn’t generate any money.

The value of your invention is completely in your hands.

How Does an Inventor Make Money?

A great invention at the perfect time can earn the inventor millions, a few good inventions can keep the inventor going for years, or inventing can be a money sink that never amounts to anything. However, there are several ways to profit from an invention idea you should know about.

Sell Your Patent

Every patent holder can sell his or her patent to someone else, including corporations and individuals. If you are one of several names on a patent, you can sell your stake in a patent independently.

However, things get complicated quickly if you don’t tell the other patent holders first, so many joint inventors will create a small company and invest their patent rights in that. They can then sell the patent all at once and make sure everyone profits equally.

When you sell a patent, you usually get a single lump sum for it. The contract of sale can include royalties for a set amount of time, but that’s not common. Royalties let the old patent owner or owners earn money based on how well the product sells or how efficient a process turns out to be. But whether it’s one payment or many, you can’t renegotiate later because the sale is already complete.

Selling a patent may be best if you prefer inventing over managing a business. It’s also a good option if you worry that your invention won’t be popular and you won’t make much in royalties. You might need a lump sum after investing a lot into your invention.

License Your Patent

Rather than give up your rights to a patent completely, you can license it out for a set amount of time. Once the time runs out or someone ends the contract early, you get your patent back. Licenses are usually based on royalties, but you can also get a lump sum when you sign the contract.

A license agreement can also have set payments that aren’t based on the product’s success. Sometimes contracts combine these two with a guaranteed minimum income that goes up if sales are good.

The advantage of licensing is that it gives you more leverage over the licensing party. If they don’t live up to the contract or you don’t like how they use your invention, you can take it back and find a new partner. You can also get more money if your invention turns out to be popular.

However, you get less money at first in exchange for that leverage. For instance, a first-time inventor can expect a royalty rate of around 3 percent, and an experienced inventor may see up to 25 percent of the gross profit.

Invent for a Company

Companies that do a lot of research and development usually have rules in place that let them own the inventions their employees create while on the job. This is called “work for hire.” To encourage their employees to invent things, these companies offer bonuses and other rewards.

The biggest advantage to inventing for a company is that the company does all the investing, patenting, and marketing for you. The inventor faces no risks aside from the ones that always come with a full-time job. You don’t have to spend your own money and you don’t have to worry that no one will use your invention. In exchange, you get less money this way than you would from any other way.

Sell Your Idea

You can sell your idea to a company as a freelancer, someone who doesn’t work for the company directly. This lets you have the company take on the costs of patenting an invention, but it’s a very risky option since the company might try to steal your idea or otherwise cut you out. You should definitely consult with a lawyer first to discuss how to approach the company and in what order to do things. A non-disclosure agreement is a good first step, but not every company will want to sign one.

Go into Business for Yourself

If you have the business sense to succeed in a competitive market or if you have a good friend who can get a company going, you can skip the sale and start your own business. This lets you sell your products directly to the companies and consumers who want them.

Doing this demands either a lot of money, a few wealthy investors, or a good crowdsourcing campaign, but you can hire employees and bring on partners who can help you manage the parts of the business you have no experience with.

Going into business is definitely the riskiest option, and it means taking on a lot more work. However, it’s also the best way to make a profit on your invention. Just make sure you’re ready for the challenge, because starting your own business takes even more research and investment than getting a patent.

By selling your own products, you can avoid getting a patent entirely and keep your invention a trade secret. However, trade secret protections are much weaker than they are for patents, and if someone else invents and patents your creation you’re out of luck. Two people inventing or discovering the same thing at the same time is actually very common, so don’t think it won’t happen to you.

The inventor doesn’t have to be the main force behind a company to be directly involved. It’s possible to invest your patents in a company in exchange for a share of the company stock. The size of the share depends on the size of the company and how important your patent is to it.

This gives you the ability to vote on company policy without having to manage the company yourself. However, you should make sure you have a clear role in the company so you don’t get pushed out or lost in the shuffle as the business grows.

Win a Lawsuit

A patent gives you the right to stop other people from creating and selling your invention, and it lets you sue them for damages — like the money they made from your product — if they do infringe upon your patent. The government will not do this for you, so you will have to sue them yourself and take on the legal costs until the case ends.

This isn’t the best way to make money from a patent since you can’t be sure someone will infringe your patent, plus the court might rule against you. Still, it’s technically a way to make money from an invention.

Give Your Invention Away

You can’t make any money from your invention if you let everyone know how to make it, but it is something you can always do. Maybe you think the world would be a better place if everyone could make and use your invention.

Maybe it’s a strategic move because anything you publish becomes “prior art” and can’t be patented by anyone. So, if your product uses four inventions you could patent, you can publish three of them to save money and make sure other companies can’t stop your product by reinventing part of it and patenting it.

How to Make Money From Your Invention

Do you have a fabulous idea? Great! But that is just the first step on the path to riches. If you’ve got an innovation percolating in your head, you need to act now before someone else does.

Follow these steps to turn your idea into reality.

1. Do your research

Before you spend time or money on your invention or idea, make sure it hasn’t already been created.

Internet searches are always a good place to start, but don’t stop there. Go to the U.S. Patent and Trademark Office’s website and search for existing patents.

Also, do some market research to determine whether there’s actually a demand for your product or idea. Before you start sharing your plans with too many strangers, see step No. 3 below.

2. Develop a business plan

The second step is to create a business plan. Even if your idea isn’t fully formed yet, know how much money you can afford to spend and what the process of developing and marketing your idea looks like.

If you’re unsure where to start, arrange an appointment with SCORE, a nonprofit organization through which businesspeople volunteer to mentor and advise small businesses and startups.

Another option is to contact your local office of the U.S. Small Business Administration, or SBA, to see what services it can offer. The SBA’s website provides a wealth of information about business plans, financing and other issues associated with startups.

3. File for a patent if applicable

The law regarding patents changed dramatically several years back.

Prior to the 2011 passage of the America Invents Act, the first person to invent a product retained exclusive rights to sell or license it for 20 years — a “first-to-invent” system. However, the federal law switched the U.S. patent system to a first-to-file system. It no longer matters who came up with an idea first. Instead, the 20-year exclusivity rests with the person who first publicly discloses the idea or first files for the patent.

But again, before you start having too many private conversations about your big idea, make sure you have taken the appropriate steps to protect it from thieves.

4. Make a prototype

At this point, it’s time to turn your idea into reality. You need to build a prototype.

Depending on your invention, you may be able to construct the prototype yourself or you may need to get some help. You can find suggestions for making prototypes from Entrepreneur magazine and StartupNation.

Regardless of how you find help, you may want to consider using a nondisclosure or no-compete contract, especially if your idea isn’t patentable.

5. Get feedback from beta testers

Once you’re happy with the prototype, find some people willing to try it out (called beta testers, a phrase that came from the second phase of software development testing). Feedback from beta testers can not only lead to product or service improvements, but it also may help when it’s time to find investors.

As you near the end of the beta testing phase, try selling prototypes to better gauge customer demand.

6. Find investors

By now, you should have a polished prototype and hopefully some early sales to bolster the case that your idea is profitable.

The next step is to find some deep pockets willing to pay for large-scale manufacturing or deployment of your plans.

Locating private investors can be a challenge. Rather than finding one or two people able to invest large sums of cash, consider the crowdfunding route with websites like Crowdfunder and Fundable. You can also visit the Angel Capital Association’s website for more information on finding angel investors.

However, in the end, it might be up to your savings account — and maybe some close family and friends — to get your idea off the ground.

7. Make millions — hopefully

Ah, time to enjoy the fruits of your labor. Sell that grand idea to an existing business for millions, or live the good life using the proceeds from the quadrillion sales you make in the first year.

In reality, the odds of anyone becoming rich from an idea are small. Still, some people make it big, so why not you?

5 Ways to Profit From Your Patent

Turning invention into products

The easiest and basic manner in which the legal document (aka patent) can be turned into a financial asset is by producing the invention and selling it in the market. In other words, if you only create a prototype and file a patent, then it does not mean financial gains. The commercial value of a patent can only be obtained once the product is created for selling in the market.

Now before you get all excited and get started, it is important to ask oneself a few questions before going ahead with the manufacturing process –

• What product would you be building?
• Is there a need for the product?
• How will the creation of the product take place?

This and other similar questions which would give some clarity on the product/process before you go ahead with investing a chunk of money on manufacturing. Unless you have millions to spare on failed experiments, it is always better to make an informed decision especially when it comes to product planning and development.

With that being said, let us take an example that would help demonstrate each of these ways in which you could make profits from your patents.

Consider this instance where an inventor ‘X’ creates a new device that is used for mirroring the functions of mobile to the TV sets. In this case, ‘X’ may have created only a single product as per the claims in his patent registration.

Once the patent is granted, he must then ensure that all key elements of the patent are imbibed while mass-producing the product. He must also ensure that this new product is marketed properly so that he is able to avail the commercial benefits of the new invention.

Marketing Tip: With this patented product, X may offer a mobile app that is free or vice versa, which helps in creating a ‘tying arrangement’. It basically is a package deal, where one part which is free is bundled with the paid component, which must be bought for complete usage.

This benefits in ensuring that the customer of one component buys the other one as well. It increases the customer base and aids in marketing.

Patent Licensing

What if ‘X’ is unable to produce the patented product due to lack of resources? What is the next possible solution to ensure that the patent is transformed into a financial asset?

‘X’ can take advantage of the concept of licensing. The patent is his own intellectual property. He, as the patent owner/holder, can become a licensor to license the patent to a licensee, who gains rights over that patent for a certain period as per the pre-decided terms and conditions.

The licensor may grant exclusive or non-exclusive rights to the licensee in consideration for a royalty, who can then manufacture and sell the product as his own.

Here, if the license is exclusive then it will be granted to only one licensee, whereas in the case of a non-exclusive license, more licensees may be given rights over the patent. The royalty may also be fixed or variable, say dependent on sales of the product or locked for a certain period. The license can even be for a specific territory (i.e. country) or global.

In this manner, X does not need to bear the development expenses and risks. However, he can gain entry into a new market or business easily with patent licensing and gain financial benefits.

More is Good, isn’t it? There is definitely more to licensing than what is covered above. There are various kinds of licenses, each with its own set of nuances and applications. Further, there is a list of do’s and don’ts that you should keep in mind before going ahead with licensing your patent.

This information is too valuable to miss and we don’t want you missing out. This article would help you understand everything about licensing, the what’s, how’s, do’s and don’ts – Aka Patent Licensing 101.

It is important to conduct market research to ascertain whether the licensee will use the patent to manufacture and not just to buy out the competition in the market (It could help you set the best price you could get for the patent).  It is also a good idea to advertise in the market regarding licensing of the patent before finalizing a licensee so that you can secure the best opportunity.

Patent Enforcement

Consider this scenario where ‘X’ has set up his own manufacturing unit for the invented device. In order to complete the whole process of commencing his own business and marketing the same, he took almost a year after the patent was granted.

Once his mirroring device was in the market, he realized that a competitor ‘Y’ had launched a similar product in the market 6-months earlier. He had consulted ‘Y’ as an angel investor with his business plan during the time he was collecting funds for setting-up his business.

What can ‘X’ do in this case? This clearly is a case of patent infringement. ‘Y’ was aware of the invented product and used the confidential information of ‘X’ disclosed to him in a wrongful manner.

 ‘X’ has the right to enforce his patent under the Patent Laws against the infringement done by ‘Y’. This can be done by filing an infringement suit with the court. The Court may ask the infringer ‘Y’ to stop manufacturing and selling the device along with asking him to pay damages to ‘X’. Both the parties may even negotiate compensation with or without the order of Court.

‘X’ thus, will be able to receive financial benefits from the enforcement of his patent rights.

Finding products infringing your patents is easier said than done. It is often the case that there are products in the market making loads of money while infringing on your patents about which you would never find about.

Patent Pooling

‘X’ uses technology for the mirroring device which is fit only for a certain type of TVs. He soon comes across ‘Z’, who has the technology to ensure that the device of ‘X’ can be made compatible with all kinds of TV sets, and not limited to one set. Can ‘X’ make any arrangement with ‘Z’ to create a harmonious business plan? ‘

Yes. X’ can ask ‘Z’ to create a patent pool. Under a patent pool, two or more patent holders come together through an agreement to use their patents together and license the patents collectively to any third party. This ensures wider coverage of their patents and of course, more commercial gains with expanded ambit.

So, now ‘X’ and ‘Z’ together can lure more customers and derive more benefits from their patents. However, it is a decisive factor to create a ratio of a patent value of patents in the pool for each party as per the relevance and importance of their patent.

In the current matter, ‘X’ demands a 75% value of the product and 25% is provided to ‘Z’ for his additional technological know-how and accordingly, this consortium can in accordance with the agreed values divide the profits among themselves.

While the patent pool is being created, it is essential to ensure that all key terms and conditions are formalized with mutual understanding. The parties to pool must also agree that at the time of any infringement, they will all take action collectively against the infringer.

Selling a Patent

What if ‘X’ is unable to manage the manufacturing process of product and wishes to concentrate on additional Research and Development to create more new products or processes?

Can ‘X’ benefit from the granted patent?

A smooth exit option for ‘X’ is to sell his patent. He can easily and in an uncomplicated manner earn quick bucks by selling his patent for the mirroring device. This would help him in realizing the profits without any burdensome procedure and move forward with the desired R&D for new patents.

Thinking how to sell my patent, here is the editor’s Recommendation: Looking forward to selling your patents but don’t know where should you sell them? This amazing compilation of marketplaces, with detailed coverage, would help you finalize the ultimate marketplace where you could sell your patent.

Don’t wanna go through the hassle of the marketplace? Why not get your patent to the people who actually want your patent. 

Many company’s patent applications could be getting rejected due to your patents. Suffice to say, these companies may be highly interested in buying your patents. 

Companies That Pay For Invention Ideas?

The companies mentioned here represent a wide range of industries and sell a variety of different products. Click on any of the links to see more about the process of submitting your ideas.

1. Idea Buyer

Idea Buyer is a product development company that will help you bring your idea to the market. Idea Buyer accepts product ideas in any category and if they feel the idea has potential, they will assist you in developing the idea and presenting it to producers and potential partner stores.

2. Sharper Image

Sharper Image produces and sells various items such as toys and electronics. They have a team dedicated to sourcing new ideas and will pay for those they feel fit their brand.

3. Dewalt

Dewalt is a leading hardware tool producer and the company’s online submissions system is always open for new product ideas to be put forward.

4. Cal-Van Tools

Cal-Van Tools regularly works with independent inventors when developing new automotive product ideas. The submission form can be found on the company website and they offer competitive royalty rates to inventors.

5. Avery

Avery has recently teamed up with Evergreen Innovation Partners to make it easier for inventors to present their product ideas to the company. Avery specializes in the production of office supplies, so if you have an idea in this area this could be a good place to submit it for consideration.

6. Mattel

If you have an idea that you feel would fit in with the famous Mattel brand, you can submit this through the company website. Ideas for new toys, games, and baby gear are all accepted.

7. Unilever

Unilever is a huge corporation and one of the biggest product developers in the world. This company specializes mostly in food and hygiene products and they are always looking to partner with new inventors. Ideas can be submitted through the company website.

8. Nautilus

High-quality fitness equipment is the focus of Nautilus. They operate worldwide so if your idea is picked up, there is potential for it to be sold to a global market. Submit your ideas through the Nautilus website.

9. Wilson

Wilson produces sporting goods and equipment and accepts new product ideas through their website. The submissions are regularly reviewed and they will be in touch if they feel that yours fits in with their brand.

10. Fila

Fila receive a huge number of new product ideas and designs every day. However, many of these go unchecked or unused as Fila specifically states on their website that the only ideas they will consider must be patented. They do this to prevent any confusion around compensation and it also serves to further protect the creator. If you have a patented idea, you can send this to Fila via mail.

How Much do Inventors Make on Royalties?

Licensing or assigning rights to your invention is likely to be a simpler, less expensive route than manufacturing and selling it. Licensing or assigning your invention is often preferable for inventors who want to make money, but care primarily about innovating and spending time in the office or lab. These types of inventors are generally unwilling to undertake all of the business-related tasks involved in developing, manufacturing, marketing, and selling an invention.

To license or assign your invention, however, you actually need something to license or assign. This is where patent law often comes into play. Inventors must have some sort of intellectual property protection over their invention, which another person or entity would buy (or “rent”). To state the obvious, if you do not have an exclusive right over your invention, why would someone else pay you for the right to manufacture and sell it?

There are several steps to successfully licensing your invention. First, you must find the right people to review your idea and ensure that it has appeal. Second, you must raise the money necessary to develop and protect your invention, such that it can be licensed in a complete form to a third party. Third, you must present your invention to a licensee in a marketable fashion, including any necessary instructions or support.

How Much Can I Sell my Invention?

You can do some online research to look at other companies in your invention’s industry. Once you have made a list of the companies you would like to sell your idea to, take the time to research every company completely. Some businesses will have a section on their websites to help you submit your idea.

While many companies want new invention ideas, some will be resistant to inventors, as they don’t have the resources or time to put into new products.

If you happen to find a manufacturer that is interested in your invention, there are usually two options. You can sell your invention idea, or you can outright sell the invention itself for one large lump sum as compensation for your idea.

The second option is to enter a licensing agreement. You would collect royalties each time your product is sold. If you choose this option, you need to carefully inspect the offer to ensure that are no clauses that keep the company from holding onto the invention for the length of the contract, which allows you to leave the contract if they make little to no effort to manufacture and sell the product.

There are several steps involved if you want to sell your idea. Before you approach a company, there are some things you need to be fully aware of:

1. Research your market. You will need to obtain as much feedback as you can on your idea. You can do this through focus groups or use other methods. You also need to research and obtain information about other products that are similar to yours.

2. Make sure the legalities are on the up and up. Make every effort to if your invention can be patented or manufactured without infringing on the right of other patents already on file. You can do a preliminary patent search to get you started.

3. Research your production options. Take the time to learn about the process of production, especially if you have some specialized materials or techniques that have to be incorporated into your invention.

Once you have completed these steps, you will then need to show it to those who may want to license your invention. You should also have a 3-D prototype of your invention to show them, as well as a sell sheet including all of this information.

A sell-sheet needs to be a one to two-page document that tells the potential licensee:

• The challenge or problem that the invention meets
• The features and benefits of the product
• The market you want to reach
• The legal status you currently have, such as patent-pending, trademark, and the like.

You need to also write an introductory letter to go along with your sell sheet. This will introduce who you are, tell the licensee why you are making contact, and set up a time to meet for a follow-up.

You will need to find out the best and most appropriate contacts for your new opportunity. You can also identify potential manufacturers by researching the trade association that is closest to the industry in which your product will fall into. Take a look at the member lists on the website.

You can also visit a business library, which typically has database systems where you can search for companies in particular industries.

After you have a list of about 50 companies, make a decision on which you will prioritize based on how well they would fit with your invention or your product.

How Much Money Can You Make From a Patent?

Your invention stands a better chance of generating big bucks if licensed through a well-known company that already has the consumers’ confidence. In addition, the licensee assumes liability for any product mishaps.

Like selling a patent, licensing usage rights is no guarantee of financial riches. If the product fizzles in the marketplace, so will your royalty checks. Royalty rates run from 5% to 20%, so the product would have to sell quite a bit for the patent holder to earn big money.

Relationships with a licensee can go bad, thus costing you more legal fees and headaches. Before signing over licensing rights, research the potential licensee and contact inventors’ organizations such as United Inventors Association.

Make a list of manufacturers and potential users of your invention. The Thomas Register, available in libraries and online, has contact information for thousands of companies. The Yellow Pages and Internet are also good research tools.

When making contact with a firm, present yourself as a Product Developer, not an inventor. Request a face-to-face meeting with a Sales or Product Manager in the company.

This option is only advisable once you have actually secured a patent. Otherwise, you must ask the company to sign a non-disclosure agreement before discussing your idea. However, most companies will not sign this agreement as their R&D team may already be at work on a similar idea.

Spread the Word

Buy space for new product announcements in trade publications and inventors’ magazines to generate potential patent buyers. The Patent Trade Office publishes a gazette where inventors can advertise their products for around $25.

Attend trade or invention shows where you will encounter companies or individuals interested in your product.

Venture Capital

Finance your invention by soliciting partners to provide capital required to launch the product.

Patent Website

Several companies have sites on the Internet where inventors can advertise their patents for sale. Some sites are free while others charge a fee if the patent is sold. Before posting your invention anywhere, check out the United Inventors Association website which has news on unscrupulous invention schemes.

Brokers and Submission Companies

A contingent fee broker will market your invention to manufacturers and receive payment for services if the product is sold, typically in the form of a percentage of royalties or cut of the sale. Never pay a broker in advance for his services. Reputable agents will only charge you if they sell your invention.

Beware of invention submission companies. There are lists of inventors who have paid thousands of dollars to these companies and have nothing to show for it but an empty wallet and broken dreams.

Many of these companies have been charged with fraud by Attorney General offices in various states and by the federal government. Before using the services of any broker or company that offers to market your invention, check them out through the Better Business Bureau and United Inventors Association.

With good research and a viable product, you just may be able to turn that patent into a moneymaker.

Where do Inventors Work?

Inventors are some of the icons of American history; they industriously work to create new products for the American public. The image of Alexander Graham Bell inventing the telephone in a relatively primitive lab is firmly printed on our mind’s eye.

Engineering and development costs have dramatically increased, and invention today more often occurs in corporate labs and research and development departments; still, 20 percent of U.S. patents are issued each year to private inventors. A skilled inventor can still transform good ideas into significant sums of money. There are great rewards in designing a product that is better than any that have come before it.

In addition to being creative, successful inventors must also be effective businesspeople. Developing a useful product is only the first step in the process. The inventor must also be able to negotiate a favorable licensing contract with an established manufacturer or have the wherewithal to become an entrepreneur and go into the business of manufacturing his or her ideas.

Designs must be developed that avoid infringing on existing patents, and investors must protect themselves from others who would copy their existing design. Knowing the fields or backgrounds of inventions makes inventors’ lives much easier, both when they develop new products and assess the value of inventions as they are developing them.

As a full-time career, inventing provides an uncertain living for all but the most talented. Developing new products is time-consuming and often expensive, and income doesn’t start to flow until a marketable prototype is ready. Many inventors work part-time as inventors and spend the rest of their time in jobs as engineers, corporate research scientists, or in academia. Still, a good idea can be worth pursuing.

How to Invent Something And Get Rich

Look around you right now. I’ll bet you see a lot of great ideas. That is where you begin. Keep a journal of your million-dollar ideas.

You can make things that already exist bigger, smaller, automated, easier, faster, more cost-effective, greener, more systemized. It’s a great place to start.

Einstein always began his great ideas by dreaming, imagining and playing like a kid. Then he knew logistically how to create whatever it was.

Eventually you will come up with a brilliant idea, or maybe you have one now. You know it’s going to be the next Snuggie, the next hula hoop, the answer to alternative, affordable energy. Now what?

1. Go online and visit uspto.gov, The U.S. Patent and Trademark Office website. You can see if your idea already has a patent on it. If it does, contact the inventor and see if you can get rights to market/sell it.
   
   A lot of times, the inventor doesn’t have those skills, or he tried and gave up too fast. This is the easiest way to make money from a product or service. You can often get the rights for little to no money down and pay a royalty to the inventor.
   
   If you don’t see your invention or something like it, know that the database is behind, but you do have a better chance at getting a patent if you want one. More on this later.
    
2. Is there a market for it? Who would buy it? How big is that market? It takes the same amount of effort to have a very small market vs. a huge market. I always ask myself, Can I market to the masses? How big could this be? Is it worldwide? Can I expand the line? Can I create a collection? Is this the beginning of an empire?
   
   To me that is far more interesting than a niche market. You can get rich in a niche–there’s no question about it. If the buyers are hungry, have disposable income, are passionate about what you are offering and there are inexpensive ways to reach them, then by all means, go for a niche.
   
   You can do a Google search to find out how often people are looking for what you offer. How many people have the problem you are solving? You are looking for hundreds of thousands searching for the terms that describe what you want to sell.
    
3. Is there anything like it on the market? A lot of times, you’ll see something on the market that’s similar to what you have. Don’t stress about it. You want to discover who your competitors are and how successful they are.
   
   You can always talk with competitors and either sell your idea to them or do a joint venture. That way they can use your product as an up-sell or a bonus. Or they may buy the idea from you and pay you a royalty check. When you do this, make sure you get non-disclosure and non-compete forms signed, and document any meetings you have. Make sure your partners are ethical and that you own your intellectual property.

How to be an Inventor

Hardware prototype development can be time-consuming and expensive so to make life easier for you, we bring you 4 easy steps to turn your idea into a product.

Step 1. Get informed

Let’s face it, we all have great ideas when we shower, wake up in the early hours or watch Netflix. So the first thing you have to do when you have a good idea, is to find out if there might be a similar proposal in the market and check if there is a specific need in case you want to market your idea.

The easiest thing to do is run a search engine scan to see if there is anything close to your idea. The second place to consult are crowdfunding platforms, and the third is to talk to people close to you, companies or professionals in that sector. Don’t be afraid to do so, but always be careful not to reveal the entirety of your idea or invention to potential competitors that you cannot trust 100%.

Step 2. Make a Prototype

In this second step, we ask ourselves: what is a prototype? A prototype is a real, tangible model of your invention that should be able to do all or almost all of the things that you want your final product to do.

There are several ways to develop it, but the first and easiest is to make a simple sketch of it before starting to develop your idea or entrusting the project to a third party. In this way, you can analyze and understand how the different parts of it interact and you can have a vision of how it should look.

Once you have developed some basic 2D designs, you should translate that vision into a 3D model using the various CAD programs that exist in the market today. There are several free solutions on the market such as FreeCAD or Onshape depending on your prior knowledge.

Once you have your 3D CAD design, you will have to create a model of the project with some material that allows you to make a 3D model with the necessary mechanical and electronic components: essentially a functional prototype.

And why should you develop a working prototype? The advantages of building a hardware prototype, MVP, or working prototype is that you will almost always learn something new about your idea, and come up with an improved product in the end. There are many 3D printing systems on the market, as well as PCB kits and other components that you can utilize to help you iterate in this process.

If your invention is something that will take up a lot of your time or you just don’t have the skills, you should look for other solutions like going to traditional consultancies, which usually have high variable costs that can be up to 30k or 40k USD to develop a CAD prototype.

You could also hire freelancers and professionals to do it for you, but the cost and complexity to start the project still remain high. Many times they depend on more people and suppliers to carry out these complex projects.

Step 3. Patent Process

Now that you have your functional prototype or MVP of your idea ready, it’s time to consider registering it. If you plan to go to market, it is worth the investigation upfront especially if your idea is a novel one.

There are two main types of patents you will have to choose from: a utility patent (for new processes and machinery) or a design patent (for producing new designs). Patent registrations in each country work differently and can be tricky if you haven’t done it before.

The best solution in this regard is to go to professionals, a lawyer or a law firm, for legal advice on the matter. You can approach online solutions like UpCounsel or visit small law firms – they are generally cheaper and will work directly with you. By the way, agree on their rates before closing any deal with them.

Step 4. Sell and Market your invention

Once you have arrived here, there is nothing that can stop you! At this point it is a good time to decide if you are going to sell your product on your own, through crowdfunding platforms, or if you are going to sell your idea to another company or investor.

If you are going to commercialize your idea and / or you are looking for potential investors, the simplest thing is to make a business plan including a Go-to-Market plan (GTM).

There are countless resources online that can help you. A good place to start is BPlans, it has several resources for the entrepreneur, as well as templates. Sometimes a simple one-page business plan is the best option. At Oprah.com (yes, Oprah Winfrey’s website always has helpful resources) there are several ready-made templates for different company types.

If you choose to license your idea (sell it to a third-party company), you should know that you will receive a small percentage of the sales. This can scare you as an inventor because you feel like you deserve more.

However, you should consider the positive side: you will not have the financial burden associated with the business, nor the responsibility of marketing or developing marketing campaigns … And this can generate much more money in the long run. Even so, they are things that you will have to evaluate calmly.

How Much do Inventors Make in South Africa?

When it comes to searching for a job, many search for a key term or phrase. Instead, it might be more helpful to search by industry, as you might be missing jobs that you never thought about in industries that you didn’t even think offered positions related to the inventor job title. But what industry to start with? Most inventors actually find jobs in the retail and education industries.

Inventors in make an average salary of $66,714 per year or $32.07 per hour. People on the lower end of that spectrum, the bottom 10% to be exact, make roughly $38,000 a year, while the top 10% makes $115,000. As most things go, location can be critical.

FInal Words

If you’re interested in becoming an inventor, one of the first things to consider is how much education you need. We’ve determined that 47.5% of inventors have a bachelor’s degree. In terms of higher education levels, we found that 13.1% of inventors have master’s degrees. Even though most inventors have a college degree, it’s possible to become one with only a high school degree or GED.

Choosing the right major is always an important step when researching how to become an inventor. When we researched the most common majors for an inventor, we found that they most commonly earn bachelor’s degree degrees or associate degree degrees. Other degrees that we often see on inventor resumes include master’s degree degrees or doctoral degree degrees.

Read Also: Making Money With Technology-focused Media

You may find that experience in other jobs will help you become an inventor. In fact, many inventor jobs require experience in a role such as a design drafter. Meanwhile, many inventors also have previous career experience in roles such as owner or computer-aided design designer.

Final Thoughts

Sometimes potential rejections may discourage you after lots of preparation, potential, and perseverance but as I mentioned before rejections and competitions are good and healthy. Take those things in a positive way and try to determine your weakness and carefully examine your product.

Study a full-scale version of your competitor’s product, its market, and demographic. Prepare a document and analyze where you are lagging with your ideas. Store your analysis in a safer place because when you partner with the companies they will ask you to prepare business plan documentation overnight which is an impossible task to do. So always be prepared with your business plan documentation.

The final thing is not to be afraid of anything just be confident and have belief in yourself and your thoughts. Most of the inventors will be in final confusion that whether they have to license their products or not.

They have only two options- if they want to hold ownership of their product then they should act as an entrepreneurial inventor to be proud of their invention. If they want to earn money then go for an inventor-of-royalties option which will pay you a huge amount for your ideas.

Hope this article might motivate you and my hearty wishes to you to succeed in your life in becoming an inventor. Get Paid as an Inventor with the help of the above discussed ideas and advices.