Reasons Companies Reject Product Ideas for Licensing
You’re really excited about your idea, have put together some materials, and you’re off to the races sending your product to respective companies for licensing. Only, you keep getting rejected. Why is that? Very rarely does a product come to us 100% perfect as-is. The invention industry is notoriously cut-throat. It can also be really difficult to be unbiased when you’re so close to your idea. It’s been nurtured into your brain baby, and changing anything to it can seem or feel wrong. It’s important to have a critical eye for where some mistakes may have been made. Here are a few broken down for you.
Your Sell Sheet Could Use Some Work
If you’re not working with a designer, your sell sheet could be lacking in visuals or intrigue. It’s important to have good photography, photos of it in use, and a comprehensive list of functions, sizes, weight and moving pieces. The more concise, and detailed you are, the better.
You’re Submitting your Idea to the Wrong Companies
Sometimes, it’s just not a good fit for the personalities at that particular company. Don’t let that deter you from pursuing your idea. There are some companies that are better working with technology, than others, for example. Some have better resources for children’s toys, or safety-related products. Keep looking (ahem, us!)
There Are Products Out There Just Like it
The title says it all. There can be ideas that are very similar that are already on the market successfully. Breaking into a niche product category can be tricky because they already beat you to it, especially if they’re already established and are selling it for less.
You Missed the Sales Cycle
Product sales go in waves for different times of the year. Sometimes you have to wait an entire year before you see any sales because it’s a seasonal product. If you have a beach game, the seasons tend to be in the spring/summer and Christmastime, for example.
You’re Only Contacting the Big Guys
Everyone wants to license their products to the biggest guy on the block. They’re not the innovators, they purchase it! The smaller markets actually prove there’s a market for an idea first. Then once it establishes itself, its much easier to sell to the bigger guys.
They Just Launched A Similar Project
This can also be a deterrent in the approval process. Too many of the same type or category of products can be too saturated in the market. Be patient, shop around, and keep your mind open. Always remember that people like to work with others who are kind and patient. Good luck out there!