Obtain the Rights to a Product With Little to No Money Upfront
Archives: Business Building
Let’s say you come across a great product that you think will be a big seller. You could obtain the rights to market that product – and then license those rights to an experienced marketing company.
Doing this can be very profitable.
The trick to making a really sweet deal is to convince the owner of the product to agree to a strictly back-end deal – where he shares in the eventual profits instead of getting an upfront payment from you. Product owners are sometimes reluctant to do this. But there’s another way for you to minimize your out-of-pocket: You can offer to option to buy his rights.
Let’s say you’re introduced to a guy who has invented a wind turbine that can generate enough electricity to supply 40 percent of the average home’s energy needs. Better yet, it can be sold inexpensively – maybe for a thousand dollars.
The inventor wants $50,000 for his rights (which is reasonable), and is not willing to negotiate a strictly back-end deal. But you’re very confident that this product will be a big seller. So you tell him that you’re willing to pay $50,000, but you need a little time to raise the money.
You offer, instead, to option to buy the rights for $100 against the purchase price of $50,000 within one year. If the owner is uncomfortable with such a long option – and you think you can resell those rights sooner – you can make the terms shorter. Once you have the rights, you resell them to a marketing company for at least $50,000 and a share of the profits they’ll make on the turbine.
If you can get more than $50,000 from the marketing company, you’ll pocket some money immediately (after paying off the owner). If not – assuming you were right about how well the product would sell – you still stand to rake in plenty down the road.
[Ed. Note: Acquiring and then marketing the rights to products is one way to make a lot of money without having to invest much capital. Paul Lawrence reveals his detailed strategies for making money with this business opportunity in his "Getting Rich With Rights" program. Get the details here.]
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