Marketing a Patent to a Representative Help

If you've tried marketing your patent to retailers and failed to find success, don't give up! This does not necessarily mean your patent is undesirable. Your lack of success in negotiating with retailers could simply reflect the fact that they don't know you. Trust is key, and without a track record of inventing success, retailers may feel uncomfortable doing business with you. But how can you ever become a successful inventor without getting your first invention sold or licensed? It's a frustrating dilemma, but fortunately, there is a way out: representatives.

Representatives (or "reps") are independent businesspeople that advise retail stores on which products to stock and sell. It is their job to network with decision-makers at all the major stores, establish relationships with them and recommend various products to stock. If the store follows through and sells what the rep recommended, the manufacturer (or patent holder, in your case) agrees to pay the rep a cut of all sales (or the patent sale/license agreement). There are several advantages of marketing a patent to representatives, instead of directly to retailers.

The first reason is bypassing the resistance you might encounter trying to approach the retailer as an unknown businessperson. Many retailers (especially during the current 2009 financial meltdown) are risk-averse. Buying patents from unknown businesspersons is extremely risky, especially if the price you set for your patent is high. Reps, on the other hand, are not unknown businesspeople. Good reps have an established track record with the retailers they work with, having advised them to stock many products and built up a reservoir of trust. The difference between this person pitching a retailer on your patent and you doing it yourself cannot be overstated.

Another benefit of leveraging a rep's trusted status with retailers is that deals can be made faster. If the rep in question has already worked with the retailer in question (and you should really try to work only with ones who have), they are accustomed to working together. They know each other's schedules, quirks, and idiosyncrasies, such that delays will be kept to a minimum. This is extremely valuable if you are eager to cash out, as many patent holders are.

Of course, the advantages of marketing a patent to representatives also clarify some requirements. A representative with a solid track record did not get that track record by promoting mediocre products or banking on unsubstantiated hype. Therefore, you won't convince any rep worth convincing to promote your patent if all you can say in its favor is how "great" or "awesome" it is. Most reps have been burned by promoting "great" and "awesome" products that never sold, and most won't fall for it again. This makes market research important. Can you demonstrate a real demand for your patented invention? Can you prove (or at least make a believable case with numbers and data) that it will sell? If not, you will have a very tough time convincing reps to get behind you.

But let's say you can demonstrate the value and desirability of your patent. You're ready to talk with a rep. But where do you find them? Lots of places. For one thing, not all representatives call themselves representatives. Some stores use what are known as buyers for the same tasks that reps perform. Luckily, finding them is usually not very hard.

Wal-Mart's buyers, for example, run a blog where anyone can freely leave comments or get in touch with them to discuss business proposals (http://checkoutblog.com/). Other retailers are not as forthright, but you can usually find out who their reps or buyers are by calling their corporate offices and asking.

It's also important to look for reps that have a legitimate reason to be interested in your patent. For example, a rep who works primarily with sporting goods stores is not likely to have much interest in promoting a tool and hardware patent. Contacting reps outside your field will only waste their time and yours.

All in all, working with representatives can be a very effective means of capitalizing on your patent. Just keep the basic requirements, discussed here, in mind and put your best foot forward!