Marketing Assault- Licensing

Last week, while enjoying a pleasant stroll down the cereal aisle in the local supermarket, my eyes were suddenly drawn to a small donkey and a giant green ogre staring at me from the front of a white cereal box. Right away I recalled a preview I had seen in the theater announcing the upcoming release of Shrek III.

"Nice!," I thought. "Those ingenous marketers put their message on a box of cereal." As I was musing on my discovery, I took a few more steps and caught sight of Shrek on a box of breakfast bars. This second sighting did the trick, I started noticing Shrek on just about all the aisles -- Shrek was everywhere! Then I wondered, "Who is shelling out money to who?"

Generally the company with the product desires the license because it will enable them to capitalize on the temporary popularity of a mega event�such as a major motion picture. A few companies like John Deere, on the other hand, are long-term companies. John Deere represents American family values and has a whole division committed to getting the John Deere name to appear everywhere. They license the use of their name for books, games, tools and clothing. Many times, they co-venture the undertaking.

Even though many big, established companies are able to start mass marketing licensing projects, small companies could never pull something that big off. We all want to know "How do we go about using large business marketing strategies in a small business?" Try these four suggestions to put your brand name out there:

Locate affiliates that agree to refer your name � If your business is concentrating on supplying a component of the value chain for a number of companies, it is likely that people will happily refer business to you, especially if it supports your partner's product or service. Referral fees vary from a couple dollars, to as high as 20 percent of the sale. Although, 10 percent is the regular fee for most companies.

Authorize companies to license & sell your products as their own � Again, if your offering adds a valuable component to the value chain, you will be able to permit various businesses to actually sell your goods as their own. An example of adding a component to the value chain is having a company that provides ball bearings to auto manufacturers. Share a fee between 10-75% of the sale depending on the kind of merchandise you offer.

Create and Share supportive products that have your brand on them � Once you offer one product that is useful to someone else's customers, you will be able to sell your product to the partner business' customers. For instance, we had a client offer a training CD created by an herbal supplement company as a gift to patrons of their health food shop.

Co-Brand new products � Create products and services collectively with businesses in your value chain. If you're a patent lawyer, develop an informational product on intellectual property rights that can be distributed by contract manufacturers. Companies who create shampoo for animals could co-produce a particular product with a flourishing veterinary hospital.

How can a small company market the way a large company does? Make your brand visible all over. Hunt for chances to get your name on other products. Know who your customers are. Be aware of what they purchase and where they like shopping at. Go to those companies and look for ways to get your name onto their products. Work the deals and share the earnings. In the end, you will make a ton more money and noticeably improve your business.

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Rod Alan Richardson has dedicated his life to teaching people to succeed in free enterprise through Leadership Training. Mr. Richardson believes he can change the world by directing people to a higher road and putting them on the path to Transcend Money.