How to Sell an Idea for Profit in 2020

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Source: Sites Matrix

Ideas have become the currency of the 21st century, but they also did much more during all previous years. Therefore, knowing how to transmit them seems to be a great advantage. Just remember: how many times have you had a great one, which didn’t achieve the impact you expected once you shared it? Don’t worry. That doesn’t mean that it’s bad: it probably means that it just wasn’t explained in the right way. But well, in case you have an interesting concept that you’d like to introduce to others, sell it and earn from it, this needs to change. Profiting from this requires a lot of effort and resourcefulness, but also a little bit of innate talent.

Don’t panic if you’re not a communication expert or you have a feeling that it won’t work. We’re bringing you some key factors that make a big difference and that you can start incorporating right away.

Write your concept in as much detail as possible

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First of all, you’re the one who needs to get familiar and know your own idea completely. By making it more substantial, you’re creating a more consistent and realistic product to sell. Or a concept that actually has its own future.

The best thing to do is create a list that would answer some crucial questions. Once you have the answers, use them as a basis to present and sell. Put everything on a piece of paper. Do you know what kind of problem or situation your invention would solve? You need to predict and imagine how many people would be able to take advantage of it. Also, consider other currently existing solutions. Put all strengths and weaknesses on the list and try to compare with them: why is your idea better? Also, it would be great to predict what could make it succeed, but also what might make it fail. Be realistic.

One more thing that your written presentation needs to contain are your irrevocable limits. These are the limitations that you aren’t willing to exceed for sake of selling. The best example is the reserve price – the smallest amount of profit you’re willing to receive before moving away from an agreement. They can also include the time you’re ready to devote to the realization of this, some companies that you exclude from the lists of potential buyers, or a minimum and maximum amount of money you would put aside for this.

Make a list of possible buyers and connect with them

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Okay, so this is the next step. In order to be able to sell what you have, you’re going to need a buyer. So, simply start a list. You might find them through your friends or family recommendations, online research, or business connections. Let it be long – you should always have some choice in case you need to adjust your strategy again.

It’s also fundamental to keep an open mind. Ideally, look for companies that are growing or that don’t seem to have much success, as such firms might see the resolution exactly in you. Use personal connections to have conversations with them.

Listen to the opinions of those who reject you and analyze if you need to improve or address different buyers. Use some feedback – every time they tell you that they aren’t interested in your business idea, ask them why and write down the reasons to improve your product or service. On the other hand, if they say yes, you must arrange a meeting at the same time to explain your project in more detail. And, since your intention is to profit from all this, you should also be clear about the minimum price for which you would sell your concept and the contractual conditions that you aren’t willing to negotiate.

Learn about the ways other people did it

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To find your inspiration and motivation, it’s always possible to search for information about different stories of inventors or creators who invented things for everyday use. Read about how it came up, how they managed to implement their concepts, for how much money and to whom. Today it’s possible to find numerous interesting articles, and even YouTube channels, like InventHelp, that deliver super useful and compelling videos related to this topic.

Another thing to be researched is the industry. The viability of the project and the money people will be ready to pay for it are based on its uniqueness, novelty and relevance. Talk to some industry experts you know in person or through professional networks. Read some professional journals and catch up on the latest industry news. Check if anyone before had a similar idea and what the needs of the market are. Getting to know more about all this will show you the right way to which you should stick.

Know what investors want and present it

Source: The Balance Careers

In addition, you should keep in mind that investors are as interested in knowing where the plan came from as in the idea itself. Skills and experience are going to be key factors in establishing lasting relationships. However, first you need to show that your suggestion is suitable for their needs and that it’s worth all the money you’re asking.

The thing that all interested people want is to easily understand your concept. It takes courage to simplify, but a good idea should be summarized in a single sentence. We also have to make people remember our idea and keep it in their memory. If we only talk about what we’re interested in, we won’t be remembered. The things to be shown should matter to our audience and highlight the way they should benefit from them.

Determine the price with investors

And now, the crucial part – the profit.

Source: Colorado Christian University

There are actually three main ways to sell an idea: single initial price, percentage of future income or a mixture of both options. The initial single price will give you a larger sum of money at once, but your participation ends there. However, when you negotiate for a percentage of future income, you can ask to be included as a project advisor to have the possibility of increasing your profit further in future.

There’s no alternative that’s generally adequate, but it’ll depend on your interests and personal projections. As a recommendation, our piece of advice would be to use the sale for a single initial price. Why? Well, it’s probably the most secure option since nobody knows what the technology will hold in a couple of years. However, if your plan is related to a commonly used and really handy product that could find its place in every home, for example, then it might be more beneficial to sell it for future income it will produce.

Finally, it’s always advisable to consult with a lawyer, patent your idea in advance and take a prudent time before closing the contract with a client. Sometimes, there’s the possibility that the contracts aren’t exclusive, which means that you can sell it to more than one customer. All this must be well stipulated in the contracts and be discussed with your clients. And now, after all these explanations, we think you’re ready to rock this sale – go now and take your first steps towards it!

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