Someone offered to "license" my content....thoughts?

What do you have to lose?

If you are worried about it, do a 90-day trial period.

And make sure you have written contracts for everything.

One new video per week might be a bit much, but perhaps
you could produce the videos in advance, recording four
10-minute videos in one sitting, with wardrobe changes,
and send them one each week.

I'll start off by saying that they already failed the first test by not bringing a gift to the party
they should've gifted you a headline, an email campaign, an upsell VSL, a squeeze page or something.
just because I say I've been doing this since 2003 don't mean "excuse my French".

So, they are creating a competitor for what you have and you get 25% of... what exactly? Net? Net can be negative... Will help with taxes a bit but it's not as good as what you have now. And, if they're good, they'll get to some of your future buyers before you do...



Make sure the 25% more than covers what you give up.


Not saying don't do it as it might be a great business idea. I am saying vet them well and write agreements that benefit you now and in the future.


And that you have a way out if things don't work out that's not too stressful.

I'd be wary of this offer. They're effectively going to compete with your existing business and will be targeting the same customers. Unless you specify otherwise, they'll be using the same marketing channels and platforms as you.

Nothing wrong with being your own competition - as long as you're the one in control. Personally, I'd pay a marketing expert/service a set fee rather than give an opportunity to a third party to build their brand off the back of your content.

I agree with Frank - give 25% or even 40% to a marketing expert....rather than giving away the store and taking 25% yourself.


IMO - you can give up a percentage or give up dollars to add more exposure- but should maintain control of your own product and content.

What you have is someone who recognizes YOUR success and wants to get a piece of it. In some cases, it might be a good idea - but for you I don't think so.

I know that's a cynical view - but I earned that view the hard way

To be honest, the content format matters here.

For example, if it is a video featuring you, go ahead. It will strengthen your brand and improve your market exposure. If it's written content, don't do it. Because written content is currency. You are giving away money to get 25% back.

Go for this ONLY IF you are a content creator by nature and do not want to engage in any selling activity, whatsoever. So, this might be an additional source of income.

If you ask for my personal opinion though, I would not go for this. Your content was immensely valuable--even more than you imagine. Instead, try to promote it harder than you are already doing.

If you get to keep everything in your current business and it's earning $5 to $10K per month and you get 25% whatever they make with your other Content...I say why not?? I mean the question should be asked will that Content you give them compete with your current gig? Or is it a completely different niche and product??

And what kind of monetary value do you put on that Content (in its given state) which you are giving away ?

I think that is what needs to be asked.

But to me it seems to be potential passive income and isn't that what IMers always dream and talk about

"A 25% cut" could mean anything. You mean 25% of the net profit after all marketing costs? 25% of the gross sales?

My advice is to work out a set up front fee. Then get the fee, and they can do what they want. Why? Because almost always, they do little or nothing, and that means you get nothing.

I'd ask them what they think they will do their first year. Whatever they tell you, ask for 10% of that, up front. And tell them they get to keep all the money they make. You'll be ahead, and they think they will be ahead.

But the problem with "25%"? Soon, always...without fail, you will both disagree as to how much that is. But an up front fee? That's a done deal. No matter what they do.

This doesn't sound like a good deal to me.

Why don't you just allow them to be an affiliate, and pay them a percentage of their sales?

Or, do they want to take your stuff and use it...then pay you 25% of what they make (you're the affiliate of your own stuff)? Plus they want you to do 1 video a week? Haha, this makes no sense.

Or, do they want to white label your stuff?

I guess there's a few questions I have.

If they're taking your stuff...and your name etc. is still involved, they could do irreparable damage to your business if they run their part poorly.

Just a couple quick thoughts

I understand Claude's point and it's true asking for up front money makes sense...my guess is they wouldn't go for that unless it was a very low amt and you also agreed to GIVE them regular videos.


I don't see any risk for them - you give them the content and even create new content for them - IF they profit you get some of the profit (as mentioned above - is that gross or net?) ....on the other hand, if they don't profit they have the content, the videos and owe you nothing.



Are you interested in doing this? If so, what part of it interests you? Would it - or could it - impact your current business income in a negative way? Is making new videos tied to receiving any compensation? Have you been given any references?

Yeah, I may be thinking too much into this...but I'm only going on what I read in the OP.

But, from a business point of view, this blows my mind that someone would even offer this and think they could get it. It actually kind of p***** me off.

It would be like me calling up Dan Kennedy and saying, "Hey dude, let me take all your stuff and start my own business...oh, and I'll need you to do 1 video a week for me so I can even try and make more money...and by the way, I'll give you 25% of everything I make.

Nonsense.

Affiliate? Yes...they sell your stuff and you pay them a percentage...not the other way around.

White label? Ok, but that requires a monthly fee up front.

So, anyways, sorry to get so worked up over this. Hopefully, I"m not understanding it right

What skin do they have in the game?

You are providing the proven content. You will provide future content. The way your post sounds it is like they are investing in you or whatever and that this is a big win for you. But what exactly are they doing for you? They take your content and give you 25% vs. what you currently make which is 100%. Where is their investment? Yes, if they sold a bunch you would get a bunch of new 25% payments but the deal structure is just a little off or something.

As far as saying they are big marketers, that means their YouTube and Google searches may beat yours out. Your stable income you report on regularly here may not be so stable once they get done "helping" you out.

Likewise, it might be confusing to your YT visitors. They all like your topic so they will be channel hopping. They will see you on one channel that leads to one offer and see you on the new channel that leads to another offer - maybe much better than your original site undercutting your prices, etc.

Disregard all that. I apologize. I would like to take you up on your openness to this kind of offer. You give me access to your content to use on my site and provide new content weekly and I'll let you keep 50% of your work instead of just 25%.

One way to avoid some of these cons is to:

1. They can't use your name. Don't show your face or name or website on the videos for them. Don't use those videos yourself - they are only for licensing.

2. There is some kind of upfront fee for the license. And if the obligation to provide content is ongoing, the payment needs to be ongoing or big enough to cover a bunch of content.

You could actually create a new income stream by providing the videos as white label like this. Maybe you could make them limited like you will only sell 25-50 copies of this set of licensed tutorials and then create packs out of all those excess videos you have that your customers don't want to pay ongoing fees for.

There are a lot of people wanting to share your topic and so it might could turn into a nice little side business without competing with yourself and not hurting your current or prospective members.

Mark

To bkelly:

I think you underestimate yourself. You have created a stable income that many people would love to have online. I wonder if those 'big marketers' have an income like that???

When this forum was huge, I had access to 'inside info' of leading members and many of the seemingly 'expert' members giving advice here did not have YOUR monthly income.

I also think using the word "license" make this sound attractive to you...but if you take away the wording, this appears to be what they are saying:

"Give us YOUR work product that you created and keep creating more work product to give to us....and we'll use it to start our own business featuring YOUR work product ....and if we make money we'll give you some of it."

An affiliate relationship does not have to be an open affiliate program anyone can join - it can be a private agreement (contract!) with one or more marketers who can use and promote YOUR product and receive a decent commission for each sale they make of YOUR product.

Please let us know what you decide to do on this - and how it turns out.


kay

Update: I appreciate all of the advice.

I'm quick to pull the trigger on things. I actually declined the offer before I even read all of these replies.

I just came back here now, and many of these responses confirmed what I was thinking...which is that the offer was garbage!!!

However, there are some great suggestions here as to how I could pitch a counter-offer that is in my favor.

Thank you all for taking the time to respond!

Translation: You are capable of making decisions without dithering about it. That is a good thing.


I knew it! You are smarter than you give yourself credit for.

Either that - or we're all psychic ...either way, works for me.

Honestly it seems like a good idea and at the end of the day if they're using your content behind a pay wall, the only people that will see it are those who find them and pay so it's not like they'll keep it public and have it compete with your stake in what you've got to offer. Sounds like free money and def worth it

Its really good to get the story from two sides. Its nice how you guys are breaking it down. so insightful!

So long as it's a partnership or there is some "agreement" laying out how the relationship will work, I'd say go for it.

I do agree with most of the answers here, do not go for it. 2 birds in a tree is less than 1 bird in your own hands