Someone Wants To Buy Non-Exclusive License To One Of My Products

by Bill_Z
16 replies
Hey guys,

Need some advice, as this is a first for me. I have been contacted by someone who wants to buy non-exclusive rights to one of my informational beauty programs to sell in the UK. He will NOT be selling the digital copy or selling on the Internet. He wants to sell it in DVD form, and will be marketing with classified ads and direct mail.

So all he would need would be a copy of my program in DVD, and any other materials I could include. And permission of course.

He said that he normally pays 10X the retail price for such a license.

What do you recommend I charge for this? I sell the product in a micro-continuity membership site - 6 months and 6 payments. While videos are the main feature, other features that customers can only access online also add value to the product, which of course he will not be able to sell. The DVD will only hold the videos and articles. I also sell the whole program for a discounted one-time fee. Let's assume I currently charge 47/month or one time fee of 147.

He also wants to know if he can rebrand it. This I don't want, and can't anyway as all of the videos are watermarked anyway.

Anyone have any thoughts or recommendations?
#buy #license #nonexclusive #products
  • Profile picture of the author Caleb Spilchen
    Would it be possible to do it as a Joint-Venture?
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  • Profile picture of the author LB
    10x retail?

    I'm going to buy the rights to sell Windows 7 for 10x retail....sound reasonable?

    That's a ridiculously low offer.
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    • Profile picture of the author Lance K
      See if he'll pay you an up front fee as well as royalties. You could give his customers access to your online resources as well. Before they get access, he'll have to let you veify a customer's status. That way he can't fudge you out of any royalties. Just a thought.
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      • Profile picture of the author Bill_Z
        Thanks for your replies everyone. No I'm not hard up for cash, and I would like to get the most out of this... so I think you guys are right, royalties would be the way to go.

        Originally Posted by Lance K View Post

        See if he'll pay you an up front fee as well as royalties. You could give his customers access to your online resources as well. Before they get access, he'll have to let you veify a customer's status. That way he can't fudge you out of any royalties. Just a thought.
        I do like this idea as well.

        What kind of royalty fees are we talking about per unit? Would I directly supply him with the DVDs (of course copy-protected) that way I can easily keep track of how many are selling?
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  • Profile picture of the author GameVoid
    You definitely want royalties. If he is offering 10x retail he is probably banking on 1000x retail for his profit.

    Get royalties, then if your product is a mega hit in the UK, you'll be the next Bill Gates.
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  • Profile picture of the author rbeckwith
    Hi,

    Unless you are hard up for the cash....always insist on a per unit/seat price.

    Rod
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  • Profile picture of the author tryinhere
    would not you just set up and affiliate system / new land page on your site so he could then send in a masked doamin name / to sort the problems.
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  • Profile picture of the author arschloch
    Just make him your affiliate. Perhaps set it up to accept GBP.
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  • Profile picture of the author warriorkay
    It won't hurt you to ALSO seek an attorney's help
    on how best to approach this. Who knows, this might
    turn out to be much more successful in the UK than
    you might expect. So, it's great to have the details
    tidied up pretty much in the beginning,

    Kingsley
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  • Profile picture of the author Bill_Z
    OK still looking for some more opinions please

    I really want to keep this as simple as possible. Since I only have a digital version right now, perhaps I could do this...

    Convert as much as I can to disk and set up an account on Kunaki. Then I could simply have him purchase 20 or 50 at a time or whatever at a reasonable rate for each one. Then he could sell them for however much he wants to.

    What do you think?
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    • Profile picture of the author BigDaddys101
      Hey Bill did you know you can take your digital copy and sell it as an actual book through amazon? You can actually take your digital book. Create a cover and they will print and ship the book anywhere in the world.

      The other option I can come up with is Payloadz. They will sell and create a cd or dvd and ship it to any where in the world as well. If he wants DVD this might be your best bet. Create the file and let him put the generated button on his page. You can keep track of his sales. Payloadz offers an affiliate platform too.

      I would definitely stick to a deposit and then royalties even if its only 5-10%
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  • Profile picture of the author Dean Jackson
    Bill Z, you could get a lot of your video pressed to DVD via service at Kunaki.

    I honestly think you should supply the videos yourself so you can keep track of sales. You don't even need to pay up front fees. Although, I would look at the royalty place as well, I just think it would be easier to supply the material.

    - Dean
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  • Profile picture of the author Bill_Z
    Thanks guys! I really appreciate your advise and ideas! I will look at your ideas carefully. Either way this will certainly be a nice learning experience for me. If anyone else has any ideas or experience with something like this feel free to chime in

    Bill
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  • Profile picture of the author DogScout
    No reason you cannot sell physical products in the UK.

    Just a thought.

    (As well as offer the physical 'up-sell' everywhere you currently sell)
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  • Profile picture of the author Janice Sperry
    You may want to find out if he has been successful with similar projects in the past. He may be just a dreamer that does not follow through. You could spend time and money for nothing. A starting fee plus royalties would at least get you some revenue up front.

    An attorny specializing in these types of contracts is a good idea. Where can he sell the product? How can he advertise? How and when does he pay you? What rights does he have to the use of your name, logos, etc.? What about refunds, complaints, or lawsuits from customers. How long does the contract last? If he abandons the relationship is there a non-compete clause?
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