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Post by asheboo on Nov 18, 2010 7:40:28 GMT -5
Hi My name is Ashe and I am new to the inventing world,my million dollar idea is just at the basic prototype phase and I guess fits into the educational/crafty category its very simple and would be very cheap to make and kids love to make them. There is so much information on the internet about what to do which gets very confusing and Ive had previous experience with companies that say they will do all the "work" whilst not actually achieving anything(another idea I had) we spent 7 grand for drawings that didnt even work. We dont have alot of money so how is the cheapest way to get this idea off the ground.
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Post by Inventoy on Nov 18, 2010 15:59:03 GMT -5
Hi Asheboo,
Welcome to the forums. Hope we can all help you out in some way. Starting off is always a tricky one. You have probably read loads of web sites already. First of all you don't have to have a prototype to licence your idea. Some drawings or renderings in 3d should be sufficient for presentation to companies. Some companies may require a prototype but many won't. Some of those companies are listed here on our forums. For craft or educational toys a couple that spring to mind are Alex toys and Briar Patch. I have met both at the London Toy fair and they are 'inventor friendly'.
Hope this helps for now and please feel free to post any more questions.
Inventoy
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Post by asheboo on Nov 18, 2010 16:45:34 GMT -5
Hi Inventoy this is such a fantastic forum!!! What do you think about approaching toy companies that are overseas.In the world of internet communication it is so much easier but would it make it more difficult. Im from Australia.:0)
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Post by asheboo on Nov 18, 2010 16:59:32 GMT -5
Just had a look at Alex Toys and they are world wide haha. Can it be just as simple as sending an email asking if I can pitch my idea !!!Or am I fooling myself:0)
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Post by asheboo on Nov 19, 2010 14:38:42 GMT -5
Ok so now Im excited as the CEO of Alex toys wants to hear my idea!!!I really dont want to stuff it up!!! Would the 1st thing I ask is for them to sign a confidentiality agreement?? And do I make it clear Im selling my idea not just giving it away or is that stating the obvious.
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Post by Inventoy on Nov 19, 2010 18:15:59 GMT -5
Hi and congrats for getting through to Alex. You can ask them to sign confidentiality agreement just as proof you know what the system is. They are not essential for big companies all the time though. They may have their own version to sign. Prob best to see what they recommend.
To answer your question, as you have already found you can contact companies anywhere in the world. I am in constant contact with companies in Oz and the USA. Most are pretty cool when you have an email contact.
Let us know how it goes with Alex. They will most likely offer you a % royalty for the idea if they take it on. All the best.
Inventoy
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Post by asheboo on Nov 21, 2010 14:25:52 GMT -5
Hi Inventoy,just got a few questions regarding royaltys and such how does it exactly work in terms of say they like it and offer me a %per toy sold/manufactured but another company like it too and ask Alex toys if they can use the same idea.Do I get royalties from them also or is my contract only with the one company?and What is the likelyhood or possibility of giving out the idea and they change it slightly.Can they then try to claim it as their own? Thanks for your help
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Post by Inventoy on Nov 22, 2010 5:16:00 GMT -5
Hi Asheboo,
Through experience of talking to others about royalty percentages the general consensus is that 3-6% is the standard figure. Occasionally I have read of 10 - 12 but this is rare, very rare indeed. This is the percentage of the price the toy company sell it on for not the price the item is sold in the shops for (as this is up to the shop in most cases). It does not sound like much but obviously soon adds up with big sales (which we all hope for).
You asked 'can I licence the idea to more than one company'. You can but you will need to get this written into the agreement that you are not giving 'sole' licensing rights to that one company. You may have a contract that gives them say one year 'sole' right and then you are free to approach other companies. It is also an idea to set an amount for each product so the 3-6% you are getting does not differ if the company finds a cheaper manufacturer. You may sign up for 3-6% of $1 for example then the company get a lower cost manufacturer in china and the cost for them reduces to 50 cents. You would only get 3-6% of 50 cents from then on (greatly reducing your royalties). Nest to get a clause like this agreed too to cover yourself in case this happens, and it does! Contracts are "very" important as others here will no doubt reinforce....they may cost you a bit but are worth it if you have a definite taker for your idea.
Cheers,
Inventoy
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Post by asheboo on Nov 23, 2010 9:11:10 GMT -5
Have I mentioned at all how awsome you are haha. So Ive sent the email asking about confidentiality clauses and waiting for response hopefully tonight!!!cant stand the sleepless nights,thought Id send my sales pitch via video so practicing that today ,what you say is such a HUGE help and will keep you posted on what happens next.
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Post by Inventoy on Nov 23, 2010 18:38:27 GMT -5
Hi, thats ok that is exactly why we created the forum. I was in the same position and only through years of research do you find all the answers, eventually. Did I mention my hourly rates by the way. Very reasonable at £100 an hour......only joking....all is free here.
Best of luck and keep us posted.
Inventoy
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