HOW TO MAKE MONEY OUT OF YOUR INVENTIONS

Making a product never ends at that. Every business owner aims to get handsomely paid for their innovations. That is, product development and sales are at the core of all businesses. All other aspects of the businesses are geared towards these. Marketing, for instance, is done to draw customers that would buy the product. Fundraising is also done to bring more money into product development and business administration to increase production and improve sales. And akin to this is licensing the product itself to other companies that would then mass-produce and sell the product. Thus, you get a one-time licensing fee or recoup some tokens from each product unit the manufacturers have sold.  

However, these traditional ways of making sales through the buying and selling of your product are not the only way to profit from it. There are many other ways to make a boatload of money. Some even come without you having to sell your invention. Below are a few ways to make money from your invention. 

• Services or Subscriptions Related to Your Products 

There are certain services you could explore that would increase the company’s revenue. These services do not have to be far-fetched. Something as simple as customer service and data plans for your products could be a great place to start, especially if your innovative product falls within the line of GPS trackers, smartwatches, and other IoT devices. Thus, you would create subscriptions for their uses and make more money that way from your product. A great example is Better Brooch, a beverage company that makes remarkable sales with its Organic Kombucha drink subscriptions on Shopify. 

• Make Money on Interest by Financing Your Products to Your Customers

Another way to cash out from your inventions is to finance your expensive products for your customers. When you do this, you could reap the interests that incur on the arrangement, thereby making more money. 

• Sell the Company behind Your Product

You can sell the company behind the product itself. This could happen by merging with another company to form a new entity altogether. Or by simply getting acquired by another brand. You could also decide to give off the company in sale to another person or company who is biding to own your company. In some cases, this is a good business decision. And guess what? You could make a ton of money based on the valuation of your invention. 

• Start a Franchise Company Based on Your Product 

So, the trick here is to pick an aspect of your product with a consistent user need and proffer a solution. So, these solution-driven services would be rendered by a separate company under an existing one you own. And this way, you have opened up a separate income stream for yourself and your business with your products. A good example is creating a separate franchise sub-company to see to the rental or maintenance services on a unique tool you invented. 

• You Could Include Ads and Collaborations in Your Product

If you created a digital product such as an app that solves a need, this applies most to you. You could post ads on the app or website. You could be paid for including ads on your product through Google Adsense and other platforms. Not only so, but you can also allow collaborations on your products and inventions. This is especially for marketing campaigns. If big brands approach you to use your invention in advertising, this collaboration could also result in a lot of money. So, you can look to welcoming that idea. 

• Offer White-Label Manufacturing 

You can also make money by offering white-label services to other brands. What this means is that you produce your product for other brands. Based on your arrangements, you could supply them with your products made to their specifications. Usually, these types of ventures would mean that your invention is likely a raw material or an aspect of the overall products and services that they render. 

• Launch a Crowdfunding Campaign 

You could take advantage of crowdfunding to make some money and take your business to the next level. If you don’t know what it means, crowdfunding is the practice of raising funds for a project from a large number of people who give in relatively small amounts. And they do this typically via the internet. Through this means, you could use the money to expand production and manufacturing efforts for your inventions. With it, you could hire an invention prototyping company to help assess your (new) product before it goes live. 

• License Your Product to Other Brands or the Government

As noted above, one good way to make more money off your invention is by licensing it with help from product development companies near me. Once you license the patent of your invention to bigger brands, you are entitled to a fee based on the agreement you reach. This arrangement could also be made with the government of the country. For instance, when COVID hit, many science research companies were driven into a deep R&D process in search of a vaccine and cure for the virus. And many came up with working vaccinations. Such pharmaceutical inventions piqued the interest of the government at that time because it was a global need. Thus, you could also patent your invention to the government of the day with the help from product development companies near me.

• Sell the Digital Design Files for Your Products 

You could simply sell the process of your invention also. This would arm others with the know-how to produce it themselves. Coming up with a product concept design is not a small venture. Thus, having straightway access to a rigorous process that took you months and probably years would not go for a small fee with the property negotiations and price-setting with a help from product development companies near me. You make money this way also. 

• Create Content Around Your Product

This is probably one of the underrated yet best-selling ways to make money from your invention. Content is king. In the digital world that we are in, creating content around your product is the mainstream of income for many. You could make videos or text or audio content around your invention. This content could be informative, entertaining, or both. With them, you can tell the story behind your product, the manufacturing process, etc. Platforms like YouTube are places where you can monetize this content based on the number of views they amass. You see, another stream of income. Ask you product development companies near me for more ideas.

There are many Shopify success stories in this light. One is Ryan Trahan, a college dropout who became a YouTube sensation with about 6.8 million subscribers.  

Conclusion

As an inventor, it is only fair to make money equivalent to or above your efforts to develop your product. Therefore, we have highlighted several ways you could generate income, both actively and passively, from your invention. Take advantage of these smart ways today!