Market Dominance Through Licensing

The other day, I was walking through the cereal aisle in my neighborhood Wal-Mart Super Center. While searching through all the delectable cereals and trying to guess which ones would make me most popular with mom and children, my eyes latched hold of a bright white box with a big green ogre and donkey paisted on the front. At once I remembered a preview I had seen in the theater announcing the upcoming release of Shrek III.

"Isn't that cute," I thought to myself. "Those clever marketers put their message on a General Mills cereal box." As I was mulling over my discovery, I turned around and saw the green ogre on a box of breakfast bars. This second sighting did the trick, I began to notice the green ogre on just about every product aisle -- Shrek was everywhere! Then I wondered, "Who is shelling out money to who?"

Typically the product company seeks out the license so they can take advantage of the temporary popularity of some mammoth event�such as a major motion picture. Some businesses like John Deere, in contrast, are long-term businesses. John Deere symbolizes basic American family values and has a whole division committed to getting the John Deere brand to show up all over the place. John Deere licenses the use of their name for books, games, tools and clothing. Many times, they co-venture the undertaking.

Although many large businesses have the ability to start mass marketing licensing projects, little businesses and emerging companies do not have the capacity. So "How do we go about using large business marketing techniques in a small business?" Try these four ideas to get your brand out more:

Locate affiliates that agree to refer your name � Do you presently offer a referral program? If your business is focused on providing a part of the value chain for numerous businesses, it is probable that lots of people will cheerfully refer business to you, especially if it reinforces your partner's offering. Fees for referrals fluctuate from a few dollars, to as much as 20% of the sale. Although, 10 percent is the average for the majority of businesses.

Permit other businesses to license and sell your products� Once more, if what you can offer provides a worthwhile component to the value chain, you will be able to permit various companies to sell your product as their own. One illustration of adding a part to the value chain is when a business provides ball bearings to auto manufacturers. You could share a fee between 10-75% of the sale depending on the type of goods you offer.

Create and Share supportive products that have your brand name on them � When you offer one product that's useful to someone else's customer base, you will be able to sell your product to the partner business' customers. For instance, we had a client offer a training CD produced by an herbal supplement company as a present to customers of their health food shop.

Co-Brand new products � Generate products and services as a joint project with other companies in your value chain. If you're a patent lawyer, generate an information product on intellectual property rights that can be distributed by contract manufacturers. Companies who create shampoo for animals could co-produce a specialized product with a busy veterinary clinic.

How does a small company market like a big company? Make your brand name visible everywhere possible. Search for opportunities to put your name on things. Profile your customers. Know where they hang out. Know what they buy and the places they shop. Find a way to get your name onto their products. Work the deals and divide up the proceeds. If you do this right, you'll generate a boatload more money and noticeably improve your business.

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