06 Jun Are You Maximizing Your Assets?
You went into business because you felt you had (and presumably still have) a service/product that people would find appealing enough to purchase. But are you aware that your product/service has monetizing potential beyond its original purpose? If not, say hello to a little concept that can bring big returns: content licensing.
Content licensing involves both a business and a legal definition. From the business side, according to Rich Kreisman, principal partner of Kreisman Information Consulting, it is “a publisher’s distribution of its intellectual property to any third party… for some type of value.” On the legal side, he continues, both parties agree to a contract that grants certain rights and specific parameters of use for the intellectual property involved.
Kreisman offers, via an article by Chris Seymour for EContentmag.com, a few handy tips to keep in mind when considering licensing your brand:
1. Don’t be overly opportunistic with a licensing situation.
Don’t accept an offer without considering the long-term and big-picture implications of licensing your brand. “They see quick dollars without considering (the long-term effects),” he says.
2. Don’t be overly conservative about licensing.
On the flip-side, don’t be afraid to take chances and seek alternate forms of distribution that may deviate from your plans. “Running limited duration tests with select partners can generate revenue and allow a company to gain licensing experience without jeopardizing the core business,” notes Kreisman.
3. Don’t have an inflated perception of data/content value.
Yes, you have worked long and hard to establish your brand. Of course that blood and sweat and time invested is worth something. But don’t, as Kresiman warns, see the value of your brand through just one lens. Others may see it valued differently. “I’ve seen many deals flame out (because the) two parties (could not) reach common ground. And most of the time, it is the publisher who is unrealistic about the value,” he says.
These are general guidelines simply to give you broad look at an avenue for enhancing the monetizing potential of your brand. Content licensing encompasses many different scenarios and stipulations. The key factor to keep in mind is to always have an experienced person negotiate your licensing terms and conditions to guard your brand’s integrity as well as to ensure all parties involved leave the table satisfied and excited about the future.