Business models
The licensing business model
The licensing business model: you let other companies use your brand, technology or content for a fee. You earn royalties or fixed fees while the partner handles making and selling.
How it makes money
You earn royalties or fixed fees while the partner handles making and selling. It brings income with little cost, but only once what you own is worth paying for.
Real examples
- Disney licenses its characters for toys and clothes.
- Dolby licenses its audio technology to device makers.
The numbers to watch
- Royalty income
- Number of active licensees
- Quality of the products with your name on them
Who it fits
Owners of a strong brand, a patent, software or content.
What goes wrong
A partner's bad product hurts your name. It also takes careful contracts, so get legal help.
Try it this week
List exactly what you own that someone else could not simply copy.
Then give it a time: one block of 90 minutes this week, in your calendar. Our playbooks have the next steps for finding your first customers.
Questions
What is an example of the licensing model?
Disney licenses its characters for toys and clothes.
What is the biggest risk with the licensing model?
A partner's bad product hurts your name.
Plan your first week of building it
Free forever for planning, XP, streaks and the Arena. Reserve your @name now.