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You
are entering a world that few are willing or able to brave. Inquire,
learn, and be prepared to make huge sacrifices. Having a good
or even GREAT idea is not enough unless your invention is unique,
you already have a standing order and a method of distribution
into the market. That is the reality... and don't let anyone tell you
otherwise...
“LUCK
IS WHERE PREPAREDNESS MEETS OPPORTUNITY”
--
Unknown Author (A very wise business entrepreneur)
(1)
What will it cost me to submit my idea?
(2) How do I know that my invention idea
will be protected?
(3) Can you tell me how much my invention
is worth from the evaluation?
(4) What types of questions will investors
ask and will you provide the answers?
(5) How can I be sure that your research
data is accurate and reliable?
(6) Is a patent really important, and
what does it cost to get one?
(7)
How do I get my product to market?
(8)
How much will it cost me to proceed with having you substantiate
the findings and formalize the data into a presentation?
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| 1)
What will it cost me to submit my idea? |
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The
initial evaluation is usually provided at no cost. We are excited
for the opportunity to mentor the next multi-million-dollar invention
idea. We will only select projects that we feel have great potential.
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| 2)
How do I know that my invention idea will be protected? |
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Idea
Mill offers a Non-Disclosure Agreement
(NDA) to protect all parties as well as all proprietary information
whether verbal, written or electronic. Click the link to view
and print a PDF file for the NDA.
We
recommend that you consult an attorney OR visit the American Bar
Association website www.abanet.org
to learn more about “Submitting an Idea.”
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| 3)
Can you tell me how much my invention is worth from the evaluation?
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The
answer to your question is unfortunately another question: How
much are you willing to risk for what amount of gain?
Imagine
that you have two product ideas, each with a potential of $15,000,000
in sales. One requires $50,000 of research and development and
the other $200,000 -- a licensing agreement may fetch up to $400,000
-- what will you do? The potential is there, but there are varying
degrees of risk to value.
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| 4)
What types of questions will investors ask and will you provide
the answers? |
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Below
are some of the points crucial to finding licensing, distribution,
and Investment opportunities, but just as importantly, they will
help to determine the value of your invention. Let's assume your
invention idea is not a new technology but a desirable and timely
product idea with a limited life cycle.
- What
is your product invention and what is its purpose?
- Can
your invention be protected and by what method?
- What
is your target market?
- Why
will the target market want or need your product?
- What
is the cost to manufacture the product?
- What
is your target price?
- Will
your target market be willing to pay for your product?
- How
much will your market be willing to spend for your product?
- Can
you project your financials and product sales estimates for
three years?
- Does
your product have direct competitors and what are their current
sales figures?
- If
a competitor or similar products are available, how does yours
differ?
- Why
will the market want to buy your product over those of your
competitors?
- How
will you distribute your product and will your market purchase
through that venue?
- Can
you substantiate any of your claims and how can prove your data
is accurate?
We can provide
the answers and make sure you can substantiate your data.
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| 5)
How can I be sure that your research data is accurate and reliable?
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There
are many factors that must be defined to generate the report including
invention innovation, competition, market share, and the estimated
cost-to-retail price point ratio. Simply put, more research will
provide greater accuracy; interviewing five focus groups with
40-50 of an invention's would-be customer base will provide greater
accuracy with fewer anomalies than interviewing just two groups
that may contradict and cancel each other out. The models we use
are tried and true and are applicable to virtually every industry,
but it also takes very experienced marketing analysts to create
the structure and requirements for the research in order to provide
qualitative and quantitative data.
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| 6)
Is a patent really important and what does it cost to get one? |
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Patents
and other forms of intellectual property such as trademarks, service
marks and copyrights are considered intangible assets and used
to account for a small percentage of a company's value. In today's
market, intangible assets can account for the majority of a company's
net worth -- ie., Microsoft is made up of more than 70% intangible
assets. We believe that a patent is essential if you hope to find
investment funding or an entity to purchase or license your invention.
Patents are like resumés, there are a hundred different
ways that they can be written and interpreted. A well-researched
and written patent provides protection for the invention, its
application and possible future evolutions; but more importantly,
it should provide some assurance that your patent does not infringe
on other patents. We recommend that you wait for the search and
survey results before spending the $8,000 average cost for a patent
application.
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| 7)
How do I get my product to market? |
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Every
invention, whether an original idea, an improved version of or
an accessory to an existing product line may fall into multiple
categories. It depends on competition, market potential and a
dozen other points of consideration. Each product is unique and
will require a specific strategy for the development and licensing
or manufacturing, marketing and sales. Suffice it to say that
if your invention is patentable with a low cost-to-retail price
point ratio, has perceived benefits and a large market appeal,
then you have a very good chance at a lucrative licensing opportunity.
Otherwise, see Question 8 below for a
more detailed view of the necessary phases of product development.
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| 8)
How much will it cost me to proceed with having you substantiate
the findings and formalize the data into a presentation? |
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We recommend that you go through all of the steps below to be
sure your product research can be substantiated before you invest
more money. If you have a standing order and a retail distribution
channel for your unique and original invention idea, then we can
surely put you on the fast-track to making your next million dollars;
for all others, the risk to proceed is a great one. The initial
investment has to come from you, your family and friends who are
willing to take that leap of faith. Investors will expect you
to shorten the risk gap by providing validation for your product.
“INVENTION
IS 10% INSPIRATION AND 90% PERSPIRATION”
--
A very appropriate quote by Thomas Edison
The
costs below are conservative and may vary depending on the complexity
of the invention and research time required. But, this isn't just
about research. You will need to provide a compelling presentation
with a proposed form and function for the product as well as the
style and graphics for the logos, packaging and sample brochures.
PHASE
I ~ Preliminary
Invention
discovery / Patent Search
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$
2,800 -- $ 4,000
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Market
Analysis Survey / Evaluation
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$
3,500 -- $ 5,000
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PHASE
II ~ Validation
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Concept
Drawings and Design -- Renderings
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$
1,200 -- $ 1,800
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Design
Specifications & Parameters
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$
2,400 -- $ 3,500
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Patent
application Specifications & Criteria
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$
1,200 -- $ 1,500
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Patent
Application
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$
8,000 -- $ 12,000
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In-Depth
Market Research
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$
25,000 -- $ 50,000
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Product
Design / Graphics
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$
3,000 -- $ 5,000
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Design
& Filing -- Logos, Trademarks & Service Marks
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$
2,200 -- $ 3,500
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PowerPoint
Presentation / Charts / Graphs / Visual Aids
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$
5,000 -- $ 8,000
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Create
Business Plan / Marketing Strategy
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$
2,500 -- $ 5,000
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PHASE
III ~ Opportunity
Find
& Negotiate Investment Opportunities
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To be determined
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Find
& Negotiate Licensing Opportunities
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To be determined
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The
above figures are estimations and are in no way binding. Each
project idea is unique and has varying considerations which require
in-depth analysis for more accurate cost projections.
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