If you are a coach, consultant, trainer, speaker or some other kind of specialist and you have devised and developed your own methods then you can probably turn what you have into something you can license and make money from.
For example, if you currently run your own training course you may be able to sell the rights to run your course to other trainers who in return, will pay you an initial fee plus ongoing royalties.
Or, if you perform some kind of specialist consultation or service for clients, again you may be able to charge others for the right to sell and deliver your special service.
Licensing doesn’t have to be just at the point of delivery as described in these examples.
A long-standing form of licensing is where the originator of a product or formula licenses others to manufacture and/or package it under their brand name. This is basically how Coca Cola works, and it can be a great way to expand without having to acquire your own factory or processing plant and premises.
However you want to use licensing to grow your business, we can help.
Check out our one-day licensing workshop, designed to enable you to set up your own licensing scheme.
What’s the difference between licensing and franchising?
In essence licensing provides a way of selling your expertise or your product more often by allowing other people to deliver your product on your behalf. In most cases, a license dictates the form that delivery takes, but does not otherwise restrict the way the licensee runs their business - how they market the service or product, how they charge for it or how the rest of the business is to be run.
Franchising, on the other hand, is a way of building a channel for your products and/or services by selling a fully packaged and defined business that is built around that product or service. A franchise license does dictate exactly how the franchisee runs the business - how they market the product or service, how they deliver it, how much they charge for it and how the business itself is to be run.
Of course, at the heart of many franchises, lies a license, which is why this distinction can be confusing.
Earn money while you sleep - licensing allows you, a specialist sole trader to be in more than one place at once, earning money in each of them.
A license is easier to set up than a franchise, since it does not involve packaging an entire business around the product or service in question.
A license can evolve into a franchise in due course, so it can be a good first step towards a fully packaged franchise.