Negotiating a Licensing Agreement (Mock Negotiation)

How do you approach negotiating anything, like buying a car? Do you go in aggressive and pushing? Everyone is intimidated by negotiating. If you really want to get a deal done, how do you approach it? Investor, entrepreneur, and business advisor Marc Portney tells product licensing expert Stephen Key that negotiation success really comes down to two things: Planning ahead, and taking fear away.

Marc explains why his strategy is different from others. If you have no fear, there's nothing to lose. Yes, that's easier said than done! That's true. But if you practice, you can get there. The minute you'r fearful, you change your behavior, and you cannot win. You have to be able to walk from a deal! Always. No is a very powerful word. Most people are scared to say no though. Where does the confidence come from?

How do you throw the first punch? Who should throw the first punch? Marc describes his strategy for winning hearts and minds and getting deals done.

Only after you've laid the groundwork should you come in with an offer — a reasonable offer!

If you've ever wondered how to negotiate a licensing agreement, this is the video to watch!

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[michelew]

I always love hearing Marc's take on things. He is ALWAYS direct and doesn't waste time in providing the answers we need.

[lorettabrail]

Great video on negotiating. Planning and having nothing left out... so crucial! Important to talk with multiple companies and be able to come up with a fair decision. Always treat people with great respect because no matter what, it pays off in the end!

[terryomara]

This interview & and roll play is gold! Thank you Stephen & Mark!

[queengemicarter]

I LOVE Mark!!! 😂 He is not a joke! 💪🏽👏🏽👏🏽👏🏽 I learned a lot in that quick interview.

[AlbertoHernandezD]

EXCELLENT mock negotiation...go for chapter 2 😉

[CameronManu]

Mark gives me that wolf of wall street energy!! i love this guy, i need negotiating skills from mark. thankyou stephen and mark for all the no bs content. amazing!

[CourtneyLaschkewitsch]

Wow. What a spitfire of an interview! I love their intensity and their tips!

[SimilarFrequencies]

Thank You Marc! It was great to see/hear you....I’m a bit shy but when I do communicate, It’s straight to the point. I need that straight to the point Honesty. Would have loved to have more than 12 minutes of you but, I’m still thankful for what we got!
Thank you Steven!

💚🕊

[travisjazzbo]

The key is the find the right person to do a license with. If you feel the one person who is going to give you 8% not not do what you feel is necessary to blow this up, vs the person that is going to give you 6% will, that is extremely important.

One company may have a huge product line in the fitness industry for instance and yours will be one of them but they won't get out there and make your product known.

Another might be a smaller company that really believes in very aggressive social media and influencer marketing and has incredible reviews online for the way they do business and they are all about remaining relevant. That is who you want.

[-h-work-week]

I'd take the 5% on my 1st, 2nd, 3rd licencing. Just to build a good income and feel safe.
But I have many ideas.
And new ones keep popping. I'd start negotiating on my 4th requesting a variable percentage: 5% sounds good, but I'd claim 7.5% for when a certain sales volume is reached, then 10%. Also, a 3rd royalty level should the product happen to go viral.

He's buying my idea 'cause he knows it'll make him good money, not because he wants to do me a favor! Let's define "good money". If the product goes bigger than that he will get more money. I should too.

If he doesn't agree I'll take my idea elsewhere. If no one agrees, then I'll just give it away publicly so that anyone anywhere can use it anytime without any eclusive rights.

I could even try to manufacture the product myself (see Headblade's story), depending on what the idea is. Or find an investor.

[DJs]

I'm alot like Mark. I went to buy a car and the salesman started playing games and didn't take me seriously, so I walked and said no. His loss, not mine. Afterwards I went elsewhere and negotiated a deal for a vehicle for 1/3 of the 1st saleman's asking price.

[smx]

WOW! This was fabulous Stephen and Mark. This is a real, "in the trenches" look at how things work. I could imagine myself up against a tough negotiator like Mark. Make a decision or get out of my face type of scenario. LOVED IT. Thanks Stephen for bringing this great knowledge to folks like me. Bravo!

[adettler]

This would make a great series...keep more of these coming in the future

[hqopie]

Great Guy Shot every Idea down I have Im not stopping we will be doing business together soon Mark!

[Me-mne]

Damn. I thing im gon prepare for every call to be like this

[ImbentongBentongTrimond]

I love the role play! thanks for this content Invenright~!

[jaya]

This is one of my favorite Key vids I've watched

[sylviapomazak]

That was fun! Stop the drama for your mama. No BS here!

[TheCrazyMachinist]

Great episode, the mock deal was very insightful

[monteiroinnovations]

Great segment Mark and InventRight, this was excellent preparation advice!