Having a great product does not guarantee that it will fly off the shelves. Advertising and competitive pricing will only go so far to catch the eye of a consumer who has never tried your product before.
What if you could tap into a ready-made pool of interested consumers who already have some affinity for your product even though they’ve never encountered it before?
That’s the magic of trademark licensing!
By licensing the right to use an established trademark in connection with your product, you receive the benefit of all of the goodwill already built up in that trademark. In other words, consumers will carry all of the characteristics that are associated with the trademark they already know and love over to your product.
Of course, the key is choosing the trademark that best matches the characteristics you wish to convey about your product. Some brands convey luxury, others value, dependability, wholesomeness, or high quality.
In many cases, it’s possible to sell the same basic product under several different trademarks. A product that appeals to kids, for example, may lend itself to being branded under the trademarks of any number of different popular children’s characters. Got a product for sports fans? You may consider licensing trademark rights from a variety of sports leagues, professional and/or collegiate.
Being part of a larger brand licensing program has other advantages, too. In addition to all of that valuable recognition and goodwill, you also get to be a part of a broader marketing campaign. The campaign may give you access to retailers and other distribution channels that would not otherwise be available to you. Also, advertising dollars spent on one licensed product raises awareness for all of the other products sold under the same brand. Marketing under a well-known brand can even enable you to justify higher prices, which can help offset the royalty payable to the licensor for the right to use that trademark.
Still not convinced? Consider this: according to a recent Forbes article merely adding Donald Trump’s name to a product or service lifts sales by an estimated 20-25%.
