If you just came up with a groundbreaking business idea that would revolutionize a field or an industry but have no means to realize it yourself, you may be wondering if you could sell it. The short answer is yes, you definitely can.
However, the process is not as simple as visiting a business building, sharing your great idea, and walking out with a hefty check. In this guide, you will learn how to protect your idea, pitch it like a professional, and get paid.
Can I Get Paid for My Idea?
Yes, you can, but there are several strings attached. Businesses are only interested in innovative ideas that are specific to their industry and solve a certain problem that they or their clients are facing.
For example, tech companies could be interested in innovative software solutions, the retail industry may entertain the idea of new product design, and the list goes on. The most important thing to take away from this is to think about narrow and specific features or solutions.
As far as the money talk is considered, there are several ways you can get paid for your idea:
- One-time payment
You will get paid for your business idea and abolish all rights to it.
- Licensing agreements
You will receive royalties based on sales of profits, which turns your idea into passive income.
- Joint ventures
You will partner with the company to bring the idea to market and share profits.
Depending on what you and the business decide on, you may gain a solid one-time payment, or turn your idea into passive income or a side hustle.
Can I Sell My Idea Without a Patent?
The short answer is yes, you can sell or license your creative ideas without a patent, but there are some risks to it. The main one is regarding intellectual property.
Generally speaking, a patent is meant to protect your intellectual property from being stolen, copied, or used without your permission for a certain period of time. While it may sound like an obvious plan, it has a huge downside – getting a patent can be rather costly and time-consuming.
The good thing is, as mentioned before, you don’t always need a patent to sell your idea. Companies are usually open to non-patented product ideas as long as they are good and have the potential to be successful.
It doesn’t mean, however, that you can’t protect your intellectual property in other ways. Here are a couple methods you can use to make sure your idea is safe:
- Non-Disclosure Agreement (NDA)
An NDA contract will ensure that your idea isn’t stolen.
- Comprehensive documentation
Keep the development process and detailed explanations of how it works to convince people that the product ideas are really yours.
If you feel like your idea is particularly complex or innovative, it may be worth your time and money to consult with a patent attorney to see if applying for a patent is a logical solution.
How to Submit an Idea Without It Being Stolen
Most inventors have a rather rational fear that their idea will be stolen once they submit it to a company. And it’s unlikely that the individual inventor will want to take things to court with a business that has a lot more resources.
However, as mentioned before, there are ways to protect yourself:
- NDAs
A Non-Disclosure Agreement will legally bind the company to keep your idea confidential and prevent them from using it without your permission. Before doing any business with a company, ask them if they are willing to sign an NDA.
- Research company policy
Some companies may have specific policies about outside ideas. Make sure to read the fine print and understand what you may be getting into, before you waive the rights to your idea without even knowing it.
- Document your idea
Keep a comprehensive documentation of your idea with the processes, designs, prototypes, and other things that may help you prove ownership in case of legal disputes.
How Much Is My Idea Worth?
The value of your idea depends on three most important factors:
- Industry demand
If your idea solves a pressing problem or presents an innovative approach that would improve something drastically, it will inherently be worth more.
- Feasibility
If you have a great idea but it’s nearly impossible to implement, it’s likely that no one will want it. Always think about how easy it would be to realize the idea. It will affect the price.
- Market potential
If you conducted your research and are certain that your idea will have a large customer base, your idea will surely be worth your time. Especially if it’s easy to implement.
If you’d like to clarify the actual price or a price range, at the very least, you should seek out a patent attorney or a valuation expert. These specialists will take into account the current economic trends, industry trends, market size, and feasibility, among other things.
Businesses may try to manipulate you into thinking that your idea is not as good as you may think it is, with the sole purpose of cutting down the price. Knowing what your idea is worth by consulting professionals will make you feel more confident and you will be able to provide solid arguments why the price should be higher.
How to Pitch Your Idea to Companies
The most important thing to keep in mind is professionalism and structure. Your idea should be communicated in a way that’s exceptionally easy to understand. Also, it should clearly show what problem it solves.
Here are some tips for a successful pitch:
- Know what problem the idea solves
Companies are typically looking for creative ideas that solve specific problems. Research the industry and the company, look at their offerings, and suggest some new feature or an upgrade that would cover a new segment of the market or add extra functionality.
- Present your idea clearly
Use visuals, graphs, diagrams, prototypes, or anything else that you think is relevant. It’s essential that the company understands your idea clear as day.
- Highlight the benefits
Instead of focusing solely on the technical details, talk about end results. This may get them invested emotionally, and then asking for technical details themselves.
Conclusion
As you can see, it’s entirely possible to get paid for your innovative ideas, both with a patent and without it. The key thing is to understand who you’re selling to and what problem your idea solves. Just don’t forget to take precautions and read through the fine print of company policies, prepare NDA’s, and create comprehensive documentation of your idea.If, after reading this article, you feel like selling ideas is not your cup of tea, make sure to check out some passive income ideas for inspiration, or discover how you can make money by playing games.
