Common Sense Inventing - Educational articles to help Inventors make informed decisions

Big Companies Aren’t Always the Best

Everyone wants the big sale. You know the one, the one that is going to make you mega bucks so you can retire to an island somewhere and never have another care in the world. So, to hopefully achieve that goal you want to submit your idea to the biggest company in the land. That’s great, but you may find that the big companies just aren’t as appealing as you thought. Most big companies also mean big hurdles and more levels of bureaucracy to go through and more people that have to say yes to a project.
Since they are the Big Company they also get inundated with large volumes of ideas. These ideas are from professional Inventors and amateurs. A large number of them get turned back because the company doesn’t look at unsolicited ideas, they have a particular submission protocol and you didn’t follow it, or they want you to go through a broker/agent.
That is why I strongly suggest researching the company upfront prior to contacting them to see what their policy is and if any paperwork is required from the company to allow you to submit to them. They will sometimes have it posted on their website. So check that out before you call. That saves you the long distance call and the company from being overrun with calls. And you are not wasting your first contact with them on information they will tell you to check out on their website. It doesn’t look like you know the company you want to do business with very well if you haven’t even taken time to check out their website.

I learned early in my career as a comic book writer that it was great to write for Marvel comics, D.C. Comics and Disney comics. The drawback was that I was competing against hundreds of other comic book writers for a single slot. My odds were slim at best. This also limited the amount of times I got published with them. I was constantly working on ideas for only their characters hoping for an opening. What I neglected, for a time, was to see that there were a large number of medium to small publishers producing great comics.

I started sending submissions to these medium size companies and was surprised to find that they were very open to my submissions and my acceptances went up dramatically. This was not because I am a fantastic Writer, but more due to the fact everyone else was concentrating on the big companies the same as I was. I also started making more money due to the volume of writing. Yes, Marvel and the others paid better, but it isn’t worth anything to you if they don’t use you.
This same rule applies to the inventing industry. Everyone wants a Mattel, Craftsman, or Tupperware type company to license their idea and get filthy rich. It wouldn’t hurt my feelings either. What they don’t realize is they are not alone in this pursuit. That is why a number of the large companies use toy brokers or some other organization to filter through the mass of submissions they receive. You cannot send your idea directly to them.
The down side for this is that these middle people usually charge a fee to just review your idea. Most I have seen charge about $175 to $250 on average. You may find some lower or higher. Some are now doing it for free, but ask a higher percentage on the royalty side if they get you in.
Some of these companies tell you that for another fee they will put your idea in a proper professional format for submission to the company. So, you are paying money to basically try and get in front of the company. If you get a “NO” you are out the review fee, any other money you spent and have to look elsewhere. If you get a “YES” that’s great, but don’t forget you now have to share that royalty with the broker who got you in the door. I am not against anyone making a living you just need to be sure you need certain services before you spend money on them.

Another thing to keep in mind is that some of the large companies only look at ideas passed through certain brokers they know and feel comfortable dealing with based on a long working relationship. So, if you want to try another company you may have to use a different broker, which means another review fee. Do you see how quickly your money can go out the door?

Another factor that Inventors don’t seem to consider is longevity. Let me use the toy industry as an example. If you get a toy picked up by a big company you are now one of the many toys they carry. Because they are the Big company they command a large area of shelf space in the stores. The next time you are in Wal-Mart or Toys R Us look at who commands the most shelf space. You will also see smaller companies with good quality toys trying to get a foothold on these same shelves.
Now, because they are the Big company they want a large return on their investment from your toy. If your toy is a steady medium seller say selling 500,000 units the chances of you getting dropped off the shelf is high. So, you may get a one year or two year spot on the shelf and then get pulled due to low figures.
These low sales figures that got you dumped by the Big Company would be a huge seller for a medium company. You could even be considered their flagship toy. Your lifespan with them would be years. Obviously, they would also be very open to your next toy idea. Those medium companies want to be the next Mattel and are always looking for that toy that could push them upward and command more shelf space in the stores. You want to build a relationship with the companies that actively look at outside ideas directly from Inventors.

I have contacted large companies to ask if they look at outside ideas and gotten some rather interesting responses. One company promptly told me they didn’t look at outside ideas because they had their own research and development group and if they needed new ideas they would come up with anything the company needed. She was sure any idea I could come up with they could also. That seems a little arrogant to me, but they are in charge of their company. Another large company sends out a pamphlet that gives you two choices.

(A) You want to help the company and are giving the idea completely without benefit or royalty to the company. You no longer have any claim on the idea and it is at their sole discretion what they do with it.

(B) You have patented the idea and are making the product and want this company to distribute it for you through them.

As an Inventor looking for royalties from my ideas (A) wasn’t an option. (B) wasn’t much better. If I had already paid for the patenting, and had the product produced and ready for shipping, I’m done. I would have started my own company selling them. I wouldn’t need them.

The market seems to be turning around as more and more companies are seeing a value in seeking ideas from outside Inventors. You see more Inventor Hunts and Inventor contests popping up. Be careful about joining any of these unless you have read all the rules and are okay with them. Some state that by joining the hunt you give them first shot at your idea and they can hold it for up to a year before deciding yes or no. So, you are stuck with them for that period.

Another thing that can challenge a new Inventor is the old “You can’t get experience without a job and you can’t get the job without the experience.” That is called the Catch-22 syndrome. That is another reason to look at small and medium companies. They are more willing (I AM NOT SAYING EASIER) to let you get your foot in the door.
Once your foot is in the door you still need to have a great idea before they will risk their money. With a smaller company comes a smaller budget. So, they are just as stingy with their money as you would be if you were investing in someone’s idea. They want to and need to see a return on their investment so the company can survive and grow. If you are lucky enough to get your idea picked up you now have something to show when making calls on other companies.

You will find that once you have a couple of ideas on the shelf it is helpful to have a website to display the items. You can get a website hosted for $10 a month or less. There are a number of domain name websites that have pre-made templates you can use to plug-in and edit your website. It doesn’t have to be fancy, just functional.
A website is a useful method to promote yourself and your business. You will find that if you can refer a company to your website to see inventions that made it to market you are showing them someone else took a chance on you and you produced a marketable item. No one wants to be the first to give you a chance, so you really have to sell yourself and your idea to that first company.

Another thing that seems to be trending lately is companies establishing “Wish Lists.” These are great. The company will send you a list of areas they are actively looking for ideas. A toy company may send you a letter saying they are looking for backyard toys or foam products. This does not mean they will buy anything you send them in this area. It will still have to pass reviews and make the cut. You have to also be very aware this is on spec. You are not going to get paid one cent for this work unless they want to license it from you. They are just narrowing the area you should think on before submitting.
They are doing you a big favor by doing this. You could have a great yo-yo idea, but if they are pushing towards flying toys or foam products you would miss their target and get a rejection. This prevents you wasting time thinking in the wrong direction.

So, broaden your scope and don’t just shoot for the big companies. Give them all a fair chance and good luck.

Some days I would have to say “Yes” to the question above. It is just dumb luck sometimes. If you think about it a lot has to do with luck, timing, being in the right place at the right time. Of course you hope it is really about you having a great idea or product, but that is not always the case.
You can have a great idea, but your pitch is off and they just don’t get it. Your package arrived the day they are discussing budget cuts. The person you sent it to no longer works in that department or they are having a horrible day, so nothing looks good to them. Your prototype was handled rough in shipping and doesn’t work right for the person doing the reviewing.
I had a case where the reviewer I sent my toy prototype to did not have any sense of eye/hand coordination and could not make the toy work. So he did not understand its play factor until I sent him a video of a kid enjoying the toy and showing how easy it was to operate. My chances would have been higher had I sent the video first, but I made the mistake of assuming it was so easy anyone could do it. Instead I get the one person in the company with zero eye hand coordination. Lol

Many possible opportunities are killed in the first 30 seconds over the phone because you are nervous and stammering over your words. Then there are those moments when you and the other person just click and they are open to anything you mention. They get your pitch as concisely as if they had the idea themselves. They call that “Finding the Zone”. You live for those moments.
On the other side of the coin I have had times where the contact person changed 4 times in 2 months because they were doing a reorganization. My material was given the okay by one reviewer, turned down by the next one, but wasn’t sent back to me before it was left for the next reviewer. That person liked the idea and routed it to the next person higher in the food chain for approval. Two days later that person quit and moved to another state. I did not hear anything for 2 weeks at which time they informed me they were no longer looking at outside ideas. That was definitely a bad run of luck. But as I have always said “inventing is a fluid business and constantly changing.”

The dumb luck syndrome isn’t just targeting inventing, it happens in all industries. While writing for comic book companies I called an Editor I hadn’t talked to in months to see if he had any openings on his books. He laughed and said my timing was great the Writer for one of his books was sick and he had just gotten off the phone with him prior to my call. So, I got the job, not because I was a better Writer. I got it because I called at the right time and saved the editor the hassle of finding another Writer.
On another occasion I contacted a toy company for the first time and expected to just get my name in front of them and start the ball rolling, instead he said I caught him in a bind, they needed some toy ideas for a presentation they were putting together for upper management and he needed them by the next day. The person they were using didn’t deliver their products on time so he had nothing to show. We signed NDA’s via email, I sent 10 ideas I had in stock. And the next day they told me they loved 2 of them and a licensing deal was signed. I was paid a nice advance. The product didn’t make it to market, but was released back to me and I got to keep the advance. So, it was a strange but profitable venture.
You will find that for no reason you can explain some ideas you think have the most potential will not get a second look. While others, which you think are okay will get a rave review.
I have sent the same story to the same editor two weeks apart. The first time he hated it. The next time he loved it and bought it. I never told him he had already turned it down.
The longest time for a sale after first contact was over a year. I saw the company’s product in a store and got their contact info off the package. A couple of days later I contacted them asking if they looked at outside ideas. They said no, they do all their design work in house. The owner and myself hit it off and she liked the products I had already licensed that were posted on my website. She said to keep in touch and let her know of anything new I had come out. So over a year’s time we exchanged maybe 4 or 5 emails. A year later she told me they were starting a new line and would look at ideas if I had any. I sent 5 ideas and they picked two to license. I am the first inventor on the outside they have worked with.
Was that dumb luck, genius on my part, great product ideas, salesmanship, right time right place? I may never know, but I have two products coming out because of it! So, I may not want to know. You can do the same.

There is a huge misunderstanding when it comes to having a patent. Inventors think once they get that piece of paper companies will be beating down their door wanting their product. It does not work that way. Talk to most people that get a patent and the first calls or emails they get are from companies wanting them to buy a coffee mug or plaque with their patent embossed on it. Or they want to sell the Inventor services to bring their product to market.

It all comes down to what I have always said “Just because it is patentable does not make it marketable”. It only means you got a patent. What you do with it is what matters. I could possibly patent Edible Sneakers. Would anyone really want to buy them, and would you consider them a mass market item? Would you expect to see them being sold on QVC, HSN or as an ASOTV item? I don’t think so.

Some people are happy to have that piece of paper, so they can say “I have a patent”. Others do not have the necessary business skills and funding to sustain a product long enough for it to get a good foothold in the market to see if it would.

Most Inventors cannot afford to quit their regular job to pursue their venture full time to try and build a business around it. So, they have an issued patent and don’t know what to do next. These are obstacles you needed to consider before you spent the first dime on a patent.

Before you spend any money, you need to understand your options, and which one best fits your situation. Learn as much as you can about building a business around your idea, licensing your idea, your competition and your place within that market, so you are making informed decisions not blind guesses.

In the end it comes down to only the strong willed, well prepared, and very lucky survive.

Raise your hand if you like rejection. I didn’t think so. Most people try to avoid rejection in their daily lives at all costs. If you decide to follow the path of an Inventor you better get some really thick skin because you will get your fair share and probably someone else’s fair share of rejection. The biggest hurdle you will have to contend with is what you do with that rejection. How you react to rejection can make the difference between a successful experience and a frustrating and unsuccessful experience.

During my career as a comic book/cartoon Writer I got so many rejection slips I felt that I could wallpaper my house with them. I had never known you could say “No” in so many different ways. That was one lesson I was not happy to learn. But it was a necessary lesson.
Most Inventors seem to have a severe negative response immediately after receiving any rejection letter or email. They get very irritated and vocal, even if no one else is in the room. The response I have heard most Inventors give goes a little like this “They are just plain stupid! They wouldn’t know a good idea if it was right in front of their face!!!” (That was the politically correct response.) I have heard many outbursts that can’t be repeated in public and would make many people blush. And it certainly wouldn’t increase their chances of success if the company it was directed at heard their response.

After getting a rejection, some Inventors just give up and shelve their idea forever. That is a shame. The only person that hurts is… you. If they had taken the time to learn something from the rejection instead of taking it so personally they may have made it to market with that idea or another idea they had in their mind. My goal is to convince you to work your way through the rejections so that you have a positive outcome and get on the road to success.

You need to look on the rejection and the person that sent it as a positive thing. Yes, I said look at it as a positive thing. They did you a favor by rejecting your idea. I know that sounds crazy, but it can very helpful if you think about it from this angle. Each time you get a rejection it is an opportunity to learn. If they didn’t put in a form rejection letter (I hate those just as much as you do) and gave you feedback on your submission, carefully read the reason it was rejected. Hopefully the explanation of your ideas benefits wasn’t clear, or you sent your idea to a company that isn’t interested in that market. This happens a lot. The Inventor is so focused on getting their idea in front of someone they don’t do the homework/research of knowing their market before sending it out. You don’t send a hydraulic wrench design to a toy company. Unfortunately, things like that happen more often than you would think.

The reason I am saying they did you a favor is that they stopped your idea from going to the next level. The next level would be to put it into production. Do you want your idea to hit the market if it has flaws in it or some other issue that could impede your sales? You want to work out any bugs in your product while it is in the developing stage, not the production stage. There are stories after stories of Inventors that sunk their life savings into a product that they insisted be built exactly the way they wanted only to find out it wasn’t the way the buying public wanted. Use the criticism you get to refine your product making it more marketable, so that by the time it hits the shelves it is a product consumer’s want.

If you seriously look at the rejection as a method of improving your idea or your presentation it can only increase your odds of getting a “Yes”. Use the comments/feedback to correct any deficiencies they point out. Look at your presentation material and see if it is too long. You want your presentation to get them interested and excited about your idea, not dread having to read through 25 pages of material just to see if your idea has any merit. Always think in terms of “Is there any way to condense this down? Is it concise and easy to read? Does the presentation look like I know what I’m doing or an amateur?”

One of the quickest killers for a submission is being too lengthy and no one has the time to decipher it. As I have said before “Would you rather read a pamphlet or a novel to understand someone’s idea?”

Remember rejections sent back without an explanation can be for a multitude of reasons. It could be they just didn’t like your idea. It could also have nothing to do with your submission. Reviewers are like anyone else they could be having a bad day. It can be one of those days when nothing seems good no matter what they saw. They could have seen so many similar things that day that you got rejected by association. You might have caught them at the end of their selling season and they don’t want to bring in anything new right now. It could also be the Monday/Friday rule. Mondays, they are just starting the week and Fridays they want to get out of there and go home.

When I was aggressively writing for the comic book and cartoon industry I would send out at least two submissions a week. So, I had a good flow of material going out and coming in at the same time. Rejections were a part of the game, but I was also getting plenty of sales to make it worth the time. One story I sent out I really liked and knew this would fit the particular character to a tee. I was extremely disappointed when I got a rejection letter from the Editor the next week saying it was “just not what he was looking for at the time.”
I was frustrated, but went ahead and put the story aside. Two weeks later I was looking through my pile of material deciding which ones to send out. I noticed the story that was rejected. I sent the same story back to the same editor. A week later I got a note back from the editor saying it was the best script he had seen from me in a while and loved it. I didn’t mention he had looked at 3 weeks earlier and canned it. I figured my timing was right and I caught him on a good day that he had time to really look at my script. The same applies to your submission. Sometimes it is just a matter of dumb luck and being in the right place at the right time. I would like to think that all my success has been due to hard work and a creative mind, but sometimes I am afraid to ask. : )

Your job as the Inventor, Salesperson, Pitch Person is to make sure your submission is the best it can be to make the reviewer’s job easier.

If at all possible look around on the internet and join an inventing forum. There are plenty of free forums out there just find a couple and join. You don’t have to post anything just join and look through the topics to see if they make sense to you. Is the forum full of helpful people discussing topics of interest to you or are they not posting anything you can use. Once you find one that you feel is productive you can start posting questions and joining discussions. Just understand it is a public forum so make sure you don’t post information about your product/idea because if it is not protected by a patent you are publicly disclosing your product/idea and that can hurt your chances of getting a patent down the road. You are also giving out your idea to a group that may see it and build off of that idea to make a product of their own and compete or beat you to market.

Forums are a great way to network with Inventors around the world. You get to see inventing from multiple perspectives, instead of just one. Because inventing is not a one size fits all journey. What works for one person may not work for you. What you want out of your idea/product can be totally different than the next person.
The forums allow you to ask questions and hopefully get an answer that is useful. It also lets you see questions you may not have thought to ask. You can learn about a wide spectrum of areas you didn’t know existed in inventing.
It is inspiring to see a person come on a forum an amateur and see their growth learning the ropes and ultimately succeed. You will realize you are not alone in your struggles and frustration. There are people from all walks of life that want to see their dream become a reality and you get to share in their experiences.

There are certain rules you need to follow on forums, so they don’t get out of hand. First, realize not everyone has the same attitude or attachment to their idea, as you do. Some think of their idea/product like their child so how do you think they will react if you criticize their child? Others see it strictly as a business venture. You need to learn to have a thick skin to criticism whether you asked their opinion or not.
Remember you are on an open forum and everyone has an opinion. Some express it very vocally and others may have a more eloquent touch than others whether they are right or wrong. You have to learn what to filter out and what to keep.
Also, the person with the most posts doesn’t mean they are the most knowledgeable it just means they have more time to post than you do. Or they type faster than you. Take advice and check it out before using it. Make sure it is based in fact not just because they believe it.

Help keep the thread on the topic and don’t go on to many tangents. I see threads start out talking about licensing, patents, etc and someone will start discussing a movie they saw. Eight pages later they finally get back to discussing licensing or whatever was the original topic. This is very unproductive for the person hoping to get useful information on the thread topic.
Ask yourself would you read eight extra pages of text on a topic you don’t care about hoping you find something useful? Also consider most forums can have over a hundred topics if you ran into that same issue on every thread how frustrating would that be for you?

We have all heard the phrase “there are no stupid questions” That definitely applies to inventing. Some inventors are reluctant to post a question fearing they will look dumb asking something everyone else knows. Don’t let that stop you. You are asking the question because you need the answer. It only hurts you if you don’t ask. I would also bet your question was on someone else’s mind too they just didn’t have the nerve to post it. The only way a forum is going to help you and others is by networking and the sharing of knowledge.
A forum gives you a sense of community and a place where everyone has similar dreams. Help each other attain your goals.