Royalty rate-Net Sales

Nov 23, 2021


As I said in the first video, everybody flips through the contract and makes sure that there's a 7% royalty or whatever it is that they're looking for. And they say, that's great, but it's not, because the net sales definition actually has a bigger impact on your royalty rate or the actual money you make.


You can have a 25% royalty rate, but your net sales definition can take out all of that profit and leave you with $0. And so you need to make sure that you know and understand how the definition of that net sale can work in your favor, as you move through building your licensing contract with a potential licensee.


So in today's episode, we're going to talk about net sales definitions, royalty rates, and how you have to play the game.


P.S. Getting to the point of making money off your invention is hard. That’s why I’m hosting a very special webinar for you on how to get through all of this. At the end of just 1 hour, you’ll know the techniques to get your invention licensed easily and make monthly passive income.



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