THE #1 Thing You Should Do Before Seeking A Licensing Deal Is To Decide What "Yes" Is.

Licensing deals are rare. When they happen, the process can sometimes take up to a year. However, sometimes things go fast. Before you make a first phone call to a licensing prospect, know what "yes" means for you.

One of the first things a prospective licensee will ask is a test question: what are you looking for? If your answer is unrealistic (for them), they'll walk away in an instant. You may get the chance to say "only kidding," but maybe not.

The best way to know what "yes" should be is to take a hard look at your alternatives. If you can't get a licensing deal, will you go to market yourself? What does that look like? If you say "no" are there any other realistic alternatives?

You might think it's unfair for a company to pay you $0.50/unit on something that retails for $40. Ask yourself, what's the alternative?

Waiting for an unknown future as well as pride and self respect have value too. Sometimes it makes sense to walk away even if you have no alternative. But if you make that decision, make it with clarity.

-Mike