Brand Licensing – Turn Coca-Cola’s Little-Known Secret Formula Into Your License To Print Money!
Brand licensing – When you buy a bottle of Coca- Cola you’re buying into its American dream of taste, quality, style and enjoyment. But that carefully sculpted, retro-look bottle of Coke wasn’t made in the USA. It bears all the hallmarks of Coca-Cola’s glorious American heritage… but it’s just as likely to have been made in Britain, or any one of the 190 countries worldwide where Coca-Cola is currently sold.
Coca-Cola’s success around the world has been achieved thanks to global brand licensing. And this is a formula you can learn from and copy to build your own worldwide success story, on a much smaller and easier-to-manage scale.
Cash In On The Global Economy
Today we live in a global economy. This means that products that succeed in one country very often succeed in another. After all, consumers’ needs and tastes are largely the same in every developed country of the world. If you can find a product that sells successfully in, say the USA, it will almost certainly sell successfully in the UK. France, Germany, the rest of Europe, Australasia and the Far East too.
This is where global brand licensing comes in. To manufacture and sell that successful product in another country can be expensive and problematic, even for a big company. It is sure to involve a lot of capital, time and risk. A much easier way to succeed is using global licensing. But with global licensing you sell the right to sell a product – yours or any other – to enterprising people in other countries.
Global brand licensing is set to become even more common in future. Some marketing experts predict that, within just five years, there could easily be half the number of small national or local manufacturers that there are today – but twice the number of brands produced under license.
No Need To Go To Mars!
You don’t need to be a giant brand name like McDonald’s Restaurants or Mars Confectionery to work this system. It’s quite possible for every entrepreneur to exploit global brand licensing. If you are enterprising and have or can find a product or business that is a success in one country, you could make it a success in another and profit from it on a global basis as a global brand licensing agent.
My own business is involved in global brand licensing in a small way – and it’s still proving tremendously successful for us even though we’re not selling licenses to produce Coca-Cola or some trendy premium lager. Two years ago, we became the brand licensing agent for a range of technology based industrial cleaning solutions – detergent and disinfectant to put it in simple terms. Even in that short period, we’ve licensed companies in nine countries worldwide to produce and sell these successful products locally. You could do exactly the same thing, using your own or another manufacturer’s products.
With global brand licensing you can enjoy regular and increasing sales – and regular and increasing profits – with no extra work whatsoever, after you’ve negotiated the original licensing agreements. All it needs is some careful and dedicated work at the front end.
Get Started In Global Licensing Today
#1 Start with a just one product. This can be your own product or a product manufactured by someone else. Virtually anything can be globally licensed, such as a food or drink product, consumer goods, clothing, footwear, a chemical or an industrial part or process.
#2 Check Into the potential. Look for products that are already successful in the UK. Many of these products are already sold globally (some of them are actually produced in the UK under licenses from elsewhere) but many thousands of others aren’t – yet.
#3 Locate the manufacturer of the product. Offer to become their global brand licensing agent and locate companies worldwide who will buy the right to manufacture or distribute their product. Most manufacturers are interested in expanding globally, but many, especially small companies, lack the time and know- how to do this themselves and are willing to appoint an agent to help them.
#4 Locate potential licensees in other countries. Find them using trade directories and ask for help from the trade counsellers at foreign Embassies. Write to them in the first instance and tell them that you are looking for local licensees to manufacture, distribute and sell your successful product in their country. Hold talks with several potential licensees, to find the most enthusiastic, committed and reliable.
#5 Create a licensing agreement. Briefly, under a licensing agreement, the licensee has the right to manufacture the licensed product and distribute and sell it in their own market (or territory as its known). They pay the original manufacturer (or licensor in legal terms) a royalty for every product that they make or distribute. A commercial lawyer can draw up licensing agreements for you.
#6 Use the services of a branding company. Replace step five by going straight to a branding company to handle all of the paper and legal work.
Benefiting from global brand licensing agreements calls for short-term effort – but makes long-term profit. You make your profit by taking a commission on the licensing agreement. For example: Each local licensee might agree to pay you a commission of 5% of all sales of the product in their territory. But you negotiate an agreement with the original licensor to pay them 3% of the value of all sales by your licensees. In other words, you make a ‘built in’ commission of 2% for no work whatsoever, once the agreement is signed.
It’s reported that Coca-Cola made US$2,3 billion from worldwide sales using global licensing in the last 12 months alone. You could use their secret on a much smaller scale to make tens or hundreds of thousands from global licensing too.
Your guide to global brand licensing brought to you by MoneyHitman.com