How to Sell Product Ideas to Companies

A presentation is an important step in selling a product idea.

Taking a product from idea to market is an expensive, involved process. When you have an idea for a product but do not have the resources to see it through production, you can sell the idea to companies who do. By selling your idea, you will relinquish the rights and still see a percentage of the profit.

Instructions

1. Conduct background research. Before you approach companies with your product idea, line up all of the information that will affect a company's decision. Consider competitor products, the possibility of securing a patent, material needs and costs, and machine requirements. Gather financial data, expected return on investment, and information about consumer demand.

2. Choose a spokesperson. Because the companies won't have your tested, physical product to evaluate (because you don't have one either), they will be judging your expertise as well as the idea itself. Consider whether you have the qualifications and background that will convince potential buyers that your idea has merit. If you are not the right person for the job, find a friend or colleague who believes in your idea and is willing to put the weight of their reputation and experience behind it when pitching to companies. Also, look for a spokesperson who is a good speaker.

3. Select companies that are likely to have an interest in your product idea. You might target businesses with similar or complementary products, or manufacturers that already have the necessary production equipment. Gather the contact information for the person in charge of product development for each company and schedule a meeting to present your idea.

4. Develop a concise, professional presentation for each company. Use a story to frame the presentation and make the idea more memorable. Include information about how the product would benefit the company and its customers, how it would fit with their existing production lines and how it would improve the bottom line.

5. Leave behind a print piece that explains the product in more detail. In the first pages, make a compelling case about why the company needs your product. Include detailed financial forecasts, information about specific materials, and market research data.

6. Hire a lawyer to negotiate the sale. Once you have a buyer, a contract is necessary to protect both parties. Consider an initial payment and royalties from future sales of the product. Expect the negotiation process to take some time as the company determines how much it can afford based on expected profits.

References

• BNet: How to Sell an Idea
• CNN Money: Bringing a Killer New Product to Market