Before you tackle the licensing industry, you need to have your
own house in order. Make sure you have or can get financing, ensure
that your manufacturing capacity is up to snuff, and establish
distribution channels. It's also a good idea to try to
establish a sales history for your products, suggests Francis. Once
this is accomplished, then decide what licensing products you want
to target.
Finding potential licensors is not difficult. LIMA sponsors an
annual show in New York City, with the next one, Licensing '97,
slated for June 10-12. It will feature more than 2,000 available
properties.
TheLicensing Resource Directory, published
annually by Expocon Management Associates, is an excellent
resource. It lists properties alphabetically, then cross-references
them by owner and category. The directory contains more than 3,000
listings and various how-to tips, as well as information on support
organizations, consultants, attorneys, designers and other people
specializing in licensing.
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"I recommend going down the list of properties with a
pencil and putting marks beside all those names that ring a
bell," Altchuler says. "If you haven't heard of them,
chances are they won't have much value to you."
Next, Altchuler advises doing a little market research by
talking to your target customers to see if the property is
something that might interest them. Check out consumer and trade
publications to get an idea of what licensed properties might
appeal to your intended customers.
For information on what's happening in the licensing
industry on a monthly basis, look at the newsletter The
Licensing Letter from EPM Communications. EPM also produces
The Licensing Letter Resource Sourcebook, which lists the
top 4,000 executives involved in the licensing industry. And
Adventure Publishing puts out a weekly newsletter, The Licensing
Report, as well as a monthly magazine called The Licensing
Book.
A licensing consultant can be a valuable asset to a company that
doesn't have the internal resources to dedicate one person to
studying the licensing industry, says Stoebenau. "A consultant
helps a company identify and acquire a licensed brand or character
for their product line," she explains. A qualified consultant
can help a manufacturer determine if a licensed property could
enhance its product line and how to use it most effectively, adds
Gary Caplan, a Studio City, California, marketing and licensing
consultant.
When looking for a consultant, be aware that terminology is
critical, stress Stoebenau and Caplan. A licensing agent represents
the property being licensed, a licensing con sultant represents the
manufacturer seeking the license, and a marketing company is not
necessarily a licensing expert, although many include licensing as
part of their services.
Most licensing consultants work by contract and on retainer,
says Caplan, although arrangements can also include a retainer plus
percentage of sales agreements or per-project arrangements. To find
a licensing consultant, contact LIMA, check licensing resource
directories or attend licensing shows.
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