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Seller's Market

Don't want to leave the selling of your product up to a licensee? Do it yourself on commission.

This story appears in the February 2003 issue of Entrepreneurs Start-Ups magazine.

Inventors often have great ideas they can't afford to introduce effectively. The traditional way around this is to license your invention to a manufacturer. But there's another method that offers many advantages over licensing: arranging with a manufacturer or a distributor/wholesaler to sell your product on commission.

Selling on commission is an ideal approach if you see a market opportunity but don't have the expertise to develop the product. Essentially, the other company handles product design and engineering, and pays the person who knows the product best-you-to sell it.

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