🚧 Why Most Inventors Don’t Land Licensing Deals:

🐇 Think You’ll Land a Big Licensing Deal?

You Might Want to Think Again…

You’ve got a great idea. You’re excited. And you’re thinking:

“I’ll just license it to a big company, let them do all the work, and cash the checks.”

Sounds amazing, right?

It almost never works out that way.

📉 Here’s the Harsh Truth About Licensing:

❌ 1. Your Odds Are Terrible

Most licensing experts agree: less than 2% of product ideas ever get licensed.
Even with a prototype, the odds jump only slightly. Why? Because companies are:

  • Overwhelmed with thousands of pitches a year

  • Looking for proven sellers, not napkin sketches

  • Risk-averse and slow to move

❌ 2. Ideas Alone Aren’t Enough

Big brands don’t license “ideas.” They license fully developed, market-ready products, with:

  • A working prototype

  • A clear target audience

  • Packaging and branding

  • Proven demand or at least validation

No working prototype? No market traction? No deal.

❌ 3. You’ll Spend Time Chasing, Not Building

Most inventors waste months or years cold-emailing, sending pitch decks, signing NDAs, and waiting for companies to respond. Meanwhile, the market is moving. Fast.

You could have used that time to build your product, prove demand, and make real money.

❌ 4. Royalties Are Tiny

Let’s say you beat the odds and land a deal. Congrats! Now prepare for:

  • 2%–3% royalties on net profit (not retail price)

  • Long payout windows (6–12 months)

  • Strict sales milestones (miss one, and you lose the deal)

Do the math. If your product sells for $20, and your royalty is 5%, you make $1 per unit... if it sells.

❌ 5. You Still Do the Work

You’ll still need to:

  • Develop a strong pitch

  • Pay for prototypes and patents

  • Pitch it over and over

  • Negotiate licensing terms

  • Monitor sales and contract compliance

Most “passive” licensing deals are anything but passive.

✅ So What’s the Smarter Play? Build It. Brand It. Launch It.

Instead of chasing companies, let them chase you.

Rabbit Product Design helps you:

  • ✅ Build a manufacturable product

  • ✅ Create high-converting packaging

  • ✅ Establish a memorable brand

  • ✅ Test your product with real customers

  • ✅ Generate sales and traction—the real currency of licensing

Once you’ve got traction, licensing deals become way easier, and more valuable.

Although if you got to this point, why would you want a 2 - 3% royalty payment, when you can get 200% - 300% profit margin or more once you scale making real money.

🐇 Let’s Hop Past Licensing and Get You to Market

You don’t need a licensing fairy tale. You need a real strategy, and the right team.

👉 Schedule Your Free Product Strategy Session Now!

We’ll show you how to bring your idea to life, build your brand, and launch with confidence.

🔒 No obligation. Just smart advice that saves time, money, and frustration.

I Understand That When I Act Now, I will receive a copy of the FREE Patent Guide by email and see if I qualify for a Free Consultation with one of Rabbit's co-founders Adam Tavin.

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