Follow up Interview with Lesley Dewar over one year later – A Born Entrepreneur and “Retired” Financial Planner Launches Yet Another Business

Follow up Interview with Lesley Dewar over one year later – A Born Entrepreneur and “Retired” Financial Planner Launches Yet Another Business: http://storiesmynanatells.com
by Andrew R. Spriegel
December 5, 2010

It is hard to believe but it is almost 2011!  In June of 2009, I did a story on Lesley Dewar a retired financial planner and so much more.  At that time Leslie Lesley launched “Stories My Nana Tells” as a new online publishing service for parents and grandparents of 7 year old to 12 year old children.

Here is a follow up interview with Leslie to see how things are progressing:

When I first retired and had a great party, I was interviewed by Andrew Spriegel, a friend on LinkedIn.  He wrote a great blog post and now, after nearly eighteen months, has come back to see how we are progressing with our new venture Stories My Nana Tells

Andrew Spriegel: Is your business progressing as well as you had expected (ups and downs)?

Lesley Dewar: The business is going about as expected, but was slow to get started for reasons that will become clear.

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Andrew Spriegel: What have been the Ups and Downs?

Downs:  I had a frozen shoulder (left arm, am left handed) and could not touch a keyboard for almost five months in mid 2010 – so, I could not write my stories. I was in unbelievable pain, that totally prevented me from driving or working for weeks on end.

I had my arm in a sling for three months, tried hypnotherapy; acupuncture; steroid shot; it took ten months to regain full movement of my hand, arm and shoulder.

Followed by recurrent hernia that required surgery (bigger than expected) which kept me laid up for another two months. I was on crutches for a while. So, we are about twelve months behind on the business plan.
1. Ups: Built a following of 10,000+ on twitter while I was laid up – could tweet with one finger on right hand – spent hundreds of hours on line while not able to do anything else. My iPhone and Twitter saved my sanity, I am sure.
2. Ups: Found a great friend in Mike Haydon (http://twitter.com/mikehaydon ) who is also on LinkedIn. He supported me through all the pain, frustration and learning, until we could actually build the website and start putting up my stories.
3. Ups: Wrote an eBook entitled Networking To A Plan  for which Peter Taliangis has written a recommendation and Mike Haydon did the webpage. The eBook has been downloaded many times through the internet. It is so popular we had to give it its own domain.
4: Ups: Have set up the website for my new business Stories My Nana Tells at Stories My Nana Tells and we have excellent feedback on the stories.
5: Ups: Have a dedicated Facebook URL for Stories My Nana Tells and we got that up and running in less than three days.  It was a very quick process to get its own URL and that led to me writing the next book. Facebook Page: Stories My Nana Tells
6: Ups: The delay in getting the business online gave us time to change our business model and lengthen the expected client life (family as opposed to individual child) from 2.8 yrs to 4.2 yrs).
7: Ups: Have just written a new eBook on Facebook that has been submitted to them for vetting – because we have included a wide range of screen shots of my own pages. It has already been reviewed and received some good recommendations.
8: Ups: Have presented my first two speeches as a public speaker, after joining the National Speakers Association of Australia. Both were very well received and I have had some enquiries from interstate, too. Blogged about one at Surviving Death By Power Point
9: Ups: Fantastic LinkedIn Networking meetings, that have strengthened my brand and given me access to great resources. Particularly those organized by Peter Taliangis and Derek Ford
10: Ups: Have shot off on a couple of trips in Australia, to an art exhibition, to Darwin and to see Lake Eyre in flood, that have given me great material for writing my stories.
11: Ups: I am now writing for the new ABC Technology website once a month, as the “Silver Surfer” – lots of fun and good exposure. Love writing short techie articles with helpful hints for people to learn how to get more out of the web. This is one ABC Silver Surfer
12: Ups: I am alive and very well.  Every day above the ground is a good day and I have a great network both on line and in the social world.

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Andrew Spriegel: What have been your successes and failures so far?

Lesley Dewar: 

Successes: Getting started on public speaking; launching the Stories My Nana Tells website, getting a dedicated Facebook business URL and writing two books.  Getting excellent feedback on the stories I have written already; building a good online reputation; doing story reading in libraries; working with environmental groups on social issues; setting up a networking group on Ning called No Tall Poppies ( No Tall Poppies Network )  and continuing to write for a quality local Perth magazine.

Failures: None that come easily to mind, except that I probably don’t get enough sleep. The website was launched to meet a deadline and we need to fine tune it – didn’t have time to do much A/B testing. I don’t really regard that as a failure – Mike Haydon and I did awesome work in ten days to have the site ready to go.

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Andrew Spriegel: What have been Lessons learned?

Lesley Dewar: Be prepared for critics who fail to see or appreciate the time, effort and work done behind the scenes when success looks to have been achieved too easily. Don’t let online comments derail you from your purpose. The sign-up page on the website needs a more “streamlined” approach – more in line with traditional website landing pages and Mike Haydon will be doing that for us in the next week or so.

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Andrew Spriegel: Would you do it again?

Lesley Dewar: In a flash.

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Andrew Spriegel: Please tell me about your grandchildren.

Lesley Dewar: Mine are all grown up, so I mostly talk to other people’s grandkids. Have had a few ask me (on line) to be “their nana”. We are a great blended family though and I will see them all at Christmas and over the Holidays. I have several great Grandchildren and have attended a couple of 21^st birthday parties for grandchildren – so, I am an “older” Nana.

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Andrew Spriegel: Do you have any other points of interest for my blog’s readership?

Lesley Dewar: If you intend to use online distribution for your product or service, make it your business to understand your medium. Know how it works, how to get the best advantage out of it. Have good resources (people and systems) to help your business grow. Follow sound business practices (opt-in mailing lists, no spam, quiet demeanour online, interact, support others, network well). Strongly recommend using LinkedIn groups online and offline. Be consistent in your business behaviour and patterns. Have a sound business profile, with different interests and activities. Share your knowledge. Learn the rules and obey them. Generally speaking, be a good corporate citizen.

Andrew, it is terrific to hear from you again. Try me again in six months. We will be knocking them dead!

If you would like to read the original story, you can link to it here What A Party!

The inevitable decline due to clutter

The inevitable decline due to clutter
By Seth Godin

Digital media expands. It’s not like paper, it can get bigger.

As digital marketers seek to increase profits, they almost always make the same mistake. They continue to add more clutter, messaging and offers, because, hey, it’s free.

One more link, one more banner, one more side deal on the Groupon page.

Economics tells us that the right thing to do is run the factory until the last item produced is being sold at marginal cost. In other words, keep adding until it doesn’t work any more.

In fact, human behavior tells us that this is a more permanent effect than we realize. Once you overload the user, you train them not to pay attention. More clutter isn’t free. In fact, more clutter is a permanent shift, a desensitization to all the information, not just the last bit.

And it’s hard to go backward.

More is not always better. In fact, more is almost never better.

Interview with Inventor and Patent Attorney Andrew Spriegel about the Portion PadL

By Tara1 | Published: December 1, 2010

My thanks to Inventor and Patent Attorney Andrew Spriegel for agreeing to an interview with me about his business partner Greg Getzinger’s invention the Portion PadL and how together they brought the product to market. The Portion PadL was invented to enable pizza businesses to quickly and easily slice pizzas into equal pieces. The Portion PadL is available for both commercial and home use.

Tara: Please could you tell me a little bit about yourself, where you are based and your career background?

Andrew: I worked most of my career as a Manager or a Lead Senior Electro-Mechanical Engineer for Fortune 100 companies, GE, IBM, Lockheed Martin, Invacare and others.  My experience involves a wide range of products, satellites, locomotives, off-highway vehicles, medical durable goods, surgical devices and consumer goods.  I have many US and international patents and had made a lot of money for other companies.  At 48 years old I decided to go to law school to become a patent attorney and commercialize my own products and other’s products.  I now own a patent law firm (www.Smart2Patent.com) and own several businesses commercializing products.

Tara: Is the Portion PadL the first invention you have bought to market?

Andrew: No, I had brought numerous products to market prior to the Portion PadL.

Tara: I understand that the original idea for the Portion PadL was invented by Greg Getzinger with whom you are now in business. Please could you tell me a little bit about Greg, how he came up with his invention and how the two of you connected and set up your business?

Andrew: Prior to owning a pizza business (Pizza BOGO, www.pizzabogo.com) ), Greg was a Vice President for a large Insurance Company.  He developed the equal slice pizza cutting board (Portion PadL, www.PortionPadL.com) for his business to develop school and institutional accounts.  He heard complaints about unequal size slices of pizzas and worked on developing a solution for the problem.  Greg and I met at a networking event that his group was having at the building where my law firm is located.  It was a chili cook-off and Greg brought in a “chili pizza” on one of his prototype boards.  I saw the board and I asked him if it was patented and said that if it wasn’t it would be a great product to patent and commercialize.  We formed NuVo Grand, LLC as equal members.

Tara: Did you start with working drawings of the product or did you make a prototype?

Andrew: Greg built numerous prototypes (20+) of the equal slice pizza cutting board.  He was trying to perfect the cutting board for his business.  He did not have drawings, rather his father-in-law was making various designs based on Greg’s dimensions.  Greg tried numerous materials, sizes, grooves…

Tara: How did you go about protecting the invention?

Andrew: I have written two utility patents on the cutting board and I am working on a third utility patent.  We are building up a lot of intellectual property around the product.

Click here to see Video

Tara; Were there any mistakes, issues or problems you both experienced in the process of commercialization of the idea?

Andrew: Actually it has gone very smoothly.  Greg and I seem to compliment each other’s skill sets.  Greg is great at sales and marketing and I knew how to have the product manufactured, the manufacturers, the processes and protecting intellectual property.  I spent my career commercializing complex products very quickly and therefore I help inventors avoid the mistakes made by the typical inventors. Greg did encounter a big snow storm delivering materials to the manufacturer…a two hour trip turning into a twelve hour ordeal.

Tara: Did you consider licensing the invention or did you always plan to manufacture it yourself?

Andrew: The only products that I pursue are patentable, simple, revolutionary and either we can manufacture or have someone manufacture, preferably one at a time.  I prefer to take an order and then manufacture the product, that way you get to positive cash flow quickly.  Inventors often run out of money because they buy large quantities of product to get a good price on the product and they wind up with a garage full of product they can’t sell.

In my experience, licensing a product is a difficult thing to do.  Either you don’t get a deal, someone attempts to steal or design around the product or you get offered pennies on the dollar.

If you can manufacture and sell the product you start to “take away market share” and companies sit up and notice.  At that point if you sell or license the product you get a much better deal.

Tara: How will you go about marketing and publicizing your product? Do you intend to sell the product direct to businesses and public yourself or are you planning to wholesale it?

Andrew: Greg started marketing the product to large companies right away.  He has a real talent for sales.  Greg knows that it takes a lot of “no responses” to get a single yes.  Now our customers are Domino’s, Schwan’s, Speedway, Piccadilly Circus Pizza…and many Mom and Pop pizza shops.

I built the website www.PortionPadL.com and work with bloggers and social networking to build the brand.  If you Google “Portion PadL” we are the main listing for about the first six pages.

Tara: How long has it taken from Greg’s initial idea to where you both are now with the business?

Andrew: We have been working together less than a year.

Tara: What advice would you give to an aspiring inventor who thinks they have a good idea?

Andrew: We all love our own ideas, you have to determine if there is a market for the product.

Here are some of my key decision factors:

• 1. Is the product Protectable? (Patent, Trademark, Copyright…)
  • a. If you have a great product and it is not protected people will copy it fairly quickly.
  • b. If you can’t protect the product I wouldn’t bother commercializing it
    • i. However, there are products that sell very well such as the Snuggies, the Amish Fireplace…but those products have been successful because of large ad campaigns
  • c.    The Portion PadL is protected by numerous Utility Patents Pending so it’s met that key decision factor
• 2.    Is the product Revolutionary?
  • a. If it meets “a need” it is likely a commodity
    • i. People can listen to music on a large number of MP3 players
  • b.    If it meets “a want” it is likely Revolutionary
    • i. The iPod is the product that people want to listen to music on and therefore they have the largest market share.
  • c. The Portion PadL has numerous advantages over the existing products that assist people in cutting and therefore it is a “want” product.
• 3. Can be manufactured “one at a time” until you have volume orders?
  • a. In the initial stages of commercializing the product we bought a full sheet of Richlite and when a customer ordered one we had the manufacturer make one and ship it.  That way we got to positive cash flow quickly.

Tara: What advice would you give to an inventor who has already developed and manufactured their product and are now looking at ways to publicize and market it?

Andrew: If they don’t have the expertise get help.  Many inventors have a great idea or product but they get in their own way because they have no idea how to sell it.  The product fails not because of the product but because the inventor cannot let go of controlling everything.

Tara: You have started creating a series of books for inventors chronicling the journey of inventors from invention idea to commercialization, perhaps you could tell me a little more about what you hope to achieve with the books?

Andrew: The series is called the Spilled Coffee Chronicles of Invention. I have several writers documenting inventors progress in commercializing products.  I have a high success rate in commercializing products and the books will help inventors avoid the many inventors pitfalls.  The books describe the successes and the failures along the way.  The volumes are just starting to be published but the first volume for the Portion PadL is on Kindle and Amazon at: http://tinyurl.com/2wspqrh and http://tinyurl.com/36ypa6a, respectively.  The books are also written to dispel many of the myths around inventing.  It is not a get rich quick thing, it takes hard work and persistence.  The books generate income for the inventors, the writers, myself and for reinvesting in publishing the series.

What does a Business Broker do and why do I need one?

What does a Business Broker do and why do I need one?
Kelcey Lehrich
11/29/2010

Sometimes referred to as business intermediaries, business brokers are professionals who bring together buyers and sellers of privately owned companies.  Typically the client businesses of a business broker are Main Street businesses or middle market companies with revenues of less than $ 10 Million and values of less than $4 or $5 Million.  Business brokers negotiate sales of business ranging from manufacturing or distribution companies to neighborhood restaurants or even revenue generating websites and other intellectual property.

There are typically four main reasons why a business owner would enlist the services of a business broker when looking to sell a business: Pricing, Confidentiality, Marketing, and Time.

Business brokers understand how to price businesses for sale.  There are three main ways businesses are valued or appraised and a business broker can help you determine which method is most applicable to your business and where you should set your asking price compared to those values.

Business brokers understand how to maintain confidentiality during the sale process.  If a business owner puts a “for sale” sign in the front window of his establishment it won’t take long for customers, suppliers, and employees to head for the exits.  Buyer prospects need to undergo a strict screening process and sign confidentially agreements before a business broker will release the details of your business.

Business brokers know how to market business for sale opportunities through a variety of venues; and the smart ones know that today the best venues are online.  There are dozens of strategies to market an opportunity.  When hiring a business broker to represent your business be sure to ask them how they’ll be attracting buyers to your opportunity.

Business brokers know how to respect and protect your time.  Industry statistics tell us that less than 3% of all buyer inquiries on a business for sale ad every purchase a business and most that do won’t purchase the first business they inquire on!  Having a third party interview and screen buyer candidates will save you a lot of time so that you can continue to work on your business while it is for sale.  On average business sales can take 6-18 months to close from the time the listing agreement is signed.

About the Author:

Kelcey Lehrich is a business intermediary with Confidential Business Sale which has offices in Cleveland, Pittsburg, and Detroit.  In addition to his work with Confidential Business Sale Kelcey also works extensively as a consultant in the franchise industry.  Kelcey’s work in franchising includes franchisor development, sell-side franchise sales, and buy-side franchise consulting.  Lastly, Kelcey is also an Area Director for AmSpirit Business Connections, a national business networking organization that assists sales representatives, entrepreneurs, and business owners succeed by creating a forum where they can exchange qualified referrals with other professionals.

On becoming a household name

By Seth Godin
May 24, 2009

The guidance office at the high school has a big poster for Wellesley College hanging by the door. It’s just a picture of a building, no features, no benefits, no text at all.

Kids apply to schools (a quarter of a million dollar investment) for crazy reasons. A big one: “Well, I’ve heard of it.”

Gonzaga University features basketball players on their home page. No doubt a few people attend to play basketball, but my guess is that the school believes that the fame of their school will somehow get someone who doesn’t play to attend.

It’s completely irrational and it’s also what your customers do every day.

Being a familiar name takes you miles closer to closing a sale. People like to buy from companies they’ve heard of.

It turns out that this is an overlooked benefit of banner ads. Banner ads are fairly worthless in terms of generating clickthroughs… you have to trick too much and manipulate too much to get clicks worth much of anything. But, if you build ads with no intent of clicks, no hope for clicks… then you can focus on ads that drill your name or picture or phrase into my head. 100 impressions and you’re almost famous.

Go to Article by clicking here!

Can You Be Your Own Boss?

Robin Ryan, Author of ’60 Seconds and You’re Hired’

Many of us fantasize about owning our own companies.  Nearly one million new businesses are launched each year, but more than 85 percent will close within five years. There are some key indicators of who will be most effective as owners.  Take this quiz to help you determine if you have the burning desire, discipline and resources to become your own boss.

Are you a self-starter?
It will be up to you, not someone else, to develop the business, organize the projects, manage your time and follow through on details.

Can you handle the uncertain financial risk?
Businesses all have cycles, the ebbs and flows in profitability.  Once it’s started you’ll have overhead and operational expenses that must be met before you get paid.

Do you have good business skills?
You must attract customers.  New and repeat customers are the lifeblood of your business. You must possess or learn these skills — accounting, business planning, operations, sales, marketing and customer service — to survive and succeed.

Click here to go to full article

5 Gadgets Which Changed Millions of Lives

5 Gadgets Which Changed Millions of Lives
Soumya Sinha
December 29th, 2008

Gadgets sizzle and gadgets glitter. But beyond all these shiny eye candies, going far away from the limelights of Apple, Nokia, Philips’ and Dell, a few good men have tried something for the have-nots, for people who can not even watch the internet because they either don’t have the facility or can’t, for them who don’t take gadgets as mere electronic boons but a source to live the life in a better way. So, today, we will salute such five inventions (some of them may be very old) which have made millions of lives easy and better.

1. DIY adjustable glasses

Josh Silver has embarked on a quest that is breathtakingly ambitious, but which he insists is achievable – to offer glasses to a billion of the world’s poorest people by 2020.

Silver has devised a pair of glasses which rely on the principle that the fatter a lens the more powerful it becomes. Inside the device’s tough plastic lenses are two clear circular sacs filled with fluid, each of which is connected to a small syringe attached to either arm of the spectacles.

The wearer adjusts a dial on the syringe to add or reduce amount of fluid in the membrane, thus changing the power of the lens. When the wearer is happy with the strength of each lens the membrane is sealed by twisting a small screw, and the syringes removed.

When asked about the magnitude of the project he is in and whether he will be able to reach the goal, the inventor answered, things are never simple. But I will solve this problem if I can. And I won’t really let people stand in my way.

God bless you sire.

To read more about this, read this article

2. Wind-up radio

Invented by Trevor Baylis, the crank-powered device brought radio to remote villages and was inspired by the need to disseminate information about AIDS. Millions of people got some entertainment at least. In his workshop at home he experimented with a hand brace, an electric motor and a small radio. He found that the brace turning a the motor would act as a generator that would supply sufficient electricity to power the radio. The addition of a clockwork mechanism meant that a spring could be wound up and that as the spring unwound the radio would play. His first working prototype ran for 14 minutes on a two minute wind. Trevor had invented a clockwork (windup) radio!

3. Solar Cooker

Solar cookers never needed an acknowledgment for the benefits it has reaped in million of homes. The main agenda that solar cooker inventor and pioneer Barbara Kerr had while making it is simple and comprised of 7 programs.

1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Ensure environmental sustainability
7. Develop a global partnership for development

The 3 most common solar cooker designs are parabolic, box and panel cookers.
(1) Parabolic Cooker: The sun’s rays are captured in a reflector which focuses them at a point under a pot. The effect is like a stove top burner or a campfire. Temperatures can reach above 400 degrees Fahrenheit, hot enough to fry food.
(2) Box Cooker: The sun’s rays are received in an insulated black box with a transparent lid which lets in the sun’s rays. Inside the box, this sunshine turns to heat which is trapped in the box. The effect is similar to the oven in your kitchen. Temperatures can reach around 300 degrees Fahrenheit.
(3) Panel Cooker: A combination of the two systems which is portable and less expensive. Temperatures can reach around 250 degrees Fahrenheit. (This is ample because cooking begins at around 180 degrees Fahrenheit.)

Thanks to them that so many people can at least cook their food for free. No fuel cost.

4. LifeStraw Portable Water Filter

An amazing and innovative product that I came across the other day is called the Lifestraw. The Lifestraw is a cigar sized portable water purification instrument that purifies water and removes potential pathogens such as cholera, dysentery, typhoid, and diarrhea.  Working much like a straw, the water is purified and clean by the time it hits your lips.

Originally designed for the 1.1 billion people in the world without access to clean drinking water,LifeStraw has become and growing each day to be the absolute need of people who don’t even have water suitable for drink. Thanks to LifeStraw that the thirst is now quenched for many.

5. The XO OLPC Laptop

A textbook-sized computer with built-in wireless and a screen that is readable under direct sunlight. It was designed with extreme environmental conditions such as high heat and humidity in mind. You must be wondering why is a laptop included in this list! This may be yet another laptop but the motive behind is not like other MNC’s consumer grade policies. OLPC is a project that says one laptop per child. So one laptop you buy gives one laptop to a young brain who could never have bought it by his own. You can not but feel proud at the end of the day.

Conclusion

These five initiatives/ inventions helped goodwill and technology walk hand in hand. Millions of people got a different way of life through them. Do you have anything like this to share? Do you want to help them too? Write to us. We will be glad to help you stretch your hands to theirs. After all, beyond the glitz and tech, we have a mind that is still humane and feels for others, no? Take care.

[information source: guardian.co.uk]

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You are after 12 Emotional Marketing Keywords

You are after 12 Emotional Marketing Keywords

The following are 12 of the most powerful words in the English language – proven to attract attention and stir emotion within the reader.

You

Save

Results

Health

Love

Proven

Money

New

Easy

Safety

Discovery

Guaranteed

Try to use as many of these words in your sales and advertising copy and watch them generate more inquiries and sales

* Yale University Research

Invention Success Rates | Odds of Inventor Success

Invention Success Rates | Odds of Inventor Success

  

What percent of inventor ideas are successful? What percent of patents make money? What percent of inventions are commercialized?

“I’m a risk taker. I get up in the morning knowing that I’m either going to have a spectacular win or loss that is going to be exciting. I prefer theformer but either is more appealing than the warm death of mediocrity.  ”Dean Kamen, Inventor of the Segway human transporter 50% – 1 out of 2.  Earthquake odds. Chances of a major earthquake striking the San Francisco Bay area within the next 30 years [1989 + 30 years = 2019].  “Last week’s shattering earthquake may one day be remembered as a dress rehearsal for the Big One — a cosmic temblor that, according to seismologists, has a 50 percent chance of striking the Bay Area within the next 30 years.”  (Newsweek, October 30, 1989, p. 28) “He who doesn’t take risks, doesn’t drink champagne.”
An old Russian proverb

“I could be living in the French Riviera.  But I like hanging out with my friends.”
T. Dosho Shifferaw, Inventor of the Bowflex

“In truth, odds are stacked astronomically against inventors, and no marketing outfit can change them.”
Richard Maulsby
Director of the Office of Public Affairs,
U.S. Patent & Trademark Office

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90% of an invention’s success is marketing it and getting it out.  “[T]he idea is about 10 percent of this exercise; 90 percent of it is the marketing of it, getting it together, getting it out.” (Richard C. Levy, inventor of Furby quoted in Liane Hansen, All Things Considered (NPR), “Profile: Independent toy inventor Richard C. Levy,” June 18, 2002)

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99.9% fail – 1 out of 5000 inventions have successful product launches.  “[E]xperts estimate that 1 out of 5,000 inventions have gone on to successful product launches.”  Invention success rate.  Percent of inventions that fail. (Williams-Harold, Bevolyn, “You’ve got it made! (developing invention ideas),” Black Enterprise, June 1, 1999)

99.9% fail.  Only 2 products are launched out of every 3,000 ideas.  “Out of 3,000 ideas, for instance, only about two products are ever actually launched — and only one of those succeeds, says Greg Stevens, president of WinOvations, a new product research and consulting firm in Midland, Mich.” What percent of inventions become commercially successful? (Jeannie Mandelker, Reporter Associate: Anne Ashby Gilbert, Marketing, Your Company, pp. 54+, October 1, 1997)

99.8% fail.  Only 3,000 patents out of 1.5 million patents are commercially viable. “In truth, odds are stacked astronomically against inventors, and no marketing outfit can change them. ‘There are around 1.5 million patents in effect and in force in this country, and of those, maybe 3,000 are commercially viable,’ [Richard Maulsby, director of the Office of Public Affairs for the U.S. Patent & Trademark Office], says. ‘It’s a very small percentage of patents that actually turn into products that make money for people. On top of all that, to get ripped off for tens of thousands of dollars adds insult to injury.”  What percent of patents make money?  How many patents become products?  Percent of patents commercialized.  Percent of patents that get approved.  (Richard Maulsby, director of public affairs for the U.S. Patent & Trademark Office, quoted in Karen E. Klein, Smart Answers, “Avoiding the Inventor’s Lament,” Business Week, November 10, 2005)  

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Why is there such a high inventor failure rate?  Why do most inventors fail to get their product to market?

 

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99% fail. 1 out of 100 ideas make it.  The reality is that “for every successful business, you have probably 100 ideas or more.  The one out of a 100 that makes it to market, their success rate isn’t that great either.”  What is the probability of becoming a successful inventor?  (Robert D. MacDonald, Entrepreneur Consultant, Lake Oswego, Oregon, “Oregon Ranks No. 8 In Nation In Inventors,” The Columbian, January 9, 1998)

98% fail.  Only 2% earn significant dollars.  What percentage of patents succeed?  “According to the U.S. Patent and Trademark Office, approximately 2 percent of patents earn significant dollars for their inventors.”  Patent success rates.  Patent odds of success. What percentage of inventors make it? (Susan Glairon, “Boulder, Colo., Inventors Find Joy in Journey from Idea to Product,” Knight Ridder/Tribune Business News, April 17, 2000)

97% to 98% fail – “[O]nly 2 to 3 percent of registered patents ever make it to the market.”  Percentage of patented inventions that make it in the marketplace  Chances of invention making money.   (Stuart West, intellectual property lawyer based in Walnut Creek, California quoted in Marton Dunai, “More inventors try to market products,” Oakland Tribune, September 5, 2006)

95% to 97% fail – Only 3 to 5 out of 100 inventions succeed.  “It is universally accepted that out of every 100 inventions, only three to five will succeed commercially.”  Percentage of inventions that succeed.  Patent commercialization success rate.  (Yeang Soo Ching, “Reaping rewards from inventions,” New Straits Times, December 24, 2000) 

95% fail.  Less than 5% of patents are commercialized.  “And less than 5 percent of the patents received by small inventors culminate in a commercial product.”  Percent of patents commercialized.  Odds of success for independent inventors.  Statistics of odds of independent inventor patents being commercialized.  (Sougata Mukherjee, South Florida Business Journal, June 8, 1998)

1 out of every 20 or 25 ideas becomes successful.  “Only one of every 20 or 25 ideas ever becomes a successful product — and of every ten or 15 new products, only one becomes a hit.”  (Thomas Kuczmarski, Kuczmarski & Associates, Chicago consultant specializing in innovation,  Fortune, 12-2-91 pp. 56)

95% fail – Only 5% earn money.  “It’s been reported, without confirmation, that worldwide, only 5% [five percent] of all patented inventions ever earn any money for their inventors.” (Business Daily, Philippines, November 27, 1998)

95% fail – Only 5% of independent inventor patents are produced in the marketplace.  “Independent inventors …are responsible for 15 percent of all U.S. patents. Fewer than 5 percent of those patents are ever produced in the marketplace.”  Percentage of independent inventor inventions that make it in the marketplace.  (Tim Lemke, “Invention + market savvy = successful product”, The Washington Times, April 16, 2001)

95% of all new products fail.  “But the market can’t absorb that many new ideas, and an estimated 95% of all new products fail. In part, this reflects the way many new products come about.  Individual inventors often work outside corporate structures, have limited product-development funds and are unfamiliar with industry standards and practices.” Success rates for independent inventors. (Caryne Brown, “Making money making toys: how black inventors are bringing innovative ideas to the toy market”, Black Enterprise, November 1, 1993)

6% probability of commercial success for independent inventors.  “The probability of commercial success for inventions developed by independent inventors was determined to be exceptionally low: 6.5% ([+ or -] 0.7%).” Probability of a successful invention.  How many inventors succeed?  (Thomas Astebro, “Basic statistics on the success rate and profits for independent inventors”, Entrepreneurship: Theory and Practice, December 22, 1998)

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90% fail.  Only 10% of those who make prototypes end-up making money.  Brian Miller, PRe Plastics’ director of operations, saiabout 10 percent of inventors who come to him leave with a mold, and about 10 percent of those people make money.  ‘They have to survive the cost of the mold. Very few inventors who come through the door get the mold done, let alone find success.’”  Success rate of inventions and prototypes.  (Brian Miller of PRe Plastics quoted in Thuy-Doan Le, “Entrepreneurial spirit starts to pay off for Sacramento, Calif.-area inventor,” The Sacramento Bee, December 12, 2004)

80% fail.  1 out of 5 succeed.  “Typically, small manufacturers experience about five failures for every one success.” (By Courtney Price, “Outsourcing helps inventor bring product to market, Denver Rocky Mountain News, November 2, 1997)

76% fail.  Percent of cases lost by patentees in doctrine of equivalents cases.  “By far the most dramatic finding of our study is that patentees rarely win doctrine of equivalents cases. Overall, patentees won only 24% of the doctrine of equivalents cases decided in the last eight years. Compared to the overall patentee win rates on other issues — 54% on validity alone in cases at various stages of litigation, (51) and 58% overall in cases that make it to trial (52) — and the baseline assumption in the economics literature that plaintiffs should win about 50% of the time, (53) this is a remarkably small win rate for patentees.” (John R. Allison and Mark A. Lemley, “The (unnoticed) demise of the doctrine of equivalents,” Stanford Law Review, February 1, 2007)  Peruse more books by John R. Allison and Mark A. Lemley.

75.6% fail.  Patentees lose 75.6% of the time against accused infringers.  “An empirical study of the results of patent litigation at the appellate level during the period 2002-2004. Dispositive case results, i.e., those not involving a remand on the merits, are compiled. Patent owners won 24.43% of the cases and accused infringers the remainder. The cases were further analyzed to determine the characteristics of winning and losing parties, including nationality, financial strength, location of principal offices, and several other factors.”   (Paul M. Janicke, University of Houston Law Center and Lilan Ren, University of Houston, “Who Wins Patent Infringement Cases?,” American Intellectual Property Law Association Quarterly Journal, Vol. 34, p. 1, 2006)  Find other publications by patent attorney and law professor Paul M. Janicke.

70% fail – 7 out of 10 new products fail.  “Nearly seven out of 10 new products fail either because no market really existed in the first place.”  (Gary Miller, president and founder of Aragon Consulting Group, St. Louis, Missouri, “’New Coke’ And Other Disasters Can Be Avoided”, Viewpoint, September 22, 1997)

59% fail – 41%. percent of U.S. patent applications were approved in 2006. “Patents themselves don’t come easily. In 2006, the patent office received 443,652 patent applications, but only 183,187 were issued that year.”  183,187/443,652 = 41%.  (Joyce Smith, Business Columnist, “Seeing your invention through: Entrepreneur week helps highlight some success stories of those who dream big,” Kansas City Star, February 27, 2007)

50% to 89% fail – Between 11% and 50% of entrepreneurs succeed in starting a firm.  “Wholly reliable statistics are not available on the likelihood that inventions developed by individuals succeed in reaching the marketplace. Data are limited to those that reveal how many nascent entrepreneurs actually succeed in launching a firm. Reynolds and White (1992) first reported that somewhere between 11% and 50% of all nascent entrepreneurs succeed in starting a new firm. In a later study, White and Reynolds (1994) estimate that between 30% and 50% of all entrepreneurs succeed. Katz (1989), on the other hand, reports that 15% of all nascent entrepreneurs in the U.S. enter self-employment.” (Thomas Astebro, “Basic statistics on the success rate and profits for independent inventors”, Entrepreneurship: Theory and Practice, December 22, 1998)

50% to 80% fail – Failure rate is 50% to 80%.  “Conservative estimates put new product failure rates between 50 to 80 percent, according to the United States Small Business Administration, which cites another discouraging statistic. For every 100 ideas offered by innovators, only five will ever be produced, and only one has even a chance to make money.”  Patent success ratio. Invention failure rate.  (Barbara Bradley, Scripps Howard News Service, San Jose Mercury News, Sunday, February 18, 1990, p. 1PC)

 

99% fail. Only 1 out of 100 patented products make money.  “Even an inventor whose product is unusual enough to receive a patent faces daunting odds. Only an estimated one out of every 100 patented products makes money.” Percentage of patents that make money. Percentage of inventions that make it to market.  (Mimi Whitefield, Herald Business Writer, Miami Herald, February 5, 1996, p. 22BM)

46% fail – Only 54% of patent applications are approved.  “Only 54 percent of patent applications receive approval, according to the patent office.”  Odds of patent approval.  (Julia Feldmeier – Washington Post Staff Writer,, “Any Bright Ideas?; How Local Inventors Try to Capitalize on That ‘Aha!’ Moment,” The Washington Post, March 4, 2007)

40% fail – 60% of patent applications are approved.  About 60 percent of applications are approved. Patent approval odds.  (U.S. Patent Office spokeswoman Brigid Quinn quoted in Thuy-Doan Le, “Entrepreneurial spirit starts to pay off for Sacramento, Calif.-area inventor,” The Sacramento Bee, December 12, 2004)

25% win rate.  Patent owner long-term contested win rate.  “The long-term contested win rate for patent owners varies around 25 percent.” (LegalMetric press release, “LegalMetric Data Of KSR Effect On Patent Owner Win Rates,” eWorldwire, September 12, 2007)

20% – 1 in 5 error rate.  Loan error odds. Estimated odds that an American’s consumer credit reports have loan errors.  “Odds are 1 in 5 that your credit report has errors damaging enought to keep you from getting a loan.  And, says Consumers Union, odds are even greater — almost 50-50 — that your report has an error of some kind.  Lenders rely on credit reports, which show consumers’ records at repaying debts.  Three private companies — TRW, Equifax and Trans Union — compile most of the USA’s consumer credit data.”  (USA Today, April 30, 1991, p. 1A)

Sealing a Licensing Deal for Under $100

From Inventor’s Digest

Editor  Mike.Drummond@inventorsdigest.com

12-Step Program

Sealing a Licensing Deal for Under $100

An excerpt from the upcoming book Guerilla Inventing: An Inventor’s Guide to Getting Inventions to Market without Going into Debt

By Roger Brown

There are two questions that come up any time I talk to inventors. The first is “Do you really get your invention ideas licensed for under $100?”

When I say, “Yes,” the second question is “How?”

This is the route I take for most of my ideas. I do not pay for a provisional patent application or formal patent. I use a non-disclosure agreement (NDA) when approaching a company with a new product idea.

You don’t need a patent or patent application. There are plenty of large and mid-sized companies that will review non-patented ideas. Companies that are interested in my new products pay for any intellectual property protection, if they desire.

Meanwhile, I get inventions to market spending between $10 and $100 (when no attorneys are involved). Other than the opportunity cost of doing research and other preparation, my first royalty check is pure profit. I am not waiting months or years to earn back the thousands of dollars spent on patents, huge presentations that aren’t needed, professional prototypes, or paying fees to invention submission companies before I break even.

Below is my step-by-step breakdown of how I go from conceiving an idea to closing a deal.

Step 1 – The Idea

Inspiration comes in many forms. You can be walking through a store, see a product and have an idea for a better product right off the top of your head.

Continue Reading at Roger Brown’s site ->