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Bringing Product/Idea to Market with No Capital...???

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Chew_Bear

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New to the Forums. Just a curious guy that has a knack for entrepreneurship and being my own boss. I am always thinking about new ideas for things.

So...Say I have a great product/invention (working model/prototype) that I know will make money and make customers happy in my intended industry/customer base. But...I don't have the Capital to start up my own LLC, business license, store or factory.

So...I decide its better to 'SELL' my product/invention to a major/prominent manufacturer/brand that is already established in the industry.

Therefore...Do I...

A. Sell my product/invention for a 'LUMP SUM' and call it good and move on...???

...Or is it better to...

B. Set up a 'ROYALTY' Contract/Agreement/Program where I get a certain percentage of the sales from every unit of the product sold...for how ever long the product maintains its popularity and/or is requested to be made based upon supply and demand...???

e.g. 50% of sales for 1st year, 25% for the second year, 12% for the 3rd year and so on for how ever long the product maintains shelf life/popularity.

Which option would I stand to make the most money...?

I take it if you have a product that is really worth while and you think its popularity is going to stay for a long time in the intended industry/market...Would the Royalty option make more sense for making the most money...?
 
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