For a manufacturer, what are the primary benefits of licensing?
Depending on the type of property you are considering, the benefits differ. For example, the benefits of obtaining the license for a well-known corporate brand name are different than licensing a typical character/entertainment property. Both offer benefits, but the value of the benefits vary from property type to property type. If managed correctly, licensing can be a tremendous sales and marketing tool. As a licensee, a clear understanding of the licensing business and its potential benefits will help you formulate a winning licensing strategy. What are some of those benefits? • If executed properly, licensing should help you generate additional sales. Not only will a licensed product sell on its own merits, but often, it will help manufacturers sell the rest of their line by using marketing and merchandising leverage. • Margins can often be improved with licensed goods, even with a royalty tacked on. • Licensing can help you build additional exposure and awareness for your brand and
