Not all licensing deals are done for the financial reward. What!? Yes, that is correct. There are plenty of deals that can and should be done to help expose your brand, increasing its perceived value and longevity. Such deals may increase revenue in your core business, and frequently lead to incremental increases in revenue across your licensed products portfolio.
An extremely important benefit of licensing your brand is the increase in market value you get with minimal risk attached to it. The increased connections with current or new consumers has an intangible value which needs to be considered for both building brands and established brands. Turning new buyers into fans or brand ambassadors that use the power of word of mouth can help build not only brand equity but also increase revenues in your primary business.
Consider the top five ways licensing can help grow your audience:
- New Product Categories: You know what you know, let a licensee know what they know and help bring your brand into new product categories you can’t or don’t want to do. This is a great way to introduce new fans that may not currently be buying your primary product.
- New Sales Channels: There are so many ways to go to market. Licensing can help get your brand in a new sales channel that again exposes it to new consumers.
- New Regions: Sub-Agents are a great way to do this for global reach. Even if you are a regional domestic brand, licensing can help create reach into new regions you are not in.
- New Marketing Initiatives: Licensee’s can expose you to new marketing platforms you may have never used. Establishing a good relationship can help educate you, and, more importantly, introduce your brand to new consumers to whom you are not marketing.
- New Partnerships: Brand collaborations are a great way to showcase your brand to new audiences, while establishing its value. This can be especially meaningful as trends cycle and your brand finds itself in a downturn.
Revenue is only one benefit your brand gets from licensing but shouldn’t be the only focus. If revenue is all you look at, your strategy may miss the big picture benefits that licensing provides your brand and organization. Creating a long-term licensing strategy will make you confident that you have the right plan in place to grow your brand.
Ready, Set, Strategize!