need advice on selling my design

[nimonia]

hi guys, i would like to know if i am to sell my design.. (a car accessory) wat should the terms be and how much should i sell the design for if it would be massproduce about 1000 unit monthly. for your information it is my first deal... any suggestion or comments would be much appreciated.. thnx

additional info:

selling price per unit in the market: +- 50 USD

[T.Jackson]

Do the math’s. (1,000 x 50USD) = 50K gross p/month. Total volume? Do they plan on say 12 months of production? (12 x 50K) = 600K.

Plus...

1. Estimate how much profit they would make from the total volume.
2. What are the risks involved? Sure winner or big gamble?
3. Are they doing you a favor by offering to purchasing the design?
(is it really that good)

Out of interest, the guy who programmed PAC MAN for the Atari 2600 received something like $20K for it. Atari made something like $5M profit.
Atari took the risk, but Atari should have also paid royalties after discovering the success of the game. In my opinion, he really desreved about $250K.
(He was not an Atari employee, it was out sourced)

Best Regards,
Trent Jackson

[Archangel]

I attended a class presented by Mike Rounds, one of the developers of Teddy Ruxpin. He sold a disk with contracts and such to help you try to sell your idea, he stated in the class the average royalty was 3%, I do not remember if that was gross or net, I think it was gross.
JS

[T.Jackson]

I attended a class presented by Mike Rounds, one of the developers of Teddy Ruxpin. He sold a disk with contracts and such to help you try to sell your idea, he stated in the class the average royalty was 3%, I do not remember if that was gross or net, I think it was gross.
JS

3% makes a lot of sense huh. I mean like; without the idea they would have 97% of nothing. These business people are ruthless. Passionate about seeing the rich get richer and the poor get poorer. On the other hand, the people behind all of the magic, the designers who come up with the ideas are genuinely just passionate about their work.

Few years ago I often wondered what exactly would motivate someone to create a virus. I now know the motivation behind it. My advice: if you have a seriously good idea, keep it to yourself until you can personally fund it.

Don't ever trust anyone

Trent Jackson

[sayzer]

Patent your product first.
Use your patent as your weapon, sign a contract with a manufacturer and have your share on the paper.


OR wait for years and years to collect the fund you need and when you are just about to be there to manufacture AND market your product, go and buy it in WallMart for 10 bucks.


-------------

[T.Jackson]

Patent your product first.
Use your patent as your weapon, sign a contract with a manufacturer and have your share on the paper.


OR wait for years and years to collect the fund you need and when you are just about to be there to manufacture AND market your product, go and buy it in WallMart for 10 bucks.


-------------

I see flaws with patents. For starters they mean nothing to Korea. They will manufacture anything. Regardless. If the idea isn’t entirely distinct, someone gaining word of it could possibly embark on modifying it to avoid infringement. With some applied creativity, and the fact that they may actually be on the other side of the World, they may just succeed! (The whole things a hard call in all respects)

Best Regards,

Trent Jackson

[Archangel]

it is my first deal... any suggestion or comments would be much appreciated.. thnx

additional info:

selling price per unit in the market: +- 50 USD

You got an Angel ready to buy? He looking for more automotive devices?
I got a couple.
JS