Licensing Agent

The licensing agent acts as a go-between, helping a technology-driven company find a manufacturer for its invention. In addition, you help manufacturers or service companies find organizations that offer the technology they need. Th e service provided by a licensing agent is often transnational. For example, you may be fi nding technology for Chinese companies that cannot develop it locally. Licensing agents usually specialize in one industry—shoe products, electronic products, and so on—in which they have developed extensive experience and contacts. Th is way they already know many people on both sides of the street before they start. Some technical competence in the field is required, but this can be gained through experience. The other important quality for a licensing agent is patience. You may work for a long time on several deals, only one of which may pay off .


Equipping your office to produce professional-looking reports and to keep in touch with the rest of the world is the main start-up cost; expect to spend at least $3,000 on that alone. However, considering that your 15 percent is spread across a wide range of potential projects, your earnings could be as high as $100,000.


Becoming a licensing agent is an excellent way for a new entrepreneur to use his or her contacts from a previous line of work. If you have the sales skills, the contacts, and the ability to communicate with the “techie” dreamers as easily as the hard-nosed business types, you can build a successful enterprise. Keep in mind that you will be paid a percentage of the final deal. This can take a long time to bear fruit, and it is essential to have the agreement in writing from the start. There tend to be a lot of disputes if that percentage turns into big money.

Approx. cost of start-up: $3,000 to $6,000


Approx. potential earnings: $50,000 to $100,000


Typical fees: 15 percent of the deal


Where to promote: Association memberships, networking, Web site with client list and testimonials


Qualifications: Sales ability, outgoing personality, confidence, ability to communicate with technical people, the business types, and the manufacturing specialists; extensive experience and contacts in the field


Things needed: Computer with Internet access, fax, copier, laser printer, office furniture, business cards, letterhead, envelopes


Required staff: No


Hidden costs: Insurance, attorney’s fees to draw up contracts