Turn Your Ideas Into Cash

As Vice President of Ideas for InfoMedia, I get asked the following question a lot: “How can I get paid for my ideas?”

Everyone’s got a good idea, and they constantly dream of finding the perfect person who will hand them a briefcase of cash in exchange for that idea. To be honest, that’s just not realistic. Ideas are pretty much worthless, unless you take action on them.

I also know you’ve seen the late night infomercials and classified ads aimed at finding new inventions. Unfortunately, those aren’t realistic either. There’s always a catch, an up-front fee, and you’ll pay thousands before it makes it to the desk (and probably trashcan) of a potential licensee.

So what is realistic?

PHYSICAL PRODUCTS

Well, let’s talk offline physical products first.

If you think you’ve got a great idea for a physical product, the first thing you need is validation that it’s an original idea. The majority of ideas are not new ideas, and after the initial excitement about your “new idea,” a ten-second Google search and then a patent search (google.com/patents) can really ruin your day.

If you don’t find it there, then you need to ask someone in that idea’s niche four questions. 1. Have you seen anything like it? 2. Do you see the value of it? 3. Would you either buy or sell it? 4. What would you buy it and sell it for?

This will help you establish the need, pricing, and market for the product. You can ask them to sign a simple non-disclosure form or confidentiality agreement if you wish, but honestly, the odds of someone stealing your idea are slim. Just don’t sue me if they do.

Luckily, here at Infomedia, our staff is our instant focus group, so once an idea is presented we can get great feedback on it. By the way, most of the time parents, spouses, and friends are not the best choices for feedback. They will not want to hurt your feelings. Want proof? Just watch the American Idol auditions.

Once you’ve established you’ve got an original idea and have solid feedback, the next step is to get some basic protection. There is a ton of information online, but let’s be honest. If you believe in this idea and want to make it happen, you’re going to need a patent/intellectual property attorney.

However, if you’re cheap like me and want some very basic protection, here’s what you do. Write your idea in as much detail as possible and mail to yourself via the United States Postal Service. DON’T OPEN IT! Save it in case you need to establish the original date of your idea later, and see an attorney as soon as economically possible. Once again, I’m not an attorney (just an attorney’s son), so see an attorney first.

The next step is to develop a prototype of your idea. Look for local craftsmen, tool shops, and rapid prototype builders and get them to make a few samples. It’s amazing what can be done with 3D models these days. When you have prototypes, it’s then time to do some research on manufacturing and pricing.

And finally, you have a decision to make. You need to decide whether to create it yourself or license it.

The good news is now that you’ve protected it and done some preliminary work, you’ve increased the odds of licensing your idea by tenfold. If you begin to manufacture and sell it yourself, you’ll increase the odds even more, and probably get a better licensing deal. There are plenty of licensing agents who will look at your products, just look for a reputable one online.

To sum up this section: If you and other knowledgeable people believe in your idea, if it’s not being sold or patented by someone else, and you take the right first steps with it, you have a good chance at a successful product. But it can’t happen unless you take action and do it. You can’t expect to turn an idea into cash unless you do some hard work first. However, your next idea will most likely be a heck of a lot easier.

I also want to mention that you can now use social media tools like Twitter, Facebook, and LinkedIn to find all the people you need to make your product a success.

It won’t be long before someone who tweets, “I’ve got a great gardening invention, can someone help me?” is offered a licensing deal hours later because a licensing agent had a Tweet Alert set up for “gardening invention.”

In fact, the next time I have a good physical product invention, I just may give that a try.

ONLINE PRODUCTS

This is after all an Internet marketing newsletter, so I would be remiss if I didn’t cover the online world of product creation.

Just like with physical products, before you get too excited about your original idea, you need to do some searching to see if it’s been done. The good news about online products is that they are rarely patented or protected. I’m not saying that you can steal ideas, but more often than not when you come across “your idea” online, it’s not making money, is substandard, and has a lot of room for improvement. How do I know this? Because you would have heard of it otherwise.

So if your idea’s been done, it doesn’t mean you can’t do it better. In fact, many Internet marketing products have been rehashed and repackaged dozens of times. However, since the core of this article is turning “original ideas” into cash, let’s move on.

Example: You just came up with an idea for a niche information product or tool that’s very unique and you think you’ll make 100K in two weeks if you create it, or that you’ll easily find a “guru” to go 50/50 with you on it.

Again, let’s be realistic and focus on making a profit first. Just like with a physical product, a “guru” is not going to pay you for your idea, nor are they going to do a 50/50 split with you.

The only time you’ll see a 50/50 split with a big name marketer is if you do 90+% of the work and all they have to do is email their list with your offer. There’s a simple reason for this. A guru can work on his own projects and make 100%. Why work with you for 50%, unless you just built a better search engine than Google?

If you have a relationship with a “guru,” you might want to ask him the same four questions I mentioned above instead of asking for a joint venture. You’ll get honest feedback, and if your product is really unique, you might get pointed in the right direction by that guru. It’s rare that your idea will get stolen, because most gurus already have enough on their plate.

So once you think your idea is sound, the first step to turning an online idea into cash is spending cash to actually create it. With sites like Elance.com, ScriptLance.com, and RentACoder.com, you can find very talented people who will help you create your product. If you need help with a logo or website, check out 99designs.com. Always get feedback from designers and programmers about your product. Remember, they aren’t marketers, but always ask for their input. Chances are they have done similar projects for others.

Once you have the actual product and a nice looking promotional site, you can seek out JV partners who may help take you the rest of the way. Check out warriorforum.com or toponenetwork.com or even use Twitter. The Warrior Forum is a great place to get your product critiqued and make some sales. Check out the WSOs of Warrior Special Offers. Essentially, this is a testing ground for new products and a resource for finding JVs.

In conclusion, there are no easy ways to turn ideas into cash. You’ve got to turn your ideas into products first.

You want to know a scary (and a bit morbid) thought? There are graveyards full of people who kept their one big idea to themselves, because they thought someone, someday, would hand them that briefcase of cash for it. Imagine how good some of those ideas must have been. Life is short. Take action, and turn your ideas into reality.

- Research your great idea to make sure it’s unique.
- Find someone in the right niche and run your idea by them.
- Get a prototype made if it’s a physical product.
- Find a developer to help you create it if it’s an online product.
- Take action to turn that idea into cash!