Factors Affecting Royalty Rates in Brand Licensing

Factors Affecting Royalty Rates in Brand Licensing, Part Two 1 year ago

With royalty rates being one of the most complex subjects in brand licensing, there’s only so much that could be covered even in a series of related articles. The ‘big’ picture behind royalty rate choices is not the easiest to understand. Considering different factors affecting royalty rates in brand licensing having different influential powers, an equilibrium in decision-making is rarely achieved. In this article, we continue answering the questions on how to approach the royalty rate choice in brand licensing with utmost pragmatism.

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Factors Affecting Royalty Rates in Brand Licensing

Factors Affecting Royalty Rates in Brand Licensing, Part One 1 year ago

If there’s one thing that is the hardest to understand in brand licensing, it must be the royalty rate matter. There are numerous approaches, practices, and tips that licensors appeal to in attempts to make a smart choice of the royalty rate approach. However, it’s far not easy to understand what matters when making the rate calculation. And it’s no wonder! When preparing to answer this question, we’ve come up with numerous points, which we had to split into an article series. So, in this part, we’ll talk about how royalty rates are influenced by such factors as product and property specification as well as marketing, deductions, and exclusivity matters.

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strategic directions in brand licensing

3 New Strategic Directions In Brand Licensing 1 year ago

Nowadays, there are numerous product categories, collaboration tools, and practices licensors can choose from when developing their brand licensing strategies. However, as the industry trends change with cosmic speed, it’s becoming harder to stay focused and up-to-date in making long-term licensing plans. What’s more, with the abundance of novelties that constantly replace each other, it’s challenging to make right choices at a particular moment in time. Therefore, many licensing teams find themselves wondering what strategic moves to make, and in which directions. For these teams, we have compiled a list of the most innovative licensing strategies of 2017.

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types of royalty rates in brand licensing

The 6 Major Types Of Licensing Royalty Rates 1 year ago

Royalty rates is one of the most challenging topics in brand licensing. Commonly, licensing partners face numerous difficulties during the negotiation of the royalty rate as partners are seeking for the most suitable number to satisfy both sides. But in fact, this clutter isn’t difficult to avoid – the solution lies in understanding the types of royalty rates that apply in the industry.

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Onboarding new licensees

The Ultimate How-to For Onboarding New Licensees 1 year ago

Onboarding new licensees into brand licensing projects is one of the toughest mission in the entire licensing workflow. It requires a lot of effort from both brands and licensees and implies huge joint responsibilities. For licensors, the biggest challenge in setting up a collaboration with new partners is introducing them to their businesses. Moreover, many find it difficult to ensure productivity and minimize losses during the onboarding process. Hopefully, there’s a remedy to this problem. Spoiler: it’s following the three steps towards a structured collaboration mentioned in this article.

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Licensing Expo 2017

The Impact Of Licensing Expo 2017: How It Was, What We Learned, And What's Ahead 1 year ago

To every person at least faintly involved in brand licensing, the Licensing Expo in Las Vegas is the most eagerly awaited event of the year. The exhibition lasting for about a week in total brings together the whole licensing society and determines the industry’s direction for a year ahead. But what is the long-term influence that it has on the industry players? This question has been harassing our minds ever since we were on a plane back to Helsinki. After a while of reflecting, we are summarizing the impact that attending this year’s Licensing Week has had on the Flowhaven team and our core philosophy.

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what-are-retailers-looking-for-in-brand-licensing-deals

Retailers: What Are They Looking For In Licensed Production? 1 year ago

Today, retailers are just as important partners for brand owners as licensees. Gone are the times when licensors communicated with retailers through intermediaries. With the rise of retail opportunities, the rules of the licensing game have changed, making it imperative for brands to not only know but also love their retail partners. But what is it that this stakeholder is looking for in licensing deals? We have come up with the main points that retail dealers seek to validate when considering to place a merchandise line on their shelves

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Retailtainment and Brand Licensing

Retailtainment And Brand Licensing: What's The Bond Between The Two 1 year ago

In the past, brands considered the retail’s revenue-generating mechanism as a given. Today, they’re revising their relationships with retail partners due to the transformed market environment. The underlying reason of their reconsideration is the changed behavior of the consumers, who, despite their remaining willingness to visit stores, are jaded towards conventional experiences. Smart licensors found the remedy in closer cooperation with retailers and designing of unique retail experiences for visitors. This has given rise to the so-called ‘retailtainment’ trend. In this article, we’re explaining the connection of this trend to the brand licensing industry.

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product category for brand licensing

Choosing The Right Product Categories For A Brand Licensing Program 2 years ago

Choosing the right product categories for brand extension is one of the trickiest challenges that licensors encounter in their roles. Unfortunately, many of them make this choice thinking first about the licensing outcome instead of their brands’ values. In this way, many expand their properties, sometimes the best of them, into wrong product categories. Avoiding this mistake isn’t as difficult as it may seem. And the keyword is planning.

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Choosing A Licensee For Your Brand

5 Reference Points For Choosing A Licensee For Your Brand 2 years ago

They say partnerships in brand licensing are like marriages. Taken the long-lasting nature of licensing programs, this statement is no exaggeration. More often than not, licensees are the closest partners for brand owners. Typically, they also act as the party to bear the greatest degree of responsibility for the success of the licensing venture. Choosing the right licensee is, therefore, a matter of licensors’ primary concern at the start of the licensing journey, which isn’t an easy business in reality. Nevertheless, a clear understanding of the licensing objective and the licensee selection criteria make this mission more than doable. In this article, we have outlined the most important criteria for making the smartest possible choice.

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