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HUSTLE #944 10.5 Royalties & Licensing Income

License a Patent Idea to Manufacturers for Ongoing Royalty Checks

💰 Startup Cost $2,000-$15,000
⏰ Time/wk 2-4 hrs
📊 Difficulty ★★★★☆
🏆 1st Month $ $0
💵 Monthly Range $0-$10,000+
⏱ First $ In 2-4 months
USPTO, InventHelp, LinkedIn
File a provisional patent (costs about $150 for micro-entities) for a product improvement you have conceptualized — a better kitchen gadget, a bike accessory, or a baby product safety feature. Then pitch the idea to companies already manufacturing in that category via LinkedIn and industry trade shows. If a company licenses your patent, you earn 3-7% of wholesale revenue for 20 years. Even a modest product selling $2 million wholesale generates $60,000-$140,000 in annual royalties to you.
🚀 First Step
Document your invention idea in writing with sketches, file a provisional patent application at USPTO.gov for $150, and start researching manufacturers in the product category.
  • Improve an existing product (not invent from scratch) — companies license improvements they can slot into existing production lines easily
  • Use a provisional patent ($150) first to lock in your filing date for 12 months while you shop the idea to potential licensees
  • Approach mid-sized manufacturers, not giants — they are more accessible and can move faster on new licensing deals
🛠 Tools & Resources: USPTO, Google Patents (research), InventHelp, LinkedIn Sales Navigator, industry trade show directories