 Excellent question, but first, here’s a question for you.
Which is the better deal? Would you rather receive a 7% royalty on $5,000 worth of sales or a 1% royalty on $500,000 of sales? Even though 1% doesn’t sound too impressive, of course it’s the better choice in this example.
It’s easy for inventors and entrepreneurs to get tripped up on royalty percentages. Yes it is one factor in the income generation equation, but the bigger driver will always be units of product sales. This said… |
I have developed a really good BBQ sauce. I’m looking at different avenues for getting this to market including selling the rights to a bigger company. What type of royalty percentage can I expect?