How can licensing help you extend your brand?

1 What is licensing?

Licensing is a contractual agreement between a licensor and a licensee, where the licensor grants the licensee the right to use its brand name, logo, design, or other intellectual property in exchange for a fee or royalty. The licensee can then produce, distribute, or sell the licensed products or services under the licensor's brand. Licensing can be exclusive or non-exclusive, depending on the terms and conditions of the contract.

3 How to choose a licensee?

Choosing a licensee is a critical decision that can affect your brand reputation and performance. You should look for a licensee who shares your brand vision, values, and quality standards, and who can deliver on your brand promise and expectations. You should also consider the licensee's market knowledge, financial stability, operational capabilities, and legal compliance. You should conduct a thorough due diligence process and negotiate a fair and clear contract that defines the scope, duration, fees, royalties, quality control, reporting, and termination clauses of the licensing agreement.

4 How to manage a licensing relationship?

Managing a licensing relationship requires ongoing communication, collaboration, and monitoring. You should establish a regular feedback loop with your licensee to ensure that they are following your brand guidelines, meeting your quality criteria, and achieving your sales targets. You should also provide them with support, training, and resources to help them grow and innovate with your brand. You should also track and measure the performance of your licensed products or services, and review and adjust the licensing terms and conditions as needed.

5 How to avoid licensing pitfalls?

Licensing pitfalls are the potential risks or challenges that can arise from licensing your brand, such as brand dilution, brand cannibalization, and brand conflict. To avoid these issues, it's important to carefully select licensees, set clear and enforceable brand standards, monitor and audit licensees, and promptly resolve any disputes. Doing so will help protect your brand equity, credibility, market share, profitability, reputation, and relationships.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?