How do I sell an invention idea to a company?

Come prepared: file at least a provisional patent application before disclosure, build a working prototype, gather market evidence, and prepare a credible manufacturing cost estimate. Target companies whose product line your invention extends, reach the product management or business development team, and keep the first pitch short. Companies buy de-risked, demonstrated solutions — not raw ideas.

How much are royalties on a licensed invention?

Typical royalty rates run in the low single digits as a percentage of wholesale revenue, with the exact rate driven by how strong the patent protection is, how proven the product is, and how much of the remaining work the licensee must fund. A working prototype and demonstrated demand push the rate up; a raw concept pushes it down or kills the deal.

Do I need a patent before selling my invention?

You need protection before disclosure, and a provisional patent application is the practical minimum — it is fast, affordable, establishes your priority date, and lets you say patent pending in negotiations. Public disclosure before filing can permanently damage your patent rights. A patent search first confirms the idea is novel enough to be worth protecting.

Should I license my invention or manufacture it myself?

Licensing needs little capital and limited risk but yields modest royalties and depends on the licensee's execution — it suits inventors who want to keep inventing. Building the business yourself demands investment and stamina but keeps all the profit and the brand. Both paths require the same foundation first: protected IP and a convincing prototype, so the decision can wait until you hold those cards.

Are invention submission companies legitimate?

Be careful. Some firms charge large upfront fees to "submit your idea to industry" and deliver little; regulators have repeatedly acted against the worst of them. Before paying anyone, ask for verifiable success stories, check complaint records, and prefer partners who are paid for concrete deliverables — engineering, prototypes, patent filings — rather than promises of exposure.

How do I prove my invention works to a potential buyer?

With a prototype and data. A functional prototype demonstrates the core claim in the room; test results and pilot feedback back it up; a manufacturing cost estimate shows the economics close. A polished appearance model adds desire to proof. This package — proof, data, cost — is precisely what turns interest into a signed agreement.

How to Sell an Invention Idea — Licensing, Royalties, and Going to Market

From Brilliant Idea to Real Income

Every inventor has that electric moment when the idea clicks. But between the idea and the income lies the road nobody teaches: commercialization. The plain truth is that an invention has no market value until someone can buy it, license it, or fund it — and getting there is a sequence of decisions, not a stroke of luck. This guide lays out the two fundamental paths, the protection you need before showing the idea to anyone, and the modern channels that let an independent inventor reach real customers.

Two Fundamental Paths: License or Build

Before talking about marketing, make the strategic call: do you want to sell the rights, or build the business?

The licensing path. You protect the invention, build a convincing proof of concept, and grant an existing company a license to manufacture and sell it in exchange for royalties — typically a single-digit percentage of wholesale revenue, sometimes with an upfront payment. Low investment, limited risk, and the company's channels do the heavy lifting; in return, you earn a slice rather than the whole pie, and you depend on the licensee's execution.
The venture path. You develop, manufacture, and sell it yourself. Higher investment and risk — but all the profit and the brand stay with you. In an era when a solo inventor can launch a product with e-commerce, crowdfunding, and contract manufacturing, this path is more accessible than it has ever been. Our guide to business development covers what building that business involves.

The honest way to choose: licensing rewards inventors who love inventing and want to move to the next idea; the venture path rewards those who want to run a company. Both paths start with the same two assets — protection and proof.

First, Protect the Intellectual Property

Before presenting the invention to a company, a distributor, or even an investor, make sure your interests are protected. File a patent application — a provisional application is a fast, affordable way to establish a priority date and the right to say "patent pending" — after running a proper patent search to confirm the idea is actually novel. Use non-disclosure agreements where you can, while understanding that large companies often refuse to sign them at first contact; your patent filing is what protects you in those conversations. Our overview of patents and intellectual property explains the options in depth. One warning born of long experience: be wary of invention promotion companies that charge large upfront fees and promise to "submit your idea to industry" — check any such firm's record carefully before paying.

A Prototype Is Your Best Salesperson

Whatever path you choose, nothing sells an invention like a working model. A functional prototype proves the concept is real, a polished appearance model makes it desirable, and together they transform every conversation — with licensees, backers, retailers, and investors alike. Companies do not buy sketches; they buy demonstrated solutions with a plausible manufacturing cost. Getting from idea to that demonstration is exactly what our idea-to-product process is for.

Crowdfunding: Funding That Doubles as a Market Test

Platforms like Kickstarter and Indiegogo are far more than fundraising tools — they are a genuine market test. A successful campaign proves demand before production, generates press and an early-adopter community, and strengthens your hand in every later negotiation, whether you are raising capital or pitching a licensee. It demands preparation: a demonstrable prototype, a strong video, honest delivery planning. For the broader funding picture, see our guide to startup fundraising.

Selling Direct: Your Own Store and Amazon

Direct-to-consumer e-commerce is the main revenue channel for most new products today. An independent store on a platform like Shopify gives you full control of brand, data, and margin; Amazon brings enormous ready traffic in exchange for fees and fierce competition. Most successful launches use both: the marketplace for reach, the own store for margin and customer relationships. Product video is the engine either way — short demo clips on social platforms can take an unknown product to millions of views, and AI-era content tools have put professional-grade marketing within reach of a single inventor.

Pitching a Company: How to Approach a Big Player

If you choose licensing or a strategic partnership, preparation is everything. Identify companies whose product line your invention naturally extends. Arrive with a working prototype, market evidence, your IP status, and a credible manufacturing cost estimate — serious companies do not buy raw ideas, they buy de-risked opportunities. Target the right person (product management or business development, not a generic inbox), keep the first pitch short, and negotiate from the strength of alternatives: a company moves faster when it knows you can launch without them.

How Projects House Helps Inventors

Projects House works with US inventors remotely, backed by a global engineering and manufacturing network:

Feasibility and strategy — we examine the invention, market, and competitors with you, and recommend the right commercial path: licensing, an independent launch, or a staged combination.
Protection and engineering in parallel — working alongside patent attorneys, we make sure the IP is protected while designing the product to be both impressive and economically manufacturable.
A prototype that sells — functional prototypes and high-finish appearance models, with industrial design that makes the product desirable — your most important asset in front of buyers, backers, and licensees.
Small-batch production — a smart first run to test the market's response before scaling to mass manufacturing.
Ongoing commercial support — technical and marketing materials, adaptations for retail requirements, and product upgrades based on feedback from real customers.

Have an invention waiting to meet the world? Tell us about it through our contact form — we will help you protect it, prove it, and turn it into income.

How to Sell Your Invention: License It or Build a Business