I buy stuff from Pit Posse over in St. Pete from time to time. They’re a pretty good outfit and help find hard-to-find stuff when I need it. I like them quite a bit. Anyway, I got an interesting email from them yesterday; more of an announcement or press release. They’re looking for new product ideas; nothing wrong with that. What struck me was, when you get to the bottom, the deal is that if they select a product the inventor gets 2 of whatever, plus $300. Hmmmmmm.
That doesn’t seem like a very good deal, particularly if the idea ultimately has extreme value. The typical arrangement for something like this is a royalty to the inventor, usually a percentage of revenue and, depending on the invention, as high as 40%, recognizing that the licensor has production responsibilities and related costs. I guess they’re leveraging the ego factor by offering to name the inventor in their publications.
What do you think?
Here it is. If you can’t read it here’s the link is right below:
http://campaign.constantcontact.com/render?v=001ZWNbY6QNS4xq4a8iqiv5HD0VRIgtbuYi5BIPwRLKjwOAs6JZQQZ_7a7dlU3UPjY98qT1ZMRzMiii7sop8ogIRWvkNc_-gvMHEpqywI9U4zE%3D__________________________