Good idea Ray. The customer becomes a reseller! :)

John

> I agree,
> No matter what if you don't get what you agreed to
> in a timely manner all rights have to
> go back to you. NEVER NEVER compromise on this.
> 
> I made the same mistake, sort of, when I learned how
> by working with offshore
> suppliers/manufactures I could supply a product to
> the customer cheaper than if
> he contracted directly with offshore manufactures.
> This was Taiwan back in the late 80's
> I'd figure I could offer the best design and
> manufactured price so I
> started to offer free use of my designs to tie up
> manufacturing rights.
> 
> However royalties or manufacturing rights, IF a
> customer can't afford to pay you AT LEAST
> reasonable fee for you help. Even the equal of what
> would be paid to an employee, then
> he can't afford to to invest in real production. He
> is using you to attract investors for HIS company.
> 
> IF he finds investors they will want to cut out any
> extra cost.
> Most investors never want to pay royalties because
> it is too open ended.
> 
> Also unless you are manufacturing, you will never
> know what his sales are.
> 
> I only found one company is good as their word about
>  royalties. Fisher Price Toys.
> 
> I have never heard of and good outcome of this type
> of agreement unless the company
> HAS money and everything is in place and is
> privately owned by the "hands on" owner.
> 
> My 2 cents
> Ray
> 
> 
> 
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