COSTLY AND COMMON INVENTOR MISTAKES
Here are some of the most common mistakes new inventors and creators make that can add up to costing tens of thousands of dollars very quickly. This information was created by experienced inventors.
Ignoring the Success Rate for An Independent Inventor:
- According to industry leaders and experts, the success rate for an independent inventor is 1%. Anyone that says it’s higher, have them reach out to us and prove it on paper.
Ignoring Industry Statistics
- According to the USPTO, only 2% of issued patents make money.
Approximately 75% of inventors believe they will become financially wealthy from their inventions. - The success rate of products that are licensed and net a financial gain to the licensor is approximately 1-2%.
Nothing Happens Fast
- Regardless of what you hear on any TV commercial or online advertisement, there are ABSOLUTELY NO SHORT-CUTS to having your idea produced and making money fast and easily. It will take you years not months, especially if you have no prior product development experience.
Monthly Retainer Fee
- This is a big mistake for inventors who aren’t selling a product yet. If all you have is an idea or a prototype and someone wants to charge you a monthly retainer, please reach out to us to help guide you to make a good decision.
Assuming Everyone Is Your Customer
- Nothing is for “everyone”. Don’t make the mistake of assuming who will buy your product and use it. Do your market and consumer research. You need to figure out who is your true customer? Who needs this and who will buy it? Why will they buy it? This type of claim needs to be supported by research found in your market research and customer discovery. Be prepared to show proof to potential investors or partners.
Hiring A Coach Too Soon
- One of the biggest mistakes made by independent inventors early in the process when they only have an idea for a product, is hiring a coach. The success rate for an independent inventor is around 1%. Lots of research goes into finding the right coach or expert depending on your industry. But first you must validate the idea by doing your own market research. START HERE
Paying For Invention Services Too Soon
- This is one of the biggest mistakes people with ideas make in the beginning. Many invention services provide frivolous services that amount to nothing for inventors. Typically they offer a “free packet” to earn your trust and then offer to develop, protect and promote your invention ranging from $10,000 to $20,000. While you may obtain a patent-pending, virtual prototype and even get submitted to companies, their efforts result in little or no success in generating any income for you. Most of these companies are scams and ripoffs. Visit our Inventor Alert Page.
Payment Methods
- Never pay for services with cash, or any apps linked to your bank accounts. Same for checks linked to your bank accounts. You will get the most legal protection using a credit card. If they tell you, that by not using a credit card you can pay less or get a discount, don’t fall for that trick. PayPal is another option being that they offer a purchase protection program if you qualify. Don’t use apps like Zelle, Venmo and other methods that link to your personal accounts. Protect your money and be proactive, not reactive.
Coach Experience
- When hiring a coach, make sure you understand why you are hiring that specific coach. Make certain this coach has experience in the product category in which your product falls into. Ask for proof of this information like an amazon page or website. What stores and online marketplaces do they sell their product. Many invention coaches don’t have real product success or experience themselves. Interview them, and don’t fall for the trick of making monthly payments either. Timing is also very important. NEVER hire a coach when all you have is an idea.
Too Soon Mistakes
- Hiring a coach
- Rushing market research
- Hiring the first attorney you meet
- Rushing the process whether licensing or producing yourself to launch
- Building a website
- Paying for services
- Partnering
- Giving up equity to save money
- Filing for a PPA, Provisional Patent Application
Paying Large Upfront Fees to Any Invention Promoter or Licensing Company
- According to the United States government, most of these companies are either ineffective or outright fraudulent.
Thinking Your Product Will Become a Household Name
- Most products don’t become household names. And that’s okay. It doesn’t have to become a household name to be considered a success! It’s rare but possible with good execution by an experienced team and a lot of luck. Getting on national television, like Shark Tank as an example can help make that a reality overnight. Most products don’t become a household name.
Working On Multiple Products at Once
- One product idea can keep you very busy. If you have a lot of ideas, make a list of your ideas and prioritize them. Pick the one that solves a problem for the largest audience. If you do the proper market research and the product already exists or something similar is on the market already, or your idea can’t be protected, it might be time to move onto your next idea.
Not Joining Your Local Inventors Club
- Inventing can be a lonely journey, especially if you don’t have the support of friends and family. Joining an inventor club will help to educate you on the steps to take and pitfalls to avoid, and you won’t have to do it alone. Find a club near you by visiting www.uiausa.org.
Working On Multiple Products at Once
- One product idea can keep you very busy. If you have a lot of ideas, make a list of your ideas and prioritize them. Pick the one that solves a problem for the largest audience. If you do the proper market research and the product already exists or something similar is on the market already, or your idea can’t be protected, it might be time to move onto your next idea.
Underestimating Costs
- It is important to understand what your product will cost to make and what it will sell for, which is vital to know if there is enough margin to be profitable. If you create a product that isn’t profitable, it’s doomed from the beginning. Many new inventors and entrepreneurs who never brought a product to market, leave out many important costs.
Sharing Product Publicly with No Protection
- This can have a serious consequence if you are not aware of the rules. Keep it private until you have a PPA or have an NDA handy. Don’t share your product or idea publicly until you have had a conversation with a patent attorney or patent agent.
Filing For Provisional Patent Application Too Soon
- Most first-time inventors go straight to a patent attorney to protect their idea without first doing any market research. There are several steps to take first, research the competitive landscape, researching the consumers, and really developing a product that will sell should all be done before spending the time and money to protect it. According to the United States Patent and Trademark Office USPTO, approximately 2% of all issued patents ever make any money.
Trying To License an Idea
- You must have some sort of protection to license your idea. Patent-pending or have the company sign an NDA, but many companies don’t sign NDA’s.
Thinking Licensing Is Easy
- Getting a licensing deal isn’t easy at all. Even if you got a deal, it does NOT guarantee any financial profit. Most licensing deals don’t generate any return for the inventor.
Rushing The Process
- Bringing an idea to life takes time and patience. If you try and rush the process, you will make costly mistakes. No matter what path you decide to take for your idea, licensing or venturing, you need to take your time, and not miss any of the important steps necessary to move the idea forward. Inventing is not cheap at all.
Manufacturing Too Soon
- Many inventors make the mistake of investing in inventory before validating or proving anyone will buy. Try to get early purchase orders to validate your product, packaging, pricing, etc., or generate demand for the product before going into production. And don’t forget to thoroughly vet the factory before doing business with them too. Produce too soon, and your garage will be filled with product collecting dust. This is not a step to rush.
Paying For Coaching
- When hiring a coach, know exactly why you are hiring that specific coach. Make sure this coach has product success with their own inventions. Ask to show proof of their product being sold in the marketplace. Make sure that coach has experience with product success in your product category. NEVER hire a coach when all you have is just an idea.
Skipping Market Research & Validation
- This is the most important phase or stage to make sure there is no product like your idea and there are thousands of potential customers who will buy this product. This stage is so crucial, and it must be performed by you. So get busy with your market and customer research and keep track of everything you learn.
Rushing To Hire A Patent Attorney
- Take your time in choosing a patent and trademark attorney. We recommend you get a referral for an attorney from another inventor who had success getting a patent with the direct help of that attorney. We can help you get connected to an honest and trustworthy attorney.
Public Disclosure
- Make sure you are aware of invention public disclosure details if you don’t have any property protection on what is being disclosed. Speak to a vetted and recommended patent attorney before showing your product in public.
Equity For Services
- Many inventors think exchanging equity for services, especially in the earlier phases of product development is a fair exchange. In most cases there are no sales therefore there is no value to the company. Giving away any equity early in the process can hurt you later if your invention becomes a winner and you start having funding rounds in exchange for equity.
Launching A website Too Soon
- There could be many strategies for creating your website. Make sure your domain names are available asap and buy them. Building a website the right way with good photos and videos is expensive. If you need an e-commerce site, that will be more costly, but you want to be sure you have a product ready to be sold. All photos and videos should show your product’s latest most up-to-date version. Speak to other inventors about when is the right time to start building a marketing and selling website.
Set Your Model Pricing Correctly From The Start
- Know what price to sell your products to customers, retailers and distributors. A good rule of thumb is to set your profit margin to a 45% markup. You might decide to start selling direct to your customer, and plan on selling into retail later. If you didn’t set your model pricing correctly from the start, your business can have some serious financial issues.
Choosing Business Partners
- Choosing the right partners should be done slowly and carefully. You must have your own business attorney when bringing on new partners into your business. You need to make sure you and your intellectual property are protected. Your agreement should be performance-based if equity is being distributed. There should also be a termination cliff with a timeline if the partner is being brought on to help with a specific task or service. Most importantly, you must have a good business attorney. Always recommended to hire an attorney referred to you by another entrepreneur who has been using that attorney for at least a year or more.
If you cross paths with a company(s) using any of these schemes or tactics, please share the information with our team.