DON’T GET FOOLED & RIPPED OFF

• According to the United States Government, most invention licensing companies, invention promotion companies, and invention submission companies are either ineffective or outright FRAUDULENT. According to the USPTO, there are fewer than a half-dozen legitimate invention promoters. Some sneaky companies say they are like a “college course” giving the inventor a list of companies, usually a bad list of companies with no real market share. Then they blame the inventor for not being successful. It’s a genius business model, and it works – BE AWARE!
• https://www.legalzoom.com/articles/invention-submission-companies-scams-or-valuable-services
• https://en.wikipedia.org/wiki/Invention_promotion_firm 

• According to the USPTO, only 2% of all issued patents make money. So do the proper market research to first prove your idea is needed by at least thousands of people and that it can be made for an affordable price.

Be on alert for the following warning signs of a potentially bad company looking to trick you with a fancy website and deceiving marketing.

• Mention helping hundreds to thousands of inventors.
• They have relationships with big-box retailers.
• Colorful logos of big retailers like Bed Bath and Beyond, Home Depot & others.
• Customer testimonials praising the company, and never their full name. Unfortunately, many companies use paid-for and fake testimonials.
• Their employee or team photos in group shots appear to be an amazingly diverse group of Hispanics, African-Americans, Asians, Caucasians, men & women both young and old. Usually a stock photo.
• The photo on their website of their office building is fancy and looks like an expensive corporate-like building. But then you look up the address on google maps and the images of the building are nothing like their website pictures. Might even be a church, dirt road, school, strip mall and not a real business location. You might have to do some investigating on when the image(s) were captured.

• The bad companies use this tactic and it works. They will say or advertise that they have a secret list of companies looking for ideas to license, but that list is only available to paying students or clients. It’s COMPLETE NONSENSE. DON’T FALL FOR IT.

• Companies tell you everything you want to hear about your product idea. They are masters at making you think you are going to make a lot of money with your idea. They will never be honest and truthful about your real chances for product success with licensing or venturing yourself. Remember, the first few people you talk to are not experienced inventors. They are commission-based employees. Don’t be fooled by their fancy sales script taught to them by the company on how to handle all your questions and concerns. Like those timeshare reps, they can sell a timeshare to the homeless, and make it sound amazing.

• These companies will tell you your idea is amazing and there is nothing like it. Their marketing team reviewed your idea and they are very excited to work on this with you. Success is right around the corner but you need to move fast. Never tell them any of your dreams or wishes. BEWARE of such sales tactics. Once they get hold of your dreams and wishes for success, they use it to close the deal and get you to start making payments.

• Companies will test you out to see how much they can get from you now that you are so excited. If you’re hesitant to pay a large upfront payment, they will try and lock you into a number with a monthly payment plan that you can afford, with no interest, but you need to make a decision in the next day or two. So many inventors fall for this tactic.

• According to the U.S. government, hundreds of invention promotion service companies are either ineffective or outright fraudulent. The success rate is around 1% according to industry experts.

• Don’t trust the BBB rating system. Companies are paying for A+ ratings. Check it out.

• Some companies will offer you a free inventors kit with information to start earning your trust. Free information is great, but if you decide to pay anyone for services, do your due diligence and properly investigate them. The oldest trick when it comes to fooling inexperienced and naive inventors, is to offer free invention kits.

• Some founders and executives at the top of the company are making hundreds of thousands to millions of dollars yearly by charging inventors up-front fees. These frauds know the success rate for an inventor is around 1%. So they get what they can on the front end, then blame you for not being successful. They are living the life of their dreams with our money, while us inventors struggle.

• Invention service companies get testimonials from non-paying clients or students whereas typically testimonial comes from a happy paying user willing to promote the product or service based on their personal and direct experience. Some testimonials are completely paid for and fake.

• Using google maps, using the satellite photo tool, check out the building from street level. Some fraud companies don’t expect you to look up their building location. Make sure it’s not a church, a school, a strip mall or any other suspicious type of building where a legal business office would not be located.

Ask these questions in writing, and ask for the answers in writing. If the company refuses or is only willing to say verbally, go find another company. This one isn’t honest.

1. How many paying clients or students pay for services in the last 5 years who received no financially successful licensing deals?
2. What is your success rate?
3. In the last 5 years how many students or clients had a net financial profit-making back more money than they paid for in services and/or coaching?