DON’T GET FOOLED & RIPPED OFF
Unfortunately, many new inventors and creators fall victim to companies that charge upfront fees. Thousands of inventors are fraudulently deceived every year. Make no mistake about it, these companies are experts at getting your attention, then stealing your money with no real value in return.Use this information to protect youself, your family, and your money and your product idea and business.
The information provided here was created by a team of experienced inventors and invention industry experts.
Invention Licensing & Promotion Companies
- 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!
2% Of Issued Patents Make Money
- 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.
Licensing Company List
- 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.
Masters Of Sales
- 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.
Prey On Your Dreams
- 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.
Pressure Tactics To Pay Now
- 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.
Invention Licensing Success Rate
- 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.
Better Business Bureau
- Don’t trust the BBB rating system. Companies are paying for A+ ratings. Check it out.
Free Invention Kit
- 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.
Making Millions Annually
- 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.
Check Out Their Office Address
- 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.
Questions For Licensing & Coaching Companies
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.
- How many paying clients or students pay for services in the last 5 years who received no financially successful licensing deals?
- What is your success rate?
- 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?
Invention Company Predators
- Companies spend millions of dollars to lure you in and deceive you into believing licensing a product is as easy as 1-2-3. They use the best technology in advertisements and in licensing deal announcements. But they never share their actual success rates and numbers in writing if you ask. Always a verbal answer from them. They may also say their success is greater than their competitors. If they don’t pay for ads, they use their social media platforms to deceive you with announcements of licensing deals, most of which don’t make the inventors back more money than they paid for in services. DON’T FALL FOR IT. BE SMARTER AND ASK THE RIGHT QUESTIONS.
- If you are submitting your idea to a company, be aware that some companies will say in the fine print, your idea will be owned by them. Here are some questions them MUST answer – (https://inventorrescue.com/before-you-submit/)
Submit the question in writing, and ask for the answers back in writing – NOT ON A PHONE CALL.
- Some invention companies that are dishonest and behaving badly will appear on the first few pages of your search results. When you search for any of the following words – product idea – invention – new product, etc. be prepared for bad companies to be found. You must become an investigator before giving any company any money.
- Some companies offer weekly to monthly announcements of a licensing deal but never any follow-ups to see if the inventor made any money from the deal. A licensing deal does NOT guarantee the inventor will make any money. Most new inventors aren’t aware of this fact. Companies use this as a tactic to get your attention and get you on a call with one of their representatives. Another successful tactic, BE AWARE!
Long Business History
- Some companies have been doing business, ripping-off inventors for over 15 years. Some have been taken to court many times with settlements. Some have only good reviews and no bad online reviews which is a big RED-FLAG. They are licensed to sell services, but that doesn’t mean they are honest. Do your due diligence. Find customers or students that actually had real financial success, meaning they made back more money than they paid the company for services. Most of these companies have paid employees who get commissions and bonuses when you sign up. They tell you what you want to hear but won’t tell you the truth about your chances of success. That’s why you need to do your own market research first. This information we are sharing could save you $5,000+. These are legit companies behaving very bad and completely dishonest.
License Your Idea
- Companies don’t license ideas. If you or someone you know received a licensing deal on just an idea with no intellectual property and no prototype and had financial success from the deal, please contact us so we can learn more. If you know a company that says they license ideas, please share with us. Otherwise, run away from these companies and don’t look back.
Must Act Now
- They will pressure you into making a decision to move fast without doing any real market research or give you any chance to realize you’re getting misled and being deceived. All they care about is their commission, not you or your idea.
Thousands Of Dollars Up-Front
- The success rate for an independent inventor is around 1%. That’s why companies charge inventors as much as they can get on the front end, versus getting it on the backend when you start getting paid. They will tell you how great the idea is and that you can make a lot of money. Don’t fall for it. Do your research on the company and ask the questions mentioned earlier on this list.
Inventor Coaching Companies
- Don’t hire coaches with no real licensing or product launch success of their own. These coaches are paid employees who get coached themselves weekly on how to coach. They also get financial commissions for bringing new students or clients. Deceptive tactics and statements are used to get your attention. Such as a licensing announcement on LinkedIn or another social platform, but never a follow-up because most of the deals don’t make the inventor any money.
Product Licensing is Easy
- Anyone that tells you this, is a big RED-FLAG. Licensing is NOT easy as 1-2-3. Some individuals in our industry have sold themselves as licensing experts and have fooled thousands of students and paying clients for decades. Just like Bernie Madoff and many other crooks who have succeeded for decades until someone blew the whistle. We are blowing the whistle to help you protect your family and your money from these crooks.
Free Online Videos & Articles
- Don’t fall for this trick. Some of the fraudulent companies offer lots of free videos and articles on their website or on youtube. This is a sales tactic to get your attention and persuade you to join their extremely high fee-based program. Watch all the videos if you like and learn what you can, but don’t fall for the old bait-n-switch.
- Some companies will give you untrue and inaccurate information about producing and launching a product on your own to push you into their licensing and coaching programs. Some of these frauds have written books. Their books are a recruiting tool to lure you into their programs and get your money. They do not care about your success.
Spend Your Money Wisely
- In the end, you have the final say on whom you will trust with your idea and hard-earned money. We urge you to do your due diligence before paying a dime to any invention company or individual consultant. Visit our alerts page to learn more about other red flags we’ve listed after speaking to hundreds of ripped-off inventors. Trust your gut. If you are not sure, contact us and one of our experienced inventors will help you make the right decision. Remember, your chances of getting your product to market and making money on it is around 1%.
5 Questions For Invention Licensing & Invention Submission Companies
- If they don’t answer these questions in writing, go find another company. This is a sign of a dishonest company. START HERE
Don't Pay A Dime Until It's Time
- • We have been in your shoes and made a lot of costly mistakes. The costs can add up quickly. Market research should be performed by the inventor and no one else. No one will do a better search than you. Before you pay any invention company or any coach a dime, you must do your market research to prove the idea doesn’t already exist and it solves a problem for thousands of people. We built this FREE online course to help you invent the correct way by educating yourself first with our guidance instead of paying mediocre companies and coaches who will not share their success rates. We beg you to take this free course and ask for help from us when needed.