Royalty agreements have an inherent network effect, and it’s amazing to see how that turns our idea into jobs in the other end of the country.
Royalty agreements are often perceived as a “you’re just selling your idea of to super mega evil corp, who’s turning it into profit”. That is however not necessarily the truth – at least not for us.
We just celebrated SmartMover selling its 600th unit. But even though we invented it six years ago, we didn’t sell a single unit ourselves.
Instead SmartMover was licensed to Ole on the island of Mors in the other end of Denmark, and he has managed to turn it into a sustainable business. Today he is selling SmortMovers full time – and even has a few part time employees.
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Extended network to other businesses
Ole on Mors is a prime example of what makes it so satisfying to license our inventions. It isn’t just a way for us to make our own business scalable – it also creates a business for our partners in other parts of the country.
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Our inventions has created a sustainable income for us as well as for Ole who runs the SmartMover-brand – and the network effect even extends further than this:
Every time a SmartMover is sold a Danish subcontractor makes the steel frame, another one makes the battery – and so on.
Every link focuses on their expertise
You might perceive SmartMover as a business opportunity we should have executed ourselves.
Instead we like to perceive the decision to license it as a way to help every link in the chain focus on the part they do the best: We can keep inventing new solutions, Ole can keep selling SmartMovers to his clients, subcontractors can focus on batteries and steel – and if it’s done right every part of the chain makes a living of doing what they do best.
We can’t wait to release even bigger systems in the future, which will hopefully create even more jobs – and make our partners even more money.