Brand Licensing Models

Should You License Your Brand? A Quick Checklist.

Is it a good idea for YOU (The Brand Owner)?

• Is your brand strong enough? Does your brand have a loyal following that would buy products with your name on it?
• Does the product category fit? Does it make sense for your brand to be on this new product? (e.g., A Disney character on a toy? Yes. A financial services brand on a cereal box? Probably not.)
• Can you trust the partner? Will the licensee make a high-quality product that protects your brand’s reputation?

Key Risks to Manage:

• Brand Dilution: Don’t let a bad product tarnish your good name. Your #1 job is quality control.
• Loss of Control: You are giving another company control over a piece of your brand. Make sure the contract is tight.
• Over-saturation: Don’t license your brand on everything. Exclusivity has value.

The Golden Rule of Licensing: Your brand’s long-term health is more important than short-term royalty revenue. Protect the brand at all costs.