Intellectual property is an invention, trademark, original design, or the practical application of a good idea.  There are a few ways to make money with an idea or invention. 

Once you get a patent issued on your invention, you can have the product manufactured and try to sell it on your own.  This is obviously a lot of work, but if your invention has a good market, this option could make you the most money of any other method. 

A second option is to have another company (or several) license your product, which means they would pay you for the right to make and sell it. 

A third option is to sell your patent outright to another company. 

A final option is to sell your idea to an invention company before you file for a patent.  This would give you the lowest return, but requires the least amount of effort on your part.

Licensing your product is the most popular choice.  It usually takes about two to three years before you are issued a patent, and then about another two to five years to market the idea to an industry, so it might very well be seven to 10 years before it starts making you money. 

Another thing to keep in mind is that 95 percent of all inventions fail to even earn back the cost of the patent, much less make money.  This may cause a lot of people to shy away from pursuing the idea. 

The key is to spend some money early on for a marketability study of your product.  You can also do a lot of research on your own to determine if it could be profitable. 

In fact, you should do as much research as possible before you file a patent. The Internet is indispensable for this chore.  Finding similar products and their manufacturers will help you determine your idea’s potential, and you can check the financial situation of these companies as well.

If you have done your research and think you have a great idea, then go for it.  If you are able to get a patent and a licensing deal, you are well on your way to getting a fantastic source of income that makes you money on its own.

This income source is best started after you have others, so you have some extra money for it.  The good news is that you are putting money into it over time rather than all at once.

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