Licensing Agreements: How to License Your Products for Extra Income in 3 Easy Steps

When you use licensing agreements, you can get others to sell your products for you, deal with the related sales taxes and paperwork, and pay you a percentage of each sale made (sometimes called a “royalty” or “licensing fee”). Here are three simple steps to setting up a licensing program for your products. Step 1 – Identify the markets where your products already sell and potential markets you haven’t tapped. Step 2 – Approach key players in those markets about becoming licensees. If you don’t have a pre-existing relationship with these prospective licensees, you may want to consider sending a personalized snail mail letter and make a follow-up telephone call instead of sending a blind email that could be treated by recipients as spam. Step 3 – Have your Internet lawyer prepare a licensing agreement that covers all of the key terms, including what’s being sold, what you get paid […]

Protecting Yourself from Internet Business Partners

As Internet lawyer, I represent some ecommerce businesses that are owned by multiple individuals or other business entities. However, as a practical matter it rarely makes sense to co-own an Internet startup with anyone else (except a spouse if you have one). Whether it’s a true partnership, corporation, or a limited liability company, having more than one partner* is generally a recipe for disaster. Why? The primary problem with multiple Internet business owners Because individuals are unique, it’s almost impossible to find two who are 100% on the same page, have the same commitment and the same goals for a new ecommerce company. Even the motives tend to be very different. For example, one person sees the Internet startup as an escape from long hours at a hated job. Another is looking to create the next Google with the expectation of working 100+ hours per week to get there. One […]

5 Quick Things You Can Do Right Now to Protect Your Website

Now is a great time to make sure you’ve got the right legal paperwork in place to protect your website before the holiday season begins. Here are five important tasks you can take care of fairly quickly. 1. Entity Check. Make sure your business entity is in good standing in the state where you formed it. You’d be surprised at how many Internet business owners have to clean up a mess after the fact when their corporation or limited liability company disappears because of a missed report filing deadline or a late corporate franchise tax payment. 2. Services Contracts Check. If you’ve got anyone that’s providing services to your Internet business as an independent contractor, confirm you’ve got written agreements in place that make this relationship clear. This reduces your risk of getting hit with unemployment or workers compensation claims by a services provider claiming to be an employee. In […]