by Stephanie Pottick, Esq., Pottick Law PC & Protect for Success
Often, I am asked whether working with a licensing agent is worth it. As with most questions, the answer is, “It depends on your situation,” but I can tell you that having a good licensing agent on your side can supercharge your business.
From strategic introductions to leveraging your IP to managing deals, licensing agents can help to create new opportunities, take on some of the burden, and streamline the licensing process. Plus, they can be great resources because of their industry expertise.
Some may believe agents cost too much, but you can think of it this way: It’s like on Shark Tank when the Sharks want more equity than the presenters wish to give. If a licensing agent is bringing you deals you wouldn’t otherwise have, isn’t it better to have less of something than 100% of nothing? Remember, like the Sharks, a good agent can bring a lot to the table.
If a licensing agent is bringing you deals you wouldn’t otherwise have, isn’t it better to have less of something than 100% of nothing?
Here are some benefits of working with a licensing agent:
- Expertise in licensing
- Can save you time from having to find your own deals
- Connections to industry professionals with which to make those deals
- Help manage those deals so that you can focus on growing your business
- Expertise in trends and market insights
- Someone to talk to and answer your questions
HOW DO AGENTS GET PAID?
There’s no one-size-fits-all, but companies generally compensate agents with a monthly retainer and/or a percentage of the royalties for deals they bring in or work on. The exact compensation depends on the agent or agency.
HOW CAN YOU FIND AN AGENT?
Try contacting industry organizations and also ask your network for referrals. To find the right agent for you, interview more than one agent and get references from others who have worked with them.
You want to feel comfortable with the agent and confident you’re getting a fair deal before committing. Ideally, you’ll want to find someone you like and trust who shares your vision and has connections in the industries in which you want to license. Ultimately, though, working with an agent is your business decision.
THE LEGALITY OF IT ALL
Of course, let’s not forget about legal. This is “Raising the Bar,” after all. Here are three things to remember:
- Ensure the contract you sign with the agent accurately reflects your deal with them (and is fair).
- Even though agents are there to help guide you, in most cases, they are not lawyers and shouldn’t be the ones answering your legal questions.
- You are the one who should sign third-party license agreements, so make sure you find a knowledgeable lawyer to help you with legal questions about the license agreement (and the agent’s agreement).
Remember to be smart like the Sharks and do your homework regarding agents (and legal). I wish you success in your licensing ventures — stay safe and stay legal!
* Disclaimer: This article is for informational purposes only and is not intended to be legal advice.
A version of this feature was originally published in the 2025 Licensing & Entertainment (+Baby!) Issue of The Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
