The Wall Street Journal-20080129-Small Talk

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Small Talk

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[Kelly K. Spors answers questions from readers about entrepreneurship]

Q: My wife has an idea and rough design for a baby-related product that apparently has not yet been patented. Once we have a patented concept, what's the best way to ensure that a consumer-products company will see value in it?

-- Eric Strange, Cincinnati

A: Convincing a company to pay you for a product idea is a hard sell. And the vast majority of patents -- some estimates suggest up to 97% -- never reach the market.

The good news is that many companies are increasingly turning to outsiders to generate new products, even building Web sites on which the general public can submit ideas.

But suggesting an idea over the Internet "is like slipping into a black hole," says Andrew Krauss, co-founder of the Inventors Alliance, a California membership group that helps inventors sell their ideas.

Rarely if ever does someone hear back if they never made real contact with a decision maker at the company. His recommended approach: Find the key person at companies who sell similar products -- generally the product managers of those items -- and pitch them over the phone. Have a concise summary of what the product's benefits would be for consumers and why the concept is superior to what's already on the market -- basically the same sales pitch they would later give to consumers. Too often, inventors ramble on about how they came up with the idea or focus on sales estimates.

You need to sound serious about pursuing the product idea and make it clear you've done market research and know there's ample demand for the product and that it can be manufactured at a reasonable price. "The more homework you do upfront, the better chance they're going to listen," says Matt Yubas, a Lubbock, Texas, product coach.

Ask a lot of questions, and if the product manager seems disinterested, ask why. You might pick up suggestions while talking to product managers about how to make the product more sellable later on. If a product manager seems intrigued by your idea, mention you will follow up in writing with more specifics about the market research you've conducted and the market demand. Also, request an in-person meeting with company representatives.

A word of warning from Mr. Krauss: Inventors needn't spend thousands of dollars on a patent before pitching the idea to companies. Instead, file what's called a provisional patent. It costs $135 and offers intellectual-property protection for up to a year while you're talking with potential licensers. A company that signs a licensing agreement with you may even later agree to cover your patent costs.