Forums: Discussions for entrepreneurs and small business.

Hello Fellow SUN Members

Over the last 4 years I have established a successful Buying Group www.thebuyinggroup.com operation which serves 285 companies Nationwide. I have now expanded the business to target not only individual businesses but also Trade Associations ie... provide a one stop shop affinity program to their members. In addition ; I have also launched a National B2C Buying Group www.usabuyinggroup.com  and over 100 Local Buying Groups ie... www.thesarastabuyinggroup.com in order to serve Member Employees.

To expand these local groups properly; I feel I need local representation and local knowledge.

My research shows that Franchising is overkill, agents are not focused enough and a licensee arrangement may be the proper formula.

Can you share any experiences or thoughts on licencing?

Thanks in advance.

Mark

 

I have a lot of experience with licensing and would be happy to pass along anything helpful that I can if you can give me a better idea of what you hope to achieve. 

Hello T - Group,

We are looking to "partner" with local entreprenuers who would market membership in our Buying Group to local businesses. This would be a territorial sales opportunity which could be franchised , licenced or set up as am agency arrangement.

The local person would share in the revenue derived from membership dues as well as commissions derived from membership product/service usage. They do the on the ground marketing, we supply the website, existing local area members, branding, and most importantly our Supplier base and negotiated pricing.

So.... we are looking at ways to get local representation. As I said before; Franchising seems like overkill, Agents are not always committed and Licencing may be the best option.

Although most licences are for products, have you any experience with licenced services.

Feedback is apprecioated.

Good weekend.

Mark

Hey-

I don`t think I`ve run across a service that has been licensed but that doesn`t mean that it can`t work. What would be the advantage that you would hope to achieve with a licensing agreement (rather than appointing a rep or an agency)?

Using agencies and/or reps might enable you to maintain more control than a licensing agreement. I`ll take a look at your website and see if anything else comes to mind.

Thanks,
Ron

Thanks for the feedback.

I`m looking to have the local person have "skin in the game" upfront so that they have a real vested interest in growing that local territory and want to get a good ROI on that investment.This would be a residual model where the licencee could sell memberships , advertising and recruit new local suppliers and receive a % of all memberships and supplier commissions for a number of years.

I have worked with agents in the past and the focus was a big issue. This is a slow go at first so they need a long term perspective. Most folks without skin in the game will lose interest or not have the committment.

 

Thanks and other thoughts are appreciated.

Sure-

Happy to share anything I can. I know, it`s tough trying to find people whose enthusiasm and commitment doesn`t drop off (and disappear) after a short period. If you have any specific questions or whatever, just let me know and I will help if I can.

Good luck,
Ron

Thanks. Any suggestions of resources which could assist in determining the proper structure for our expansion? Do you know of firms who specialize in licencing ( preferably services) and would assist us in the analysis preperation?

Thanks again

Mark

Hi-

You might find some useful information at www.licensing.org. Most of the information is going to relate to brand licensing but you might find some useful stuff. You can also do a search for sample licensing contracts online. Look those over and that might help as well.

I would recommend finding an attorney who is experienced in contract law and intellectual property rather than a licensing agency. The agencies might just add an additional layer (and cost) that you might not want or need at this point.

Ron

Thanks Ron .. will do.

Happy Holidays.

Mark