To choose a property to license, start from your own audience and the channels you sell through, not from how famous the character is. Then weigh how long it will last (a classic that sells all year or a novelty tied to a film), what support the owner gives in content and marketing, which licensees are already on board and what it costs compared with the sales you can realistically make.
Start from the audience, not the character
A property works if the people who buy your products recognise it and want it: children, adult collectors, sports fans, lovers of a heritage brand. A famous character far from your customer, or sold in shops other than yours, brings royalties to pay and few extra sales. So the first question is who buys, where and at what price.
Classics and novelties
Properties tied to a film or series release have strong peaks but risky calendars; classics sell with fewer surprises. After release delays during the pandemic, many licensees turned to “evergreen” products inspired by a franchise, more predictable than those tied to a single release; one collectibles maker said Harry Potter gets a lift when a film comes out but sells solidly all year (Licensing International, 2022). Novelties remain useful when the owner backs them with a big marketing plan.
Questions to ask the owner
- What data do you have on the property’s audience and reach?
- What content and marketing are planned for the coming years?
- Which products in the line sell best, and why?
- Who will we be competing with for shelf space?
- How did you choose the other licensees?
- What marketing support can we expect?
These are some of the questions Licensing Expo, the Las Vegas licensing show, suggests licensees ask at a first meeting with an owner (Licensing Expo, 2021 attendee material). The answers tell you whether the property will still have an audience when your products reach the shops.
Run the numbers before signing
Royalties, minimum guarantee and advance should be compared with a cautious sales estimate: if the minimum guarantee is reached only in the best case, the risk is all yours. Approval times and the cost of artwork and samples matter too. The calculation is explained in royalties and minimum guarantees in licensing, the points to settle in the licensing agreement.
Where to start
The properties in our portfolio range from characters (Lupin the Third, Calimero) to sport (Calciatori Panini) and heritage brands (Vespa); some examples are in character and anime licensing. If you make consumer goods and are looking for the right property for a range, write to us from the licensing service page.
