You might be sitting on a $10M licensing opportunity

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Did you know Coca-Cola earns BILLIONS each year from products it never produces? 

That’s right. They license their brand to basically everything from apparel to collectibles.

Many eCom brands are following this strategy too, using their intellectual property to create millions in passive income. 

Instead of simply safeguarding their IP, they're actively licensing it, sometimes even to their competitors.

Licensing is no longer a defensive move. It's an offensive strategy for scaling your brand’s influence and revenue without lifting a finger on fulfillment or operations.

In this email, we’re uncovering:

• Why successful brands license IP to competitors

• How an IP audit can uncover profitable licensing opportunities

• Ways to structure licensing deals without compromising your core business

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Why Licensing Your IP to Competitors Makes Sense

Licensing your IP to competitors might sound risky initially, but it can actually be a strategic growth move. 

Here's why:

1. Licensing allows your brand to reach new markets and customer bases without additional operational costs or risks. 

2. Competitors become valuable partners, consistently paying you to use your established brand assets. 

It's similar to renting your property. You earn passive income without additional effort, enabling your revenue to grow continuously.

Done right, licensing also strengthens brand awareness across industries. 

When more products carry your brand signature, even if they're not made by you, you cement your brand's authority.

Take OXO, for example. 

Known for their ergonomic kitchen tools, they’ve licensed their design elements to other household brands that serve different segments of the market, generating revenue without manufacturing a single new SKU.

Or consider Tony Hawk, whose name and signature brand have appeared on everything from video games to bikes to apparel. 

He’s not competing with the companies selling those products. He’s profiting from them.

As long as the usage terms are clear, your core business remains protected while your brand equity multiplies.

Every successful brand is already sitting on valuable assets. They just haven’t looked closely enough. 

An IP audit is simply a process of spotting what you already own that others might want to use.

This could be:

• Your name, logo, or a catchy slogan

• A specific product design or packaging style

• A customer journey or onboarding experience that’s uniquely yours

These things might seem basic, but they carry real value, especially if they’ve helped you stand out or grow. Brands in other categories, industries, or markets may want to license what you’ve built.

Some companies even license internal training programs or brand playbooks to other businesses. 

If it’s something original that drives results, someone else will likely pay to use it.

Once you've found what to license, the next step is figuring out how to make money from it without causing confusion or hurting your main business.

Here's how to keep it clean and effective:

• Be specific about what the other brand can and can't do with your IP. That keeps your positioning clear.

• If you want to avoid overlap, you can set rules around where and how they use it (like only allowing them to sell in certain countries or categories).

• Think about the payment model. You can charge a flat fee, get a cut of every sale (royalties), or even do a mix of both.

The best licensing deals work like clockwork. Once the terms are set, the revenue keeps flowing in without needing constant attention.

And because you're earning from something you’ve already built, it becomes one of the most efficient ways to scale income without scaling effort.

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Final Thoughts

Brand licensing isn’t only for major corporations anymore. 

eCom brands of all sizes can use this strategy to unlock steady, significant revenue streams. 

Licensing your IP ultimately comes down to strategically maximizing your assets.

It’s one of the rare growth levers that requires almost no capital or labor to execute once in motion.

Your intellectual property could become your most profitable resource. Don't overlook this valuable opportunity.

Struggling to grow? My team and I can help.

HOW??

We Use Strategies and Systems that Produce Consistent Results.

We currently work with a small handful of brands from early-stage DTC startups to global brands scale smarter, grow faster and get profitable. Whether your goal rapid growth, consistency at scale or just to be profitable again, we've built systems and strategies to achieve that for hundreds of brands over the years.

The results? You get reliable and consistent growth without sacrificing your profitability.

Sound interesting and worth a conversation? Book a call

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Thank you for reading! I appreciate you.

Until Next Time ✌️
- Kody

Disclaimer: Special thanks to Alia for sponsoring today’s newsletter.