by Michael Collins, CEO of Big Idea Group and author of “The Million-Dollar Idea in Everyone”

Although we work as a team to select Hunt winners, the client alone decides whether or not to put winning ideas into development. If they opt to do so, they will negotiate the development or licensing contract directly with the inventor. Though we will facilitate discussions, negotiating a contract for either party would be a conflict of interest since we are essentially working for both sides—the company is our client and the inventor is one of our treasured resources. We want the inventor to get as much out of the deal as possible, but at the same time, we want the company to see the value in paying for ideas outside the walls of their own R&D groups. Unreasonable expectations by either party can create roadblocks. Here are some things to keep in mind when negotiating a deal born out of an innovation contest:

• Keep emotions in check. I’ve seen inventors mess up a great deal by having unrealistic expectations and getting too emotional in the process. They think the offer should be in the millions, the contract is too binding or not binding enough, the company is trying to rip them off, and so forth. When you get an offer, let a day or two pass before responding to the proposal and try to see the deal from the other side’s perspective. Doing so will help you remain professional and objective throughout the negotiations.
• Act now. It’s okay to take a little time to consider the deal, but don’t cause unnecessary delays. Act while the company is interested and the decision makers are ready to sign or you risk walking away with nothing. Finding a new partner could take months, years, or forever.
• Consider your ability to license the idea to someone else. Sometimes an inventor has a product already in development that just happens to match the Hunt criteria. Though he or she may have originally intended to license or manufacture the product himself, the innovation contest provides a quick path to success—but it isn’t the only realistic option for that inventor. Conversely, someone who thinks up a product specifically for a Hunt client, such as a new snack for a major food company, might not have a lot of options for licensing the idea once the Hunt is over.
• Establish a relationship. Licensing one product is great. Licensing a product to a company who likes working with you, values your input, and asks you for future ideas is priceless. Without being overbearing, offer to stay involved—provide additional data, give more feedback on things you’ve already tried, review prototypes, and so forth. Acting like a constructive member of the team helps all parties and could result in a long-lasting, more lucrative arrangement than any one deal can bring.
• Balance risk and reward. If you’ve spent years developing an invention, then you want a licensing deal that compensates you for all the time, money, and effort spent. If, on the other hand, you brainstormed an idea for a Hunt in one afternoon and spent a few hours putting together a great presentation the next day, your risk of not getting fairly compensated in a licensing deal is relatively low. Of course, you want to make as much money as possible. But don’t get greedy just because you’re working with a large corporation. Though they may ultimately make a great deal of money from your idea, they will also spend thousands (if not millions) taking your invention from submission form to shelf-ready product.
• Never threaten. In this business, good guys finish first. A company won’t want to enter into a relationship with someone who proves themselves difficult before the project even gets underway. Make friends instead and you could create a wealth of future opportunities for yourself.

Winning a Hunt and licensing a product is an amazing accomplishment. I would hope that the inventors who make it that far view the experience as an opportunity to put another successful product in their portfolio. Though a million-dollar idea is everyone’s hope, several thousand-dollar ideas isn’t a bad way to go either.