Almost every business owner and marketer incorporates a combination of advertising, PR, and other promotions in their everyday marketing strategies. But what many do not know is that brand licensing can also be an equally effective sales and marketing strategy. It is an invaluable step that you can take to grow your business and gain a competitive edge in the market.
In layman terms – Brand licensing is the practice of either renting or leasing an intangible asset to a third-party individual or company for a set period of time within a mutually agreed territory. The brand owner, otherwise termed as licensor, will receive a royalty revenue for the use of their brand logo on a consumer product. The licensee or the manufacturer, on the other hand, will be able to increase consumer interest and sales of their product and services.