How much should we charge for our ideas?

Creators have the autonomy to set their own prices for their licenses, as PitchMark® does not dictate specific fees. Creators should negotiate this with their prospects.

However, here are some ideas for how innovators can determine the right price:

• Percentage of production cost: A practical rule of thumb is to set the licensing fee at approximately 10% of the total production price. For example, if a full campaign would cost $20,000 to produce, the creator might offer to license the idea alone for $2,000.
• Market value: Ultimately, the value of an idea is determined by what the market is willing to pay.
• Transaction history: As PitchMark® builds a history of transactions, the platform expects to offer more refined advice to creators regarding appropriate pricing based on past successful deals.
• Custom licensing terms: The price can be adjusted based on specific licensing conditions, such as whether the use is exclusive, the geographical range of the license, or if it is granted in perpetuity.
• Opportunity cost: For large-scale projects, such as a $2 million advertising campaign, a creator might set a fee (eg, $10,000 or $20,000) that reflects the value of the conceptual work while factoring in whether they are handling the full production.

By offering these choices, creators move away from an "all or nothing" model, allowing clients to license an idea in good conscience if they prefer to use a different production partner or an in-house team.