CAUTION: Most Inventions DON'T Make Money – How to Improve Your Odds for Success

Why Inventors Need the Right Strategy

According to the United States Patent and Trademark Office, only 5% of all patented inventions generate revenue. Many promising ideas fail—not because they lack potential—but due to the inventor’s missteps in the commercialization process.  These missteps further complicate their readiness for the already difficult task of raising needed capital, and too often lead to peril in what is known in the invention monetization world as the valley of death.  

Bringing an invention to life is an exciting yet challenging journey. Without the right strategy and failing to do Early-Stage Invention Due-Dilifence, the initial thrill of a breakthrough idea can quickly turn into costly missteps. The key to success? A structured, informed, and cost-effective approach.

Having successfully commercialized two of my patented inventions—and advised on countless invenitons from NASA engineers to everyday problem solvers—I’ve seen firsthand what separates success from failure. This post will guide you through the essential steps for informed inventing, minimizing costs while maximizing success.

The Harsh Reality: Why Most Inventions Fail

It’s no secret that most inventions never make it to market. The primary reasons include:

• Lack of Market Validation – Many inventors love their idea but fail to confirm if there’s real demand.
• Misguided Spending – Rushing into patents, prototypes, or manufacturing without validation wastes money.
• Poor Commercialization Strategy – A great invention doesn’t guarantee success; a strategic path to market is crucial.
• Bad Advice – Many inventors fall victim to misinformation from companies that don’t prioritize their best interests.

Avoiding these pitfalls starts with education, validation, and strategic decision-making. 

Download the Informed Inventor’s Next Step Guide to ensure you take the right approach.

The Inventor Inforned’s Approach: Educate Before You Invest

One of the biggest myths in inventing is that you must spend tens of thousands on patents and prototypes upfront to be successful.  The reality? With the right guidance, inventors can save money and increase their chances of success with minimal spending. 

1. Validate Market Demand Before Patenting

Before filing a patent, confirm that there’s demand for your invention. Ask yourself:

• Does my invention solve a real problem?
• Are people actively looking for a solution like mine?
• Would they pay for it?

Use market research methods to validate demand without prematurely disclosing your invention, as improper disclosure can put your idea at risk. 

Also, consider ethical smoke testing when possible  I once used smoke testing to determine to potential customers would pay for a software-as-a-service (SaaS) inventon before investing in software development.  The results gave me the confidence to make the required investment. 

2. Develop a Smart Intellectual Property (IP) Strategy

Patents can be valuable, but they are costly. Instead of rushing into a full patent, consider:

• Provisional Patents – Secure early rights while testing the market for a fraction of the cost of a full patent.  I used this strategy to test one of my inventions I later abandoned after market research results suggested I should not further invest.  I saved well over $10,000 in non-provisional patent preparation and prosecuting costs.  
• Trade Secrets – If confidentiality can be maintained, trade secrets can be an effective alternative.
• Licensing – Reduce costs by transferring patent expenses to a commercial partner. 

Align your IP strategy with your commercialization plan, rather than letting patents dictate your approach.

3. Build a Prototype on a Budget

You don’t need a perfect prototype to start testing. Start with low-cost options like:

• 3D printing or DIY materials
• Off-the-shelf components
• Digital renderings or mockups

This approach helps refine your invention before heavy investments in expensive prototyping and manufacturing.

Monetizing Your Invention: Choosing the Right Path

Once you’ve validated your invention, the next step is determining how to bring it to market. Your options include:

1. Licensing: The Low-Risk, High-Reward Path

Licensing your invention to an established company allows you to:

• Earn royalties without managing manufacturing or sales.
• Leverage an existing distribution network.
• Avoid the risks of running a business.

• Key to Success: Identify companies that are the right fit for your invention and demonstrate market demand effectively. I used this strategy to license my first two inventions to avoid having to invest hubdreds of thousands of dollars in developing  a manufacturing line for production. 

Licensing is not easy but it is achievable. I learned the process by educating myself and obtaining guidance and good advice from a successful inventor and another expert on bringing products to market. 

The key to licensing Is proving market demand and finding the right company (ideal licensee) who  sees value in your invention.  You should do extensive homework to identify and target companies you believe will be the right steward of your invention   

2. Manufacturing & Selling: Higher Risk, Higher Reward

If you prefer to retain full control, manufacturing your invention can be rewarding but requires:

• Sourcing materials and production partners.
• Marketing and sales expertise.
• Raising significant capital investment.

Many inventors turn to crowdfunding platforms like Kickstarter to validate demand before committing to large-scale manufacturing.  However, it should be noted that most of the initial  investment for getting your business up and running is likely to come from your own pockets or someone in your network.  Hence, it is important to determine if you have the appropriate net worth or network to pursue this path. 

3. Selling or Auctioning Your Patent

If running a business or licensing isn’t for you, selling or auctioning your patent could be an option. However, without a market-proven invention, offers may be lower than expected. Understanding the right buyers and the best timing is critical.

Download the Informed Inventor’s Next Step Guide today

Avoid the Most Costly Mistakes Inventors Make

Through my own experiences and working with inventors for decades, the most common (and expensive) mistakes include:

1. Patenting Too Early – Protecting an idea before validating market demand wastes time and money.
2. Spending on the Wrong Prototype – A simple, early-stage prototype is often more effective than an over-engineered one.  It is important to get feedback from potential end users before advancing product development, because they are likely to provide valuable insight about how you should shape your product   
3. Neglecting Market Research – Even the best invention won’t sell if there’s no demand.
4. Overlooking Licensing Opportunities – Many inventors dismiss this cost-effective route to monetization.

Failing to Get Expert Guidance – The right mentor can help you avoid costly trial-and-error setbacks.

The Informed Inventor’s Journey: Take the Right Next Step

Inventing should be exciting, rewarding, and—most importantly—profitable. But success doesn’t come from guesswork; it comes from strategy.

The inventors who succeed aren’t necessarily those with the best ideas—they are the ones who:

• Educate themselves.
• Validate their market before investing.
• Take calculated, strategic steps toward commercialization.

If you’re ready to take a smarter approach to inventing,

Download the Informed Inventor’s Next Step Guide today and start your journey toward a profitable invention.