Toys & Games
The approach for selling a toy or game to a toy company is different from selling an invention to a manufacturer.
Before an inventor presents his product to a potential manufacturer or licensee it is important that he have some
sort of protection for it (i.e. utility patent or provisional patent application) but that is not the case when
presenting toys or games. As a matter of fact, toys and games are almost never patented. The toy and game
industry is very fast moving and they would be left behind the trends if they waited to receive patents for
their products.
This does not mean that you should not conduct a patent and market search to be certain that your product does not
already exist; you should.
The toy and game industry is also different in that it is a very “relationship-based” industry. The players in the toy
and game industry all know one another and they operate on a high level of personal trust. To be accepted as an
“insider” takes years of developing personal relationships with the decision makers in the various toy companies.
It is very difficult for an independent toy inventor to “break into the club.” This is NOT to say that an individual
has not or cannot be the exception. There have been many exceptions. This description is simply offered to inform
toy inventors of the obstacles they may face.
Toy Prototypes
It is not necessary that your prototype look exactly like it will look when it is on the toy store shelves. It is
necessary that it look as good as you can make it look. For example, you may want to laminate cards, if your game
includes cards. It is also important that you can actually play the game. Have all the parts there. The more polished your prototype is the more likely it will be to sell.
Test your prototype before you present it to anyone. And, test it with the target market you hope to appeal to.
If your game is for children be sure to have children play the game. Watch their reactions more than their words.
Did they catch on to the point of the game quickly? Did they have fun? Did they want to play longer? Children
will often tell you what you want to hear. They may say, “Oh, it was great!” because they don’t want to hurt your
feelings. Watch them! This is a case where their actions speak much more loudly than their words.
If your toy or game is for children don’t make it too hard. When children play they want it to be fun, not work.
Professional Associations and magazines
If you wish to be a toy or game inventor you should start by joining the professional associations for the industry
(e.g. Women and Toys Association or American Specialty Toys Retail Association). Go to your local library and talk to
the librarians. They can show you how to find the various professional associations. Subscribe to the magazines put
out by the toy industry (e.g. Playthings Magazine). Study them front to back, including the classified ads. As you
become more and more familiar with them you will begin to see the same names appear over and over.
Toy shows and conventions
Attend toy shows and conventions. The largest, Toy Fair, is held each February in New York City at the Javitz Center.
It is open to the public. The TGIF Conference in held in Las Vegas each year for adult or strategic games. If you have
done your homework by studying the various publications you will recognize names as you walk the fair. Walk up and
introduce yourself.
If you have a toy or game to show wait until the last day of the fair when most of the exhibitors have done most
of their work to approach them with your toy or game. By the last day they may be just passing the time until they
can go home and they would be happy and available to visit with you. They may not buy your toy or game on the spot
but get their card and write to them when you get home. Remind them that you met them at Toy Fair or TGIF, etc.
Presenting to Manufacturers
It is possible to present your toy or game to a manufacturer yourself. Choose the companies carefully. For example,
if your toy is a board game made of cardboard and plastic choose a company that makes similar products. Don’t waste the
time of a company that makes nothing even remotely similar to your toy or game. Use non-disclosure agreements. Most
companies will sign yours but a few ask you to sign theirs.
There are a few guidelines if you go to the company yourself.
Dress well
Ask them what they are looking for. (If your toy or game does not fit into their plan excuse yourself and leave.
Do not insist on showing them your game if they are not interested.)
If they are interested, present your product quickly and succinctly. Don’t read them all the rules; just show them how
the game plays. They do not have a lot of time to spend and will appreciate it if you do not waste their time. Also,
when you do have a toy or game that might be a fit for them they will listen to you.
Leave them with a description or presentation of your product that they can take with them. (Do not, however, leave your
only prototype with them.)
Don’t ever say, “All the kids in the neighborhood love it.” That is a dead give away that you are a novice to the
industry. They may discount everything else that you have said if you utter a statement similar to this one.
Toy Agents
The easiest way to break into the industry is to hire an agent. Toy companies like to deal with agents with whom
they are familiar. They can get the ear of the decision makers when it is very difficult for you to do so.
The easiest way to find an agent is to call the company you wish to sell your idea to. Ask to speak to the “inventor
liaison.” If they do not have someone by that title they will know who to direct you to. When you get them on the
line ask them whom the agents are that they like to deal with. They will tell you! Then call that agent and see if
they would be interested in representing your toy or game.
Agents are not cheap. They normally charge 50-60% of your royalty. For example, if they negotiate a 5% royalty
(that is the most common rate) then they would get 2 ˝ - 3% and you would get 2%. (Keep in mind that a small percentage
of something is much better than all of nothing!) That is steep but it is the going rate, and it gets you in the door.
After you get a few of your toys or games licensed you may be able to approach the company directly.
Toy Contracts
If you are lucky enough to find a company to license your toy it is crucially important that you get a good contract.
Here are a few things to watch for:
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Always get an EXCLUSIVE, not non-exclusive contract.
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Describe your invention completely
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Get a lawyer to look it over and negotiate for you. You may be a great toy inventor, but it is unlikely that you are also a great legal negotiator. Get a professional to help you out.
- Be careful what the company is allowed to subtract before paying the royalty. For example, it is common that they deduct promotion deals. You can, however, request a cap on how much that can add up to.
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Get the highest royalty you can!
- Try to get as big an advance on your royalties as you can. (There are a few companies that do not pay advances.) If they have given you a big advance they are much more likely to actually take your toy or game to market because they already have an investment in it.
- Protect yourself against lawsuits. Insist on being listed on their insurance policy as “also insured.” Require them to send you a certificate of insurance as proof that they have done this. Also get a statement that says you are only liable if your actual product injures someone, not the packaging that it is in.
- Have an ending date to the contract and other criteria that could make the contract end.
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