Often we are asked, should brand licensing be handled by an inhouse department?
Our answer is two-fold:
- To acquire licenses you are better off with an agency.
- For the management of existing licenses an inhouse department makes perfect sense.
To proof our point here is a story from one of our clients.
We had arranged the first license for his brand.
It took us six months and we are glad to say,
it is very successful up until today.
Shortly thereafter management changed and the new
general manager took licensing inhouse.
After some failed attempts by himself, he hired a
professional to place additional licenses.
We know from the existing licensee, that the person
did not serve the license, we had arranged.
It took the inhouse person more then three years
to place the second additional license.
Even at conservative numbers, the general manager
invested well over 150,000 Euros for salary, office,
travel expenses, etc. without any return so far.
It will take more then a while for this inhouse licensing
to break even.