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How are licensing agents compensated?

April 26, 2017agents Compensated licensing

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How are licensing agents compensated?

2 Answers

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david milch Posted

Licensing agents for brand owners are usually compensated in two ways: The first is a percentage of the revenues derived from all licensing program revenues (royalties, guarantees and advances). This percentage is usually 30-35%. In addition, as it can take 12-18 months before revenues begin to come in, agents typically receive a monthly retainer for a period of time.

For agents acting on behalf of manufacturers, the agent typically receives a commission on the sales of licensed products up to 2% of Net Sales. Typically, there is also a monthly retainer or program development fee associated with these programs.

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Licensors generally pay their licensing agents a commission, often 35%-40% of all licensing revenues. This commission can be higher or lower, depending on the specifics of the situation. Some agents also charge monthly retainers, especially in the corporate sector.