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How is compensation structured for promotional licensing?

April 26, 2017compensation licensing promotional structured

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How is compensation structured for promotional licensing?

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Compensation for promotions ranges from a flat fee (such as for advertising or endorsements), to a percentage of a media buy (such as for advertising usage), to a percentage of merchandise, food or ticket sales (such as for licensed restaurants, arcades, live event appearances), to no cash at all. A licensee may provide valuable promotional elements in lieu of some or all of a cash payment. The possibilities vary widely depending on the situation and the final package can be complex.