Evaluating Potential Licensing Partners

By Jennifer Smelker  •   2 minute read

Evaluating Potential Licensing Partners

Not every opportunity is the right opportunity—and in licensing, choosing the right partner is just as important as creating strong work. When you're aiming for long-term recurring revenue, a great fit with a manufacturer can make or break your success.

So how do you tell the difference between a dream collaboration and a licensing nightmare?

Here’s what to look for:

Green Lights

  • They Understand Your Market: They’re selling in the same stores or to the same customers you design for.

  • Clear Communication: You know who you’re talking to, what they need, and how they plan to use your art.

  • Experience With Artists: They’ve worked with licensed art before and can articulate what they need from you.

  • Transparent Terms: Royalties, exclusivity, and payment timelines are clearly outlined from the start.

  • Collaborative Energy: They want a relationship, not just a transaction. They value your input on art, products, and brand fit.

Red Flags

  • Vague Details: If they can’t clearly explain what they want or when they want it, proceed with caution.

  • Requesting All Rights or “Forever” Terms: That’s not licensing. That’s a sale.

  • Poor Fit: Your art is a complete mismatch with their customer base or existing product line.

  • No Track Record: If they’ve never worked with artists, dig deeper before you sign anything.

  • Dodgy Communication: If they disappear, miss meetings, or ghost mid-pitch, that behavior may continue after the contract.

Remember: Licensing should benefit both parties. If a partner doesn’t value your time, talent, or terms, you’re allowed to walk away.

Trust your instincts—but back them up with questions, references, and research.

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