Revenue Model · No. 16
Monetizing IP You Already Own
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The Verdict
Strong return, low drag. This one is built to scale.
Quick Facts
| Best-Fit Founder | Established IP owner |
|---|---|
| Revenue Type | Recurring |
| Capacity Level | Low · start lean |
| Archetype | Asset (High Return · Low Cost) |
| Evidence Tier | Modeled |
What This Revenue Model Is
You have been treating your methodology like a service when it is actually an asset. A proprietary framework. A training curriculum. A signature assessment. A branded workshop. All of it is intellectual property, and most of it has never had a price tag.
Existing IP, turned into a royalty line.
0.1-25%
royalty range
~5%
median rate
near-zero
added cost
You already built the asset. Licensing it adds revenue with almost no new work, which is exactly why this scores so low on personal cost and high on return.
Royalty rates span 0.1% to 25% of net sales depending on the IP, with a cross-industry median near 5%, and software-grade IP commanding the high end.
Benchmarked to 2025-2026 royalty data (Goldstein Patent Law, Thompson Patent Law, RoyaltyRange). Gross-revenue basis is cleaner to audit than net.
Evidence tier: Modeled. Figures are modeled estimates, not observed results. Ranges are illustrations of how the model prices, not predictions of your results.
The Two-Axis Placement
Return score: 4.2 / 10. Personal Cost score: 1.8 / 10. That combination places this model in the Asset quadrant: high return · low cost.
AssetHigh return, low personal cost
Lucrative JobHigh return, high personal cost
TrickleLow return, low personal cost
TrapLow return, high personal cost
Score Breakdown
Return
Personal Cost
Related Revenue Models
Family page: Licensing Model
Could this model work in your business?
That depends on what your business can absorb and execute. The Membership begins with a Growth Decision that answers exactly that.