A good example are Sports Mascots. It’s licensed to many companies at the same time, creating hundreds of products such as T-shirts, hats, shorts, toys and other product categories. It’s also licensed internationally, creating more recurring revenue opportunities around the world.
The second lucrative side of licensing is recurring revenue known as royalties. Recurring revenue is one of the highest profit margin forms of revenue, continuously regenerating year after year. In the case of your IP, you develop it once, and through licensing, you generate recurring royalties from all the licensed products or services.
Collegiate sports licensing generates millions of dollars in recurring royalty revenues. Consumers love buying everything from T-shirts and sweatshirts to cell phone cases to home decor with their favourite college team’s brand. Each year, fans and alumni buy products featuring the team logos created decades ago that still deliver tens of millions of dollars in new product sales.