How much %profit do you get based on royalties if you submit your patented idea to a company or companies?

Question

If the company will be the one to manufacture the idea product, how much % profit royalties does the inventor get and does the company/companies pay the inventor by paycheck? and how often? Is it based on total sales?

Answer 1

Based on the past experience of others it is more likely your invention would be purchased, put on the shelf as to not be competition to the company that purchased it and you would get only the sale fee and never see any royalties.

You are better off getting a large sales price for the invention than hoping for royalties.

Answer 2

If you have a good idea, but don't want to market it yourself, the best deal is to get a % on gross sales.  If you get a % of profits, you don't know what you'll get because they can spend all the margin on their own business.  4% to 9% of gross sales is probably reasonable, depending on the profitability of the product.  As the other answerer said, if your idea has a lot of value, the company will likely try to give you a low-ball price to buy it outright.  That way they don't have a long-term payment to contend with.