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Old March 4, 2017, 07:47 AM
Dien Rice Dien Rice is offline
Onwards and upwards!
Join Date: Aug 2006
Posts: 2,557
Default Creating a toll position based business with no up-front cash...

Originally Posted by unpinkpanther View Post
Thank you for sharing Harvey Brody's Answers to a Question-Oriented Person

Let's say you have invented the formula for a widget; that becomes your "toll position".

You hire a subcontractor to handle the actual production of the widget. To avoid getting "flipped", you recruit master distributors to distribute (duh!) the said widget.

Please help clarify a few things:

1. How does the production subcontractor get paid? (It seems to me he is using his funds to build your widget.)

2. How do you work out a suitable compensation plan for the distributors? Any sample templates?

3. How do you get paid? Are the royalties paid by the production subcontractor? How are royalties worked out?

Please let me know what you think

If you're doing your own deals, you can of course structure it however you like...

So, the answer is it's up to you how you want to structure it.

It will probably be a matter of deal making. You have to make deals with the subcontractor and the distributors.

It's a very broad question, and there are different ways to do it...

You might enjoy the details of how Bob Reiss created a trivia type of game around TV Guide, which might help answer your questions... He invented the game, had it produced, and marketed it - all with no up front cash.

You can read the details here...

(This will download a PDF file.)

Let me know what you think!

Best wishes,


Last edited by Dien Rice : March 5, 2017 at 08:18 AM.
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