One of the most prevalent inefficiencies when it comes to managing licensees is the lack of onboarding processes, causing disconnects that can impact revenue streams. By implementing a licensee onboarding process, best practices such as reporting and payment discipline are encouraged, the ability to mitigate risk early on increases and the long-term partnership between licensor and licensee is strengthened.

Avoid losing critical revenue with licensee onboarding

All too often, we identify licensees that are not fully aware of their contractual obligations or understand the language within their contracts differently from the licensor.  

To the licensor, the contract is second nature, to the licensee, not so much. As a result, most licensors don’t think about reviewing contract terms and conditions in detail. Consequently, a disconnect between the two parties can occur, and often does with detrimental impacts on the business. Through licensee onboarding, licensors can educate licensees before their first reporting period — aligning expectations and ensuring licensors spend less time following up with licensees on non-critical issues.  

Through a well-designed licensee onboarding process, the licensor can explain reporting obligations from the outset. This allows them to avoid follow-up time spent on late reporting, late payments, etc. They can also use this as an opportunity to encourage reporting and payment discipline and review terms and conditions together to avoid surprises.

By assessing licensee risk early on, licensors can better understand their licensees and their specific business needs as well as challenges, and minimize non-compliance risk areas with valuable data points earlier in the process. Ultimately, integrating licensee onboarding into the process will strengthen the long-term relationship between the licensor and licensee.

Ready to learn more?

Improve your current royalty audit process and maximize ROI with a licensee onboarding process customized to your needs. Reach out to Connor to learn more about our proven licensee onboarding strategies, or if you wish to inquire more about our royalty auditing services. slc@connor-consulting.com

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