Brand Extension
Growing with Licensed Brands

What is brand licensing?

It’s a tool used by thousands of companies worldwide to build their businesses. And when you multiply thousands of companies by the power of the strategy, it adds up to billions of dollars of sales every year.

Here’s how it works:

  1. Add a licensed brand. Basically, a licensor, who owns a brand, lets a licensee use the brand to make or source products. The brand should be well-known and popular with customers – but it doesn’t have to be used on the products it’s most famous for. Some of the most successful licenses use brand extension. That’s when a company uses a brand in new product categories that are purchased by the same customers or distributors.
  2. Leverage existing skills. Licensed brands come with a huge variety of benefits, from logos to branding to customer recognition. Companies can use them when they don’t have a brand, or need a brand for a growth initiative that doesn’t quite fit their core business. The common thread is how brand licensing supercharges the power of existing sales, marketing, and distribution. With a new brand to offer, all of a licensee’s teams have new options to generate more business through their existing systems, processes and customers.
  3. Pay a royalty. In return for using the brand, licensees pay licensors a small royalty that’s usually based on their net sales. The exact amount can vary depending on many factors, including the strength of the brand, the type of products the brand is used on, and the channels where it’s sold.

LMCA is a market founder and leader in making connections between growth companies and strong brands for licensing. We represent over $6.5B in annual licensed product sales. To learn more, contact us or watch this short video:


Let’s continue the conversation.  Learn more about how brand extension licensing can expand your reach, your customer base and your bottom line.  Contact Us Here

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