Take the guesswork out of product development and sales with these tips from folks who are doing it.

By Susie Boghosian and Jinny Fleischman

Licensing arrangements. In this case, the product’s creator underwrites the cost of product development and pays the sponsoring organization a percentage of the sales price of the product in the general marketplace. What the organization ultimately licenses is the right to put its name on a product or series of related products. In some cases the nonprofit is paid an advance against future royalties upon signing a contract with the manufacturer.