How To Make Money Brokering Patents and IPs

How to Make $1M+ Per Month Brokering Patents and IP: An Untapped Gold Mine

The patent and intellectual property market represents one of the most overlooked opportunities in business today. With companies sitting on patents worth anywhere from $1 million to $50 million or more, there's enormous potential for intermediaries who know how to connect buyers and sellers. Here's how you can build a seven-figure monthly business in this space.

Why IP Brokering is an Untapped Opportunity

Patents are the foundation of major industries including biotech, pharmaceuticals, automotive, and manufacturing. Companies hold valuable intellectual property but often lack the expertise or connections to monetize it effectively. That's where you come in.

As a patent broker, you facilitate sales and licensing deals, earning a commission of 1-5% per transaction. Do the math: even at the low end, a $1 million patent nets you $10,000. At the high end, a $50 million deal could earn you $2.5 million from a single transaction.

Building Your Team: Start with Lawyers

You don't need to become an IP law expert yourself. Instead, partner with qualified lawyers who specialize in intellectual property. The model is straightforward: charge clients double the lawyer's rate and keep the difference as profit. Your lawyers handle the technical details while you focus on connecting buyers and sellers.

Finding Sellers: Universities and R&D Companies

Your primary targets for patent sellers are:

- Universities with active research departments

- Small biotech and pharmaceutical companies

- Technology startups with innovative IP

- R&D companies across various industries

These organizations constantly develop new patents but often lack the resources or connections to commercialize them effectively.

Scaling Your Outreach

To build a substantial pipeline, consider hiring a virtual assistant to manually research and compile contact information from universities and R&D companies worldwide. This effort can generate tens of thousands of qualified leads who regularly produce new intellectual property.

Use this simple but effective outreach message:

*"Hey [Name], some of your patents and IP caught the eye of one of the businesses we represent. When would be best to discuss commercialization and licensing? Thanks, [Your Name]"*

Attracting Sellers Through Advertising

If you have budget for paid advertising, run ads targeting startups and small businesses in high-value sectors:

*"Do you have a patent or looking to set one up? We can help you set up or sell your patent in as little as 30 days. Our costs range from $3,000 to $50,000 for setup and structuring. To see if you qualify, book a call today."*

The Seller's Proposition: Zero Upfront Risk

Your offer to patent holders is compelling because there's no upfront cost. You're simply helping them monetize assets they already own through commercialization or licensing. You only get paid when they get paid, making it an easy "yes" for most patent holders.

This no-risk proposition gives you access to the best patents being developed worldwide.

 Finding Buyers: Large Corporations Always Need IP

On the buy side, your targets include:

- Major pharmaceutical companies

- Biotech corporations

- Technology firms

- Automotive manufacturers

- Any large company in patent-heavy industries

These companies constantly acquire patents to strengthen their competitive position and reduce competition.

 The Buyer Outreach Strategy

Send a straightforward message:

*"Hey [Name], we found a patent recently that we believe would be a perfect fit for [Company Name]. When would be best to chat? Thanks."*

After initial responses, conduct discovery calls to understand exactly what types of patents they're seeking.

The Buyer's Offer: Annual Retainer Model

After your discovery call, present this compelling proposition:

Pay $50,000 annually, and you'll source all the patents they need throughout the year. This breaks down to roughly $4,000 per month for a dedicated patent acquisition service—an exceptional value for companies that regularly invest in IP.

The Double-Dip Revenue Model

Here's where this business model becomes extraordinarily profitable:

1. **Retainer fees from buyers**: $50,000 per year per client

2. **Brokerage fees from sellers**: 1-5% of each patent sale you facilitate

3. **Setup fees**: $3,000-$50,000 for helping new patent holders structure their IP

With just 20 buyer clients paying $50,000 annually, you're at $1 million in retainer fees alone. Add brokerage commissions from actual transactions, and the numbers scale dramatically.

 Running on Autopilot

Once established, your business operates efficiently:

- Lawyers handle patent setup and small clients from ads

- You manage relationships with major buyers and sellers

- Your database of patent sellers continuously grows

- Buyers pay retainers while you broker deals for commission

You're essentially being paid by both sides: buyers pay you to find patents, and sellers pay you to sell them.

 The Path to $3-10 Million Monthly

As you become proficient at matching buyers with sellers and build your database, this business can scale to $3-10 million in monthly revenue. The key is consistently adding to both sides of your marketplace while your team handles the legal and administrative details.

 Getting Started

The barrier to entry is remarkably low:

1. Partner with IP lawyers

2. Begin outreach to universities and R&D companies

3. Contact potential corporate buyers

4. Facilitate your first deals

5. Reinvest profits into scaling outreach

The patent and IP market represents a genuine opportunity to build substantial wealth by connecting parties who need each other but lack an efficient way to find one another. With minimal upfront investment and the right approach, you can tap into this overlooked gold mine.