Commercial Production Licenses: I want your opinion!

Something that I’ve struggled with since WoodMarvels.com really started to roll was how to handle commercial inquiries for people interested in purchasing the files on the site and cutting them for a profit. So as to not repeat myself, please read Fair Compensation: A business dilemma for some background and context.

Openness and current status

There is rarely a day where I’m not sent an e-mail from designers with some amazing design they want added to my site or a shop owner wanting to make some extra money on the side by cutting and selling designs available at WoodMarvels.com. I’ve actually said no to a lot of potential orders  because I refused to allow commercial production of my models. I’m also in a unique position, as both a designer driven by passion and a business owner driven by $$$ for all involved. Don’t  get me wrong, I’d love to get lots more big orders and a commercial production deals worked-out either for my designs or those who have designs on WoodMarvels.com but I’m not willing to sell things short. I have a very long view term regarding the development of this company.

Possible options on the table

Before I go on, as mentioned previously, a “buy once, unlimited cuts” kind of commercial file just isn’t in the cards and I use karma and the honor system for enforcement where copyright laws are lax.

  1. OPEN for everybody!
    Open-up the site to commercial production by anybody with a laser cutter /cnc router. The benefits are lots of sales around the world, everybody makes money over the short-term. Problem is I also see a race to the bottom regarding quality of not only the name of my company but prices as well. Somebody cutting a model out of 6mm plywood using a Trotec SP1500 would be competing against a guy with a CNC they bought at Walmart cutting 3mm MDF who maybe cuts 10 models but only buys one license. I know the difference between Eurolite and MDF, the general public hasn’t a clue.
  2. Exclusive Territories
    Selling “cutting territories” where an individual shop is given exclusive rights to develop a market our designs based on a royalty type system. This is by far what I’m gunning for, it’s a proven business model but you need some deep pockets and be willing to take this seriously. It’s the most profitable for all involved long term but so far, I’ve had several deals fall-through because the shop either had quality issues or not enough passion/drive to actually develop a territory.
  3. Keeping the status-quo
    Basically, keep things the way they are – I’m in no rush and the right opportunity will present itself one day. Either I get bought-out but a laser cutting manufacturer who wants to have all my designs available exclusively for their machines, WoodMarvels.com becomes the next “pet rock” fad and I can buy a private jet or nothing happens and I just keep growing as I have been doing for the past 3-4 years in perpetuity.

So, I leave the floor open to you guys – what would your solution be? Feel free to msg me or leave a comment below. I guess you now know the fun things I think about while my computer becomes an expensive rendering brick able to do little else till the electrons are placed in the right hard drive sectors.