270: Using Licensing To Make Billions in Sales, With Beanstalk Co-Founder Michael Stone
If you’ve ever bought a bottle of Jack Daniels BBQ sauce or Febreze kitty litter, you’ve seen Michael Stone’s powerful approach to brand licensing in action. This attorney-turned-entrepreneur pioneered the form of corporate licensing that makes such products possible and wildly successful. Stone made his first foray into the world of licensing with the launch of his company, Beanstalk, in the mid-1990s. The firm quickly became the go-to resource for prominent brands like Procter & Gamble, Coca-Cola, and AT&T—all corporations that were eager to expand their reach into different product categories and strengthen their relationships with consumers. In 2018, Stone and his company were responsible for generating over $7 billion in retail sales of licensed product. While he stepped down as the CEO a few years ago, Stone still serves as the chairman of Beanstalk and is committed to innovation in this industry. Check out this interview to learn more about the ins and outs of licensing and to hear about Stone’s experience writing his book The Power of Licensing: Harnessing Brand Equity. Key Takeaways Why Stone switched lanes from practicing law to pioneering brand licensing The uncharted territory Stone noticed, and how it led to the launch of Beanstalk The necessary components for successful corporate brand licensing How Beanstalk became the go-to resource for prominent brands An explanation of why Febreeze is a better candidate for expansion via licensing than Citibank Handing over the reins of a business that was responsible for over $7 billion in sales in 2018 Why Stone decided to stick with his existing niche instead of starting multiple new businesses Stone’s honest warning for aspiring entrepreneurs