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Yes, there will be channels and sub-channels of royalties.
Further insight on different kind of business of model:
Pro & Con of Licensing Agreements
Pro: By licensing its proprietary QD Blockchain technology in QDX Distribted Ledger Technology (QDX DLT), in continuous flow automatic quantum dot production technology, in Display technology, in Solar Energy technology and in Solid State LED Lighting technology, QMC can has a continuous stream of income while not having to do anything itself. The licensee bears all the risk and all the work to make its profits and the licensor gets a percentage of the licensee's sales revenue. With low operating cost, in a deep recession QMC likely will still survive and prosper while its competitors with intensive high operating cost may not.
Con: QMC's Intellectual Properties may be vulnerable to piracy or having the technology stolen if it does not has good legal representation. Policing a licensee's use of the IP to ensure it doesn't infringe on the company's copy rights can be costly. Software piracy is just one example. Software is often licensed to end users. However, once one user gets the right to use the software, he might make copies of it and distribute it illegally, making a profit that he never pays royalties on. Statistics indicates that there is only 13% chance of success in licensing deal. But with overwhelming crisis in the counterfeit market, the chance of success is logically much greater and QMC already achieved licensing deal in India which, according to Stephen Squires, is an important step towards global franchise.
Pro & Con of Direct Sales/Channel Sales
Pro: The company retains 100% of sales revenue, not just a small percentage of it as in the licensing agreement.
Con: Working capital for creating many products is huge and the cost of manufacturing, warehousing, shipping, distributing, sales of the products and insurance is also immense. It also involves huge departments of customer relations, after-sales service and billing. Where production cost is high with intensive labor force, profit margin can be critical. Dwindling sales in a deep recession could jeopardize business closure. Such as in the case of Nanoco Technologies which is looking for a buyer for the company.
Direct sales vs Channel sales
https://quickbooks.intuit.com/r/selling/whats...nel-sales/
Further insight on different kind of business of model:
Pro & Con of Licensing Agreements
Pro: By licensing its proprietary QD Blockchain technology in QDX Distribted Ledger Technology (QDX DLT), in continuous flow automatic quantum dot production technology, in Display technology, in Solar Energy technology and in Solid State LED Lighting technology, QMC can has a continuous stream of income while not having to do anything itself. The licensee bears all the risk and all the work to make its profits and the licensor gets a percentage of the licensee's sales revenue. With low operating cost, in a deep recession QMC likely will still survive and prosper while its competitors with intensive high operating cost may not.
Con: QMC's Intellectual Properties may be vulnerable to piracy or having the technology stolen if it does not has good legal representation. Policing a licensee's use of the IP to ensure it doesn't infringe on the company's copy rights can be costly. Software piracy is just one example. Software is often licensed to end users. However, once one user gets the right to use the software, he might make copies of it and distribute it illegally, making a profit that he never pays royalties on. Statistics indicates that there is only 13% chance of success in licensing deal. But with overwhelming crisis in the counterfeit market, the chance of success is logically much greater and QMC already achieved licensing deal in India which, according to Stephen Squires, is an important step towards global franchise.
Pro & Con of Direct Sales/Channel Sales
Pro: The company retains 100% of sales revenue, not just a small percentage of it as in the licensing agreement.
Con: Working capital for creating many products is huge and the cost of manufacturing, warehousing, shipping, distributing, sales of the products and insurance is also immense. It also involves huge departments of customer relations, after-sales service and billing. Where production cost is high with intensive labor force, profit margin can be critical. Dwindling sales in a deep recession could jeopardize business closure. Such as in the case of Nanoco Technologies which is looking for a buyer for the company.
Direct sales vs Channel sales
https://quickbooks.intuit.com/r/selling/whats...nel-sales/
