In a recession, marketers and institutions with strong brands may be tempted to license their names and trademarks. But while licensing can generate easy revenues, those royalties come with a potential risk to the brand. Consider Harvard University’s recent ten year licensing arrangement with Wearwolf Group Ltd. of New York to develop and sell a line of preppy apparel bearing the “Harvard Yard” brand and crimson trim.
From Harvard Business
If your company brand is strong and well-respected in the marketplace, there may be opportunities to involve third party organizations in the promotion of your brand, while providing monetary benefit to both organizations.
Before entering such an agreement, however, consider carefully the potential impact this new association will have upon your brand equity and reputation. Short term gains can have long term effects. Be certain that the latter is worth the former.