Over the past few years I have had the privilege of meeting not only entrepreneurs with consumer, business product, and service ideas, but also people dedicated to helping fellow entrepreneurs. WayFounder CEO Damon D’Amore is just that type of founder but with an interesting twist. WayFounder is for Nontrepreneurs (inventors who will never commercialize their ideas and take the risk become full-time entrepreneurs). After reading an article covering his venture, I became intrigued in his business and asked if I could interview him and get some tips for Nontrepreneurs.
He agreed and we met last month in Los Angeles. I was also happy to have an interview with one of WayFounder’s first contest winners, Mary Ellen Simonsen, to ask her for advice she might have for people looking to succeed as a Nontrepreneur, particularly focusing on her intellectual property (IP) strategy.
WayFounder was launched this April but Damon started working on the concept and raising money in December 2012. Although based in Beverly Hills, California, Damon spends time on both coasts.
Mary Juetten: What does your company do? What problem are you solving?
Damon D’Amore: WayFounder provides a platform for great product or app ideas to become successful businesses. We service Nontrepreneurs those who have great ideas but are unable to assume the financial or lifestyle risks involved with founding a company. WayFounder rewards these idea generators with cash up-front and the potential to earn royalties and equity if their ideas become successful businesses.
Juetten: What's the vision for your company?
D’Amore: WayFounder aims to make it possible for anyone from any background across the country, and eventually the world, to monetize their ideas for great products without taking the massive lifestyle risk of starting a company.
Juetten: Startups are an adventure. What's your favorite startup story?
D’Amore: I have a friend who funded the launch of his startup by selling his old J.Crew clothes back to the store.
Juetten: How do you measure success and what is your favorite success story?
D’Amore: I measure success as the capacity to stay in the game and not get sidetracked by life or a full-time job, and continuing to work towards achieving your dreams or big life and business goals.
Juetten: Do you have any intention to trademark Nontrepeneur?
D’Amore: I registered the domain but haven’t looked into a trademark (we suggested that Damon start using the TM and look into registration for his protection).
3 Tips for Successful Competition Applications
If you’re interested in applying to a WayFounder competition, Damon generously shared his top three tips for a more successful application:
- One line pitch – Most people’s passion for an idea leads them to forget to learn to communicate their idea to someone who has never heard it before. When crafting a one-sentence pitch, try to imagine what would make a complete stranger immediately understand what your product does and why it’s valuable to them.
- Know the competition – So many friends or family members share ideas that sound great, but run one
Google search and you’ll find 10 products that already exist. Do your research! - Do the “Morning Test” – If you wake up every single morning wishing you had a product or app to help you make something in your daily routine easier, it’s a good idea.
Advice from a Successful Nontrepreneur
Mary Ellen Simonsen was WayFounder’s first competition winner earlier this year. Prior to her success this year, Mary Ellen was listed as one of the ten worst Shark Tank pitches of all time for her sticky note holder. Basic business knowledge was cited as one of the shortcomings for contestants and of course having an IP strategy is included in that knowledge.
Juetten: What did you learn from your shark tank experience?
Simonsen: Shark Tank was a great experience for me. Before being chosen I thought I was just very creative. After my appearance on the show I received hundreds of requests for my product even to this day. I was validated as an inventor when Barbara Corcoran offered me $50,000, however that offer was edited out of the final episode that aired. When I first appeared on Shark Tank I only had one invention; now I have over 16 inventions that I am working on. Shark Tank was the beginning of this new career and I will always be thankful for that.
Juetten: Why didn’t you protect your IP before applying to WayFounder?
Simonsen: I have a passion for inventing and I’m always working on anywhere between four to six inventions at any given time. Patents can be expensive and I do not have enough funds to file for patents for every idea that I am developing.
Juetten: Would you do that differently now that you are further along?
Simonsen: I might have filed a provisional.
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As an aside, filing a provisional is recommended before publicly pitching or disclosing your invention. If you dig deeper into some of the reasons that the Sharks pass on businesses, lack of IP registration comes up repeatedly.
Even some of the other top ten worst pitches were turned down for lack of IP protection. For example, when a bird feeder that zaps squirrels was pitched, the Sharks passed after the inventor admitted there was no patent protection. The same thing happened when an inventor failed to patent his sweat-activated technology that created motivational sayings on active wear.
However, having IP protection is not a guarantee – you need to be solving a real problem and have customers that wish to purchase your product!
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Juetten: When did you discover you were a Nontrepreneur?
Simonsen: Over the past five years I have approached various companies to consider my inventions for licensing deals. I would make it to through three or four rounds of qualifying interviews but received passes. I have researched manufacturing, packaging, and marketing. What I found out is that bringing a product from concept through production and to market is much more expensive than I thought it would be, and I don’t have the financial resources to go it alone. I also was not able to secure distribution deals, which afford you a better chance of success from the start.
Tips for other Nontrepreneurs
Don't give up and always believe in yourself! Know that if you do have a great idea or ideas, you will find the connections that will make your ideas come to life. Also, don't be afraid to ask for help and offer help to others. Knock on every door that you can because you never know which door will swing wide open for you.
We agree, whether entrepreneur or Nontrepreneur, passion, and commitment to your business or invention is critical to success.
