Choosing the right product development partner can significantly impact the success or failure of your invention. Many inventors unknowingly enter into relationships that are misaligned with their goals. Understanding common red flags can help you avoid costly mistakes.

1. They Tell You That Your Idea is Awesome and Will Almost Certainly Succeed

Companies that promise commercial success are ignoring the inherent uncertainty of product development. No legitimate firm can promise market success, and such claims often signal unrealistic expectations or misleading sales tactics. Even the best invention ideas face a risky and daunting development and commercialization path before they can reach positive revenue. Some companies tell every inventor that their idea “is special and amazing” just to get them to sign on the dotted line.

2. Ambiguous or Confusing Deliverables

When a company cannot clearly explain what they will deliver and how much the costs are, it becomes difficult to understand what you are buying or even to measure progress. Vague or confusing proposals often lead to disappointment. Some companies use vague or complex language to make inventors think that they need a lot of things that are unnecessary.

3. Large Upfront Payments

Large upfront payments without clear milestones or with distant milestones can expose inventors to unnecessary risk. Smaller, structured, phased approaches are generally more transparent and safer.

4. No Cancellation Policy

Working with a company (or solo engineers and designers) to develop an invention is a major commitment, and it doesn’t always work out. The contract should have a clear (and fair – to both you and to the company) policy for parting ways if things don’t proceed the way you would like.

5. Minimal Communication (with caveat)

Poor responsiveness early in discussions often worsens over time. Clear, timely communication can be essential for a successful working relationship. The caveat here is that companies and people who do great work tend to be very busy – so that can be a legitimate reason that communication lags regarding your invention projecct.

6. A Portfolio filled with Mega Clients and Fortune 500 Companies

It’s not necessarily a bad thing for a development company to have large, premier clients. But, for inventors, this can be dangerous. Typically firms that work with both inventors and large scale clients will prioritize bigger clients and push the inventor to the side when needed. Some companies can balance both types of clients well – others not so much. Another challenge in these situations is that companies that cater to large corporate clients are typically much more expensive than firms dedicated to working with inventors, startups, and smaller clients.

7. Needless Complexity

Overly complicated proposals can sometimes obscure a lack of clarity or inflate perceived value. Simplicity and transparency are usually better signs. Some companies like to make things seem complicated to get inventors to sign on (and pay for) work that may not really be needed.

8. Hurry Up and Sign

High-pressure tactics are a warning sign for invention development companies. Good partners allow time for thoughtful decision-making.

9. Great Concepts with No Launched Inventions

A lack of manufacturing insight can result in designs for inventions that are not viable for production. Early consideration of manufacturing is critical.

10. Cookie Cutter Project Plans

Each invention is unique. Firms offering identical solutions to every client may not be providing thoughtful, customized guidance.

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Final Thoughts: Due Diligence

Don’t be reluctant to interview and ask questions of any engineer or development firm that you might consider working with. A reputable firm will be happy to answer questions. Well respected firms like Frog Design, Delve, and Product QuickStart are typically happy to discuss their processes, past work, and overall approach to developing new products.

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