License versus Certification

There’s been lots of interest in creating a licensing or certification program based on expertise as a means to scale a service-based business. If you missed the detailed chart I created that describes different ways to monetize your expertise by sharing it with others who will use it to deliver services to clients, you can find it here.

Briefly, licensing means you grant a third party, the licensee, the right to use your methodology and materials to serve their own clients. It typically also includes some training to make sure the licensee is successful in implementing your methodology. Certification includes the license and training but also requires the licensee to demonstrate mastery of the concepts through either testing or participation in continuing education.

I love licensing, with or without certification, as a solution to punching through a revenue ceiling or a scaling conundrum. It is a leverage trifecta: (i) it decouples money from time, (ii) it provides a way for the business to run without you, and (iii) it creates a saleable intellectual property asset!

Whether to go with a licensing program or a certification program depends on a few key variables. I look at the extremes this way:

Again, these are extremes. Your service may have a mix of variables. In that case, you will need to determine what your priorities are.

The greatest reach?

The greatest control?

Amount of resources you can dedicate?

How quickly you want to implement?

Revenue goals?

The answers will push you toward one option or the other.

Want to find out more about licensing and certification programs? Join me for a LinkedIn Live on March 30th for a Q&A session. Register here.

I hope to see you there!