Thank you for your interest in the Trackside 3D Business Membership program. This page is intended to introduce the program and the premise behind it. There is a link at the bottom of this page with additional detailed information and information on how to sign up for Business Membership.
What is this Business Membership Program?
It is an annual subscription program that is paid up front annually that grants members access to business licensing for Licensed Production of physical objects based on Trackside3D digital designs.
Who is eligible for the Business Membership Program?
Any legally registered business that operates in either the Model Railway, Model Railroad, Hobby, Toy or 3D printing industries. The business must be in good standing, registered with the appropriate state agencies and be actively trading for the past 60 days.
What can we license under the program?
The ability to produce and sell physical products from Trackside3D digital 3D models while you have an active business membership and are paying the required royalty fees.
What are the licensing terms?
Active business membership must be maintained, you must purchase each digital 3D model you intend to produce while having an active business membership and a royalty fee of 10% of the gross sales revenue on all sold products.
Why is there a membership fee?
It was determined that providing business licensing under a membership program to a professional business trade program provided the necessary legal protections for our intellectual property and to protect all parties who are engaged in the licensing activity in good faith. The membership fee also enables Trackside3D to offer a lower royalty fee percentage, providing businesses with more options to be successful.
Why is the royalty fee 10%?
The royalty fee is based on industry standards for physical product royalties and software royalties. As our model is a hybrid of both types of royalty as we are licensing digital (software) models but that is being used to produce a physical product. A royalty fee of 10% is below the median for software royalties, but is above the median for physical products. Physical product royalties are typically lower as the intellectual property owner provides basic design sketches or an early stage prototype, and the licensee must incur costs for taking those concepts to a completed product. Software royalty models are typically higher as the licensed product is a completed module or product which the licensee builds upon. Trackside3D royalties are a hybrid of both solutions, we feel this is a far solution as there is less risk to the licensee, as the digital model produces a finished product, but the licensee must also take on some risks and sometimes customization of the physical product.
What is the royalty fee based on?
Our royalty fee is 10% of gross sales revenue related to the sales of physical products produced using our 3D models. Should you provide discounts or other sales incentives, the royalty fee is based on the value of the sale prior to those discounts, incentives or any other costs.
When is the royalty fee due?
The royalty fee is due between the 1st and the 7th of the month. Royalty fees are ONLY paid on sold inventory, not unsold inventory. The royalty fees on products sold in the current month are due between the 1st and 7th of the following month. For example, if your business sells £1000 of Trackside3D products in March, then your royalty fee for March will be £100. You would submit this payment between the 1st and 7th of April.
Is there co-marketing?
Yes. Trackside3D will maintain a list of Business Members websites at both Trackside3D and oorail.co.uk / oorail.com. This list will be actively promoted alongside Trackside3D digital products for viewers to both the website, social media (including YouTube, Twitter and Instagram) as options for the audience / customers to obtain pre-printed 3D models of Trackside3D products.
Trackside3D will actively promote new products on the oorail YouTube channel, when featuring new products, the oorail channel will also mention the availability from Business Members. New business members will also receive a dedicated video on the oorail channel when products become first available through the Business Member (part of our on-boarding process).
Trackside3D will actively promote and co-market Business Members upon request, ahead of exhibitions, special offers, promotions and other events, including but not limited to new product launches.
Who is the Manufacturer?
The business who is producing the physical product through 3D printing is doing so under Licensed Production.
Who is responsible for Quality Control and problems with the physical product?
The licensee is responsible for all matters related to the physical product. As 3D printing technologies and materials are constantly evolving, Trackside3D is dedicated to supporting its business partners under this program. This includes providing support related to materials, slicer settings and updates to models when deemed necessary to support a particular manufacturing process.
Designed by Trackside3D
Products sold under this program must include "Produced under Licensed from Trackside3D (trackside3d.co.uk)" in a prominent location either on the physical packaging or on physical instructions / documents / cards included with product. Product listings on websites / e-commerce must feature this with a hyperlink back to https://trackside3d.co.uk in their description and be fully legible.
Why are you offering this program?
We receive a lot of requests for printed versions of our innovative Model Railway products from individuals who cannot justify the purchase of a 3D printer, whether financial, the size of their layout or their lack of interest in 3D printing.
Will I make money?
Yes, we have structured our licensing program specifically with the goal that Business Members can make a similar profit to that had they designed the products themselves, possibly more considering they do not need to make the time commitment to develop the CAD etc.
Are there minimum sales or inventory requirements?
No there are no minimum sales level or inventory requirements. Business Members know their customers and business the best, we have tried to structure the program to be as flexible as possible. For members who are struggling with sales, we will actively work with them to help promote their business and products.
Can I sell the 3D printed products to other businesses for resale?
Yes, but remember that our royalty fee is based on gross sales revenue which would exclude any discounts provided to businesses for purchasing in bulk or having other agreements in place. You may not sell to another business that your business, a partner, a subsidiary, investor/shareholder, you or a family member has an ownership stake in, without prior written approval from Trackside3D.
Can a club register for this program and sell physical models to their members?
Provided the club is a registered business or non-profit / charity organization, then yes you may register and participate in the program. Registered non-profits and charity organizations should contact us at locoshed@oorail.com regarding donating royalty fees back to your charity.
Will you provide support?
Yes we provide technical support for all aspects of 3D printing to our members, not just printing our models, but assistance with a wide range of materials (PLA, PETG, HTPLA, infused hybrid materials, TPU etc) and 3D printer support/troubleshooting. The Trackside3D team has experience with a wide range of printers, manipulation of g-code, 3D printing slicer software code (Cura) and 3D printer firmware code (Marlin). All support is provided via email using Zendesk on a best effort basis.
What other advantages are there for my business?
Licensing Trackside3D models is a fantastic way to augment your existing brands and extend revenue streams for your business. Trackside3D products are innovative, heavily researched and designed by Railway Modelers. Many of the products on offer are designed out of the need to solve real problems on the oorail layout. Through our oorail brand, Trackside3D can offer Business Members access to an instant audience actively looking for new products and services to enhance their Model Railways. The oorail project has a strong brand and reputation in the Model Railway community, our goal is to make Model Railways more accessible and affordable for everyone.
Trackside3D products are designed with minimal waste and delivered electronically. Our products are designed primarily for use with sustainable bio-plastics such as PLA and PETG. Our business model is focused on minimizing waste, achieving 100% recycling of waste bio-plastics such as brim, skirts, rafts etc. Electronic delivery to businesses in close proximity to the customers or directly to the customers who own 3D printers, reduces the impact on the environment in terms of transport, packaging and manufacturing processes.
Where can I get additional information?
Additional detailed information can be found at https://oorail.co.uk/trackside3d-business-licensing/
