Another edge to collegiate licensing is the existence of royalty fees attached to license usage. Some schools will apply a royalty fee to commercially used items, though how "commercially" is defined will vary from school to school and also gets a little hazy when applied to promotional products. Since the addition of a fee will obviously affect your margins, it's very important to know whether your specific items will be using a royalty-fee license or not. "Know your licensing limitations inside and out," said VanWagoner. "Always have pricing ready to show your customers that includes royalty, or be aware if your customer is royalty-exempt."