A product royalties scheme can contribute to brand promotion on the market, whether local or global, in several ways:

Leveraging Celebrity or Influencer Endorsements: By offering royalties to celebrities or influencers for endorsing or using your products, you can tap into their existing fan base. This association can lend credibility and visibility to your brand.

Quality Assurance: When product royalties are tied to the quality and success of the product, it incentivizes licensees to maintain and improve product quality, which can help build a reputation for your brand.

Word of Mouth Marketing: When people earn royalties for promoting and selling your products, they have a vested interest in talking about your brand. This can lead to organic word-of-mouth marketing, which is often more trusted than traditional advertising.

Expanding Distribution: Royalty arrangements can incentivize licensees or partners to expand distribution to new markets. This can help your brand reach a broader audience and tap into global markets.

Innovation and Creativity: Encouraging licensees to innovate and create new products based on your brand can lead to a steady stream of fresh offerings. This can keep your brand relevant and exciting in the eyes of consumers.

Product Line Diversification: Royalties can be used to encourage licensees to diversify your product line, creating complementary items or addressing specific market niches. This can increase your brand's presence in the market.

Global Localization: In the case of global markets, a royalties scheme can allow for localization, which is crucial for resonating with different cultures and preferences. Local licensees can adapt your products to meet regional demands.

Continuous Marketing Investment: Royalties can provide a steady income stream, allowing you to reinvest in marketing and brand promotion efforts. This ensures your brand stays competitive and top-of-mind for consumers.

Collective Efforts: Collaborative product royalties schemes involving multiple partners or licensees can create a collective marketing effort. These partnerships can lead to joint marketing campaigns, co-branded products, and shared resources for brand promotion.

Long-Term Brand Loyalty: As individuals or businesses earn royalties, they are more likely to become long-term brand ambassadors. This loyalty can extend to customers who see the brand consistently associated with the same individuals or businesses.

Legal and Financial Incentives: A well-structured royalties scheme can provide legal and financial incentives for licensees to protect your brand's reputation and intellectual property rights.

It's important to design your royalties scheme carefully to ensure that it aligns with your brand's goals and values. The terms of the arrangement should be clear, mutually beneficial, and legally sound to protect both your brand and your partners. Moreover, regular monitoring and evaluation of the scheme's effectiveness are crucial to adapt to changing market dynamics and consumer preferences.