I paid lawyers to draft my first licensing agreement, and once I became familiar with the key terms, I could easily write my own agreements, using what the lawyers created as a reference. Depending on the complexity of the agreement, it would have cost me anywhere from several hundred pounds to a few thousand to have a lawyer draft it for me. I would only do this if the deal was likely to generate more than enough income to cover the legal fees.
If I have a complicated licensing deal to negotiate, or if there are contract terms I’m not familiar with, then I’ll consult with a lawyer to handle the tricky bits.
Legal bills can add up quickly, but for deals where a lot of money is involved, the professional help can be well worth the expense.
Often you don’t have to draft a licensing agreement yourself since the other party may provide one. Publishers do this as a matter of course. Then you only have to review it and suggest changes. I’ve rarely signed a licensing agreement without asking for something to be changed.
If you’re broke or want to learn how to draft licensing agreements on your own, a good source for info is Nolo Press. They sell many quality books, software, and do-it-yourself legal kits.