In this video im going to break down how to get started, start cost, expenses and profits. And I’ll make sure to break down how royalties rights work and where to go and buy some
I love passive income, and I haven’t seen a video on how to make money from Royalties without having to make music. Because although I love music, I have zero talent in the art of making a hit record.
How to start a music royalty business
Royalties: are basically you getting paid rent to license your product ( music) to someone else.
Example: I’ll let you use my song for your movie but you have to pay royalties, and since I own the rights then I’ll get paid.
1k to 150k although way up 47million on Michael Jackson bought the Beatles catalogue
Normal taxes on the royalties but that about it, unless you want to do all the work of actually trying to get the songs into tv shows and so on.
– Uncorrelated to market dynamics
– Yield is usually higher than bonds and stocks
– Consistency: you’ll receive constant royalty payments for the life of the song, which can sometimes mean a day or sometimes decades
Real Example: going on today: Kygo is selling the rights to “ at least we stole the show” platinum record and bidding started at 150k for this platinum single.
– It makes an average of 40k per year
– You’re buying the rights for 10 years
– This is a 26% return on investment
– In the first 4 years you’ve made all your money back, by the end you’ve double your investment plus made an extra 100k on top of the double
Tip: Busines is business: you want to check the track record of the royalties, not just take 1 good year as the norm. ( because you never know if they might inflate the price)
How to Buy Royalties:
1. Visit a website ( where kygo is selling is hit single)
A. The Royalty Exchange: They consider themselves the best in the market
Info: with this website you buy: Book, music, tv shows and various other types of royalties
They’re are more: Crowdfunding way to invest in an album and make a dividend/royalty.
– Usually, you’re buying the life of the content, which is 70 years.
2. Why would an artist sell royalties
– They might need some money to buy a house or a car or some fancy stuff
– And sometimes they only sell the rights for a term Period of many 10 years or 20 years
3. Remember to analyze the Best types of royalties to buy
– Not all songs are created equally
Overall idea: it sounds good, but it’s not simple and it’s not the same as an investment into Spotify or a company for example, but it can be another stream of income if done correctly.
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