Why royalties may be the best income investment on earth

Why Buy Royalties

In today’s investing landscape, investors are looking for new ways to insulate their money from unpredictable stock market fluctuations. This has led to a substantial rise in the popularity of alternative investments like royalties. Investing in royalties offers buyers the opportunity to purchase future royalty stream revenue generated by royalty assets.

At Royalty Exchange, you will now have access to purchase some of these alternative assets in an online marketplace:

Auctions

Royalty Exchange take royalty transactions out of the private, backroom deal and into the open marketplace through online public auctions. Every listing provides all the relevant rights and catalog information, financial data, media, and any other information needed to make a sound investment decision. 

Advances [beta]

Royalty Exchange’s Peer Advance platform allows you to provide advances with fixed rates and terms to royalty rightsholders, backed by their royalty income. It’s as close to a guaranteed return as you can get.

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Steady Income

Royalties are generally stable investments, they pay consistent income every year. Each asset listing on our site will include historical financial data.

Longevity

Royalty streams last for the life of the copyright or patent. In many cases, with royalties generated from copyrights, those payments can last up to 75 years.

Diversification

Royalties from intellectual property, especially music royalties, are uncorrelated assets. Meaning they are not influenced by fluctuations in the stock market. This is a good way to stabilize the income your portfolio generates.

Potential Upside

Some royalties, especially in music, experience large spikes in revenue based on increased use. For example, when a song is used in a popular commercial, revenue spikes... or when a popular artist covers an older song, the owners of the copyright enjoy a major boost in royalty payments.

Why royalties could be the perfect income investment

Intellectual property assets with a strong track record of consistent earnings may be the perfect investment for those seeking income. Owners of intellectual property of any kind are paid every time their IP is used. They create an asset once, and then collect payment over and over again.

Imagine this… you’re a songwriter. You write a song for a film and this move becomes a classic; the type of film that people watch many times over a period of years. One of these films–even 20 years after its release date–still airs on TV nearly every week and is purchased or streamed on iTunes, Amazon Video, Netflix, and even on DVD.Every time one this film is bought, streamed, or aired on TV you get paid.

Billy Goodrum is one of these songwriters. He penned original music for the hit comedy Dumb and Dumber (1994), among others. Below, you can see that the royalties he earned from that movie increased at least 15% every year from 2011 through 2014, ultimately reaching a 12-month total of over $22,000 before he sold it in early 2015.

Royalties Paid by Year Bar Graph

Royalties don't rust. They don't get sued by angry workers. And they don't require expensive tools or machinery to make money. Somebody creates it once and they make money for decades.

Until recently, you probably never had the opportunity to own income-producing intellectual property. That’s where Royalty Exchange comes in. We’re a marketplace where these types of royalty assets are bought and sold. We specialize in intellectual property with a documented track record of regular, consistent income.

Through our one-of-a-kind platform, investors can buy privately owned royalty rights directly from the artists, inventors and creators. In a world of negative interest rates, these income-generating royalty rights just might be the perfect investment.

To view all our current and past auctions, simply create a free account via the link below. The process takes less than 2 minutes, and you'll be able to explore all the fantastic income investments available across both Auctions and Advances.

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What Our Customers Are Saying

“I have been investing in music rights through Royalty Exchange for only six months, but already seen significant returns through royalty streams.”
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Martin Diessner
Co-Founder of Flip Media
“I have been acquiring royalty rights through RE since mid 2011 to build a consistent revenue stream with reliable payments. RE has been instrumental in identifying realistic opportunities and ensuring the payments are settled in a timely fashion.”
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Klaus Lovgreen
Founder of Evershift and Tech Investor
“Experts in the field and have reputations for integrity and fair dealing.”
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Bob Rice
Editor at Bloomberg & Founder of Tangent Capital