Why Royalties May Be the Best Income Investment on Earth
Are royalties the perfect income investment?
Intellectual property assets with a strong track record of consistent earnings may, in fact, be the perfect investment for those seeking income.
What's a royalty?roy∙al∙ty
nounA payment made to the owner of intellectual property every time that IP is used. The owner collects payments over and over again for an asset that is created once.
Imagine this… you’re a songwriter. You write songs for comedy films and, it turns out, these movies become classics; the types of films 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. People watch the movies on iTunes, Amazon Video and even still buy them on DVD.
And, every time one of the films gets purchased downloaded or aired on TV you get paid.
While the royalties aren't enough to retire on, they're nothing to sneeze at either–$22,627 in the last 12 months alone.
What’s better - the income has gone up at least 15% per year, every year since 2011.
Unfortunately, unless you're Billy Goodrum, the talented artist who, among many other things, penned original music for Jim Carrey’s hit comedy Dumb and Dumber (1994), or an artist like him, you've probably never experience the benefits of owning a great piece of intellectual property.
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. (Assuming people like it.)
Until recently, you probably never had the opportunity to own income-producing intellectual property.
That’s where Royalty Exchange comes in.
There are many privately-owned, cash-generating assets like Mr. Goodrum's, worth hundreds of billions of dollars in total. And Royalty Exchange is the place where investors can purchase them.
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 these 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.
If you'd like to view all the current and past auctions on Royalty Exchange, all you have to do is create a free account by clicking the button below. The process takes less than 2 minutes and then you'll be able to explore all the fantastic income investments we have for sale.
Why buy royalties?
The top industries producing royalty-based assets include music, film, TV, book, solar energy, pharmaceutical, intellectual property and oil/gas industries. Combined, these industries produce over $200 billion in royalty payouts worldwide each year to royalty asset holders.
At Royalty Exchange, you will now have access to purchase some of these alternative assets in an online marketplace.
Royalties are generally stable investments, they pay consistent income every year. Each asset listing on our site will include historical financial data.
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.
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.
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 artists covers an older song, the owners of the copyright enjoy a major boost in royalty payments.
Hear from satisfied customers
“I have been investing in music rights through Royalty Exchange for only six months, but already seen significant returns through royalty streams."
“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."
"Experts in the field and have reputations for integrity and fair dealing.”