The Best Way to Assemble a Portfolio of Royalty Assets with Double-Digit Yields
Joining All Access is the best way to assemble a portfolio of royalty assets and help protect against market fluctuations. It’s a special membership program for investors looking to quickly and confidently invest in royalties.
If you’re like most investors, you’re drawn to music royalties because:
Royalties can generate substantial income that’s paid out quarterly and isn’t tied to the gyrations of the stock market.
The music business is booming because streaming services like Spotify are growing at eye-popping rates. This bull market is driving royalty income into the stratosphere.
Music royalties, like real estate, have big tax advantages that many investors don’t know about...yet.
Because this market is still relatively unknown, you can still find amazing deals. And our All Access members have a big edge in acquiring assets before the rest of the market recognizes the opportunity.
Members have access to proprietary research, discounts on purchases, and concierge access to the team at Royalty Exchange.
Here’s the return on investment that investors are seeing from assets purchased on Royalty Exchange:
The opportunity is compelling, but that doesn’t mean investing in this asset class is simple. To make intelligent investment decisions, investors must determine how to value these still esoteric assets. And, they need access to deal flow.
That’s why we introduced a membership program for active investors on our platform – All Access. The membership helps investors make better decisions while building their royalty income portfolio.
All Access members are eligible to participate in our automated investing by placing Standing Orders. With standing orders, you can define the criteria for the assets you wish to acquire, and our platform will match incoming catalogs automatically, bypassing the auction process.
Some of the best assets we’ve seen have originated through standing orders.
Case Study: An Income Stream with a 30% Yield
One investor acquired a catalog through his Standing Order. The catalog may not have turned many heads at auction, but it typifies many catalogs available through Standing Orders. This 16-year-old catalog earned about $5,000/year. The royalty stream was acquired for $22,800 (4.5x earnings). In the 5 months he’s owned it, the investor received payments totaling $4,592.27, an annualized rate of return of 30.29%. Not only has the investor recouped more than 20% of his investment, but the value of the underlying asset grew nearly 40% as the annual catalog earnings skyrocketed to $7,080.
Catalogs purchased through Standing Orders have outperformed similar catalogs purchased on the auction house. Returns from assets originated through Standing Orders are 25-50% higher than similar assets that have come through the auction house.
With your All Access membership, you’ll be eligible to place Standing Orders and, as they’re filled, build out a portfolio of royalty generating assets.
Zero Acquisition or Admin Costs
Royalty Exchange administers payments on behalf of investors who acquire royalties on our marketplace. The price of this benefit comes in the form of a one-time buyer’s fee applied to the final price of every auction. The fee is equal to either $500 or 1% of the final deal amount, whichever is greater.
All Access members never pay these fees.
For investors actively building a portfolio, this has resulted in significant savings. One investor who’s purchased 20 catalogs has realized $10,000 in savings. That’s more than twice the cost of his membership increasing his overall returns.
With your membership, you’ll see the fee waived on the purchase agreement of every new acquisition.
Member Insights and Guidance
One of the most frequent requests we receive from investors is guidance around investment in royalties. All Access Investors gain access to our monthly Insights reports—designed to give you an edge when buying royalty assets.
These reports leverage decades of data from thousands of music catalogs, examine market activity, and ongoing catalog performance data.
The topics of these reports range from valuation models and methodologies to tax considerations. For instance, did you know that music royalties provide real estate-like tax advantages for investors? In a past issue, we explained exactly how this works.
Our Insights reports are especially focused to provide the guidance needed to support successful royalty investment from both risk mitigation and wealth creation standpoints.
The more informed we are, the better the investment decisions we make. That’s especially true in this burgeoning asset class...One investor, who’s purchased a dozen assets on the exchange, has this to say about a recent Insights Issue:
"It's clear that the learning curve is steep among all of us investors and you guys are the PhDs bringing us all along."
Free Sample Insight: Tax Benefits of Royalty Investing (PDF)
While most investors purchase royalties as long-term investments, some take advantage of the increasing value of the asset class and choose to sell after a few years or even a few quarters. All Access members enjoy a 20% discount off marketplace fees when they sell.
With the recent launch of the Secondary Market, investors can now list their assets at a price they choose to solicit interest from potential buyers without taking an asset to auction.
Reselling assets is a great way to lock-in gains at any time.
With resales come marketplace fees, the cost of which may require the investor to hold the asset longer to cover those fees.
Thanks to the discount, All Access members have fewer restrictions on when they can sell.
As an example, for an average-sized catalog on our platform ($65,000), this discount would equate to $1,950 in savings.
Access to Private Syndicate Deals
Although rarely offered, Private Syndicates give All Access members access to world class catalogs through shares in larger, fixed-price assets.
These deals have included royalties from Dire Straits, Cage the Elephant, and Eminem catalogs. Offerings are available to All Access members before the general public. Sometimes, they'll never be available to the general public due to demand from the members.
Members receive access to investment documents, catalog financials, and can take their position before the general public even knows about the deal.
Enhanced Data and Analyst Support
All Access Investors can approach royalty investing with more ease knowing they have special access to the Royalty Exchange Investor Relations team.
The Ask an Analyst feature allows members to reach out with questions on specific catalogs, valuations, industry news, and more. With a targeted one business day response, investors can be sure to get a quick response on some of their most pressing royalty investment questions. They also have the ability to influence the content of future Insights reports by submitting their suggestions.
Members also have access to our Analysts’ Recommended price when purchasing assets on the Secondary Market. This algorithmically generated number is a jumping-off point for valuations, or to anchor offers on the dozens of catalogs on the Secondary Market.
Finally, All Access members can download raw earnings history data on all Secondary Market listings. This historical earnings data can be analyzed and incorporated into external modeling tools as desired.
Features like this - exclusive to All-Access members - are added frequently to the platform.
How You Can Join All Access Today
The way this membership program works is simple, you pay an initiation fee and then annual dues. The initiation fee is $4,997, including your first year’s access. After that, you’ll pay just $997 per year to maintain your membership.
Of course, joining All Access does not make sense for everyone. But if you’re interested in assembling a portfolio of high-yield royalty assets, this is the best way to do it.
You’ll get exclusive access to assets that have had 25-50% higher returns than the assets on the auction house.
You’ll pay no administration or buyer’s fees on any assets that you acquire. All Access members have already saved thousands of dollars and paid for their membership with this benefit alone. (Including one investor who has saved $10,000!)
You’ll get access to raw data on Secondary Market assets and proprietary research on music royalties that you can’t get anywhere else.
You can sell assets you’ve purchased for a 20% lower fee. (This alone has saved All Access members thousands and thousands of dollars.)
And you’ll also get concierge access to the Royalty Exchange team. You can reach out to our analysts to ask questions on specific catalogs.
You'll get all of that as soon as you join. And of course, as we roll out new benefits for our members, you’ll get those too.
Risk Nothing Today By Trying Out All Access
If you aren’t happy with your membership for any reason, you can cancel at any time in the first 30 days for a complete refund. We believe in the massive benefits of becoming an All Access member… if you disagree… you’ll get every penny back.
So take All Access for a test drive today and start enjoying the benefits of your membership.
then just $997/year thereafter