Secret #2: Create Competition
By Gary Young, EVP and co-founder, Royalty Exchange
People have been selling catalogs for a long, long time.
But the way it’s been traditionally done has been very bad for the songwriter/artist/producer. They’ve been backroom deals where there are only 1 or 2 potential buyers that have the money. Nobody talks about it and everybody signs NDAs so that the price and the terms are never discussed. Except behind closed doors.
That’s a recipe for getting lowball offers and really crappy terms.
You see, your catalog is unique… there aren’t any others quite like it.
It’s like a Picasso Painting.
Imagine for a second you owned a Picasso that was worth gobs of money. And you want to sell it. Would you call up one or two people that bought art and ask them how much they’d pay for it?
That would be crazy. If you did it… you’d definitely be leaving big bucks on the table.
You see, buyers of unique assets like your catalog absolutely HATE competition. They will do everything in their power to make themselves the only buyer. Why? Because they want you to think their offer is the best. But in reality, they’re offering you as little as they think they can get away with.
We flipped that script at Royalty Exchange.
We’re a marketplace with more than 20,000 investors interested in buying your catalog. They’re lining up to buy and they’re excited about the opportunity.
And those investors have to compete against one another to see who’s willing to pay the most. Plus, they compete in public… so all the other investors can see who wants it and how much they’re willing to pay.
When you make buyers compete against each other… you win.
If you don’t… you lose.
It’s as simple as that.
Even if you don’t want to work with us, I urge you to keep this in mind as you consider selling your catalog. If you don’t have competition… you’re going to get a bad deal.
Now the next secret addresses a painfully common mistake.