Why Royalties Could Be The Perfect Income Investment: A Real World Example

  in Investor Guides

Feb 27, 2018

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 movie 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 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.