Make money by investing in royalties

Make money by investing in royalties

09 October 2020
Reading Time: 6 mins

Do you fancy making money out of other people’s songs, films, books or technology?

That’s what would happen if you invested in someone else’s royalties.

Royalties are big bucks when it comes to making money in the music world, and you can jump on that bandwagon with the right know-how. Here are a few top tips on how you can make money from the sales of music, books and films by investing in royalties.

What are royalties?

Make money by investing in royalties

Noddy Holder, lead singer of 1970s glam-rock bank Slade, once said that his song ‘Merry Xmas Everybody’ is his pension.

He’s right. That record on its own should keep him in clover for the rest of his life.

This is because he co-wrote it with fellow Slade member Jim Lea and they get ‘royalties’ every time it’s played, covered or sampled (in a commercial project). The two wrote a number of other hit singles which are also regularly played around the world (a couple have been on TV ads in recent years and that’s great money) so the royalty cheques keep coming in for all of these tracks and provide a very nice income for both of them.

Royalties are a wonderful way of making money for years without effort.

It’s not just musicians who have royalties either. Authors, scriptwriters, inventors and others benefit from resales of their products and ideas.

Some people sell their royalties

You would think that this promise of money every time your record is played, your book is sold or your gizmo is bought would be something any creator would want to keep hold of. But not always.

Musicians, for example, might find it hard to raise the capital they need to kick-start their career or even push it along. Those that can’t get a loan from the bank will look for other ways to raise some cash. This is where their royalties become a potential immediate earner for them.

For investors, owning music royalties or other rights could mean a decent income for life – if they pick the right one.

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