Royalty Exchange

Royalty Exchange

Royalty Exchange

Royalty Exchange

Royalty Exchange is a marketplace where intellectual property is bought and sold like any other asset. Earn from music, movie, and trademark royalties.

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Highlights

-17.51%

Asset Class Return30d

#3 Rank

In Music Royalties30d

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Invest from

$5K

Overview

The marketplace for buying & selling royalties. Royalty Exchange is a marketplace where intellectual property is bought and sold like any other asset. Accessing the financial potential of intellectual property should be easy, transparent, and fair for everyone. The Royalty Exchange marketplace does this by eliminating the friction between ideas and their value, benefitting both creators and investors alike.

Things to Know

  • You make money on

    Dividends

  • Fees

    0%

  • Min Investment

    $5,000

  • Payout frequency

    Quarterly

  • Term of investment

    60+ months

  • Target Return

    10% - 12%

  • Liquidity

    Moderate

  • Open to

    All Investors

  • Mobile Application

    No

Top Perks

  • +10% Average ROI

  • Passive income with regular payouts

  • Earn from Music, Movie or Trademark royalties

See inside MoneyMade’s 6-figure multi-asset portfolio

6-Figures

12+ Assets

50+ Platforms

4yr+ Returns

How you make money

Royalties can often bring in as much as 10-25% per year. You are getting paid for other people to use an asset that you own. Warren Buffett compares owning royalties to owning a toll road. Once you build the road you can collect cash forever just for letting people use the road. Owners of intellectual property get paid every time someone uses their work. For example, you can own music royalties such as Jay-Z’s Multi-Platinum “Empire State of Mind”. The more the song is played, the more you earn. As an investor you purchase the right to collect royalty payments from the asset. Royalties let you earn money while you sleep. They are a “cut off the top,” paid regularly, that put you first in line to receive the cash flows they generate. Royalty payments, especially music royalties, perform independently of public markets, making them the purest form of alternative investment. Royalties have a track record of strong earnings, with the potential to deliver double-digit yields that rival bonds and dividend-paying stocks. As an investor, you get a dashboard where you can keep track of your purchases and earnings.

How Royalty Exchange makes money

Royalty Exchange earns a standard buyer / investor fee which is the greater between $500 or 1% of the final asset sale price. The platform also charges sellers a pre negotiated fee for listing on the site.

Is it safe?

Royalties are a unique form of investment. Compared to stocks, they provide a stable, fairly low-risk alternative for investors. Instead of owning a share of the company's stock that fluctuates daily, investors are guaranteed a monthly payment based on the company's revenue. Business owners also do not have the burden of sharing ownership of the company with their investors. These benefits have made royalties common investments in venture financing, natural gas/oil and entertainment, and could potentially spread to other industries in the future.

  • Established

    2011

  • Country Available

    Worldwide

  • Assets Managed

    $100M

How You’re Taxed

Income Tax

Income Tax

Music royalties can offer investors a stable yield, but tax planning is critical to retaining much of that income. Every individual’s situation is unique, but royalties are typically reported as self-employment income on Schedule C of IRS form 1040. While music royalties are often taxed at a higher rate, they also have unique tax benefits. Since music royalty income declines over time, it is considered a depreciating asset. As such, music royalties can be amortized, meaning that investors can write off the cost of this asset over a number of years. By offsetting the income produced, investors in turn also reduce their tax liability. For more specifics surrounding amortization, please refer to section 167 of the Internal Revenue Code.

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