📱 Best Platforms
Royalty Exchange, SongVest, ANote Music
📖 The Hustle
Rather than creating new intellectual property, buy existing music royalty streams from songs already earning income. Royalty Exchange auctions royalty rights to songs by established artists — you buy a percentage of future streaming, radio play, and sync licensing revenue. A song generating $2,000 per year in royalties might sell for $8,000-$12,000, giving you a 16-25% annual cash yield. Each quarter, you receive a royalty check from ASCAP/BMI distributions and streaming services.
🚀 First Step
Browse active auctions on Royalty Exchange, analyze one catalog's 3-year royalty history, and place a bid on a catalog that fits your budget.
🔑 Keys to Success
- Look for catalogs with at least 3 years of stable or growing royalty history — avoid catalogs relying on one hit that might fade
- Target catalogs with diverse income sources (streaming + radio + sync licensing) rather than relying solely on Spotify streams
- Bid based on a 15-20% target yield on your purchase price; do not overpay for growth that is not guaranteed
🛠 Tools & Resources: Royalty Exchange, SongVest, ANote Music, ASCAP, BMI