Best Royalty Investments

Royalty investment

Heath Ledger, who played Joker in The Dark Knight, said, “If you’re good at something, never do it for free”. That film was so good that it earned over 1 billion dollars worldwide from ticket sales and streaming platforms. Do you want to know one of the things that helped make them this big? The answer is royalties.

You do not necessarily have to be a big film producer or a famous actor. You can earn by putting up your copyrighted works as royalties. You can also forego your legal assets so other entities can use them while still profiting from them.

What are Royalties?

These are payments that allow other entities to use a legal asset owned by another entity. This ensures that the owner retains intellectual property on their asset while it is made available to others. Meanwhile, royalties protect the buyers from being sued for improper or unfair use.

Once buyers complete the royalties payment, they are given a license to someone else’s asset. The buyers can get different licenses that allow them to produce, consume, or distribute an asset. The licenses or permissions usually depend on the type of royalties they have paid for.

Are royalties worth investing in?

Royalties are like rent payments, and you can profit from them for up to a lifetime. They are also one of the best sources of income nowadays since they can grow quickly. An investment made in royalties is less volatile compared to other investment instruments. They offer a low-risk option for investors with a steady stream of gains.

The rate of royalties can be different depending on the industry you invest in. However, you can get as much as 10% on your returns, which is better than other investments.

The entertainment industry is popular for its royalties, and many investors are committed to it right now. Royalties in the music scene are the bread and butter of record labels and pop stars. A producer or a vocalist can make millions of dollars for royalties on music samples and beats. For example, the song “White Christmas” helped propel Bill Cosby’s net worth to over 400 million dollars. On average, owners of original music can make up to 5,000 dollars every time someone makes a sample out of their song.

Prominent writers such as J.K. Rowling, J.R.R. Tolkien, and Paulo Coelho enjoy royalties from their copyrighted works. For example, Tolkien’s estate is worth over 3 million euros thanks to the royalties from The Lord of The Rings and other works.

Aside from the entertainment industry, you will also see royalties in the mining and energy industry. Investors are now more interested in royalty companies than on mining companies or commodities. According to US Global Investors, royalty companies have more value than gold on a 12-month basis.

Check out these Best Royalties to invest in

Are you convinced that Investing in Royalties is the best way to diversify your portfolio? Then try investing in some of these royalties:

Music Royalties

Check out RoyaltyAdvance if you want others to pay you for your music. The transactions done in their platforms are all legitimate. You also do not have to worry about your royalty checks getting delayed because they see to it you get paid. Most buyers also complete large one-time payments for your music. Check how much you can get from your music by submitting an application to them immediately.

Do you prefer not to sell off your music but still want to earn from music royalties? There is also a way for you to do so! You can buy the music of others and then sell it off when it reaches your desired value. Check out RoyaltyExchange.com. They have over 50 million dollars, worth of transaction volume. They also have an average ROI (Return of Investment) of 12% which is already a huge rate compared to others.

Oil and Gas Royalties

Confident that you have some oil or gas sources beneath your house or your lawn? Then you should contact a Royalty or a Streaming Company to help you! They can assist you in confirming that there are oil and gas sources and you can profit from it!

The US has laws stating that oil and gas are properties of the landowner and not by the state. The landowner can negotiate a deal with oil and gas companies to let them drill on their properties. In exchange, the landowner will get paid for every barrel of oil or tank of gas extracted from their property.

Keep in mind that you will only get paid while there are oil and gas sources on your property. Check out Bellatorum Resources if you want a drilling company with integrity and capacity to give hefty royal payments. Wealthy investors and landowners have trusted Bellatorum Resources’ honest valuation methods and accurate surveying process.

Mining Royalties

You can invest in Royalty or streaming companies in the mining industry. Your investment, along with others, will allow these companies to finance the operations of mining companies. These streaming companies, in turn, receive a portion of metals extracted from the mines they helped finance. Shareholders will receive a part of these metals according to the value of their stake.

Check out Wheaton Precious Metals if you are interested in investing in Streaming companies in the mining industry. They are one of the top Streaming companies and have sold over 20 million ounces of silver from over 15 mines. By investing in streaming companies such as this, you are literally going for the gold without digging it yourself.

Invest Wisely

If you are a newbie in the royalties’ investment sphere, then you should consult professionals. Hiring legal counsel and financial advisors will help a lot when investing in royalties. Doing so will help save you from getting into forceful negotiations, bad deals, and unfair contracts.

Just like other investments, you should remember that investing in royalties also entails risks. It would be best to always explore other options before finalizing a deal. Your ownership rights are at stake, and you do not want to get ripped off from your legal assets.

Author
C. James

C. James is the managing editor at Wealth Gang. He has a degree in finance and a passion for creating passive income streams and wealth management.