How to Start a Music Licensing Business | $3,436 per month

How to Start a Music Licensing Business | $3,436 per month

HomeTommyBrysonHow to Start a Music Licensing Business | $3,436 per month
How to Start a Music Licensing Business | $3,436 per month
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In this video I will explain how to get started, what the startup costs are, expenses and profits. And I will also explain how licensing rights work and where you can buy some.

I love passive income and have yet to see a video about how to make money from royalties without having to make music because although I love music, I have no talent for producing a hit record.

How to start a music licensing business

Royalties: This is basically a rent you receive for licensing your product (music) to someone else.

Example: You can use my song in your movie, but you have to pay royalties. Since I own the rights, I get paid for it.

Start-up costs:
1k to 150k, although well over 47 million if Michael Jackson bought the Beatles catalog

Cost:
There are normal taxes on the royalties, but that's about it unless you want to go through all the work of trying to actually get the songs on TV shows, etc.

Profits

– No correlation to market dynamics
– The return is usually higher than on bonds and stocks
– Consistency: You receive consistent royalties for the life of the song, which can sometimes mean a day or sometimes decades

Real example: Today the following happens: Kygo is selling the rights to the platinum record “At least We Stole the Show” and bidding for this platinum single has started at 150,000.
– It makes an average of 40k per year
– You buy the rights for 10 years
– This corresponds to a return on capital of 26%
– In the first 4 years you got back all your money, at the end you doubled your investment and earned another 100,000 in addition to doubling.

Tip: Business is business: you should check the track record of royalties and not just take one good year as the norm (because you never know when the price might be jacked up).

How to buy royalties:

1. Visit a website (where Kygo sells his hit single)
A. The Royalty Exchange: They consider themselves the best on the market
Info: With this website you can buy: Books, Music, TV shows and various other types of royalties
There's more: crowdfunding is a way to invest in an album and receive a dividend/royalty.
– Normally you buy the lifetime of the contents, which is 70 years.

2. Why should an artist sell royalties?
– You may need some money to buy a house or a car or other expensive things
– And sometimes they only sell the rights for a period of many 10 years or 20 years

3. Remember to analyze the best types of royalties you can buy
– Not all songs are the same

General idea: It sounds good, but it's not easy and not the same as investing in Spotify or a company, for example, but can be another source of income if done right.

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