To me, and to most people my age, M&Ms are a chocolate candy…
But if you say the word “M&M” to young music fans, they don’t picture a treat…
They picture a hip-hop artist named Eminem.
Eminem is the best-selling hip-hop artist of all time, and the second best-selling male artist of the last 25 years.
Worldwide, he’s sold 172 million albums.
Not many people buy physical albums anymore…
But every time an Eminem song is played using a service like Spotify, he earns a royalty — and every year, his royalties add up to tens of millions of dollars.
Royalties like this, where you receive ongoing payouts forever, might be the greatest investment ever invented.
That’s why, today, I’ll reveal how to get some of Eminem’s royalties for yourself.
How Royalties Work
Royalties are a form of ongoing payment.
You receive these payments based on your ownership of a specific asset.
For example, the author J.K. Rowling receives a royalty every time someone buys one of her Harry Potter books. In fact, thanks to these royalties, Forbes recently pegged Rowling’s net worth at $1 billion.
Royalties also apply to inventions…
For example, because the electronics giant Phillips patented the DVD player, it receives a royalty every time a DVD is sold.
It works the same way when a biotech company like Pfizer patents a drug, or when an artist like Eminem writes a song.
For inventors and content creators, these royalties can create a limitless stream of cash — and quite a luxurious life.
Which might make you wonder:
How can you get in on this?
Historically, Only for the Wealthy
Occasionally, royalty rights go up for sale.
For example, Pfizer might sell off a drug patent to some entrepreneurial doctors…
Or a band might sell off some of its rights to a wealthy investor.
In fact, one of the most famous royalty sales of all time happened in 1985, when Michael Jackson bought the rights to the entire Beatles’ catalog for $47.5 million.
At the time, that seemed like a vast fortune. But by 2009, when Jackson died, it’s estimated that the Beatles’ catalog had already earned him nearly $1 billion.
Historically, unless you were a wealthy investor (or a famous hip-hop star or a best-selling author), you couldn’t get in on these income streams.
But now, thanks to a company called Royalty Flow, this is all changing.
Introducing Royalty Flow
Royalty Flow is a new company that acquires and manages royalty interests.
Its first acquisition is a piece of Eminem’s catalog that’s currently owned by Mark and Jeff Bass, two brothers who discovered Eminem and produced his early albums.
Since 2011, their royalties from this catalog have earned them $47.2 million, an average of about $8 million per year.
Royalty Flow will then aim to buy royalties from other music stars.
To fund these acquisitions, the company is raising between $11 million and $50 million from crowdfunding investors like you.
Then, if all goes to plan, it intends to go public on the NASDAQ.
The minimum investment is $2,250.
Should you consider an investment?
Let’s take a look.
Pros…
First, a few pros:
Good Timing: According to Billboard, the number of paid subscribers to services like Spotify and Apple Music has gone up 50% in the last year — from 20.2 million to 30.4 million. That means music industry revenues are rising like a rocket.
According to a Royalty Flow executive, “the music industry is on the cusp of a bull market that hasn't been seen since the invention of CDs.”
Uncorrelated Investment: Worried about a stock market correction? This is an investment that’s unaffected by the market’s ups and downs.
Domain Experience: The team behind Royalty Flow previously launched Royalty Exchange. We wrote to tell you about Royalty Exchange last summer: it sells the rights to royalties including those from Britney Spears, Dr. Dre, and the Bee Gees.
And Cons
There are some cons, as well:
High-Risk Sector: The music business is volatile and high-risk.
In 1997, for example, in exchange for an upfront payment of $55 million, David Bowie sold off the rights to 287 of his songs. But it wasn’t long before innovations like Napster and iTunes sent the music industry into disarray. Those “Bowie Bonds” were soon downgraded to “near-junk” status.
Unpredictable Cashflow: As you learned earlier, the Bass Brothers have earned an average of about $8 million a year from their rights. But the cashflow each year has varied greatly — for example, they received $3.7 million in 2012, $14.5 million in 2014, and this year, as of March 31, they’ve received $1.94 million.
Illiquid: Royalty Flow has plans for a public offering — but if its plans don’t come to fruition, you’ll be holding “illiquid” shares that you can’t turn into cash.
Streams of Cash
As you learned today, royalties can create a limitless stream of cash for inventors, for content creators, and maybe for investors like you, too.
If you’re excited to learn more about the stream of cash that gets created from musical artists like Eminem, click here to visit Royalty Flow »
Best Regards,
Founder
Crowdability.com
