Are royalties the perfect income investment?
Intellectual property assets with a strong track record of consistent earnings may, in fact, be the perfect investment for those seeking income.
What’s a royalty?
A payment made to the owner of intellectual property every time that IP is used. The owner collects payments over and over again for an asset that is created once.
Imagine this… you’re a songwriter. You write songs for comedy films and, it turns out, these movies become classics; the types of films that people watch many times over a period of years.
One of these films–even 20 years after its release date–still airs on TV nearly every week. People watch the movies on iTunes, Amazon Video and even still buy them on DVD.
And, every time one of the films gets purchased downloaded or aired on TV you get paid.
While the royalties aren’t enough to retire on, they’re nothing to sneeze at either–$22,627 in the last 12 months alone.
What’s better – the income has gone up at least 15% per year, every year since 2011.
Don’t put all your money into it, but maybe it’s an option to consider.