Royalty Exchange Review: Invest In Music Catalogs (2024)

Most people understand that musicians and authors earn money through royalties. Some earn hundreds of millions of dollars, even decades after they die. But most people don’t know about the investment side of royalties.

Record labels and major investors typically pay artists big money to earn a share of their royalties. However, smaller artists can also make a decent income from their royalties, even when record labels don’t sign them.

Historically, there hasn’t been a great marketplace for investors who want to buy royalties from smaller artists. But Royalty Exchange is trying to match investors seeking high yields and artists who want upfront money through an online marketplace. The company’s exchange makes it possible for investors to buy royalties and musical NFT.

Investors seeking a high yield investment outside of the traditional world of stocks and bonds may find Royalty Exchange appealing. However, this kind of investing is both expensive and risky. We offer insights, information, and warning for investors who may want to try out Royalty Exchange.

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Royalty Exchange is a marketplace designed to match artists (primarily musicians and YouTube creators) and investors seeking to diversify. The company’s founder, Anthony Martini has long been in the business of helping artists get paid. Royalty Exchange is the most recent iteration of this goal.

With Royalty Exchange, artists sell all or some of their royalty streams of income for several years. Investors pay an upfront price for the royalties, but receive passive income for several years.

Royalty Exchange provides investors and artists with a large amount of data to help them decide whether an investment is likely to pay off. Royalty Exchange is also allowing Artists to “NFT” their music.

Royalty Exchange allows musicians with a “backlog” of songs to sell all or a portion of their rights through a custom exchange. Investors seeking ongoing cash flow can purchase the right to the royalties.

While Royalty Exchange allows for a variety of sales, artists will typically sell only a portion of their royalties, for a set period. Artists retain the rights to the underlying music, and they never have to repay any investments even if their song fails to produce income.

Royalty Exchange is based in Colorado at 1550 Larimer St. #769 Denver, CO 80202 U.S.

Despite its brick-and-mortar location, investors and artists should reach out to Royalty Exchange’s dedicated customer service team. The company’s phone number is 1-800-718-2269.

Site users and other interested parties may also choose to send questions to: info@royaltyexchange.com.

However, these aren’t close comparisons. Musicians earn royalties from their art and the royalties behave more like dividends for a company. It’s unique to see an alternative investment that’s producing cash flow over time.

On the other hand, Royalty Exchange’s NFT marketplace is nothing new. OpenSea and Rarible both offer larger marketplaces that allow musicians to earn money from their NFT.

If you join an auction, Royalty Exchange places more safeguards in place. It verifies that both sides of the transaction were legally compliant before releasing funds to artists.

Overall, Royalty Exchange is safe enough to consider as an investing platform, but I would love for the company to beef up security.

Royalty Exchange is doing a great job helping artists find funding for their work. The concept of getting paid today for royalties tomorrow will help artists do more and better work.

However, investors aren’t likely to see as much benefit from Royalty Exchange. The company offers a fascinating investment thesis, but the barrier to entry is likely to be too high for the average investor. The minimum fee (no minimum investment) is $500 and the price for most investments is in the mid-to-high five figures.