Earn a 21% Return on Indie Pop Music

Invest $32,258 to receive $39,000 in royalty payments generated by a catalog of indie pop music.

$32,258

advance amount

$39,000

repayment amount

Sorry, this advance has been sold.

Overview

Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.

What is a peer advance?

With a Peer Advance, the investor is buying limited-term rights to collect royalty income until a fixed return is achieved.

In this case, the investor would pay $32,258 for the right to collect the seller's royalty income until the investor receives a total of $39,000 in royalty payments. The total return, what we call the 'Repayment Amount', equals the Advance Amount plus a 21% return ($32,258 x 1.21 = $39,000).

With this investment, the variable is not the amount of return the investor can expect. The investor will receive all royalties generated until the total return is achieved.

Instead, the variable is the amount of time it takes for the investor to receive the full Repayment Amount. You will receive $39,000 in royalty payments. The only question is how long it will take. Fortunately, we can look at the earnings history of the asset to approximate the payback period.

For example:

  • The seller has indicated that they plan on releasing new songs. Earnings from these songs would be applied to the advance. If they release the songs in Q1 and it increases earnings by 20% and 10% in Q1 and Q2 (which is conservative according to the release of their last two songs) then the investor will receive the Repayment Amount in 12 months. That's approximately a 20.9% Annual Rate of Return.
  • If future quarterly payments equal the average of the last four quarters, the investor will receive the Repayment Amount in 15 months. That's approximately a 16.4% Annual Rate of Return.
  • If future quarterly payments equal the most recent quarterly payment, the investor will receive the Repayment Amount in 18 months. That would generate approximately a 13.5% Annual Rate of Return.
  • Even if future quarterly payments drop by 10% in each quarter, the investor will receive the Repayment Amount in about 21 months. Even in this case, the Annual Rate of Return is about 8.8%.

What is the Royalty income stream?

The investor is purchasing rights to 100% of the royalties earned by the sound recordings in the seller's Tunecore catalog until the full Repayment Amount is realized. This catalog generates royalties from digital downloads and streaming.

In the past 12 months, this catalog has generated $32,258. More details can be found in the financial information tab above.

How do payments work?

Royalty Exchange will collect and distribute the royalties generated by the seller's catalog of musical works to the investor on a quarterly basis. Payments will continue until the investor recoups $39,000. As soon as the investor realizes the entire Repayment Amount, the owner will again receive 100% of their royalties.

The first payment to the investor will be in April 2017.

Disclaimer

*Information presented is not intended to be investment, tax or legal advice. Past performance of this royalty stream is no guarantee of future results. Estimated or projected investment returns and payback periods are not guaranteed, and investors may lose some or all of the principal invested. Investors should consult their financial advisor if they have any questions or need additional information.

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