Celebrity Photo Income Sharing
Earn 50% of the net income generated by sales and licensing of iconic celebrity photos.
Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the photographs associated with this listing.
| Starting Price: | $25,000 |
| Bidding Increment: | $2,500 |
| Closing Price: | $37,500 |
| End Date: | Nov 18, 2016, 3:00 PM MST |
| Investment Term: | Varies by Photograph, see Documents tab |
| Last 12 Months' Royalties: | $9,719 |
| Royalty Type: | Photographic Copyright |
| First Payment: | January 2017 |
| Fees: | $99/year |
Description
Here is a chance to share in the sales and licensing income for some of the most iconic images of heritage celebrities such as The Beatles, Bob Dylan, Lucille Ball, Marilyn Monroe, and more. This auction is for 50% of all net income generated by a collection of iconic celebrity photographs for the life of the copyright. In the last year, this asset has earned $9,719 across print sales and licensing revenue. (That's half of the total earnings of $19,438.)
You'll notice that of the $9,719 in reported earnings, $8,000 is attributable to licensing revenue for two photos: Marlon Brando and Lucille Ball. This came from a licensing agreement where the seller provided 10 photos to legendary pop artist Peter Tunney for use in fine art reproductions. The license is specific to fine art reproductions and exclusive until April, 2018. That means that the seller may not license these photos for fine art reproductions, but may continue to sell limited edition prints of the photos or issue different types of licenses. The Peter Tunney license is particularly interesting because as a part of the license, the seller received eight prints of Tunney's reproductions that it plans to resell, and half of the income from these prints will go to the winner of this auction. Here are examples of Tunney's reproductions of these photos: Marlon Brando | Lucille Ball
This auction also includes 12 previously unreleased celebrity photos, so you'll have the untapped sales and licensing potential of these new photos when you win this auction. Take a look at the “Media” tab for images of all photos included in the auction.
What is for sale?
In this auction, you're bidding to own 50% of all net income generated from this collection of iconic celebrity photos. You'll also own 50% of the copyright on these images, but the seller will retain exclusive licensing authority. The seller is aggressively working to expand the market for these photos by selling them on fine art websites and partnering with major retailers to put prints in front of millions of shoppers, so this is the opportunity to earn royalties on the work of a skilled operator who has skin in the game. As long as the seller is an operating business, only they can license these photos. But if something were to happen to the seller, you could step up and work these photos to generate income.
As an added bonus, if you win the auction the seller will send you limited edition prints of two photos of your choice from this collection. If you decide to bid, make sure you know which two photos you'd like to hang on your wall!
How does this asset make money?
This asset makes money in two main ways. The first income stream is tied to the sale of photo prints to collectors, decorators, and fans. These photos are available for purchase on online fine art marketplaces and in brick-and-mortar galleries. The second income stream, which is gaining momentum, is licensing revenue from stock photo sites and publications. These assets earn royalties every time a publisher wants to use them in a news article or book or any other product.
Important Note
There is one additional provision you should know about. The seller believes that these photos will generate considerably more income in the future because it plans to take new efforts to promote and market them. Thus, the seller reserves the option to re-purchase the royalty share and copyright interest from the winning bidder, for two years after the sale, at twice the final auction price. That means if the seller exercises this option, you will more than double your money by 2018. (Because you'll be paid royalties along the way.)
About the Royalty Distributor
These royalties will be administered by Royalty Exchange, paid quarterly, within 45 days after the end of each quarter. Royalty Exchange's administration fee is $99/year.