How to Draw Cool Stuff
Earn 20% of the royalties generated from sales of a series of Amazon's most popular drawing books.
Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the books associated with this listing.
| Starting Price: | $90,000 |
| Bidding Increment: | $5,000 |
| Closing Price: | $140,000 |
| End Date: | Jul 17, 2017, 3:19 PM MDT |
| Investment Term: | At least 46 years |
| Last 12 Months' Royalties: | $33,115 |
| Royalty Type: | Books |
| First Payment: | August 2017 |
| Fees: | 5% per payment |
*Royalty Exchange will collect the winning bidder's portion of the royalties and make payments on a monthly basis. The 5% fee will be deducted from each monthly payment.
Description
This is a unique opportunity to own a percentage of royalty income for a series of popular “how-to” books. The How to Draw Cool Stuff series is one of Amazon.com's top-selling drawing series. The first book in the series, How to Draw Cool Stuff: A Drawing Guide for Teachers and Students, was released in 2014. It has seen consistent earnings since its release.
This auction is for 20% of the royalties earned by sales of the three books in the How to Draw Cool Stuff series: (1) How to Draw Cool Stuff: A Drawing Guide for Teachers and Students; (2) How to Draw Cool Stuff: Shading, Textures and Optical Illusions; (3) How to Draw Cool Stuff: Holidays, Seasons and Events. Amazon (via CreateSpace) distributes physical copies of the books, and Amazon's digital publishing arm, Kindle Direct Publishing, distributes electronic copies. Together, the three books earned $33,115 in the last 12 months.
These books make popular gifts and see most of their sales around the holidays. In the financials, you'll see that November and December are by far the books' best months. The publisher owns the rights to the books through at least 2063, so the winner of this auction will own the rights to 20% of the royalties for at least 46 years.
One other cool thing about winning the auction for Cool Stuff: the publisher plans to use the funds from this auction in an upcoming movie production. So as an added perk, the seller is willing to give the winner of this auction an “Executive Producer” credit in the movie!
Key Drivers
- Popular Series, Consistent Earnings. The How to Draw Cool Stuff series is one of the best-selling drawing book series on Amazon. The first book, released in 2014, has had consistent monthly earnings over the last two years. Although its royalty earnings decreased from 2015 to 2016, Amazon actually sold 37% more copies in 2016 over 2015. Book discounts and exchange rate fluctuations help explain the decrease in royalties.
- Potential Future Upside. Although the listing only includes earnings for Amazon distribution, this auction's winning bidder will earn 20% of the earnings from any distributor that earns more than $1,000/year. The publisher may distribute the books in major retail stores, which would add to the value of the winning bidder's 20% share. Also, the publisher plans to release a DVD to accompany the series, as well as more How to Draw Cool Stuff books. These new releases have historically shown an increase in sales for the other books in the series.
What is being sold?
20% of the copyright owner's share of royalties for sales of the following books in the How to Draw Cool Stuff series: (1) How to Draw Cool Stuff: A Drawing Guide for Teachers and Students; (2) How to Draw Cool Stuff: Shading, Textures and Optical Illusions; (3) How to Draw Cool Stuff: Holidays, Seasons and Events.
The owner will retain 100% ownership of the copyright for these books.
How does this asset make money?
You'll earn 20% of the copyright owner's share of royalties every time a book in this series is sold on Amazon.com or through any of Amazon's retail channels. The copyright owner's share is taken after subtracting Amazon's distribution fees, which are a percentage of the retail sale price. All financials presented represent 20% of the owner's share after subtracting Amazon's fees.
About the Royalty Distributor
CreateSpace and Kindle Direct Publishing, parts of the Amazon group of companies, offer services that allow creators to sell books for a fraction of the cost of traditional manufacturing, while giving creators more control over their materials. CreateSpace and KDP make it simple to distribute books through Internet retail outlets and other bookstores, retailers, libraries, and academic institutions.
*Royalty Exchange will collect royalties from Amazon and pay the winning bidder's 20% share on a monthly basis.
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