The auction was competitive. Sarah knew she was buying the rights to the stream of income, not the copyright itself—she couldn't change the lyrics or stop people from playing it. She calculated that if she paid $25,000 (a "5x multiple" of its yearly earnings), she would theoretically make her money back in five years, and everything after that would be pure profit.
She won the auction. After a few weeks of paperwork where the Performing Rights Organizations (PROs) like ASCAP or BMI updated their records, Sarah received her first direct deposit . how to buy royalties
To buy royalties, you typically purchase the rights to future earnings from an asset like music, books, or patents through specialized marketplaces like Royalty Exchange or SongVest. The Song of Sarah: A Story of Buying Royalties The auction was competitive
Sarah started by researching where people actually trade these things. She found that individual artists or publishers often sell their "back catalog" to get a lump sum of cash up front . She signed up for Royalty Exchange, a platform where creators auction off their performance or mechanical royalties. She won the auction