How to Generate and Earn Royalty Income

By Marina Peters

Learn how to easily create a steady income stream from royalties.
Royalty Income might become the next big thing in investments due to its very low correlation with other asset classes.
Stocks may fall but people continue to listen to their favorite music.

• Language: English
• Publisher: Marina Peters
• Release date: Jul 30, 2020
• ISBN: 9781393831600

Marina Peters

Marina is a part-time Audit Director working for one of the big auditing companies. She likes her job, all the beautiful things in life and writing. She loves her husband and her two kids. As writing is Marina's passion she combines all the topics where she has expert knowledge with writing. Thereof grew some non-fiction books and also the fictional Martin Muller Audit series.

Book preview

How to Generate and Earn

Royalty Income

Marina Peters

How to Generate and Earn Royalty Income

From casual side income

to a

new investment category

––––––––

Marina Peters

Copyright © 2020

© 2020 Marina Peters

All rights reserved.

You can follow Marina Peters on https://marinapetersbooks.com.

Disclaimer

All knowledge contained in this book is given for informational and educational purposes only. The author is not in any way accountable for any results or outcomes that emanate from using this material. Constructive attempts have been made to provide information that is both accurate and effective, but the author is not bound for the accuracy or use/misuse of this information.

The information herein is offered for informational purposes solely, and is universal as so. The presentation of the information is without contract or any type of guarantee assurance.

This book does not have the intention to be academically correct and it has been written in a casual style. I just want to provide the reader with my collected experience, information and consolidated knowledge on the topic without having an academic approach. This book is a complete private project. There is no connection whatsoever to a former or current employer.

In no way is it legal to reproduce, duplicate, or transmit any part of this document in either electronic means or in printed format. Recording of this publication is strictly prohibited and any storage of this document is not allowed unless with written permission from the publisher. All rights reserved.

The information provided herein is stated to be truthful and consistent, in that any liability, in terms of inattention or otherwise, by any usage or abuse of any policies, processes, or directions contained within is the solitary and utter responsibility of the recipient reader. Under no circumstances will any legal responsibility or blame be held against the publisher for any reparation, damages, or monetary loss due to the information herein, either directly or indirectly.

The trademarks that are used are without any consent, and the publication of the trademark is without permission or backing by the trademark owner. All trademarks and brands within this book are for clarifying purposes only and are the owned by the owners themselves, not affiliated with this document.

Content

1 Introduction

1.1 Overview

1.2 Why are royalty payments important?

2 What are Royalties?

2.1 Definition

2.2 Types of Royalty Agreements

3 Different Industries that pay royalties

3.1 Music Industry

3.2 Oil and gas Industry

3.3 Patents

3.4 Art

3.5 Photos

3.6 Trademarks

3.7 Software

3.8 Fashion

3.9 Book publishing

3.10............................................................Television

4 Royalty agreement tips for licensees and licensors

4.1 General

4.2 Royalty contracts

4.3 Conditions for terminating a royalty agreement

4.4 A case of an agreement termination

4.4.1 General

4.4.2 Options available

4.4.3 Justifying the termination

4.4.4 Comparison

4.4.5 Consequences of the wrong termination

4.4.6 Solution

4.5 Royalty Income

5 Royalty income trusts

5.1 Introduction and definition

5.2 Other benefits of royalty income trusts

5.3 Probable risks of royalty income trusts

6 Other terminologies associated with royalty payments

6.1 Lease Premium

6.2 Sub Lease

6.3 Royalty account

6.4 Royalty check

6.5 Tenet

6.6 Minimum Rent

6.7 Ground Rent

6.8 Shortworkings

6.9 Right of Recouping

7 Setting royalty rates

7.1 Introduction

7.2 How to set royalty rates in the fashion industry

7.3 How artist royalties are calculated

7.3.1 Introduction

7.3.2 Mechanical royalties

7.3.3 Performance royalties

7.3.4 The flow of money in the music industry

7.3.5 How producers are paid

7.3.6 The percentage received by artists' managers

7.4 How to calculate royalty rates for artworks

7.4.1 General

7.4.2 Deductions

7.4.3 Per unit royalty negotiation

7.4.4 One-time payment

7.4.5 Gross and net sales

7.4.6 Guaranteed Minimum Annual Royalty (GMAR) payment

7.4.7 Auditing royalty income

7.4.8 Upfront payment

8 Practical examples for generating royalty income

8.1 Easiest way: Buy royalty income

8.1.1 Royalty stocks or trusts

8.1.2 Royalty Exchange

8.2 Generating royalty income as an author

8.2.1 Introduction

8.2.2 Publishing via an agent

8.2.3 Self-publishing direct distribution

8.2.4 Getting started to self-publish on Amazon

8.2.5 Tips for success as an author

8.2.6 A few words on the ISBN

8.3 How to make revenue as a software developer

8.3.1 Introduction

8.3.2 Affiliate commissions

8.3.3 E-commerce

8.3.4 Subscription service

8.4 Making money from app development

8.5 How to make money from photo licensing

8.5.1 Introduction

8.5.2 Licensing options for photos

8.5.3 How to sell image licenses

8.5.4 Stock photography websites

8.5.5 Your website

8.5.6 Publications and magazines

8.5.7 Tips to help you when submitting your photos

8.5.8 Other Opportunity: Sell your prints

8.5.9 Other Opportunity: Start a niche photography business

8.6 How to get paid as an actor for TV shows

8.6.1 Overview

8.6.2 Payment on contracts

8.6.3 Earning more money as an actor

8.6.4 How to become a print model

8.6.5 Tips to becoming a successful commercial actor

8.7 Generating revenue as a fashion designer

9 Bonus: How to make money on YouTube

9.1 Creating a YouTube channel

9.2 Making money from YouTube music upload

9.3 Selling products or merchandise

9.4 Working as an influencer or affiliate

9.5 Licensing your contents (videos, news, etc.) to the media

10 Misconceptions about royalties

10.1.................................Myths and misconceptions

10.2................Misconceptions in the music industry

10.3......Misconceptions about stock photo royalties

10.4Misconceptions about book publishing royalties

10.5.......Misconceptions about oil and gas royalties

10.6...........................Misconceptions about patents

10.7.........................Misconceptions about licensing

10.8........................Misconceptions about copyright

1  Introduction

1.1  Overview

Intellectual property such as academic writings or discoveries, inventions, works of literary and artistic values, etc. need protection, especially if the goal of the protection is for economic value. Otherwise, they would be reproduced and redistributed without compensating the creator or owner. This puts the original creators and inventors at a great disadvantage. They lose a considerable amount of money. This is because of the costs involved in the production of the work or invention of the process as well as the risks involved during the process. For instance, research and development in the medical or space industry may cost a researching company billions of dollars.

In exchange