5 min read

Music Funding, How Music Artists Can Get More Money From Their Music Catalogs

Music professionals take a lot of work to conduct their music business and their catalogs. But sometimes things can get tight and you need funds.
Music Funding, How Music Artists Can Get More Money From Their Music Catalogs
Music band performing in front of audience.

Introduction.

Are you a songwriter, a recording artist, or any other related part of that industry? It takes a lot of work to conduct your music business such as music distribution, fan promotion, social marketing, tour booking, and the like. But sometimes things can get tight. How are you going to cover your expenses during lean times while creating new songs or a new album? Working capital can be hard to come by.

Table of Contents

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Introduction.
Several Options To Access Capital.
.....Cash From Label/Publisher Advances.
.....Cash From Private Advance Services.
.....Crowdfunding.
.....Bank Loans.
.....Selling Your Catalogs.
.....All Options 1-5 Puts You, The Creator, At A Disadvantage.
Enter the Royalty Exchange, The Artist-Friendly Alternative.
.....This option has several advantages.
Royalty Exchange, A Fair, Fast, And Flexible Alternative To Finance Your Career Using Your Music Catalog.
The eXchange.
.....It's super simple to use.
Conclusion.
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Several Options To Access Capital.

1) Cash From Label/Publisher Advances.

Get advances from either labels or publishers who get to keep your future earnings to recoup their investment.

Pros - Quick cash
Cons - If future earning are not enough then you still owe them. Also it is difficult to get an advance from them nowadays.

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2) Cash From Private Advance Services.

Receive funds by signing up to terms of payback.

Pros - Quick cash
Cons - Their terms in the fine print reveals compounding interest rates and restrictions make it difficult for you to pay them off. They can gain control of your copyrights.

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3) Crowdfunding.

Obtain money from fans who believe in your project. In return they get your album once it’s created, along with things like their name included in the liner notes or other perks.

Pros - No burden of having to pay back a loan at predatory advance loan rates
Cons - You’re tapping into your future earnings to pay for the project, leaving less profit on the table. Need big fan base and lots of work on marketing to them.

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4) Bank Loans.

Borrowing money from a bank

Pros - A source of cash
Cons - Have to put up assets as collateral. It takes a long time to process such loans. Banks are very conservative so lower loan amounts.

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5) Selling Your Catalogs.

Access funds from selling your royalties to publishing groups.

Pros - Another source of cash
Cons - Your royalties have to be earning above a certain threshold. The groups usually want 100% of your position, and you out of the picture. Also these transactions typically occur through backroom deals that undervalue royalties. You cannot tell if you’re getting the best deal possible.

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All Options 1-5 Puts You, The Creator, At A Disadvantage.

The lenders are negotiating against you because they are out for a profit. It is their money that is at stake. No ifs, ands, or buts. They are going to make sure they win.

That puts you in a pickle doesn’t it? In other words it puts you in a losing situation. I don’t think you want that. I wouldn't. So what can be done? Isn't there a better alternative?

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6) Enter the Royalty Exchange, The Artist-Friendly Alternative.

Royalty Exchange offers an alternative way to sell royalties or get advances and loans. Their online marketplace helps artists raise money by connecting them directly to private investors interested in either buying royalties or providing loans backed by royalty payments.

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This option has several advantages.

  • a) First, there’s no nickel-and-dime recouping or predatory interest rates.
  • b) There are no backroom deals that leave you wondering if you sold at the right price.
  • c) All sales and loans are conducted in an open marketplace where the price, terms, and details are there for all to see.
  • d) This transparency creates competition among investors, which ultimately results in the best deal for artists and rightsholders.
  • e) Their process provides you with flexibility without losing copyright control. It’s not an “all-in” deal that leaves you with no lasting position in your ongoing royalties.
  • f) You can sell a percentage of revenues that you decide alone and still be in control of your assets.
  • g) It is your choice if you want to sell revenue from a single song, album, or entire catalog.
  • h) It allows you to leverage your older work to pay for newer projects.
  • i) You can squeeze money out of older projects to use for new projects.
  • j) No negotiation needed, you get the most bang for the buck as the highest bidder always win the duty to pay you.
  • k) The exchange is on your side, the better deal you get, the better is is for the exchange. So your interests are aligned.

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Royalty Exchange, A Fair, Fast, And Flexible Alternative To Finance Your Career Using Your Music Catalog.

You can get started right now. To take advantage of this opportunity the first thing you would want to know is naturally the value of your catalog of music. But valuing your catalog can cost up to $25,000 depending on how big it is. However, you are in luck. Today, it is yours and FREE if you use this link.

This free valuation includes:

A verified price range for your catalog
Information and analysis on earning trends
Access to a network of catalog buyers to solicit offers

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The eXchange.

In fact, Royal Exchange just launched an expansion of their marketplace designed to let you tap into investor demand faster and easier. Their new expansion project is called The eXchange.

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It's super simple to use.

List Your Catalog
Set Your Price
Accept The Best Offer

Just recently a pair of artists collecting royalties on several Machine Gun Kelly songs did exactly this, and all four listings sold in less than 24 hours!

The eXchange was designed to focus the collective demand of more than 27,000 investors registered on their platform so you will get more offers, faster, and at higher amounts. Make your music be a cash cow for you, as it should.

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Conclusion.

You have worked hard on developing your music catalog. Good access to capital can finance your future endeavors, prolong your career, and also be a ready source of funds whenever you need it.

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P.S. - On the other hand, if you are an investor wanting to invest in music royalties, you should check our article on that - link.

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