Once upon a time, I was a rebel.
As a teen-ager, I pierced my ear, threatened to buy a motorcycle, and blared my stereo so loud the whole neighborhood could hear it.
My go-to anthem was “We’re Not Gonna Take It” by Twisted Sister.
Back then, the song represented my rebellion against my parents.
Today, more than twenty years later, it’s still my rebellion song — but nowadays, it represents my rebellion against something else: the stock market.
Want to join me?
Come on, it’s fun to be a rebel. Let me show you how.
Fed Up with the Market
2025 has been a terrible year for the stock market.
The S&P 500 is down close to five percent. The Nasdaq is down almost 9%. And the forecast for the future isn’t promising.
That’s why I’ve put on my rebel hat and started investing in alternative assets — i.e., investments that are outside of traditional stocks and bonds.
This has led me to invest in music — in particular, the opportunity to earn market-beating returns through music royalties. Let me explain.
A Rundown on Royalties
Royalties are a form of ongoing payment. You receive these payments based on your ownership of a specific asset.
For example, author J.K. Rowling receives a royalty whenever someone buys a “Harry Potter” book. Phillips, which patented the DVD player, earns a royalty whenever a DVD is sold.
Royalties are very common in the Oil & Gas industry, and in pharmaceuticals.
But they’re also common in the music industry…
How Music Royalties Work
Songwriters earn royalty payments from the lyrics and melodies they create. Performing artists earn royalties from the rights to specific recordings.
There are three main royalties an artist can earn:
- Performance — When music is played at a concert, restaurant, or through a streaming device.
- Mechanical — When a CD or record is sold.
- Synchronization — When a song is licensed for use in a movie or TV show.
Each of these royalties can provide musical artists with significant income. But recently, many artists are putting their royalties up for sale…
Get Your Royalties Here!
Earlier, I mentioned using Twisted Sister’s hit song to rebel against the stock market.
That’s because the band recently sold the rights to its catalog of music.
It’s far from the only artist to do this. Over the past few years, artists who’ve sold their rights include Justin Timberlake, Bruce Springsteen, Bob Dylan, Justin Bieber, Tina Turner, Stevie Nicks, John Legend, Neil Young, and Chrissie Hynde.
Why are so many artists selling their rights?
Simple: music catalogs from stars like these can sell for as much as 10x to 30x what they bring in annually.
As Twisted Sister frontman Dee Snider said:
“It’s math. And I was told there’d be no math in rock and roll (laughs)… They give you 10 years’ worth of royalties in advance… and I can take this chunk of change, and I can invest it and secure it and make it my retirement fund.”
But You Can Profit, Too
It’s understandable that artists are selling when the going is good.
But it’s also understandable that people like us want to be buyers. After all, music royalties come with a host of perks, including:
Risk Reduction — As an alternative investment, music rights can zig when the stock market zags.
Recession-Proof — Royalties are generally recession-proof. No matter what’s happening with the economy, people listen to music.
Consistent Returns — Earnings from some songs can deliver consistent returns year after year.
Market-Beating Yields — Music catalogs can create returns that crush the stock market.
These are significant benefits. And they help explain why professional investors including Morgan Stanley, KKR, and Blackstone have all invested in music royalties.
And now you can join them…
Three Ways to Invest
If you’re looking to invest in music royalties, here are three options to explore:
Royalty Exchange — This platform has facilitated more than $190 million in transactions. The average annual yield generated by its offerings is more than 13%.
SongVest — This was the first platform to offer investors access to fractional shares of music royalties. In this way, you can acquire small pieces to catalogs for just $100.
JKBX — Pronounced “jukebox,” this platform aims to become the Fidelity of music investments. It’s backed by streaming-giant Spotify, Valor Equity Partners, and Tyler and Cameron Winklevoss.
All three platforms feature music from multiple genres — hip-hop, R&B, rock ‘n roll, disco, pop, even songs from movies and TV shows.
Want to own the rights to Beyonce’s hit song, “Radio”? Check out SongVest »
How about getting the rights to songs from Grammy-nominated One Republic? Those are available through JKBX right now »
And if you’re a fan of Shrek, you can own the rights to music from his film series through Royalty Exchange »
Before You Start
There’s plenty of upside here. But investing in music royalties isn’t risk-free.
So, a few things to keep in mind:
Don’t Go Overboard — While you can get started with just $100, many catalogs require four- and even five-figure minimums. Don’t invest more than you can afford to lose.
Keep Your Investor Hat On — You might be eager to invest in a song or artist you love, but make sure it’s a worthwhile investment. Remember, the goal is to make money.
Limited Liquidity — Music rights don’t trade like stocks. Royalties are illiquid. You can’t cash out of them at the drop of a hat.
That said, if you’re looking to be a stock-market rebel — and invest in a fun asset class that can deliver market-beating returns — these platforms are a great place to start.
Happy rebelling — and happy investing.
Best Regards,
Editor
Crowdability.com
