Have we written about this before? Yes. A former member of 3 Doors Down auctioned off his share of the band’s publishing a couple of years ago in order to pay for legal expenses. In this article, you’ll see how an unnamed backup singer from “See You Again” is auctioning off his/her performance royalties
Now, let’s go a bit deeper, because if you read the article about and THIS ARTICLE, you’ll begin to understand how publishing and performance royalties (from either the PROs or SoundExchange, depending upon the type of performance royalty) works in the real world. Once you understand this, you’ll have a better shot at earning some revenue.
But what if you’ve only been involved with one song? Read THIS. It’s about the original manager of Cage The Elephant, who helped write the band’s song “In One Ear.” Joey Stratton, that original manager, is no longer associated with the band and needed funding for another project. So he auctioned off his songwriting share of the song and made just short of $17,000.
Auctioning off the rights to songs, or a catalog, can make some money for the person auctioning off the pieces. How does the person buying know if they’re making a good investment? One way is to look at the past performance of a song. How much revenue has it generated over the past two, three, five, ten years? Like stocks, past performance doesn’t guarantee future results, but it can help give an indication as to whether or not it’s worth putting your money there.
As per “See You Again,” the bidding began at $30,000. As of the writing of this, it was up to $34,000.
|End Date:||Aug 07, 2017, 3:00 PM MDT|
|Investment Term:||Life of author + 70 years|
|Last 12 Months’ Royalties:||$11,372|
|Royalty Type:||Sound Recording Performance|
|First Payment:||April 2018|
|Buyer Fees:||$99/year Royalty Exchange Admin Fee|
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Professor David Philp is Assistant Professor Music Management & Popular Music Studies at William Paterson University. He is the co-host of the only FREE advice college radio-based music & entertainment industry talk show in America, Music Biz 101 & More, which airs live most Wednesday nights and is available as a podcast HERE every night (days too). Your favorite professor is also co-author (with Dr. Steve Marcone) of Managing Your Band – 6th Edition. Reach him at PhilpD@wpunj.edu or find him on LinkedIn HERE.