I write books.
Here is my chart.
http://imgur.com/WpdGsDK
I want to sell 10% of my future royalties to whoever wants to buy it.
So would a lot of writers with demonstrable growth.
Apply HN: AuthorInvestments – Trade Future Royalty Rights
1–10 of 27 posts
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#2It took me a minute, after reading your sparse description a couple of times, to figure out what you want to do. This is interesting I've never heard of this type of market. So would this be like the publisher houses of old where they would give an author an advance, they write and publish the book, then the author essentially doesn't collect (or collects less) from book sales until the advance is paid back? Is it somewhat similar to that? Is it in perpetuity or for a set period?
I tried searching around online but I couldn't figure out if anyone really does this today or not. Is there a market for this?
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#3It took me a minute, after reading your sparse description a couple of times, to figure out what you want to do. This is interesting I've never heard of this type of market. So would this be like the publisher houses of old where they would give an author an advance, they write and publish the book, then the author essentially doesn't collect (or collects less) from book sales until the advance is paid back? Is it so…
It is somewhat similar to that, but also different.
For discussions sake, let's say my books bring in $100 a month today. As a self published author, I keep 100 percent of my royalties. I take 10 percent, and create 10 shares, offering each for sale for $100 a piece, each entitling its owner to 1 percent of my future monthly royalty payments for as long as they own the share. Right now each would be paying a monthly royalty of 1 dollar, assuming my sales stayed at the same level, more or less. As my stock as a writer grows, and I get more sales, those shares pay more, and maybe the original buyer resells them to someone else for more than they bought them for.
I think there is a market for it. I'd sell some of my future royalties for some cash to live on while I grow my author platform. I think a lot of authors would.
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#4I like it. If I buy some futures, can I sell them to anyone else down the line? Would also be super cool if investors could have access to early copies to gauge quality/value.
What are the legal needs in order to sell these? what kind of investment instrument would it be precisely?
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#5I like it. If I buy some futures, can I sell them to anyone else down the line? Would also be super cool if investors could have access to early copies to gauge quality/value. What are the legal needs in order to sell these? what kind of investment instrument would it be precisely?
Yes, you can sell them to anyone down the line. I agree that early access would be a cool feature. Investors would be taking a stake in a writer as a whole, almost like a race horse, and can help their own bottom line by acting as a beta reader for said writer, telling people about "their writer's" books, tweeting links to their storefront, providing editing, cover design, deal making. Mentorship. There's a lot one can do if you like someone's style enough to take a risk on them. Mine are for sale, back-alley way style. Free e-book pdf's available on request.
I don't think the legal needs to sell these are too complicated. A simple contract would look like "The holder of this contract is entitled to x percent of the monthly royalty payments paid to y author" and the investment instruments are instances of said contract.
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#6This is interesting; it reminds me somewhat of the "Bowie Bonds" concept that has been going around in music. The Offspring just sold their catalog for $35M I think. If the royalty structure is lucrative enough and worth the long-term exchange for the buyer then I think you could definitely establish a market.
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#7This is a cool and interesting idea! It's like a private community IPO, hopefully there won't be too much taxation involved!
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#8This is a cool and interesting idea! It's like a private community IPO, hopefully there won't be too much taxation involved!
I appreciate your interest! I've started my sales sprint, lean start up style.
I've got this amazing author offering a 1 percentage ownership stake in her future royalties for just a hundred dollars, to get the ball rolling and create the need for what needs to be built. As for taxes, I'd get some help on that for sure, but I cut you a check for your earned royalties, you pay taxes on it, no different than the writer themselves would. I would think.
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#9This is interesting; it reminds me somewhat of the "Bowie Bonds" concept that has been going around in music. The Offspring just sold their catalog for $35M I think. If the royalty structure is lucrative enough and worth the long-term exchange for the buyer then I think you could definitely establish a market.
Cool beans! It occurred to my as I was typing up the OP that the model could easily be extended to any form of artistry, music in particular, which I also do, I'm just a writer first, hence the focus. Plus, I had the chart to show.
Re: Apply HN: AuthorInvestments – Trade Future Royalty Rights
#10This is a cool and interesting idea! It's like a private community IPO, hopefully there won't be too much taxation involved!
I appreciate your interest! I've started my sales sprint, lean start up style. I've got this amazing author offering a 1 percentage ownership stake in her future royalties for just a hundred dollars, to get the ball rolling and create the need for what needs to be built. As for taxes, I'd get some help on that for sure, but I cut you a check for your earned royalties, you pay taxes on it, no different than the writer…
1% is a good start, but since it's still early, maybe you can negotiate a 2% for $125-$150... Doesn't hurt to try ;)