Sell Your Music to Investors Online (part 1 of 4 DIY guide)

There’s been a lot of talk out there about the quickly changing music financing landscape, in particular with ongoing hype around the use of NFTs. The truth of the matter is that NFT technology works under the hood, and, in and of its own, does not necessarily make things easier for artists. NFT or not, artists need access to quick financing at favourable terms. This is why we’ve decided to put together this pragmatic 5 step DIY guide for artists.

Why now?

Appetite for music investing is at an all-time high and that will significantly impact your music’s valuations and how much money you’re able to raise. Here are the reasons why:

• The stock markets are overpriced and investors are looking to move their money into alternative asset forms.
• Retail investing is completely democratized. Almost everybody is actively investing in public equities and cryptocurrencies — including your own fans!
• There isn’t a lot of competition from other musicians offering their songs to investors (yet!). This first mover advantage will make you stand out and play in your favour.

What you’ll need:

• At least one song already published on streaming platforms
• Own master rights (from digital streaming) in the songs you’re going to sell to investors (at least 20%)

What you’ll be able to do at the end of this:

• Setup and schedule an investor offering day for your song/s using the Encore platform (Free for artists, charges investors)
• Attract investors and fans to subscribe to your offering day
• Maximize your song’s valuation and amount you raise in turn
• Sell a % of the song’s future master earnings and get the cash deposited into your account at the end of your investor offering day

Finally, before you start, take a minute to make sure you understand what it is you’re selling to investors exactly:

• Sell a percentage of a specific song’s future master royalty earnings
• You decide what song. Your other music stays as is, of course.
• You decide what percentage to sell (anywhere between 1–30%)
• All other royalties (publishing etc.) remain as is. You are only selling a percentage of future master royalty earnings.

Got it? Great! Time to secure the bag ..

Part 2 to be published on Monday March 8th