The Big picture:
A SHORT NOTE ON ROYALTY INCOME (& HOW IT WORKS)
Apart from being born in the British Isles and being famous, what do:
- Sir Richard Branson, JRR Tolkien, Paul McCartney & Kate Winslet all have in common?
I’m sure you could come up with many connections between them, but the one thing that their various talents and skills have produced, over and above everything else, is this: royalty income.
What they’ve created has such popular appeal, that they get paid over and over again for doing work just once.
How to earn royalty income (even if you’re not famous)
Unless you’re a performing artist, author or investor, there isn’t normally a way you can earn royalty income.
Except, there is.
What’s more, you can earn it for doing something that’s already very familiar to you.
Picture the scene: you and some friends are at a cafe late Friday afternoon, talking about what you’ll be doing on the weekend, when you overhear a work colleague describing a new film they’ve just watched, and you just have to go & see it, because the acting is amazing, the plot is mind-blowing, and end scene was off the charts.
You get the idea: your colleague was recommending something – but just not getting paid to do so.
Imagine, on the other hand, Penny and Jim, sat at a nearby table in the same cafe, scrolling through Instagram, when Jim asks:
“By the way, what are you paying for your mobile?”
Penny: “Well, it depends – sometimes it’s £33 a month, sometimes a lot less…”
Jim: “Ha! Yes, these companies are always ripping us off with different prices.”
Penny: “No – I don’t mean that….”
Jim: “What do you mean?”
Penny: “Well, the months when when I travel loads, the petrol station partly pays for it, and near Christmas, it can sometimes disappear completely…”
Jim: “Excuse me? How does that work?”
Penny: “Oh, didn’t you know – Mars Mobile have really got this sorted: whenever I spend money at the shops, part of it goes towards my mobile bill – last January’s bill was actually zero, because all the previous month’s Christmas shopping helped pay for it. And when I recommend Mars Mobile to others, they pay me a little bit of everyone’s smaller bills, every month.”
Jim: “Er – how can I get this? This is like a loyalty scheme on steroids…”
Penny explains how. Later that day, Jim switches to Mars mobile, pays less, and Penny adds to her growing royalty income. When Penny shows him how she gets paid to help others save, Jim realises he would be mad to ignore this, and he joins Mars Mobile as a partner, working closely with Penny and the team.
Good News & Bad News
The bad news is, as you’ve probably spotted, Mars Mobile doesn’t exist.
The good news is – there is a company that really does have a loyalty scheme very similar to the above – the mobile phone example above is just a small illustration to explain how this royalty income works in principle.
In summary: this is royalty income for the rest of us – gained through recommending and referring others, without having to be an amazing writer, singer or actor. And, like Penny & Jim, once you see how it works in practice, you’ll want to both benefit from it, and get paid to recommend it to others.
Now you understand the big picture of how this royalty income works, please click on the “Next Step”: