____________________________________________________________
To get your FREE full-length album…click here. ____________________________________________________________
Financial Freedom and Wealth Defined
In the Rich Dad books, you'll find the simplest and most understandable definitions of financial freedom and wealth.
When the income from your assets equals or exceeds your living expenses, you're financially free. In other words, when you receive a steady stream of income that is not dependent on you working for it, then you are free from the necessity of labor. This is financial freedom and you can achieve it in part or completely with royalty income.
Now the measure of your financial freedom is also the extent of your wealth. The measure of wealth can range from a few days time to infinity. In other words, wealth is measured in time. So the question is, "How many days can you survive without working?" If you're living paycheck to paycheck, then your wealth might only last a week to one month. If you have savings, actively flip homes, or trade stocks, then your wealth might last much longer. But if you work to generate cash flow or passive income for life, then your wealth is actually infinite. The beauty of the royalty is that not only can it make you financially free, but it can also make you truly wealthy.
Achieving Financial Freedom through Art Income
Royalties
So what is a royalty? Basically, it is a contract between the distributor and the holder of a valued product (intellectual property) that agrees to pay the provider a percentage of profits for the life of the contract. In the Rich Dad books, you'll find the simplest and most understandable definitions of financial freedom and wealth.
When the income from your assets equals or exceeds your living expenses, you're financially free. In other words, when you receive a steady stream of income that is not dependent on you working for it, then you are free from the necessity of labor. This is financial freedom and you can achieve it in part or completely with royalty income.
Now the measure of your financial freedom is also the extent of your wealth. The measure of wealth can range from a few days time to infinity. In other words, wealth is measured in time. So the question is, "How many days can you survive without working?" If you're living paycheck to paycheck, then your wealth might only last a week to one month. If you have savings, actively flip homes, or trade stocks, then your wealth might last much longer. But if you work to generate cash flow or passive income for life, then your wealth is actually infinite. The beauty of the royalty is that not only can it make you financially free, but it can also make you truly wealthy.
Achieving Financial Freedom through Art Income
The secret to achieving financial freedom is really just a series of simple formulas. The formulas are easy to understand, but they all require discipline to follow. The success of each formula lies in the consistency to follow it. The consistency is the key.
Here are just a few formulas with which to get started.
1. Convert your time, energy, and talent into producing and promoting quality desirable creative products. Market them to the correct public and flow the income you receive into acquiring assets.
2. Convert your time, energy, and talent into producing and promoting quality desirable creative products. Discover ways of merchandising your artwork using a scalable approach to reach an ever greater audience or consumer base. Instead of playing or performing live consider investing in the production of a DVD of a live performance and letting each DVD earn money for you. The speed of distribution for 10,000 or 100,000 DVD's can far exceed, the speed of travel while touring. Touring can accelerate the rate of sales, but 100,000 DVD can have a far greater reach than touring can. Moreover, the profit potential on 10,000 or 100,000 DVD's will be much higher than each show without merchandise, so use merchandise.
Illustrators can try T-shirts or animated movies. Musicians and composers can work on getting their music into films and T.V. shows. Chefs can develop all kinds of dishes and sell books of recipes or start a network or on-line cooking show. Writers can think about audiobooks. Photographers and painters can think calendars or aligning themselves with home decorating magazines and T.V. shows. The list is endless and is limited only by imagination.
3. Convert your time, energy, and talent into producing and promoting quality desirable creative products. Leverage the success of all your previous promotional and marketing efforts in the negotiation of your royalty contract. After you've proven the profitability with the accounting from your creative business or company, you can negotiate the terms and percentages. Sign the contract and use your royalty income to pay for your expenses and for the additional purchasing of income producing assets.
Here are just a few formulas with which to get started.
1. Convert your time, energy, and talent into producing and promoting quality desirable creative products. Market them to the correct public and flow the income you receive into acquiring assets.
2. Convert your time, energy, and talent into producing and promoting quality desirable creative products. Discover ways of merchandising your artwork using a scalable approach to reach an ever greater audience or consumer base. Instead of playing or performing live consider investing in the production of a DVD of a live performance and letting each DVD earn money for you. The speed of distribution for 10,000 or 100,000 DVD's can far exceed, the speed of travel while touring. Touring can accelerate the rate of sales, but 100,000 DVD can have a far greater reach than touring can. Moreover, the profit potential on 10,000 or 100,000 DVD's will be much higher than each show without merchandise, so use merchandise.
Illustrators can try T-shirts or animated movies. Musicians and composers can work on getting their music into films and T.V. shows. Chefs can develop all kinds of dishes and sell books of recipes or start a network or on-line cooking show. Writers can think about audiobooks. Photographers and painters can think calendars or aligning themselves with home decorating magazines and T.V. shows. The list is endless and is limited only by imagination.
3. Convert your time, energy, and talent into producing and promoting quality desirable creative products. Leverage the success of all your previous promotional and marketing efforts in the negotiation of your royalty contract. After you've proven the profitability with the accounting from your creative business or company, you can negotiate the terms and percentages. Sign the contract and use your royalty income to pay for your expenses and for the additional purchasing of income producing assets.
Royalties
Royalties are the primary way a musician can generate passive income. Passive income is cash flow and cash flow is money that comes to you on a regular basis without you having to work for it. The contract guarantees the income and the value of the intellectual property is what produces the royalty. The royalty is a derivative of the intellectual property.
For artists, the way to begin producing royalty or passive income from their artwork is to start with the artwork itself. If your goal is to live off of the earnings from your artwork, you must first produce work that is desirable and profitable (in demand and selling). The more in demand it is the easier it will be to offer investors, publishers, and distributors as an intellectual property. They must see the profit potential in it for themselves before they will even consider purchasing rights for a piece (percentage) of the action.
So step 1 is focus on the quality of the artwork itself.
Step 2 is focus on the marketing and promotion.
After you have a quality product which has that special something to it that's getting a positive response from the public, receiving the most attention, and producing the most income for you, then your efforts must turn to deepening that interest by focusing on marketing and promotion.
Your promotional efforts must test and locate the best channels for getting the word out about your creative products, while your marketing plan must specify how you will deliver those products to your public and get paid when those sales are made. Some artists will make the bulk of their money from touring, selling art or music on-line, by publishing e-books on Kindle, performing as opening acts, or by becoming well-known in a region or territory. Continue to feed the channels of your success with further investment of time, energy, and creative products.
The next stage of your development will come from finding new opportunities to scale up in your promotion and marketing. The highest success achievement for a creative person might be artistic saturation, which would be where their work seems to permeate the social fabric in our time and for future generations. Artistic saturation could also be seen as the point where the artist as an individual or their artwork is inseparable from the idea of human culture.
As your sales continue to grow, you must seriously consider transforming your love for art into a business by setting up a legal entity or company. Aside from your copyrights, your choice of business entity such as the S- or C-corporation, limited liability corporation (LLC), and limited partnership (LP) will also help to protect your assets (intellectual properties) from legal predators, family members, and other artists. These protections will also help you shield the income you produce from these individuals.
Consult with an intellectual property attorney for additional information, education, and to structure a company around your artwork. This is the best way to protect your song, painting, recipes, poetry, and designs from copyright infringement and counterfeiting.
So again, the royalty produces cash flow in the form of passive income (or money you don't have to work for) that comes to you on a regular basis. An asset is something that increases in value over time and the royalty is an income producing asset. To learn more about assets and cash flow read Rich Dad, Poor Dad and The Cash Flow Quadrant by Robert Kiyosaki.
Here are several other creative approaches to generate artistic sources of royalty income: music compositions, jingles, publishing rights, inventions, methods, systems, or processes (such as video editing software or music recording hardware), and real estate that may hold valuable artistic significance such as historic hotels, homes, tours, and museums (think The Wax Museum in Hollywood and the Presley's Graceland). Wardrobe, jewelry, illustrations, old guitars, memorabilia from film, music history, the entertainment industry, or the personal lives of celebrities can also be excellent sources of income to add to your artist asset column.
Here are several other creative approaches to generate artistic sources of royalty income: music compositions, jingles, publishing rights, inventions, methods, systems, or processes (such as video editing software or music recording hardware), and real estate that may hold valuable artistic significance such as historic hotels, homes, tours, and museums (think The Wax Museum in Hollywood and the Presley's Graceland). Wardrobe, jewelry, illustrations, old guitars, memorabilia from film, music history, the entertainment industry, or the personal lives of celebrities can also be excellent sources of income to add to your artist asset column.
__________________________________
Creative Flows
The Rat Race
Island Industry
__________________________________
Related Articles:
3 Types of Artist / Music Income
Practice Editing Your Music for T.V. Shows, Commercials, Radio, Ringtones, Samples, and much more
__________________________________
Marc
http://stereothesis.com/Remember to join our mailing list.
To support Stereo Thesis with a financial donation securely through PayPal, click here.
No comments:
Post a Comment