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Royalty income is the money you get paid for the use of your property. Property in this case can include intellectual properties and real properties such as ideas, products and processes. Royalty income can include payments for the use of literary works, artistic works, copyrights, trademarks, patents and more. Owning properties such as timber, oil, and gas also generates royalty income.
So, how can you exploit these properties and turn your ideas into money? Here are a few examples you can easily exploit and get paid for their use:
How to Turn Your Ideas Into Money
Build a Strong Repeatable Business Model
Let me start with building a strong repeatable business model. You may think you are not a business person; but if you have the idea and the knowledge for a strong business model, you can create this model and test-run it. Once the model is proven to be strong and easily repeatable, you can sell it to those who wish to use it in the form of franchise. McDonald as an example built a strong business model that is easily repeatable. Majority of its restaurants are operated and owned by franchisees; who pay a lot of money in franchise fees just to use its processes, logo and marketing. This is royalty income to McDonald.
If you can build a strong repeatable business model, go for it. You will build wealth not only from earned income or profit income, but also from royalty income. However, if you do not have the capital or skill requirements to establish a strong repeatable business model, there are other ways you can benefit from royalty income.
Write a Book
What do you have intensive knowledge of? Have you thought about writing a book on it? When you publish a book, the money you get paid for every copy of the book sold is royalty income from the book. The money might not be a lot, but the good thing is that once the book is published, you will continue to get paid royalty income each time a copy is sold.
Blogs/Vlogs
Think you can’t get to writing a book? Or not sure how to begin, just start writing piece by piece and ideas will start to flow; or better still, start writing blog posts. As you continue to write blog posts, you will begin to see ideas for your book will begin to take shape. With time and as your readership and viewership begin to increase, you may start to earn some royalty income from your blogs/vlogs as well.
Another option is to innovate and patent a product. Do you have an idea you can turn into a unique product and be patented? Go for it!
Develop a Software/Mobile Application
Can you develop a software? Or do you have an idea of a process that can be built into a mobile app? Go for it! You do not have to develop the app yourself, all you need to do is to articulate your ideas and contact a developer. If you own a software, the payments you receive for letting people use the software is your royalty income.
Artistic Works: Sketches/Illustrations
The artists are not left out, your sketches, and illustrations can pay you royalty income. You can start with friends and family members, and then ask for referrals.
These are just a few ways you can benefit from royalty income, there are many more.
Are you already earning royalty income? Let me know what you think or other ways one can earn royalty income in the comment below.
