Royalties

Royalties are ongoing payments made to a rights holder in exchange for the use of their intellectual property — including music, books, patents, trademarks, and creative works. In the creator economy, royalties take many forms: streaming royalties paid to musicians when their songs are played on Spotify or Apple Music, book royalties paid to authors when their books are sold, sync royalties paid when music is used in video content, and affiliate royalties paid when products are sold through referral links. Understanding royalties is fundamental to building a creator business that generates passive income, as royalties continue to pay out long after the original work was created.