The average American listens to a whopping 32 hours of music per week. With the prevalence of streaming picking up speed, consumption shows no signs of slowing down. If you’re an investor, that means opportunity.
Hundreds of thousands of people have tied their financial destinies to music. Since you’re reading this post, we’re willing to bet that you’re looking to join that group.
Below, our team breaks down music investments you can put money into that can lead to substantial returns. Keep reading to potentially find your next million-dollar idea!
1. Buy Stocks in Streaming
When somebody mentions making music investments, inevitably, the first suggestion that will come up is putting money into streaming oriented stocks. And that’s by no means a bad idea!
Music streaming affiliated/focused tickers are doing well in today’s COVID economy. From Spotify (SPO) to Amazon Music (AMZN), there are a virtually unlimited number of places you can park your money to passively rake in returns as the music industry builds momentum.
To get wealthy off of stock investing, you’ll likely need a sizable amount of money to invest in the company you’re interested in. If you have the cash flow to make that happen, this music investments vehicle could be for you.
2. Partner With Small Music Shops
We’ve all walked down a city’s main street and spotted a record store or instrument shop that’s servicing their community.
Have you ever looked at those places and thought to yourself that if you were co-managing it, you could make it more successful? If so, a great investment could be to offer cash in exchange for a store partnership.
By buying your way into privately owned shops, you can become an overnight business owner with the influence to make the company you’re invested in more financially successful. That growth could result in sizable returns.
We like going through this process with smaller businesses because they tend to have the most room to improve and buy-in costs are relatively low.
3. Buy Music Rights
Michael Jackson famously profited for years via holding the music rights to several famous Beatles songs. If you have the cash to accomplish a similar feat, there is certainly money to be made by being a rights holder.
For most of you, buying the rights to AAA artist’s material will be out of the question. More reasonably, you could find up and coming bands, offer them cash for their music rights, and build up your portfolio from there.
4. Invest in Bands
There are more ways to invest in a band than just buying their music rights. You could put up the cash they need to record their first album, buy them new equipment, or fund their first tour.
Anytime you put up cash, you can carve out a deal regarding what you expect in return for your investment. Your returns could be a significant portion of album sales, touring receipts, etc.
The trick here is picking bands to back that are small enough that they need your money yet good enough to likely turn you a profit. While not exactly as tricky as the work Kenneth Chien does in assessing biotech investments, you’ll want to take a cautious approach when placing your musical bets.
5. Source and Sell Memorabilia
There is a tremendous amount of money to be made in music memorabilia. Socks artists wore on stage, signed albums, and historic concert tickets can all be sold for massive profits on the open market.
The key to being a successful memorabilia trader is knowing how to come upon enough classic pieces to make your business viable.
You could invest time in scouring yard and estate sales to try and find products. You might also hire a person that procures merchandise on your organization’s behalf.
6. Start a School
Fewer music investments are more lucrative than those made in establishing higher learning institutions. Look no further than the thousands of private universities strewn across the country to understand that.
If you can put a team of educational experts together that can launch a private musical institution in a major city, you could attract students and charge sizable tuition for attendance. So long as your school is accredited, students can use federal, state, and private loans to cover the cost of education, all of which will put instant cash in your pocket.
Running an accredited learning institution requires rigorous attention, so again, unless you have a background in education administration, you’ll want to be part of a larger investment group that has the skills to manage a project of this magnitude.
7. Learn to Play Music Yourself
An investment in yourself is always an investment that’s worth making. So, if you love music, consider picking up an instrument, taking classes, and mastering your craft.
Best case scenario, you become a highly paid professional. Worst case scenario, you’ll develop a new, fulfilling skill that will add richness to your life.
In our opinion, both outcomes are well worth pouring capital into!
Music Investments Make Money, Build Dreams, and Enrich Souls
Were fans of music and all of the riches it can bring to those that invest in it. Whether it’s enriching your bank account, someone’s dream of forwarding their career, or the souls of those that come into contact with the art you’ve funded, music investments are a worthwhile venture.
We hope we’ve given you helpful guidance on where your music dollars should go. If you’d like more guidance on music investments, mutual funds, bands, or anything in between, check out additional content on our blog.