Build Capital though Downloadable Content
The power of royalties in your portfolio
Diversification of your portfolio is a basic strategy that any successful investor will implement. By keeping your interest in several sectors, you are less apt to see your investments fall completely into the red. Granted, the type of investments that you choose plays a tremendous role in the yield that you see on the capital invested. As such, having some non-risk financial options is advisable. One of the easiest ways in which you can build your finances is through royalties gained from downloadable content. Yet, before you start uploading content to the web in hopes of a profit, there are a few things to consider.
Ensure that you own the copyright on the material
The material that you post on a site must be your own. Do not try to pawn off someone else’s idea for a few bucks. This will most certainly end in a lawsuit and a loss of finances. If you do not have a copyright from the library of congress (which most people do not have for general creations), ensure that you have proof of the date of creation. This can be a computer stamp on the file, a notarized printout showing the date of creation, or a contract showing that you purchased the rights to the content. Do not do the poor man’s copyright. Mailing something to yourself may show that the content was created on that date, but unless the contents inside have a date of creation, a person has only to state that they created the content prior to you “mailing in” your copyright.
With files such as 3D models, photographic images, and music it is essential that the original file be kept. You may have various versions of a model, photograph, or music file (and you should save often in various versions) but retain the original for your copyright ownership purposes.
Read the terms and conditions of uploading
Where most companies are pretty upfront with the copyright ownership, the royalties, and the pay methodologies, it is a good idea that you read over the terms and conditions. This will save you money and heart-ache in the long run. For example: I know of a company which pays royalties on poetry and novels submitted. The royalties are 10% or so and the payout is once a month. However, before you can receive any payouts your overall escrow must equal $1,000. Being that most of the novels sell for .99 and you are getting 10% of that (.09) it could take quite a while to build up to a payout.
The second part of the terms and conditions which you should note is the right to publish and distribute. This is where the company which you are uploading to pays you royalties for the downloads from the site but reserves the right to sell and use your content on other sites and for other purposes without paying you royalties for your content.
Again, read your terms and conditions.
Find a market that will produce capital
Just like the stock market or other investments, you want to find the markets which have people investing in them. 3D Models, Animation, special effects, stock photography, and music are all high demand markets. Further your chances that your content will be accessed by choosing the content within those markets which have the probability of being used (for example a 3D model of a Phone is far more apt to be purchased then a life size model of the Starship Enterprise).
More content yields more payoffs
The fact that the content is paid when someone purchases your content and that (for the most part) you do not pay to use the site, makes the investment non-risk. To maximize the payoff of the uploaded content on the site, ensure that you pepper your upload/purchase content on a number of sites and that each site has a substantial amount of content. It is a basic rule of supply and demand. The more supply that you offer on a demanded area, the more likely you will see that area show profitable yields.
Do not limit yourself to one genre either. If you are able to provide both written content, stock images, music, and 3D animations, gaming modules, or special effects, branch out and provide such. Your mentality should be the same here as in your stock investments. Should 3D models see a decline in purchases, the special effects may see an increase in demand. Diversify into as many areas as you can manage.
Ensure that your payoff is taxable
If you are concerned about the company in which you are providing your content to, check to see if you receive information that you can use on your taxes. A legitimate company will send you the proper forms as it relates to your income from that site. If you have questions about a site’s methodology of doing this contact them before you use that site.