Royalty advance platform RoyFi has announced a spate of new partnerships with distributors and artist service providers to help artists, songwriters, and independent labels find the funding they need.
The following comes from RoyFi, a company DMN is partnered with.
RoyFi now offers its royalty advance services through distributors including Distro Nation, KMG, and CodeSwitch Agency. These partners join a growing list of companies, including Memphis’s Beatroot Distribution, unchained Music and Earthprogram. CEO Peter Harvey notes that “once people realize we offer a better deal, things start to move fast.”
The royalty advance company was founded in 2021 to help artists invest in their careers without putting their catalog at risk. RoyFi also provides services to distributors, publishing administrators, and societies to extend their ability to pay advances. Their advance model is unique in the space because it is not affiliated with any catalog acquisition companies—aligning its incentives with the advancee’s.
“We chose to work with RoyFi because we were looking for a partner who values artists as much as Distro Nation does with deals that are fair and transparent.” —Jon Baltz, CEO of Distro Nation
“On the artist or songwriter side, we are the only player in the space that quotes a flat repayment amount that will never increase, and reduces that fee for early recoupment,” Peter Harvey told Digital Music News. “We also have a buyback option for artists who want to pay us back early, that unlike others in the industry, doesn’t have a pre-payment penalty. This also applies to indie labels and publishers. Our mission is to provide a service that won’t get anyone in over their heads, and help them keep control over their catalogs.”
RoyFi says on the distribution side, it is in a unique position to provide advances that distributors normally wouldn’t give out. The financial structure of these advances allows RoyFi to pay the distributor to provide the advances, unlocking the concept of “advances as a service”. RoyFi has already done one-offs with some of the most respected distributors in the industry, so its next goal is to operate at scale. Harvey notes that RoyFi’s structure helps distributors provide the marketing drivers that generate more revenue – without much risk attached. This setup also works with DSPs and collection societies.
A Quick Peek at RoyFi’s Newly Minted Partnerships
Atlanta-based CodeSwitch Agency is one of the fastest-growing independent distributors with integrated marketing services for artists, backed by strategic advisors that include industry veterans Cortez Bryant and Al Branch and Max Gousse. Codeswitch’s partnership with RoyFi will allow artists to access the resources they need to take their careers to the next level.
Jesse Brown, Co-Founder of CodeSwitch Agency, asserted, “As we embark on this transformative journey, it’s important to note that we’re not just launching a company; we’re igniting a revolutionary spark in the heart of the industry. With our partners at RoyFi, we’re not merely offering a financial tool; we’re crafting a future where creative freedom and financial empowerment converge, empowering artists and brands to narrate their unique stories on a global stage.”
J Pride, Co-Founder of CodeSwitch Agency, exclaimed, “The success of this partnership is directly tied to our ability to level the playing field for independent artists through leveraging back catalog while simultaneously executing label-level marketing, DSP support, and PR efforts for every artist we come across.”
Distro Nation was recently spun-off from Live Nation and boasts a roster of over 150 artists. It has become RoyFi’s latest distribution partner and will offer advances to its artists and labels through RoyFi.
KMG Distribution, the invite-only distributor that provides competitive rates and industry-leading services, has teamed up with RoyFi to offer advances to its artists and labels. “RoyFi is providing us with the financial means to get bigger deals done with artists while still offering them equitable terms required in the independent distribution space,” KMG Distribution Manager Ross Robey told Digital Music News. “We’re very enthusiastic about the creative approach to deal-making that Peter and his team bring to the table.”
RoyFi CEO Peter Harvey says he is aware of the technical challenges that face the music industry, so the company offers a lightweight tech option. “With data integration like we have with Beatroot Distribution, we can get an advance offer down to four clicks, but we can also work on a straight referral basis—which can be implemented within hours,” Harvey told DMN.
“One of the biggest misconceptions people have about RoyFi is that we’re a catalog acquisition company. We are the opposite—our goal is for artists to be able to hang onto their rights, at least until a favorable deal comes along.” Harvey says RoyFi is aimed squarely at the musical middle class.
“The other hurdle we often face is that people haven’t seen this kind of deal in the music industry, and that makes them wary or even suspicious. We call it the ‘too good to be true’ factor, and it’s understandable in an industry with a history of predatory deals and creative accounting. In reality, all we are doing is extending banking terms similar to what any normal business could get—but to artists and songwriters. We’re very transparent about that.”
Harvey says RoyFi can do advances as small as $250 all the way up to almost $1 million. The amount of the advance is based on past and projected earnings. He laughs, “But honestly, if you are eligible for more than $1 million [in royalty advances] you should probably work directly with a bank—and we’re happy to make that introduction for you.”
The RoyFi Footprint Is Going Global, Too
“We’ve been quiet because we want to devote our resources to making advances rather than spending a lot on marketing, which we’d then have to pass along to the customer. World of mouth is currently our best marketing. We much prefer to operate behind the scenes with music service companies. Even so, we’re underwriting about $1 million a month in advances,” Harvey says.
He also notes that while RoyFi has so far been focused on opportunity inside the United States, the company has a truly global footprint. “30% of our clients and their organizations are located internationally and we are built to work in other markets,” he continues. “Europe, Canada, and the UK are our primary international targets right now—with some interesting discussions happening.”
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : DigitalMusicNews – https://www.digitalmusicnews.com/2024/05/09/royfi-royalty-advance-partnerships/
