Music royalties have become an increasingly profitable investment, offering a passive income stream that grows alongside streaming consumption. A prime example is the recent sale of NBA YoungBoy’s "Valuable Pain" songwriter royalties, where an investor made 181.9% ROI after holding the catalog for 3.85 years.
The investor initially purchased the catalog for $20,500 in July 2020, received $14,277 in royalty payments, and later resold it for $44,928 in July 2024. This impressive return highlights the wealth-building potential of investing in high-growth music royalties.
But how can you identify a catalog with this kind of upside? Before making a move, investors should ask these three crucial questions to assess the financial strength, investment comparison, and long-term revenue prospects of a music catalog.
1. Is This Catalog Earning More Money Each Year?
One of the most important indicators of a strong music royalty investment is consistent year-over-year earnings growth. A catalog that is making more money each year shows strong listener retention, sustained demand, and increasing payouts to investors.
Key Stats from the Akon Catalog (Mama Africa + More)
- Last 12 months earnings: $2,836
- 3-year average earnings: $1,952
- 3-year growth: 45.3%
- Catalog age: 11.6 years
- Total earnings since 2008: $85,215
Despite being more than a decade old, Akon’s catalog continues to increase its revenue, proving that long-established songs can still be strong passive income assets.
Tips On How to Evaluate a Catalog's Earnings Growth:
- Compare last 12 months' earnings vs. the 3-year average – A growing catalog is a good indicator of sustained demand.
- Look at earnings sources – Streaming-heavy catalogs tend to be more stable and scalable than those relying on sync deals.
- Check the artist’s ongoing relevance – If an artist is still touring, releasing new music, or experiencing a resurgence in popularity, it can drive new listeners to their back catalog.
Reasons Why Akon's Catalog Stands Out
Beyond its financial strength, Akon's catalog carries cultural significance, featuring major hits that remain in regular rotation worldwide.
- Five Grammy nominations, 45 Billboard Hot 100 hits, 4 diamond records
- Over 35 million albums sold globally
- Multiple multi-platinum singles
This catalog is a strong buy for investors looking for stability, streaming longevity, and consistent payouts.
2. How Does This Royalty Stream Compare to Other Investments?
Music royalties are a unique asset class, providing passive income with significant growth potential. When comparing returns, some catalogs outperform traditional investments like stocks, ETFs, and real estate.
Key Stats from the Nelly & St. Lunatics Catalog
- Last 12 months earnings: $4,908
- 3-year average earnings: $3,403
- 3-year growth: 44.2%
- Most recent quarterly earnings growth: 41.88%
This catalog’s strong earnings growth makes it a competitive investment when compared to traditional asset classes.
How Music Royalties Stack Up Against Other Investments
Unlike stocks, music royalties provide direct cash flow with minimal management. Real estate requires tenant management and property upkeep, while royalties generate set-it-and-forget-it passive income.
Reasons Why This Catalog Is a Strong Alternative Investment
- Nelly is a legacy artist, meaning his catalog continues earning even as trends change.
- Hits like "Air Force Ones" and "Midwest Swing" are still widely played, increasing future revenue potential.
- Unlike stocks, royalties are non-correlated to economic downturns, making them recession-resistant.
For investors looking to diversify outside of stocks and bonds, music royalties offer a high-yield, low-maintenance alternative.
3. What Are the Long-Term Prospects for This Song’s Streaming Revenue?
A critical factor in music investing is understanding whether a song will continue generating revenue long-term. Some songs fade quickly, while others sustain earnings for decades due to social media engagement, playlist placements, and a dedicated fanbase.
Key Stats from the NBA YoungBoy Catalog (Valuable Pain)
- Last 12 months earnings: $4,552
- 3-year average earnings: $3,891
- 3-year growth: 39.32%
- Most recent quarterly earnings growth: 44.32%
- Earnings since 2019: $29,360
Despite being seven years old, Valuable Pain has continued to increase its earnings each year, proving its long-term staying power.
Reasons Why This Catalog Has Strong Future Earning Potential
- NBA YoungBoy has one of the most loyal fanbases in hip-hop, ensuring consistent streams on his older songs.
- The song is widely used on TikTok, Instagram, and YouTube Shorts, keeping it relevant to new listeners.
- It earns revenue from multiple platforms (Spotify, Apple Music, YouTube), providing diverse income streams.
A Common Mistake Investors Make and How To Avoid It
Many investors only focus on Spotify revenue without considering other platforms. Valuable Pain has strong earnings across:
- YouTube – Where YoungBoy is one of the most streamed artists.
- Apple Music – A growing source of premium revenue.
- TikTok & Instagram – User-generated content continues introducing the song to new listeners, fueling future streaming revenue.
Investors should always choose catalogs that perform well across multiple platforms, ensuring continued growth and revenue stability.
Final Thoughts: How to Get Started with Music Royalties
The 181.9% ROI on NBA YoungBoy’s "Valuable Pain" proves that music royalties can be a lucrative investment when chosen wisely. By asking the right questions, investors can find catalogs with strong financial growth, competitive returns, and long-term earning potential.
How to Get Started Today:
- Sign up for a free account on Royalty Exchange.
- Browse active catalogs and review their earnings growth and streaming data.
- Compare their financial performance to other assets like stocks and real estate.
- Place a bid and start earning passive income from royalties immediately.
With high-growth catalogs like Akon, Nelly, and NBA YoungBoy available now, investing in music royalties has never been easier or more profitable.
On Royalty Exchange you can sign up as an investor and search through thousands of music catalog listings that include producer and songwriter royalties to some of the biggest songs of the past few decades. Discover why song royalties are one of the best investments to grow your wealth in 2025 and download the free Ultimate Guide To Music Royalties to learn everything you need to know about investing in royalties.
