A royalty check is a payment that you receive on a perpetual basis due to some type of investment or activity from the past. Getting royalties is a way to build wealth over time without having to do additional work. You have a number of options for earning royalty checks -- the general rule of thumb is to produce something now that will be of use to the public for a long period of time.
Compose musical compilations or books to get royalty checks . Money you earn from music are sometimes called mechanical royalties. You must either negotiate an agreement with a publishing group or start your own publishing venture to distribute your creations. In either case you must maintain some rights to your work in order to receive royalties. Each time a customer purchases your book or music you receive a payment.
Invest in real estate as another method of securing royalty checks. In this case the royalty checks are the rent payments that you receive each month from tenants. This is a common yet riskier way to seek royalties compared to other options because you take the chance of nonpayment by tenants and the depreciation in value of the property.
Establish an affiliate arrangement to get royalty checks. In an affiliate arrangement you advertise another company’s goods or services in exchange for a percentage payment on each sale. This arrangement can continue into eternity assuming you maintain a contract with the business. Online affiliate services connect you to interested companies. In addition to receiving direct royalties from the items you directly refer to customers, some affiliate programs also pay you for referring other affiliates to the selling program.
Use your skills as a photographer to get royalties on a perpetual basis. You can make royalty money from selling the rights to your images as royalty-based stock photos or by creating publications displaying your photography. Some web-based services also create prints of your photographs to distribute as posters, sell them on your behalf, then send you royalty checks for each sale.