You want cash now, but you are not sure about selling your whole catalog. The two most common alternatives are a partial sale and a royalty advance. Both put money in your pocket, but they work in very different ways.
What is a partial sale?
You sell a percentage of your catalog, for example 25% or 50%, or a selection of songs. The buyer owns that share permanently (or for the agreed term) and receives the corresponding income. You keep the rest, plus usually more control than in a full sale.
Pros
- Larger upfront amount than most advances, because the buyer is acquiring an asset.
- No repayment: the money is yours.
- You keep part of the future upside.
- Often treated as a capital gain for tax purposes in some jurisdictions (check with your adviser).
Cons
- You permanently give up part of the income.
- You share decisions with a co-owner, so governance terms matter.
- A buyer may want rights of first refusal on the rest of the catalog.
What is a royalty advance?
A company pays you a lump sum now against your future royalties. It then recoups that money by keeping all or part of your income until the advance, plus any agreed fee or return, has been paid back. Ownership stays with you.
Pros
- You keep 100% ownership of your copyrights.
- Once the advance is recouped, your income comes back to you.
- Usually faster and simpler than a sale.
Cons
- Smaller amount: advances are often sized at a few years of income.
- During recoupment, most or all of your income goes to the funder.
- Terms can be expensive. Some advances lock up income for longer than expected or include fees and interest.
- Usually taxed as ordinary income in many jurisdictions (check with your adviser).
Side by side
| Partial sale | Advance | |
|---|---|---|
| Ownership | You sell a share | You keep 100% |
| Upfront cash | Higher | Lower |
| Repayment | None | Recouped from future royalties |
| Future income | Reduced permanently | Returns after recoupment |
| Complexity | Higher (due diligence, legal) | Lower |
| Best for | Liquidity + long-term partner | Short-term cash, keeping control |
When each one makes sense
Choose a partial sale if you need a significant sum, want to de-risk your finances, or want a partner who will actively invest in your catalog (marketing, sync, admin), while still keeping upside.
Choose an advance if you need a moderate amount, believe your catalog will grow in value, and plan to sell later at a higher valuation, or never sell at all.
Questions to ask about any offer
- How is the amount calculated, and on what income?
- For advances: what is the effective cost, including fees, interest or extra term?
- What happens if income is lower than expected?
- Which rights, songs and territories are included?
- Can I buy back the share or end the deal early?
- Are there rights of first refusal or matching rights on future sales?
Key takeaways
- A partial sale gives more money and no repayment, but you give up part of the asset.
- An advance keeps ownership, but you give up income until it is recouped.
- Compare offers on total cost and long-term value, not just the headline figure.
We model both options for sellers and run competitive processes for partial sales. See our funding and royalty advance page or book a confidential call.