Selling a music catalog no longer means an all-or-nothing deal with a fund. In 2026 an artist who owns their masters has four real paths: sell the catalog outright, sell a percentage of the royalties, borrow against them, or raise from fans. Each frees up cash in a different way, and only some let you keep what you built.
First, what is your catalog worth?
Almost every deal starts from the same number: your trailing 12-month net royalties, meaning what your catalog actually paid you over the last year across streaming, publishing, sync, and performance. Buyers then apply a multiple. Smaller or newer independent catalogs usually trade around 4 to 8 times annual royalties, while blue-chip legacy catalogs can command 15 to 20 times or more. The gap comes down to how predictable the income is, whether the songs are still growing or fading, and how much untapped sync and licensing potential a buyer sees. You can estimate yours with our free calculator.
The four ways to sell
Here is how the main options compare for an independent artist in 2026.
| Option | What you get | What you give up | Keep your masters? |
|---|---|---|---|
| Full catalog sale | The largest lump sum, based on the full multiple | All future income from those songs, permanently | No |
| Sell a percentage | Cash for a minority slice of royalties (say 20–25%) | That share of future income only | Yes |
| Royalty-backed loan | An advance you repay from royalties, with interest | Fixed repayments whether the catalog performs or not | Yes, but pledged |
| Fan raise | A minority slice sold to your own fans, no debt | That share of royalties, and nothing else | Yes |
Should you sell the whole thing?
A full sale is the right move for some artists, especially later in a career when locking in a large, mostly tax-advantaged payout matters more than future upside. But for a working independent artist, selling everything trades away the one asset that keeps paying. That is why partial deals have grown so fast: you can pull cash forward to fund the next record, tour, or team, and still own your catalog and control your creative future. The question is not just how much you can raise, but how much of yourself you want to keep.
What to watch before you sell
Adverse selection cuts both ways. If a sophisticated buyer is eager to pay up, they may see growth you are underpricing. If you are eager to sell, ask yourself honestly whether you expect the catalog to fade. The best deals happen when both sides can live with being a little wrong.
Taxes depend on structure. A full sale is often taxed as a capital gain, while ongoing royalties are ordinary income. The treatment of self-created musical works is specific, so talk to a tax professional before you sign.
Read the control terms. Some advances and deals come with approval rights, marketing obligations, or clauses that outlast the money. Selling a slice of income should not cost you a say in your own work.
The fan-raise alternative
The newest option flips who is on the other side of the table. Instead of selling to a fund, an artist sells a minority slice of their catalog's royalties directly to the fans who already stream them, through a regulated offering. You keep 100% of your masters, keep the majority of the income, and the buyers become owners with a reason to push your music harder. Encore Markets is built for exactly this: bottom-up, artist-first, on regulated rails, with no crypto or tokens. You can see a sample listing or compare it to a label advance.
Curious what a raise on your catalog would look like? See what your catalog is worth, or join the founding waitlist for first access when the pilot opens.
Frequently asked questions
How much is my music catalog worth?
A catalog is usually valued as a multiple of its trailing 12-month net royalties. Smaller or newer independent catalogs tend to trade around 4 to 8 times annual royalties, while blue-chip legacy catalogs can reach 15 to 20 times or more. The multiple depends on how stable the income is, how the songs are decaying, and sync or licensing potential.
Should I sell my masters?
Selling your masters outright means a large lump sum today but no future income from those recordings, ever. Many artists instead sell only a percentage of their royalty income, or raise from fans, so they keep ownership and control of their masters while still getting cash upfront.
Can I sell just a percentage of my music royalties?
Yes. You can sell a minority share of your future royalty income, for example 20 to 25 percent, instead of the whole catalog. On platforms like Encore Markets, that slice is sold to your own fans through a regulated offering while you keep your masters and the rest of the income.
How are music catalog sales taxed?
It depends on the structure. A full sale of a catalog is often treated as a sale of a capital asset and taxed as a capital gain, while ongoing royalty income is taxed as ordinary income. The rules for self-created musical works are specific, so confirm your situation with a tax professional.