How artists can get royalties

Bernardo Montes de Oca

Max Kendrick was shocked when his artist friend had to choose between dental work or paying the studio rent. Of course, she paid rent, and Kendrick couldn't believe it came down to such a decision. So, he paired with Charlie Jarvis, a computer scientist, to develop a solution. 

Kendrick's example isn't new. For decades, visual artists have struggled to make ends meet. Musicians and those in film enjoy royalties, but when a painting changes hands, nothing comes the visual artist's way. Plus, they have little control over what the market wants. Robert Rauschenberg sold his work for $900 in 1958, only to see it sell for $85,000 in 1973. Another example is David Hockney whose painting went for $90.3 million in 2018 when he originally sold it for $18,000 in 1972. 

The challenge lies in tracking transactions. Visual artists can't track when their works sells and for how much it sells for. Nowadays, Spotify is an excellent example of royalties in the music industry, though the payout can be scarce. For instance, Jacques Greene's "Another Girl" has seven million plays since 2011 but has landed him $28,000 in royalties. 

NFTs could provide a solution. They've been hyped, and many people still don't understand them, but their very nature can help visual artists because it can be easier to track transactions with them. 

One of the best examples is the Bored Ape Yacht Club. The anonymous company has a limited supply of 10,000 NFTs with bored apes in different costumes, but it doesn't end there. The BAYC also tracks every transaction to stay on top of royalties. 

That's how we circle back to Max Kendrick and Charlie Jarvis. Feeding off the success of BAYC and other examples, they created Fairchain. The young startup is a platform that allows artists to use the core idea behind NFTs and reap the rewards. 

Each artist can generate certificates for title and authenticity that is registered and encrypted in the blockchain. The artist then establishes the commission for future sales. So, with every resale, the new buyer must sign an agreement to remit that commission to the creator. This is the only way for new owners to receive the two certificates. 

Though the theory behind Fairchain seems to be the best for these current times, there are still challenges ahead. After all, the artist must convince buyers to agree to this method, which could deter some. In addition, some believe these strict conditions could hamper the resale market. The artists are up for this, but the resale market is putting up its defensive walls. It's this resistance to change that could hamper royalties in the future. Some things never change.

Need a Xanax?

Cerebral started months before the pandemic ravaged mental health in America and it became an instant hit by providing mental health support online. Users can attend therapy or even speak with a psychiatric nurse practitioner through a tier system. The staff evaluates the patient and can prescribe an array of medicine. 

Cerebral has seen the fastest growth in the online mental health business. Plus, it has partnered with big names like Simone Biles, but the business model generates debate. Some experts feel it makes medical services feel more like online shopping. 

The startup also takes advantage of another change in legislation that came about in 2020. It changed a lot in the world of prescription medication, but how do Cerebral, in particular, take advantage of it? 

Applications for April’s Demo Day are LIVE!

Does your startup have what it takes to win?

The first Slidebean Demo Day was an absolute success. We saw Fyto secure the win and take home the grand prize. Does your startup have what it takes to win our next demo day on April 28th? Get your pitch deck ready and sign up now.

Apply Now

Threads of the Week: 

The Terminator helped create this useless car

What do The Terminator, the US Army, and Coolio have in common? A vehicle that started off being called the High Mobility Multipurpose Wheeled Vehicle, or HMMWV for short, but we know it as something a bit different now - the Hummer

Neumann 2.0 wants to take over the startup world

Adam Neumann almost destroyed WeWork, then fell from grace, hit the media, and left his reputation in shambles. The thing is that he’s not done. 

The disgraced CEO now runs a small company of 50 employees out of a former WeWork building (out of all places) and he has invested in 49 startups that range from in-vitro fertilization to mortgage lending. He even invested $30 million in a startup that provides concierge services all over the US. 

Where does he get all the money from? Even if he managed to drop WeWork’s value from $47 billion to $9, it turns out that he’s made some good moves. Neumann plans to develop his own companies and expand his startup catalog with this capital. In fact, he’s so ambitious that he could rekindle his relationship with WeWork. So, shortly, you might have to ask yourself if you want Adam Neumann in your Board of Directors. 

Suscribe to our newsletter
Bernardo Montes de Oca
Content creator in love with writing in all its forms, from scripts to short stories to investigative journalism, and about almost every topic imaginable.
Slidebean logo
© Copyright 2024 Slidebean Incorporated. All rights reserved.
Made with 💙️ in New York City and San Jose