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Sonomo Robo-Advisor

Hands-off investing in music royalties

Pick a strategy and the Robo-Advisor selects, buys and sells songs on the Sonomo marketplace by that strategy's rules. It reviews your portfolio every day and rebalances as needed, and every song it holds earns you royalties, paid monthly.

An example Robo-Advisor portfolio in the Sonomo app. Figures are illustrative.

How it works

You choose the strategy. The Robo-Advisor does the picking, buying and selling.

  1. 1

    Pick a strategy and add money

    Conservative, Opportunistic or both, funded from your Sonomo wallet. Add more at any time.

  2. 2

    The Robo-Advisor does the rest

    It buys songs gradually over your first few weeks, reviews your portfolio every day and sells when its rules call for it.

  3. 3

    Collect royalties every month

    Your first payment comes about three months in, because streaming services pay late. After that, royalties arrive by the 15th of each month, reinvested or paid to your Sonomo wallet, as you choose.

An example Robo-Advisor portfolio in the Sonomo app. Songs and figures are illustrative.

Two strategies

Both earn from the same kind of royalties. They differ in which songs they hold and how much risk they take.

Conservative
Broadly diversified, steadier income
12–16%
est. annual yield
Opportunistic
Selectively concentrated, higher upside
20–24%
est. annual yield

Compare strategies

What it buys
Conservative
Established songs with a consistent record of royalty income, rated lower risk, spread across hundreds of positions by genre, region and streaming platform
Opportunistic
Songs of any age, including recent releases gaining streams, from across the risk range, spread across hundreds of positions by genre and region
Concentration limits
Conservative
Tight limits on how much it holds in any one song or artist
Opportunistic
Looser limits, so it can hold larger positions in the songs it favours
Sells a song when
Conservative
Its royalty income falls well below expectations
Opportunistic
Its streaming performance no longer supports holding it
Risk level
Conservative
Lower risk
Opportunistic
Higher risk
Rebalance cadence
Conservative
As needed
Opportunistic
As needed
Minimum commitment
Conservative
1 month
Opportunistic
1 month
Objective
Conservative
Income & lower volatility
Opportunistic
Income & higher upside

Both strategies buy songs with positive verified royalties, enough market activity to buy into, and a royalty yield above the strategy's minimum. Both also trim positions that grow past their caps, can sell to lock in a gain, and exit a song when an issue arises that puts its yield at risk.

Estimated yields are projections, not guarantees. Capital at risk.

Before you invest

What it costs, how to get your money out, and what can change what you earn.

  • Royalties vary

    Songs earn more or less as listening changes, and streaming services can change what they pay.

  • Prices move both ways

    The value of your portfolio goes up and down, and you can get back less than you put in.

  • Selling depends on buyers

    Shares trade only on the Sonomo marketplace, so their liquidity depends on how many buyers are active there. When liquidity is thin, a withdrawal can take longer to complete or sell at lower prices.

  • Run by rules

    The Robo-Advisor follows fixed rules and data, and both can be wrong or incomplete. No person reviews its individual trades.

  • Not a regulated product

    Royalty shares aren't financial instruments, and no financial regulator supervises the Robo-Advisor, so the protections that come with one don't apply.

  • Costs and withdrawals

    • 1% per trade, paid by both buyer and seller, including the trades the Robo-Advisor makes for you.
    • Withdraw part or all of a strategy at any time after the first month. The money usually reaches your wallet within about 30 days.

Questions about the Robo-Advisor

Let the Robo-Advisor do the picking

Create an account, pick a strategy, and add money when you're ready.

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