royalties

Intermediate 💰 Finance / Accounting

Definition

The passive income dream where creators get paid every time someone uses their work, like a toll booth on the highway of intellectual property. These recurring payments flow to authors, musicians, inventors, and landowners who've figured out how to make money while sleeping. It's the closest thing to free money that still requires you to have created something valuable first, which is why most people just get regular jobs instead.

Example Usage

The songwriter's royalties from that one-hit wonder in the 90s still generate enough income to cover her monthly latte addiction.

Source: Financial terminology via Free Dictionary API

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