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Internet Royalties

Written By Briton Ryle

Posted September 18, 2014

Movie rental company Netflix sees about 2 billion requests to its website every day.

Its website is really a computer program that distinguishes what type of device (Wii console, Xbox console, mobile phone, Roku player, etc.) is requesting videos and then routes the requests to the back-end services that power Netflix.

This seemingly simple activity generates about 70 to 80 billion data points each day that are logged by the system. Yeah, that’s 25,550,000,000 data points a year. 25.5 billion…

In 2013, Google processed 5.9 billion searches — every single day. That adds up to 2.1 trillion searches for the year.

These are simply astounding numbers. And if you’re wondering how all this traffic gets where it’s supposed to go, well…

Welcome to the cloud!

Now, we will be the first to admit that tech geeks have done a terrible job of explaining exactly what “the cloud” is.

They make “the cloud” sound like some new innovation… a new kind of Internet. But it’s not.

Basically, when someone says “the cloud,” they are simply talking about the Internet. We suppose if you wanted to get technical, the cloud is where the Internet actually “lives” — in servers scattered around the world.

And when you download something from the Internet (or the cloud), these servers send the information to your computer, tablet, or mobile phone.

Building — and maintaining — the cloud is a multi-billion dollar endeavor. Add in the goods and services that are delivered by the cloud, and we’re talking about trillions of dollars.

And just as you probably pay some kind of fee to access the Internet, the companies that do business on the web — that is, send you stuff electronically — pay fees, too.

And you can collect a portion of those fees at regular intervals. We call them Internet Royalties…

Every Day is a “Cloudy” Day

When you go to a website like Netflix.com or Google.com, you’re not just going to one server. These websites exist on hundreds if not thousands of servers strategically placed around the world.

But these servers still have to be able to connect to the Internet in order to deliver content to you. So companies like Netflix or Facebook have to have access to the Internet in order to maintain their multi-billion dollar businesses.

And just as most of us have to pay Comcast, Verizon, or Cablevision for Internet access, these multi-billion dollar companies have to pay “access fees” to do business on the Internet.

Now, here’s how you can get your share of these fees…

You can partner with one of the companies that collects these access fees, and, as a partner, you’ll be paid what amounts to Internet Royalties.

Of course, your share of these Internet Royalties will depend on how much you have to invest into the partnerships. But you should know that the long-time contracts are signed, legally guaranteeing continued payments into the partnership from companies like Netflix and Facebook.

And the regular profit sharing of these payments to the partners (you, if you choose) is also guaranteed by law.

All you have to do is decide if you’d like to take advantage of this steady, reliable income opportunity.

Until next time,

Until next time,

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Briton Ryle

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A 21-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He is also the managing editor of the Wealth Daily e-letter. To learn more about Briton, click here.