How Royalties Work
Sell a watch through W&F and you never fully let go. Every time that watch changes hands at a higher price, you earn a share of the appreciation. The higher it climbs, the bigger your cut. And it never expires.
Perpetual participation in appreciation.
You sell a watch
List your watch on W&F. When it sells, you receive the sale price minus a 5% platform transaction fee. Standard so far.
The watch appreciates
The new owner holds it for years. The market moves. The watch gains value. When they sell it on W&F, the appreciation is calculated from the price they paid.
You earn a royalty
A percentage of that appreciation is paid to you as a royalty. The percentage depends on how much the watch appreciated: higher appreciation means a higher rate through our Bonus Kicker tiers.
Five tiers. The more it appreciates, the more you earn.
The royalty rate is determined by the total appreciation since the original sale through W&F. As the appreciation crosses each threshold, the entire amount is paid at the higher rate.
A watch you sold for $10,000 resells for $13,000. Appreciation: $3,000. Your royalty: $450.
A watch you sold for $10,000 resells for $20,000. Appreciation: $10,000. Your royalty: $2,000.
A watch you sold for $20,000 resells for $55,000. Appreciation: $35,000. Your royalty: $9,800.
A watch you sold for $35,000 resells for $110,000. Appreciation: $75,000. Your royalty: $26,250.
A watch you sold for $35,000 resells for $250,000. Appreciation: $215,000. Your royalty: $96,750.
Every family in the chain earns. Earlier families earn less over time.
When a watch passes through multiple families, each previous owner continues to earn royalties on future appreciation. But each link back in the chain decays by 15% (multiplied by 0.85). This ensures the most recent seller earns the most, while earlier families still participate in perpetuity.
The decay factor is compounding: 0.85^0 = 100%, 0.85^1 = 85%, 0.85^2 = 72.25%, and so on. A family five links back still earns 44.4% of the full royalty rate. Even ten links back, they earn 19.7%.
A Patek Philippe Nautilus across four families.
Follow a Nautilus 5711/1A as it passes through four families on W&F, appreciating from $35,000 to $250,000. Every family earns royalties along the way.
The Anderson Family
Purchased at retail from an authorized dealer in 2018. The Andersons held the Nautilus for three years before listing it on W&F. This is the originating sale in the chain -- no prior appreciation exists yet.
The Nakamura Family
Bought through W&F in 2021. The Nautilus 5711 was discontinued, and market prices surged. When the Nakamuras sell, the $93,000 appreciation triggers the Legacy Kicker tier (45%).
The Okonkwo Family
Held from 2023 to 2025. The market stabilizes, but the Nautilus continues to climb. $52,000 in appreciation hits the Platinum Kicker tier.
The Reeves Family
Current owner lists in 2026. $70,000 in appreciation from their purchase price qualifies for the Platinum Kicker.
| Family | Sale 2 | Sale 3 | Sale 4 | Total Earned |
|---|---|---|---|---|
| Anderson | $41,850 | $15,470 | $17,701 | $75,021 |
| Nakamura | -- | $18,200 | $20,825 | $39,025 |
| Okonkwo | -- | -- | $24,500 | $24,500 |
5% transaction fee. That's it.
What the 5% covers
- +Authentication and condition verification
- +NFC chip encoding and Watch ID registration
- +Blockchain provenance ledger updates
- +Escrow and secure transaction handling
- +Perpetual royalty calculation and distribution
- +Insurance during transit
How it compares
Common questions about the royalty model.
Do royalties expire?
Never. As long as the watch continues to sell through W&F at appreciating prices, every family in the chain earns royalties in perpetuity.
What if the watch sells for less than the previous price?
No royalties are distributed on a sale with no appreciation. Royalties only apply to the positive difference between consecutive sale prices. No family ever owes anything.
Can I sell my royalty rights?
Not currently. Royalty rights are permanently tied to the family that sold through W&F. This prevents speculation on royalty streams and keeps the model aligned with the people who actually owned and cared for the watch.
What happens if the watch sells outside of W&F?
If the watch leaves the W&F ecosystem, the chain pauses. Royalties are only triggered by sales facilitated through the platform. The Watch ID and provenance record persist, and the chain can resume if the watch returns to W&F.
Is the 5% fee taken from the seller's proceeds?
Yes. The platform fee is deducted from the sale price before the seller receives their proceeds. Royalties are calculated and distributed separately, based on the appreciation amount.
Ready to earn on your watch — forever?
List your watch on W&F and start building your royalty chain.