Knowing what is needed upfront for a celebrity endorsement will save you a significant amount of time and money for a successful marketing campaign.
Asking upfront for all services and usages eliminates the risk of not being able to secure them later at a much higher cost.
There are seven areas of celebrity endorsements, often overlooked, that make or break a marketing campaign:
1.Think Through The Entire Campaign
Getting ahead of yourself increases risk and the time your team spends on the celebrity, which is the last thing you need.
Spending a few hours upfront considering everything needed for a great campaign is the most important advice I can give.
2.Ask for All Usages Upfront
What mediums will the campaign utilize? TV? Radio? Print? In-store/POS? Out-of-home? Online/digital (in what forms – client and third party websites? Banner ads and or rich media banners?) Social media channels? PR? Other mediums?
Within the usages above, there are many choices to select and negotiate.
3.Utilize an Experienced Celebrity Negotiator
Abraham Lincoln once said: “He who represents himself has a fool for a client”
Resist the temptation to work directly with a celebrity’s agent or manager. Most marketers don’t have the time or experience to negotiate a celebrity endorsement contract.
4.Use an Attorney With Celebrity Marketing Experience
An attorney with experience in advertising, marketing and branded entertainment will reduce legal fees, time spent and greatly lower the risk of killing the deal.
Celebrity deals die when brand attorneys only have protection in mind and don’t acknowledge see the big picture (what the brand needs to go to market).
5.Pre-Negotiate Celebrity Fee Options
Every deal is different yet your goal should be to negotiate a 10% fee increase for an option to extend the deal an additional year. Options typically fall in the 10-20% range.
Some agents will resist. Be persistent, explain why and push hard to lock in the fee option.
6.Know Which Factors Help Determine Celebrity Cost
Brand category, product, term, territory, services, usages, exclusivity, budget range, the celebrity you want and the creative are major factors determining price.
It’s vital to focus on the total amount of the celebrity cost, not just the fee. SAG union fees, GLAM squad etc. need to be calculated ahead of time to eliminate surprises.
7.Realistic Social Media and Public Relations Expectations
Understanding where celebrity social media is today is crucial. Quality over quantity. The days of 90 tweets have passed.
Celebrities guard their social reputations carefully. This can be at odds with brands who just want the message out.
Understanding most celebrities limit their number of PR talk show appearances for the same reason they limit their number of tweets: wanting fans to perceive them as believable and credible endorsers.