My company is still in the startup stages, but I’ve seen other startups getting celebrity endorsements for their brands. About how much can I expect to spend on an endorsement?
Really, you can spend as much or as little as you like, to some extent. Endorsements cover such a wide range of deals, but I’ll try to give you an overview of some of the factors that affect your total cost.
The first thing you should do is determine what your budget is. Do this before even thinking about which celebrity you might be interested in contacting for endorsement negotiations. For one thing, knowing your budget will help you get a feel for which individuals you should aim for. You probably already know that A-listers are going to cost you more than other celebrities. I’m not going to go into all the factors about which celebs cost the most, but Q-scores can give you a good idea about whether the person you’re considering is going to be at the high end of the price range.
Also, you don’t need the most expensive A-lister or hottest NFL player to have a successful campaign. It’s more important that the celebrity matches up with your target audience and strikes the right chord with your clients.
Anyway, the type of deal you strike determines your up-front cost. You can pay a one-time fee, in which case you’ll pay the most. Or, you can offer equity in your company, which can dramatically reduce up-front costs. Another option is to do a combination of the two (which is really common).
It’s hard to know how much you’ll actually pay without more details about your plan because, for instance, a one-off endorsement would be less than a multi-ad campaign. The more work the celebrity has to do, the higher your costs go. You may want to start with something simple for your first endorsement deal for your startup. Just keep in mind that everything is negotiable, and you’re not going to pay exactly the same as any other startup.
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