Sharing equity sounds like the perfect way for our startup to afford a celebrity endorser. How do we pick the right person to partner with? What should I consider before sharing equity with a celebrity?
Obviously, equity deals require a great deal of research on your part. Your company only has so many shares that can be given out. So you can’t just hand out equity every time you need an endorser. Ideally, you put a good deal of time into determining the right partner before you even approach someone with your proposal (of course, you should do this every time you sign an endorsement agreement).
Here’s the quick list of things to look for:
- Someone who is sincerely interested in what your company does
- A product or service that is already the best it can be and is not relying solely on the celebrity for sales
- A celebrity reputation that appeals to your customer base
- Someone who share your brand’s values
- A celebrity who already has reach with your target audience
Also remember that if you’re sharing equity, your endorser has just become your business partner, so make sure they understand business. Hope that helps.
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