If you're like many of our clients, then you may be a celebrity who has been approached by a company to endorse something for them. Whether it's to raise awareness about disease research or influencing consumer purchases, a celebrity endorsement should require serious consideration, especially because the success or failure of what is being endorsed can affect both the organization and the celebrity.
A celebrity endorsement is often defined as the promotion of a product or service by a well-known person such as an athlete, performer or artist. Endorsements often rely on the celebrity's already existing fan base to boost sales or awareness of a product or service and may be done so regardless of whether the business or organization is doing well or not.
More often than not, a celebrity endorsement tries to convince consumers that the product or service that is being endorsed is superior to similar products or services on the market. While the ultimate purpose is to improve revenue, the endorsement may do this by either enticing new customers or convincing existing customers to stay.
But as we warned above, a celebrity endorsement is not something that should be entered into lightly. Like any contract agreement, agreeing to a celebrity endorsement can come with risks, especially if you are unfamiliar with the law and/or do not know what you are agreeing to in the contract. Some questions you may want to ask are:
- Am I receiving appropriate compensation for my endorsement?
- Am I protected from loss in the event the product or service fails?
- Will I receive royalties?
- What happens if I or the other party suspects breach of contract?
These questions may be difficult or even impossible to answer on your own, meaning you may need to seek the help of a skilled entertainment law attorney. Not only can they offer guidance through the negotiation process but they can help you understand how the endorsement will affect both you and the other party with whom you are making an agreement.