More often than not when you see a celebrity wearing a particular brand or speaking on its behalf, they have signed what’s known as an endorsement deal. It means they lend their celebrity to a product giving it buzz, sex appeal, credibility or some other value that comes from being associated with them. Endorsement deals can come at a cost of millions of dollars or be much more modestly priced, depending on the deal. Even a smaller celebrity who appeals to a particularly important audience can command six figures and a multi-year deal.
Of course, there are downsides to endorsement deals as became apparent when Tiger Woods’ personal life upstaged anything he was doing on the golf course. Most endorsement deals have morals clauses now that allow for contract cancelations if the celebrity makes any one of a number of transgressions.
Tags: PR Terms