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USING CELEBRITIES and *Using a famous face to sell your not-yet-famous product can be quite *effective. It's one ofthe oldest tricks in the book, probably as old as *television itself. and *If you can afford it, using a celebrity, a recognized face, or a high-profile *person can greatly increase sales of your product. and *CELEBS LEND CREDIBILITY. A celebrity lends credibility to a product or service. *Consumers are more likely to be persuaded to accept a product they see used or *endoresed by someone they know. and *CELEBS ATTRACT VIEWERS. A famous face can stop a channel hopper who may be *curious to see what that celebrity is talking about. A celeb can easily *increase the viewing value of an infomercial. and and
*Who should you get and why? That's the starting point of any celbrity search.
*How are you going to use the celebrity in your marketing campaign? Will the
*celeb be a spokesperson or an endorser? Here's a checklist to consider:
and
*APPROPRIATENESS. Telly Savalas may be an effective endorser for the Player's
*Club, but would be suicide for a hair care product! Believability is a key
*factor.
and
*SPOKESPERSON OR ENDORSER? Decide which role the celebrity will play.
*A spokesperson is someone who interviews customers who've used the product
*being advertised. Someone presented as a customer who has actually used the
*product is an endorser.
and
*SUPPORT ALL CLAIMS. Advertisers must provide documentation to support all
*celebrity claims made whether as a spokesperson or endorser.
and
*INSURANCE AND INDEMNIFICATION. Celebrities acting as endorsers may seek
*protection against possible lawsuits. he or shoe may demand that an ad-
*vertiser maintain product liability insurance naming the celebrity as an
*additionally insured party. They almost always require indemnification
*from the advertiser.
and
*There are, however, definite budget parameters for a successful negotiation.
*Costs of celebrity acquisitions may be determined using one of the following
*compensation packages: (1) a guarantee fee with back-end participation, or
*(2) a straight buyout.
and
*GUARANTEE & PARTICIPATION. Here you will be required to pay the celebrity an
*up front fee plus a percentage of your gross or net sales. The up front
*guarantee can range anywhere from $5,000 to $20,000. The back-end percentage
*may be between 1% and 5% of either your gross or your net sales.
and
*In this type of compensation package, however, the celebrity's guarantee
*fee is actually part of the back-end participation. The guarantee fee is
*actually a deductible advanced guarantee which is subtracted from the
*cumulative value of the back-end percentage.
and
*For example: You hire Celeb X for a guarantee fee of $10,000 plus 5% of your
*gross receipts over a campaign period of one year. If you generate gross
*sales of $500,000, Celeb X's total participation fee will amount to $25,000.
*However, since you already advanced $10,000, you will only owe difference of
*$15,000 at the end of the year.
and
*STRAIGHT BUYOUT. This compensation package is a one time fee you pay a
*celebrity for appearing in your infomercial. Among other factors, the length
*of time you want to use the infomercial and its geographic distribution
*(local, regional, or national) will determine how much you pay.
and
*
*The basic compensation package is usually just the beginning of the *negotiation process. The following factors are equally critical to a celeb *who is evaluating your acquisition offer: and *LENGTH & EXCLUSIVITY. Usually celebrities don't want to be bound for long *periods of time. Most agreements are for one year with renewal options. *Exclusivity is also crucial. It prohibits the celebrity from endorsing or *acting as a spokesperson for a competing product. Exclusivity also defines *where you may and may not use the celeb's materials and where the celebrity's *image may be used. and *RELATED MEDIA. If the celeb's appeal is strong enough to make a big difference *in your poduct's appeal, you may want to use him or her in your print ads, *sales literature, or even your packaging. Although this usually requires more *work for the celebrity, the perceived value of his/her participation in your *overall marketing campaign will definitely mean more dollars in the compen- *sation package. and *TRANSPORTATION & ACCOMMODATION. Since most celebrities belond to a union, you *will be required to hire them under union terms. This means first-class air *travel and accommodation wherever you are shooting your infomercial. If the *celeb demands to bring a companion, the perks should be extended. and *Celebrity Endorsement Network - (818) 704-6709 and *Ingles, Inc. - (213)464-0800 and *Jack King Celeb Brokers - (310) 652-5700 and *STAR GUIDE - This is a trade-size directory of over 3000 names and addresses *of TV and movie stars, musicians, sports celebrities, politicians, and other *famous people. Updated every year. Complete alphabetical index. Over 175 *pages. $12.95 Published by Axiom Information Resources, P. O. Box 8015 *Ann Arbor, MI 48107. and and and |
