We are looking to engage a celebrity to endorse our business. What are the key considerations we need to think about to ensure we get value for money?
Engaging a celebrity to promote your brand can result in a huge boost in sales which is very attractive to retailers who are looking to stay ahead of the competition. But while there are obvious advantages, it’s not all plain sailing. Retailers must also consider the potential downside to celebrity endorsements. To secure a big name the financial outlay will be considerable, so you need to really think about what you are getting for your money.
“A contract is essential so that each party knows what is expected of them,” says Megan Jones, solicitor at Hill Dickinson. “It’s key to set out what obligations you expect from the celebrity. This includes time commitment and what restrictions there are on the celebrity promoting competing brands or products.”
Payment terms should also be clearly set out. Consider staged payment and the right to recoup some of the instalments if you terminate early for the celebrity’s fault. If the retailer is responsible for expenses, also consider placing a cap on these. “Retailers can be stung by not being specific enough in the contract,” says Jones. “For example, what expenses will the celebrity be able to claim? Do travel expenses include first class travel? And, do these expenses extend to any entourage?”
A successful promotional campaign can quickly turn sour if the celebrity is subject to negative publicity. Remember that the purpose of the endorsement is to enhance your brand image, so make sure that you are able to terminate it if the celebrity does anything to bring the brand into disrepute.
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