Scarinci Hollenbeck, LLC
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201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: June 24, 2015
The Firm
201-896-4100 info@sh-law.comEver since the music and movie industries were flipped on their heads by illegal downloading services such as Napster, changing methods of consumption and the streaming revolution led by services such as Spotify and Netflix, entertainers have been in search of new ways to make money and land an endorsement deal. No longer is it viable to simply sell enough CDs or movie tickets, because not nearly as many people are buying these products as there were before.
This is why many in the entertainment business have turned to endorsement deals to make up for how the movie and music industries have changed over the last 15 years. While these agreements have been around for some time, they have become especially popular in the wake of changing business models. Rising musicians and actors could certainly use the exposure these agreements offer, while current stars could strengthen their brands and broaden their appeal with endorsement contracts.
Endorsement deals are often built on some kind of connection between the entertainer and the message that the brand is trying to send. For example, a soda company marketing to teenagers and young adults wouldn’t contact Tony Bennet to express the kind of youthful energy it is looking for. Similarly, a service that helps ease seniors into retirement probably won’t seek out an electronic dance music soundtrack from Skrillex. It is helpful for entertainers to make a list of the sort of attributes that they bring to the table, and another list of the brands that make for good fits. It can be useful to look into industries that haven’t already heavily tapped into entertainment companies for endorsement potential.
It is particularly useful to dedicate some time to thoroughly research the companies on the latter list. An entertainer who is able to delve deep into the marketing strategy a brand implements, can describe its target audience and knows how to extend the company’s reach will be more attractive than one who simply lists what he or she has achieved before.
A simple way for entertainers to start the process of setting up an endorsement deal is to simply ask for one. Playing the waiting game is not the strongest strategy for finding endorsement deals. Rather, people in entertainment who think they have the appeal to promote brands should simply inquire about the possibility. A concise letter, email or presentation explaining what the entertainer can offer the company – such as a stronger connection with the target audience or interesting new angle for marketing products – should be enough to catch the attention of someone marketing the brand. Coming up with ideas for endorsement opportunities will also help catch people’s attention.
Endorsement deals are usually fairly straightforward, but there are some things to keep in mind when hunting down one of these contracts. Is this the first deal, or are there others? Because some endorsement contracts contain clauses that forbid arrangements with competition. For example, that aforementioned soda company could include in its endorsement agreements a section that describes the beverage companies with which the entertainer is not allowed to work.
It’s also important to keep an eye out for moral turpitude clauses. Typically, these are included to protect a brands image by allowing it to terminate the contract, should the entertainer be caught doing something specified as not allowed. No company wants a criminal endorsing its products. In the past, we’ve covered moral turpitude clauses and why brands with a lot to lose love them so much. We have also touched on the importance of non-compete clauses in some contracts.
Though typically straightforward, these deals can vary, and details such as moral turpitude or non-compete clauses can certainly make them a bit more complicated. Any entertainer in search of an endorsement deal should contact an attorney with knowledge of these sorts of agreements to ensure the final contract is easy to understand and beneficial.
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