Using a famous face to sell your not-yet-famous product can be quite effective. It's one of the oldest tricks in the book, probably as old as television itself.
If you can afford it, using a celebrity, a recognized face, or a high-profile person can greatly increase sales of your product.
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 endorsed by someone they know.
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.
Choosing a Celebrity
Who should you get and why? That's the starting point of any celebrity 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:
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.
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.
SUPPORT ALL CLAIMS. Advertisers must provide documentation to support all celebrity claims made whether as a spokesperson or endorser.
INSURANCE AND INDEMNIFICATION. Celebrities acting as endorsers may seek protection against possible lawsuits. he or shoe may demand that an advertiser maintain product liability insurance naming the celebrity as an additionally insured party. They almost always require indemnification from the advertiser.
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.
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.
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.
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.
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.
Celebs: Perks & More
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:
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.
RELATED MEDIA. If the celeb's appeal is strong enough to make a big difference in your product'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 compensation package.
TRANSPORTATION & ACCOMMODATION. Since most celebrities belong 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.
Celebrity Endorsement Network - (818) 704-6709
Ingles, Inc. - (213)464-0800
Jack King Celeb Brokers - (310) 652-5700
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.
Ad Sheet & Printer Ripoff Report
If you've been in mail order for more than a month...chances are you've been ripped off by one or more ad sheet printers. This report won't make you a mail-order genius but might keep you from loosing your shirt prematurely.
How to Make Money with Circulars and Ad Sheets
Have you placed your display ad in a national magazine with over 20 million readers, then waited for the orders to pour in? But the days go by and there is little or no responses?
How and Where to Advertise
There have been entire volumes written on mail order selling. For printed information, the best way to learn HOW & WHERE to advertise is to go to your newsstand and check through all the magazines carrying large numbers of classified and space ads.
Publishing Your Own Ad Sheet
When you have accumulated sufficient knowledge from preparing your own circulars and from co-publishing magazines and ad sheets of others, you may want to become a publisher.
The Secrets of Million Dollar Sales Letters
Regardless of what you're trying to sell, you really can't sell it without "talking" with your prospective buyer. An in attempting to sell anything by mail, the sales letter you send out is when and how you talk to your prospect.
How to Get Free Printing
This method of getting free printing is currently being used by several different mail dealers. It works! Here's the plan: Run an ad similar to this in any mail order magazine:
Insider's Secrets to Obtaining Advertising...Absolutely Free
The opportunities for getting free advertising for your product or services are limited only by your own imagination and energies.
Facts & Figures About Magazine Ad Readership
Here are some interesting results of a study conducted on readerships of magazine ads. Most of the stats are from Starch INRA Hopper, Inc and other studies.
How to Turn Big Mails Into Profit-Making Ventures
What is a Big Mail? If you are a total beginner to the mail order world, you will have no idea what the term means. Before I knew better, I used to think a Big Mail was just a big envelope containing some type of free samples.
How to Put Together a Winning Direct Mail Package
Most business beginners think Direct Mail means purchasing a mailing list and mailing an advertising flyer to a bunch of folks they know absolutely nothing about. This IS NOT what Direct Mail marketing is.