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Friday, February 14, 2014

Celebrity endorsements can help, unless the last name is Lohan, Beiber... or Cyrus

Seriously.  Would you hire Lindsay Lohan, Justin Beiber or Miley Cyrus as a product representative?  That would be risky because you don't know what they're going to do next.

Race car drivers are probably the most famous celebrity advertisers because of the way their cars are painted and all the company logos on their uniforms. But even they sometimes lose their sponsorships because they do or say something wrong or controversial.  And when it happens, it's usually a shock to everyone.

I'll give you an example.  Suppose you hire a Country & Western star to represent a down-home, wholesome product like Betty Crocker pancake or cornbread mix.  Or perhaps, you'd like for this famous C&W star to be associated with your line of tractors, trucks, jeans or even chewing tobacco.  And then by surprise, that celebrity creates what may well be the worst thing that anyone has ever seen or heardhttp://www.ijreview.com/2014/02/114662-family-twerks-together-billy-ray-cyrus-remakes-hit-song

My apologies if you actually 'like' that, but I feel that it has the potential to actually unite a divided nation in revulsion and disgust.  So the goal of your celebrity endorsement would likely go off a cliff in flames.


Pepsi famously had Michael Jackson endorse their product in a commercial.  Fortunately for them, he didn't do it more recently.  They also had a contract with Madonna for product endorsements that they canceled after she created a controversial music video.  Same thing with Lil Wayne.  That happens a lot with celebrities because they're only human and their faults and failings get magnified in the media.  When they screw up, get into politics, or their personality takes a radical change, the celebrity may bring unwanted negative attributes to the product or company brand.  Names like Paula Deen, Lance Armstrong, Tiger Woods, Michael Phelps, Chris Brown and even Whoopi Goldberg come to mind.

The celebrity contracts are scaled in price.  It's one price to use the celebrity's image on a cereal box or a billboard, for example.  It's more if the image includes them holding the product and even more still if they actually consume it (such as Michael Jackson actually drinking a Pepsi during that commercial he made).  That's why businesses take a big risk with this type of advertising strategy.  They can throw a lot of money down the drain that way if things go sour.

That's why the the best kind of product endorsement is the unpaid kind, such as a famous actor (who people like) that wears your watch or your shirt.  It could be a famous athlete who drives your car or eats at your restaurant.  That's pretty much the ultimate endorsement, right?  That happens a lot and it's good when it does.  You're not paying them!

Interestingly, Danny Glover has joined Organo Gold as a distributor - NOT as a paid product representative, but as a regular old distributor, just like me (patting myself on the back).  Though he's a well-loved actor, he can be controversial when he starts talking politics.  But he decided to start his own coffee and tea business because he believes in the company and understands the life-long income potential.  The only way he gets paid is if he successfully develops his business.

Like I said, that's the BEST kind of celebrity endorsement...

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