Monday, March 6, 2017

Music Business/Law Tips - "Endorsement Deal Structures"

Talent compensation models when an artist enters into an endorsement deal (i.e., the artist promotes a product by appearing in an advertisement using and/or complementing the product) can be structured in a variety of ways, but 3 of the most common are as follows: (1) Flat Fee (the brand pays the artist a fixed fee to promote the product for a period of time); (2) Flat Fee + Bonus (similar to #1, but if the ad generates a spike in brand revenue that meets a certain threshold then additional fees are paid to artist); and (3) Equity Share (instead of a fee, or for a much reduced fee, the artist can share in a healthy percentage of the net revenues generated from the product sales and/or sometimes even an ownership stake in the company). Of course these types of deals tend to be geared towards a more famous artist, but endorsements (and similarly sponsorships) can exist at all levels, so these examples can be used as a guideline in negotiations. Ben McLane Esq


  1. It is nice post and I found some interesting information on this blog, keep it up. Thanks for sharing.

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  2. short and precise information given on this blog for endorsement deal, keep up the good work mate

  3. This is commendable work that you are doing here friend. This should be very informative and useful for a lot of musicians. Thanks for this !

  4. I also am thrilled to find your blog and to read your comment.
    Thank you, very good article (as always).

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  5. This post is very usefull for me. A lots of thanks for sharing this informative post.

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  6. Hey Ben, thanks for sharing the ideas on endorsement deal structures. I think all three points are valuable and can be applied and followed by companies so easily.

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