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 benmclane.com

6 comments:


  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

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  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 !

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  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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