Endorsement deals are much more than a contract

Endorsement deals are a bit like old-school influencing. Brands partner with celebrities so that these public figures can, in turn, promote the brand. Like in social media influencing, endorsements rely on a celebrity’s reach and engagement with their audience.

Endorsements are backed by a contract that ensures the celebrity representing the brand lives in line with the brand’s values. Unlike in one-off influencer campaigns, celebrities don’t just promote a product; they represent a brand. As such, a celebrity’s lifestyle should align with the image a brand wants to project — hence, the endorsement contract that ensures a good fit.

Endorsement contracts also often have an exclusivity clause. That is, if a celebrity is representing one luxury car brand, they can’t represent another like it. Through endorsements, celebrities practically become the brand.

Take Jay-Z and Beyonce and their partnership with Tiffany & Co, for example. Technically, we’d call them brand ambassadors, but their star power, reach and creative partnership with the jewelry brand came together to make a powerful endorsement in the public eye.

If your business has the resources to team up with a celeb, you could also reap the rewards of a match made in marketing heaven.

Types of endorsement deals

Think about billboards you’ve recently seen that feature someone promoting a product. We’ll all but guarantee that these ads have something in common: The people endorsing the brands are sports legends or celebrities (singers, actors and so on). This means there are two common types of endorsement deals: sports contracts and celebrity contracts.

Sports endorsement contracts

Sports contracts usually contain the kind of exclusivity clause we described in the intro, prohibiting athletes from partnering with other similar brands or competitors. It could destroy a brand’s marketing strategy if, let’s say, an athlete partnered with two different kinds of sportswear brands. This leaves customers confused and wondering which product is truly the best.

Sports contracts also often contain public appearance stipulations, which outline how, when, and for how much money a star athlete will publicly promote a product.

Celebrity endorsements

Celebrity contracts are generally focused on image. As it’s important that the celebrity lives in line with the brand's values, these contracts have a morals clause that focuses on the penalties of “bad behavior” that could negatively impact a company’s image.

Celebs also sign to keep their intellectual property. These high-profile individuals have a name and reputation to protect, too.

Some famous athlete endorsement deals

Famous people make famous endorsement projects. Here are some of the most prolific collabs of our time.

• Steph Curry and Under Armour: NBA player Steph Curry has been representing the athletic-wear brand, Under Armour, since 2013 and will continue to stand by them through 2024.
• Tiger Woods and Nike: Billionaire pro golfer Tiger Woods has been repping the Nike swoosh since 1996.
• Roger Federer and Uniqlo: This tennis star has been representing the Japanese clothing brand Uniqlo, on and off the court, since 2018.
• Lionel Messi & Adidas: Soccer icon Lionel Messi earns a whopping $27 million a year to wear the Adidas stripes.

Celebrity endorsement deals

Some celebrities just have that certain touch that brands adore and are more than happy to pay for. Here are some top celebrity endorsement deals examples.

• Taylor Swift and Diet Coke: Singer-songwriter Taylor Swift signed a $26 million deal to use her light, bubbly pop vibe to represent Diet Coca-Cola, a soda with a similar image.
• Charlize Theron and Dior: The movie star earned $55 million for her 11-year contract in which she endorsed the french luxury brand’s perfume J’adore.
• Sofia Vergara and several brands: This beloved celeb has partnered with everyone from CoverGirl to Pepsi, earning almost $100 million for her endorsements.
• John Legend, Chrissy Teigen, and Hyundai: The celebrity power couple teamed up with the South Korean automotive brand for a car endorsement deal that aired during the Superbowl and stole the show.

Sponsorship or endorsement? That’s the question

In our day and age, sponsorship is not as clear-cut as it once was.

Sponsorship deals, in general, refer to a broad range of partnerships that brands can make with other companies, organizations and individuals. For example, it’s a sponsorship if an athletic-wear brand provides all the gear for a professional sports team, and it’s also a type of sponsorship if a company partners with an influencer, a social media platform or a web browser to launch a paid advertising campaign.

Sponsorships, especially of the latter type, can be far less expensive and manageable for small brands than seeking the serious star power of a celebrity endorsement. But, if your company wants to try, here’s how to take the first step toward scoring an endorsement.

How to get endorsement deals

If you have a company and are looking to partner with a celebrity, consider the following steps to getting an endorsement deal rolling.

• Set a budget: Whether you have hundreds or millions to spend, you need to define what monetary amount you can offer. This will help you determine whether you can reach out to rising stars or the kind of celebrities who already have a star on the Walk of Fame.
• Establish your target audience: Figure out who your target audience is so that you can scout out celebs they identify with. For example, Sofia Vergara makes millions representing brands for a reason. Her audience identifies with her.
• Find and approach celebrities: If you’re a small business contacting a local celebrity or social media micro-influencer, keep your communication personalized and genuine. Tell them what you like about their vibe and why you want them to represent your brand. If you’re contacting a big name, you’ll likely deal with an agent, PR team, and a whole line of assistants.

Cross-linking your network is a great way to expand your reach. With well-connected platforms, you can reach out to influencers and celebrities and allow them to really see you.