Question

Topic: Other

Brand Ambassador Fee

Posted by Anonymous on 1/20/2012 at 6:44 PM ET 250 Points
I was approached by a small but growing company to be a brand ambassador and would appreciate your input on what kind of fee I should request.

While I have a large following in the fitness world (80,000 Facebook subscribers, mentioned in top magazines and blogs), I would not consider myself as a celebrity. I do however, have quite a few big name celebrity friends.

This small sportswear company asked that I begin talking up their product on Facebook and blogs to spread the world to my strong fitness following and also get my celebrity friends to use their product. They may use my image in advertising.

How much should I request? I would appreciate your insights on how such arrangements typically work, taking into account the fact that the company does not have much cash to hand out. I was thinking perhaps a percentage incremental sales.

I appreciate your thoughts.
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RESPONSES

  • Posted on 1/20/2012 at 8:28 PM Accepted
    Because the company's actions are likely to have more impact on sales than your endorsement/promotion, taking a small percentage of sales is probably not the best approach. If you could measure your impact more precisely and have control of other factors (e.g., product quality, pricing, distribution strategy, etc.), then the percentage would make sense.

    This is probably a situation of "what the market will bear." Neither you nor the company know what your value will be, so there is no way to determine a fair compensation.

    If you and they are amenable, here's a possible approach:

    You write down the least you would accept. They write down the most they would pay. You agree in advance that if your number is lower than theirs you'll split the difference, and you'll both be happy. (The fee will be exactly halfway between your numbers.) If your number is higher than theirs, there's no deal and you'll part friends.
  • Posted by Jay Hamilton-Roth on 1/21/2012 at 9:23 AM Accepted
    Michael's given you a very interesting approach. Another would be to put a mutually agreed upon dollar value on various "achievements" - every time you (or your celebrity fan) put out a message to your fans, every time a reporter mentions you & the product, every time a reporter mentions your friends & the product, etc.
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