Star search: here's how even the smallest business can win big-name celebrity endorsements - includes instructions on getting an endorsement

Entrepreneur, Sept, 1996 by Mark Henricks

* BIG FISH, LITTLE POND

The well-publicized multimillion-dollar endorsement contracts of marquee names like athlete Michael Jordan and actor Candice Bergen suggest that few small firms can afford big-name celebrity endorsements. Many lesser-known celebrities can be hired for far less, however, and even the bigger stars may be within your reach if you are lucky and skillful.

"Most small businesses are put off by the endorsement fees," agrees Gold. "But there are a lot of ways to skin a cat, and money is only one of them."

Small firms can probably best afford celebrity endorsements by concentrating on local or regional stars. A person who is well-known only in a single city or state is unlikely to be sought after by the big national firms but may be a perfect--and economical--fit for your company's target market.

"Tom Osborne may not be able to sell a lot of McDonald's hamburgers nationwide," says Jorgensen, referring to the longtime coach of the University of Nebraska's perennial champion football team. "But in Nebraska, he can sell anything you want."

Other examples of endorsers who can give a good bang for the buck include local broadcasting personalities and athletes who are well-known only in the town where their team is located.

"If you're a small local company, you don't have to hire big-time athletes," says Kobrick. "You can hire smaller athletes for smaller dollars."

Entrepreneurs may also be able to attract celebrities whose cash fees are out of reach if they offer equity in the company instead. Equity is attractive to many high-earning stars because of its more favorable tax treatment, Egart explains. And athletes, who are used to performance bonuses, may be agreeable to tying part of their compensation to Improvements in your company s profits or stock prices. Flexible payment options, such as royalties on the sales of products or services the star endorses, are yet another performance-based option.

If you're low on cash, don't have any publicly traded stock and can't afford to tack royalty payments onto the price of your product or service, consider offering in-kind payments. These can help even the smallest enterprises attract the biggest stars and can take many forms, most popularly free samples of athletic equipment or apparel to endorsers who wear them while in the public eye.

Restaurants in many cities serve free meals to popular local athletes in exchange for appearances in advertisements. Similarly, numerous New York City nightclubs offer free admission, free drinks and reserved seating to well-known fashion models.

"What happens is a double addition to the restaurant," explains Gold. "You get to use the celebrities' likenesses [in ads], plus the celebrities are actually at the site. People come to see the celebrities. It's a huge win."

Personal appeals are perhaps the most powerful and, at the same time, least expensive way to land a celebrity endorsement. Before going through a celebrity's agent or manager, see if there is an acquaintance or other personal tie you share. "Some people have contacts through friends of friends of friends," says Shevin, "and you can sometimes get to them that way."