Tuesday, November 27, 2012
Pitfalls of Deals & Obtaining Sponsorship and Endorsements
Adidas and Champs have found an individual who the listening audience may follow to sell their products and enter their stores just because he has a few hot songs right now. Apparently, both companies are in a rebirth period and need someone to advertise for them to the urban community, where most of the money will be generated. And in the process, if the campaign works, how much of the revenue will 2 Chainz get? If people weren't wearing the new Adidas and going into Champs before 2 Chainz started peddling for them, and both companies see a spike in revenue, 2 Chainz should receive his payment from his contract plus major points from sales on top of his contract. This all depends on his written agreement with both companies. If he believes he can increase the revenue stream to both Adidas and Champs, he should have in writing that he is to receive points on extra revenue gained by both companies. They are using him for just that reason, and he should benefit financially from that as well. A basic agreement is cool, but the incentive would be even sweeter.
We all know you have to slave in the industry to make money if your album doesn't sell or you signed a janky contract. When I say slave, I mean tour consistently, for long periods of time, just to break even, or even eat. Let this be a lesson taught to all you independent artists out there, if you want to get some money, find a sponsor or some company to endorse you. Don't be fooled by the glitz, glamour, and false lifestyles presented that you see in these videos. I'm sure most of you are old enough and educated enough by now to know that a lot of these artists are not living what you see on television. But getting those corporate sponsors to back you is where you can make money and not having to worry about paying it back to someone, or someone taking a percentage. With obtaining a sponsor or endorsement, you don't owe anyone anything if your run as an artist doesn't work out as planned. You won't be bound to a contract and you won't have to a slave to the label you're signed to for the rest of your days until you work off that debt. You will be indebted to that label until they feel you have zero value and decide to let you go.
Back to 2 Chainz, and obtaining endorsements and sponsors; you all need to go out and request your local establishments and even the heavy hitters like your favorite soft drink or clothing companies for a partnership. 2 Chainz is getting $100,000 per feature, and he’s featured on plenty of records, on top of his album selling gold (500,000 units, plus), so he’s paid (unless his deal is back loaded, and he won’t see any money until all his advertisement, promotion, travel, and any other expenses that are line items in his contract to pay for his exposure are paid off). Endorsements and sponsorships are the cherry on the top for him, but to an independent artist, obtaining these types of deals are key to making any kind of money outside of small shows or appearances, when in actuality, some artists pay a small fee to make appearances on radio and small, independent internet and television programs. So, as I stated earlier, though 2 Chainz is a puppet to Adidas and Champs, I say that because he has money, and they are using him to make more money off his “endorsement” of the product. But to an independent artist, who isn’t selling records or doing shows, getting endorsement and sponsorship money is a way to supplement their studio time or stow away for personal use, if managed properly.
As I stated on the Thanksgiving Leftovers episode of the radio show, you can even choose who you want to get money from by going to them. If you have a favorite drink, clothing line, food, etc, contact them, with a plan, present yourself, and sell yourself. The more positive you approach these companies, the better your chances of scoring a deal. To the endorsement and sponsorship companies, your status in the community and in the regional industry, even as an independent, is cheap advertisement to them. Instead of spending thousands of dollars on advertisements in the urban areas, such as billboards, and local television, they pay you to say their name or to wear their apparel. You are not their puppet because you approached them, in your grand scheme to create a new revenue stream. Though there are terms and conditions to follow when entering these deals, if you read them and you work hard and stay straight, maintaining the deal shouldn't be a problem. These deals are most likely your sole stream of making money as an artist, so you are not selling yourself out to make money because you are still who you are, and it was your decision to go with that company. It's more money than you'll probably see selling a record at this moment as an independent, but at least you don't have to pay back a dime as if you’re signed to a record deal. These deals are held to a period of performance and expire. If the companies see that you are progressing as an artist, and doing some good for your community, they will re-up the deal, and possibly increase the payout.