With the increase in the frequency of these types of agreements and the potentially large sums of money that flow from it, an artist should ensure that all the « points » of the endorsement agreement are clearly articulated and negotiated. As a rule, the best way to achieve this is to use a written agreement. We will now look at some of the considerations and provisions contained in many endorsement and sponsorship agreements. With the development of music business in today`s digital age of streaming and downloads; The incidental revenue generated by musicians through sponsorship and brand confirmations has become of the utmost importance to an artist`s overall income. For example, sponsorship spending for music tours, festivals and event venues is expected to be $US 1.54 billion in 2017, » an increase of « 4.8 percent from 2016. » In addition to these editions, many major brands have also struck multi-million dollar endorsement deals with musicians, including Pepsi and Beyoncé`s $50 million deal. As stated above, in addition to the unique performances that an artist must, the duration of the sponsorship contract is also very important. In particular, the « duration » or duration of the contract is essential to be fixed in advance. This is especially true when sponsorship is exclusive to a given category. Typically, a shorter period favors an artist, as it allows them to explore other brand sponsors, including a potential competitor. When it comes to endorsement agreements, it is often important for the celebrity or athlete that they support brands that align with their values.
George Clooney has committed himself as a brand ambassador at Nespresso because he uses the products and his relationship with the brand is authentic. Clooney`s Nespresso deal is one of the highest-paid celebrity endorsement deals of all time. He earns more than $5.7 million a year advertising for Nespresso. Clooney has been the face of the company since 2006. The Nespresso deal and the sale of his Tequila brand Casamigos recently made him Forbes` highest-paid actor in 2018, though he didn`t star in any films this year. In determining the results that an artist will provide, an important consideration for a brand is category exclusivity. Thus, the carrier company can ensure that another competitor`s brand is not also displayed, used, or that an additional sponsor of the artist is not used….