Be Aware of Additional Celebrity Marketing Costs

Setting the budget for a celebrity has some significant costs in addition to their fee, so don’t be caught off guard after signing a contract.

Some marketers get so fixated on the celebrity’s fee they aren’t thinking about the ‘extras’ which should be defined before signing a deal.

In addition to celebrity fee for advertising, PR , social media, online and in-store etc., you should be considering four other aspects of celebrity cost:

1. Glam fees

Glam is an industry word for hair, makeup and wardrobe fees. When considering celebrities, glam fees should be brought up early in the negotiation as there’s a large range of fees.

For instance, A-list glam fees could range from $5000 – $ 10,000 per stylist per day. Others would be less. Protect yourself and contractually set a limit for these fees.

The wardrobe budget for advertising and PR events is also wide-ranging. The cost could be as low as $1000 or as high as $20,000 per production day for each.

2. Publicist fees

Talent publicists can be great assets to your program. Most of the time, they control calendars and approvals.

Unlike agents and managers, publicists do not make a percentage of the celebrity fee. Some publicists will ask for a fee and others will not.

PR teams rely on them to clear schedules and assist with managing.  They will be present at most PR days and will assist when needed, reviewing key brand message points before interviews.

Fees range from $2,500 – $10,000. You will be using the publicist a lot during the term of your campaign. In the long run, having the publicist as an ally will be in your favor.

3. Union fees

Regardless of the type of program you are executing, if the brand, corporation or celebrity is a member of SAG (Screen Actors Guild) or AFTRA (American Federation of Television and Radio Artists) you might need to pay union fees.

If you create any video for the purpose of advertising (digital or broadcast), web content (including social media) it is very likely fees will be due.

If you have a multi-service project (PR and AD) then the percentage due might be based on only 50-75% of the guaranteed rate. If it is an advertising project, or if the PR project is all video, then 100% of the guaranteed rate is likely due.

The percentage of the fees vary (usually 16.8% of a percentage of talent fee). Be sure to work with an expert on the estimate once your project usages have been defined. Your advertising agency usually handles this or you can use a third-party such as Talent Partners to pay the correct amounts due.

4. Travel and expenses

If your program is executed outside of the area where celebrity lives, you should consider costs for his/her traveling including a companion.

Costs often include: first class round trip airfare, exclusive first class ground transportation to and from the airport and all campaign related services, first class hotel accommodations (room and taxes) and per-diem for each travel and working day outside of celebrity’s local area (usually $150-200/day).

photo credit: derpunk via photopin cc

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