blog page
Starfund

What to expect from our celebrities

Wednesday, April 29, 2020
What to expect from our celebrities
29
Apr

One of the most common questions we get asked is about what a typical celebrity engagement looks like. Most engagements have a lot of things in common. We attempted to list them here in an effort to provide you with an idea of what you can expect. Of course, individual deals vary but this is a good baseline. Please carefully read your specific agreement as it may vary from the details in this post.

General Relationship

We do not believe in "one-offs". Celebrities that work with Starfund collaborate with their startups for a long period of time which can be further extended from time to time if both sides are satisfied. We don't match celebrities for the sake of matching. Our goal is for you and your company to work with celebrities that love your product and are actively providing credibility and visibility. This means that we strive to find celebrities who have a demonstrated ability to influence your target audience.

Term of the Deal

Typical relationships have a 6-9month term. Certain rights survive the end of the term.

Celebrity Obligations

The celebrity will typically commit to some of the following (which may vary by your specific agreement):

  • Allow you to disclose the nature of your relationship and their involvement with your company and product.
  • Provide you with rights to use their images, appearance, voice, name and other likenesses in certain areas such as digital, TV, physical marketing and etc.
  • Assign rights to created content to your company.
  • Attend a certain number of events.
  • Create pre-agreed content on a regular basis to promote your company and your product.
  • Participate in production sessions.
  • Personally use your product or service in a visible fashion that provides credibility.
  • Provide autographed versions of the product if relevant.
  • Use your product in a way that enables fans to interact with the celebrity.
  • Leverage their social presence to increase visibility for your company, product or service.
  • Maintain confidentiality where needed.
  • Avoid directly competing products for the term of the deal.
  • Collaborate with your company on creative ways to help achieve company goals.
  • Cooperate strictly with obtaining any celebrity approvals required in the agreement.
  • Where required (erring on the side of caution), the celebrity will always include a disclosure of the nature of your relationship while working together.

Company Obligations

You are not expected to pay the celebrity money for their services. However, there are certain exceptions and responsibilities that you should be aware of.

  • You are expected to treat the celebrity, their team, their reputation and their personal lives with utmost respect throughout the entire process.
  • Many of our celebrities are extremely down to earth and friendly. But please remember you are entering into a professional relationship with them.
  • All expenses incurred by the celebrity will be covered by the company. The Agreement will include provisions to ensure you can pre-approve such expenses.
  • Costs associated with travel, content creation, makeup, clothing and etc. will be pre-approved and borne by your company. Some agreements will require you to set aside a certain budget for these costs.
  • The terms of the deal are typically confidential. You may not disclose to third parties information about the deal structure such as compensation amount, celebrity obligations and etc.

Additional Things You Should Know
  • If the celebrity is a minor, they may be represented by their parents or a third party entity that manages their relationships. In such cases please remember that the celebrity is not your point of contact and is limited in their ability to make decisions.
  • Your agreement may include specific usage right limitations. These can include limitations on geographic regions, social platforms, digital vs. physical or others.
  • Everything good has to end. All agreements have an expiration period. Think through this agreement and make sure you retain rights that you do not want to expire once the deal is over. If its not explicitly excluded, any rights will expire when the deal is over. If you want the right to use materials 2 years after the deal expired, make sure to talk about it before the deal is signed.
  • The Celebrities can choose to invest in your company directly, but generally will be participating as partners in Starfund and not as direct investors in your company.

Compensation

Except when explicitly stated otherwise, Celebrity compensation will be made by issuing warrants to acquire company stock at a fair market value. Typical services provided by a celebrity in our deals exceed $1 Million in value.

Insurance & Other Protections
  • Your company will be expected to maintain D&O insurance and potentially other insurance policies to protect the Celebrity to their satisfaction. This may have a financial cost.
  • In certain events, your company may need to indemnify the Celebrity for damages caused to them. For example, if they get sued by someone due to a misrepresentation made by your company.

Day to Day Management

Starfund will be kept involved in the process at all times. This is for your protection. While it may be tempting to build a direct relationship with a celebrity, it is our responsibility to ensure that your agreements gets fulfilled. We can only do this if you keep us in every correspondence. The latter will be your responsibility.

The Blog