Ryan Ho's Entrepreneurship Blog

Behind my thoughts and processes on becoming an entrepreneur

February-3-10

Endorsement

posted by ryan

Endorsement is a agreement either between two individuals or between a company and an individual with celebrity-liked status with creditability, trust and reputation. He/she can be either an media artist, model or athlete and others.

Endorsement is just a simple business strategy which allows the company and business to leverage on the celebrity’s reputation and the trust which they have built with us through different Medias inclusive of their own effort and hard-work over the years. It is the act of getting paid to endorse products and that doesn’t mean the celebrity endorsing the product have to use the product himself/herself when endorsement agreements are carried out as long as the agreement of a highly remunerative compensation in return for the celebrity to endorse a product.

Celebrity endorsements can be taken likely with a pinch of salt because when the celebrity himself/herself don’t even use the product or is unable to use the product and services because of specific gender targeting, than the endorsement may create a curiosity among the customers and the public which is another strategy which businesses often do depending on the market they want to penetrate into.

The most recent case is Ris Low endorsing a condom brand – Zander Asia who is the distributor of the condom as reported in Channel News Asia. She has said in a morning live interview that she endorse the product condom purely because it promotes a healthy image, which most of us will agree, other queries or doubts with regards to this endorsement, lets leave it to you to discuss and think about it.

Business endorsement is another story and a completely different ball-game in this same aspect. When a business endorses a product or service, the firm is entrusting their reputation, creditability on the line for any business endorsements.

If in the event should a endorsement products or services failed to satisfy the customers’ needs and failed in delivering the promise, the business that’s endorses the product and services will instantly overnight facing huge business loses which will definitely implicate other business endorsement they have a hand into even if they are not related together with the company that pay the business for the endorsement deal together down in times of trouble.

An perfect example is Tiger Woods after the sex scandal for sex addiction and most brands has since removed him and terminated the endorsement contract with him. More details in Time website.

With such heavy risks, that is why not many, in fact only a handful of businesses out there are willing to put the business brand and reputation to endorse their products and services. The most successful business endorsement is Trump which belongs to Donald J.Trump a billionaire property investor.

The next time you decide to buy any products or services with endorsements, find out if there is any ambassador who took up the endorsement and if he/she is a businessmen/women or it’s a firm that’s endorsement the products and services.

If you find any businessmen especially successful ones personally endorsing any company, products or services, than don’t even think about it and jump right in joining them to earn wealth together if there’s ever an opportunity to work together with them. Businessmen access and do their own investigation for months first before any commitment etc so if they are happy with the results which risking their business reputation which could tarnish and collapse over night due to a silly mistake, they will jolly well make sure that this doesn’t happens.

Make the right choice in purchasing opportunity, products or services from businessmen endorsements rather than celebrity endorsements. Be smart, save money, and time and grab whatever opportunity that comes your way.

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