Equity, Not Endorsements
A simple social media post can get a business off the ground, a simple song lyric can bring a brand to life. In this age of information, just hearing a name leads to a quick google search and then out comes your debit card. Corporations across all industries have found a way to profit highly on this methodology, but none like the fashion industry. Top fashion houses have seen the effect of hearing their names mentioned in music pay off for decades now. The biggest connection between the fashion industry and the wallets of their consumers (especially black) is Hip-Hop.
It’s a well understood notion that Hip-Hop artists prompt the spending of the Black dollar in abundance and has been since we heard Run DMC yell “My Adidas” across Hollis Avenue. Hip-Hop artists’ praise of the brands they like affect the overall trend across pop culture, which shifts their sales accordingly. It’s the same way it goes when top athletes get sneaker deals, the top selling sneaker usually is at the hands of the top performing athlete. In theory, the athlete wearing the sneaker is like telling us he thinks the sneaker is cool the same way Future told us Gucci slippers were cool. So, what do consumers do when people they like think something is cool? They spend. In the early stages of Hip-Hop it was reasonable to do an endorsement deal with a brand and wear some of their products for a lump sum. However, in the age of the internet artists need to understand how valuable their voice is. These brands owe equity, not endorsements. In 2017 Cardi B’s breakout hit Bodak Yellow changed her life and improved means of living for many others. Included in those many others, were Christian Louboutin and its stakeholders. As detailed in a 2017 article by Black Enterprise, “Belcalis “Cardi B” Almanzar has created an estimated $4.5 million media value this year for the brand after releasing the radio banger “Bodak Yellow (Money Moves),” and there’s been a massive 217% spike in web searches for Christian Louboutin shoes since summer.” I know Cardi B isn’t on the payroll, but even if she was they couldn’t pay her enough for this kind of endorsement. Brands pay artists what look like a lot of money for endorsement deals and make back multiples of that on the back end for years to come, all off of the strength of that endorsement that the artist no longer profits from. Not to mention, this is even if they decide to go into business with the artists. Most designers keep quiet and collect their money from an artist mentioning their line in a song and the influx of traffic their website got from the artist’s fans.
I’m not saying any mention of a brand equates to said brand oweing a piece of their company to the artist automatically. As often as they profit from being mentioned, every mention doesn’t lead to dollars spent. What I am saying is, spending some marketing dollars on an endorsement that solely can keep the entire company afloat for several quarters is literally robbery. It happens every day. It’s the duty of artists and their representatives (the ones that actually have their best interest at heart, so no not the labels) to start negotiating for more than just a one-time payment in these endorsement deals. The words stake, equity, and shares need to show up a lot more often in those contracts, it’s only right. Corporate America has reaped the benefits of Black spending habits consistently and they think these miniscule deals that only equate to a minute fraction of what they profit makes it acceptable. There’s a difference between being rich and being wealthy and this is one of those defining factors that makes the difference.
By: Kamari Williams
IG: @topscribe_