Endorsements for Start-Up
Fredric Kropp has a question about the amount of stock or profit given for endorsements in an entrepreneurial start-up
I am mentoring a former student who took a job with a start-up that has a radical new design for a surf-board that has an incredible up-side if it comes to market. The “if” is a function of cash flow and time to market. The product performs exceptionally well but is probably more than a year from coming to market. As marketers, we’ve heard “this could revolutionize the market” before. Well, this has the potential to revolutionize the market.
The company has a meeting with one of the top surfers in the world. He is very well known and has a huge following. If he comes on board (pun intended) his endorsement and star power will be very important, both in attracting investors and ultimately in selling the board. He could be the “make” in the “make or break.” He could be the George Forman in the George Forman Grills or the William Shatner in Priceline. And as you probably expect by now the company is cash starved so the pitch will have to be as a percentage of founding stock or profit. I did some internet research but couldn’t really come up with the parameters for how much stock or profit. Does anyone have any idea?
I will share answers with anyone who responds. Thanks for your help.
PS. I hope to write a case on this, especially if it is successful.
Fredric Kropp, PhD
Professor of Entrepreneurship, Creativity and Innovation
President of Faculty Senate
Monterey Institute of International Studies
460 Pierce Street, Monterey, CA 93940
Ph: 831-647-6684 Fax: 831-647-6693
My job is to awaken possibility in other people……………..
See the invisible, capture the intangible, do the impossible