How do I use celebrities are moving from licensing deals to becoming majority owners of their brands, indicating a shift towards greater control and equity in their ventures for ecommerce?

Expert answer · sourced from 2 podcast episodes · influencer & creator

Short answer

The shift from celebrity licensing to ownership isn't just about money; it's a fundamental change in how brands are built. A celebrity's authentic connection with their audience is now the most valuable asset, making equity the only structure that truly makes sense.

TL;DR

The move from celebrity licensing deals to celebrity-owned brands is far more than a simple preference for bigger paydays. It represents a tectonic shift in where cultural authority comes from and how modern brands are built. The old model of a celebrity simply "licensing" their name and likeness was a bet on borrowed trust. The new model, where the celebrity is the founder or majority owner, is about authentic, earned influence. To win now, the celebrity can't just be a famous face; they have to be the chief evangelist, the most passionate user, and the ultimate embodiment of the brand itself.

The real change agent here wasn’t a revolution in contract law, but in media. As Vance Lee pointed out on Actualize Freedom, today's stars own their own media channels. They don't need to buy a Super Bowl ad or get product placement in a film to reach their audience; they just need to post on their own feed. This direct, owned distribution channel gives them incredible leverage. Why promote a product for a flat fee when they can promote a product they own and reap the full equity upside? Aaron Alpeter laid this out on Ecommerce On Tap, tracing the evolution from the classic licensing model to the founder model of stars like Rihanna with Fenty Beauty. When the celebrity has equity, their incentives are perfectly aligned with the brand

Cited episodes (2)

  1. Ecommerce On Tap — How Ari by Ariana Grande Made $1B — No Ownership cover art

    How Ari by Ariana Grande Made $1B — No Ownership

    #1 · Ecommerce On Tap · with Aaron Alpeter

    Explains the historical evolution from licensing to founder-owned celebrity brands.

  2. Honest Ecommerce — Building Authentic Connections in Celebrity Partnerships | Karina Kogan | Pvolve cover art

    Building Authentic Connections in Celebrity Partnerships | Karina Kogan | Pvolve

    #2 · Honest Ecommerce · with Karina Kogan

    Argues that authentic, personality-led brands are the very near future of consumer retail.

Voices that come up across these episodes

Ask your own question

Get a personalized answer pulled from 23,800 ecommerce podcast episodes.

Ask a question →

More answers in influencer & creator

Browse all answers →