By M. Isi Eromosele

Knowing the actual monetary value of a brand can play a major role in helping to guide the decision-making of a company as its leaders think about their plans for the future of the business.

Why can’t the same be true for personal brands, such as celebrities and athletes? They drive value in the same manner as any other brand and understanding how to leverage them is more important today than ever before.

Personal Brand Valuation (PBV) has utility for both the owner of the personal brand and the corporation seeking to align with an endorser.

It can be used to determine the current and future value a personal brand generates for itself or to determine the value a personal brand will generate for a corporate/product brand.

PBV - Personal Earnings Estimate

Used to forecast the earnings of a personal brand, the Personal Earnings Estimate has a variety of uses, including enticing top talent in the sports or business worlds. It can also be used by talent management to understand the brand impact of their clients’ career decisions, allowing optimization of potential future earnings.

Step One: Determine the Sources of Income

Understand the potential sources of income, both now and in the future (i.e. salary, endorsements, product sales, etc.)

Step Two: Understand the Drivers

Determine the effect of different variables on those income streams (e.g. choosing certain film roles, playing for a particular franchise, selecting an employer).

Step Three: Determine Brand Strength

By understanding the current strengths and weaknesses of the brand in question, you can determine the probability of earnings estimates. For example, a celebrity prone to scandal will be less likely to land starring roles, earn awards and secure endorsements. All of which will result in lower potential earnings.

Step Four: Simulate

Simulate all possible outcomes to determine the maximum, minimum and average earnings potential given all possible scenarios (i.e. number of championships or Academy Awards won over a career).

PBV - Organizational Earnings Estimate

This is used to forecast the impact of aligning a corporate or product brand with a personal brand. By understanding the value of different personal brands, decisions can be made on which personal brands to align with and what level of investment to make

in those partnerships.

Step One: Understand the Opportunity

Estimate market potential for the product/corporate brand in question and develop a baseline earnings estimate by examining existing research and financial forecasts.

Step Two: Determine Role of Brand

Understand the role of the personal brand in driving incremental demand for the product/ corporate brand among each target segment either through custom or existing research.

Step Three: Determine Brand Strength

By understanding the current strengths and weaknesses of the brand in question, you can determine the probability of earnings estimates actually coming to fruition.

The final outcome of either approach is a dollar value that the brand generates. From this model, you can determine what the key drivers of personal brand value are and answer questions that might arise when your organization or the celebrity is weighing different scenarios to determine what is best for both brand and bottom line.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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