An Endorsement is when an individual or organization agrees to promote a brand or an organization. The Endorsement can be in the form of either payments or sponsorships or giving the name to increase sales or attract attention. These days all sportsmen, movie stars and the who’s who agree to endorse products or brands at a price.
An Endorsement Letter is the one that is handed over to such individuals or organizations confirming them as the endorsees for a fixed period of time. This is a kind of contract between the organization and the endorsee that is mutually beneficial in terms of brand positioning for the organization and financial benefit for the endorsee.
DOS AND DON’T’S OF ENDORSEMENT LETTER
- An Endorsement Letter should be brought out only once the detailing of the deal or contract are finalized
- The Endorsement Letter is the formal written document for both the involved parties so it should be carefully worded
- An Endorsement Letter should be signed by both parties with a common neutral witness to authenticate the existence of the letter
- It should have the date clearly mentioned on it when it is being given out
- The date from when the endorsement is effective should also be clearly highlighted in the letter
- An Endorsement Letter should be brief and to the point but should include all the fine print of the deal
- The language of the letter should be purely formal as the nature of the letter demands it
- The date when the deal ends should also form an important part of the letter to indicate when it is due for renewal
- A copy of the letter should be handed over to the legal departments of both the involved parties
- The letter should always be typed
- One must ensure that there are no grammatical or punctuation errors
- What is being endorsed should be clearly mentioned in the Endorsement Letter to leave no room for any ambiguity or point for argument
SAMPLE ENDORSEMENT LETTER
________________ (Name and address of endorsee)
Subject: Endorsement for our designer watches
Dear Ms/Mr _____________
As per our discussions on ___________ (date) and _________ (date) regarding endorsement of our new range of designer watches, we are pleased to know that you have agreed to our offer.
The endorsement will be only for our designer watches that are being launched on ___________ (date). Our advertisers are _____________ (name of advertising agency) and their representative will contact you for shoot schedules.
This is to further reiterate that the endorsement period will be _________ (date) to _________ (date) after which it will be due for renewal as per mutually agreed terms.
The endorsement has been valued at Rs._________ payable to you in three installments. The first 50% will be as advance once this letter is signed, 25% after the shoot begins and the balance 25% on completion of the advertisement campaign.
In case any one of us violates the terms agreed upon, we can seek legal assistance.
We hope to have a long successful relationship with you.
(Name of signing authority)