What do Michael Jordan, Rihanna, Shaquille O’Neal, The Kardashians & Post Malone, have in common? They’re all entertainers and celebrities who turned their fame into substantial wealth through strategic branding and business initiatives.
According to Forbes, Michael Jordan earned around $90 million from his basketball career, but the bulk of his $3.2 billion net worth comes from other ventures, especially his Nike endorsement deal worth $1.8 billion. This puts the contribution of his core talent to his net worth at less than 3%!
However, for every success story, thousands struggle to extend their initial fame into lasting wealth. This is particularly true in Africa, where emerging creatives are only beginning to understand the importance of sustainable wealth-building.
Despite the rise of African celebrities earning millions, most of their wealth is still tied to their core talents. Some have branched out into endorsements, but many more lack a structured approach to wealth creation.
In this article, we will describe seven critical business building blocks that can help creative professionals build strong brands, and create sustainable prosperity.
1. Quality Product and Content
The foundation of any successful career in the creative industry is high-quality work. Top celebrities continuously hone their craft and regularly release new content to keep their audiences engaged. This principle applies, whether you’re a musician, actor, athlete, fashion designer or digital content creator.
2. Personal Branding
Creatives and celebrities who want to take their success to the next level must develop a unique and identifiable personal brand identity. Successful celebrities go beyond selling products; they sell brands.
Rihanna, for example, has built a personal brand that extends beyond music into fashion and beauty, making her the richest female musician and entertainer, after Oprah. (Over 80% of her estimated $1.7 billion net worth comes from non-music sources). Small wonder, a 2022 Forbess article dubbed her the “an undisputed queen of personal branding”.
For creatives building their brand, it is important that you register and own your stage name and logo. This is important intellectual property that can be applied to other products and businesses. Speak to a lawyer about the registration process.
3. Marketing and Promotion
Effective marketing and promotion are essential for amplifying your brand. Utilize digital marketing tools like social media, email marketing, and SEO. But more importantly, hire a marketing agency. Chances are, you do not have the time to hone your craft and manage your marketing too.
While social media has made self-promotion and audience connection much easier, it is still critical to work with other media outlets and established product brands.
For instance, Post Malone successfully launched his wine brand, Maison No. 9, using his massive social media following (23.1 million followers). He garnered 1.5 million likes on a single related post, and sold 50,000 bottles of wine, in 2 days, pre-sale. His partnership with Crocs, which began in 2018, resulted in four highly successful consecutive shoe product launches.
4. Monetization Strategies
There is massive growth in monetization opportunities for creatives, who have quality content, a good personal brand, and effective marketing promotions. These include sales, streaming, and product co-creation & licensing opportunities.
- Sales: Digital platforms have increased the opportunities to sell your work directly to consumers.
- Streaming and Licensing: Streaming platforms and licensing deals are another ever-growing monetization opportunity: According to Epidemic’s research of 1,500 monetizing creators, TikTok is the social media platform that pays the most (30%), followed by YouTube (25.8%), Facebook (16.5%), X (13,1%), and Instagram (7.1%). Note, however, that some creative expressions are more effective on some platforms than others.
- Live Performances and Events: Beyond the opportunity to generate more revenue, concerts, exhibitions, and appearances, also provide an opportunity for providing personalized experience, engaging audiences, and creating even more monetizable content
- Product Co-creation: Pharrell, who made his name in music is now Louis Vuitton’s creative director, extending his influence to fashion. In addition, he inked a deal with The LEGO Group to produce his life story in a movie, accompanied by a new line of lego bricks.
5. Legal and Intellectual Property Protection
Before jumping into monetization, however, it is important to have the right legal and intellectual property rights and protections to avoid having issues down the road.
A recent report revealed that less than 2% of the money made from Afrobeats outside the shores of Nigeria, actually came back to Nigeria. Some of this is due to a lack of contractual and intellectual property protection.
Protecting your work through legal and intellectual property rights is vital. This includes securing copyrights, trademarks, and patents. Contracts are essential to formalize agreements and protect your interests. Always consult with legal professionals to navigate complex industry regulations.
6. Business Development
Transforming from a creative individual into a business entity involves strategic development, identifying new opportunities, forming partnerships, and continuous innovation.
One of the greatest examples of Revenue Diversification and Investments is Shaquille O’Neal, a former NBA star who has transitioned from being an athlete to a Sports Journalist, Businessman, and Philanthropist.
Apart from investments in over 150 car washes, in which he has found significant success, he has also bought (and sold) stakes in franchises such as Five Guys, Krispy Kreme, and Papa Johns.
7. Wealth and Financial Management
One thing Shaq has also benefited from is getting good advice from financial advisors. His investment portfolio includes share purchases in Sports, Fashion, Beauty, and Technology companies, including Apple, Ring, Vitaminwater, Lyft, and Google, some of which he invested in quite early on.
Proper financial management is crucial for building and sustaining wealth. This includes budgeting, diversifying revenue streams, and investing wisely.
In a follow-up article, we take a deeper dive into Financial & Wealth Management Strategies for Creatives.
Conclusion
By focusing on these 7 building blocks, creative professionals can effectively manage their careers, build strong brands, and create sustainable wealth.
Are you a creative who’s thinking of starting a wealth portfolio? Send us a message here.
Thank you for reading!
