For a small example, imagine all of the times you see celebrities on a television show commercial, giving their input on a product. A company will pay that celebrity a sum of money in order for the person to promote them. It is also why Nascars have all of those logos, or why sporting event stadiums have logos. Everything all falls into an endorsement contract that must be followed to the letter for business to continue between them.
As it has been mentioned above, celebrities and other important figures in the media and the industry can be hired to promote a product or service to the general population. In this case, celebrity endorsements involve certain clauses on their endorsement contracts, which generally include a conduct clause. This means that their public image has to remain positive to continue being paid to endorse. For example, if someone were to be endorsed by O.J. Simpson before he was tried for murder, he would no longer be able to receive monetary compensation for his endorsement because his public image would be ruined, and the conduct clause in the contract would be obsolete.
Other Endorsement Types
This will conclude by covering other types of endorsements. In addition to the above, where a public figure gives approval of another product, there are different kinds. Learning how to write a sample endorsement letter (also known as a “review”) is a good thing to know, in case you ever wish to give a critique of something yourself.
Also of note is the knowledge on how to endorse a check, which is crucial when it comes to the banking process. These are not to be confused with the above types of paid and contractual endorsements, which is why they have been branched off here. More information may be sought on your behalf by visiting any of the resources outlined here.