The Real Value of Personal Branding
The value of what a personality brings to a brand is normally calculated in terms of immediacy. What does the addition of the personality do to current sales revenue?
In the current issue of Forbes Magazine (September 2009) another method of valuation is discussed which makes personal branding or celebrity branding even more valuable. This valuation is called “incremental value” and it is viewed as the value brought to a business not just in terms of a current sales increase, but overall company valuations for potential sale of the business itself.
The article focus on the increased value of three NFL football teams – the Patriots, Jets and Cowboys after they hired Coach Bill Parcells to turn around their football team. It then demonstrated the economic effect of that hiring to their overall corporate value.
During the Parcells tenure with the teams their total value increased by $1 billion dollars; which was $300 million more than the increased value they would have gained if their appreciation had merely tracked that of the entire league. Frankly, that number did not even allow for the fact that for at least some period of time there would be an added residual increase after Parcells left the team.
Naturally, it isn’t fair to say that it was just the fact that Parcells was promoted as the new Coach that increased the value of the team, because it was his coaching and performance that did the job. The better the team did, the higher the ticket prices were ,as well as the prices of other products. Overall sales increased as well, leading to higher valuations. Nevertheless, the name ”Parcells” now carries with it a value of its own, and that is the essence of the value of personal branding. This is true in football, business or even politics for that matter. At some point, the name becomes the brand and it has an intrinsic value of its own.
The conclusion we want to bring out to this study is the fact that personal branding or celebrity branding has many values including the pull and name recognition to catapult any business or professional practice. Don’t minimize the value as just a short-term boost but instead, see the longer term value added for yourself and your business.