We are a herbal supplement company. We have a doctor who agreed to endorse the product. We agreed to pay a % of sales revenue. We believe we will make about 20 - 30K in sales during the first month. Can anyone tell us what % may be appropriate for the doctor? We will use his photo and bio data online for e-commerce sales alone. |||Paying a doctor for an endorsement could work against you. Please read the information from the FTC regarding 'Testimonials" or "Expert Advice" in advertising.
According to the FTC (Federal Trade Commission) a doctor's (or any expert's) willingness to endorse a product may not be sufficient - the claims must be backed up by material evidence. As well, if you are paying the doctor a commission he would be considered an employee and you must disclose in your advertisement that he is receiving payment for his endorsement.
Are there any rules on how endorsements may be used in ads?
http://www.ftc.gov/bcp/edu/pubs/business鈥?/a>
To give an expert endorsement, a person must have sufficient qualifications to be considered an expert in the field. But just being an expert isn't enough. Expert endorsements must be supported by an actual evaluation, examination, or testing of the product that other experts in the field normally would conduct to support the conclusions in the endorsement.
Advertisers also must disclose any material connection between a person endorsing a product and the company selling the product. A "material connection" is defined as a relationship that might affect the weight or credibility of the endorsement. For example, if an endorser is an employee or relative of the advertiser, that fact must be disclosed because it is relevant to how much weight a consumer would give to the endorsement. Similarly, an advertiser must disclose if a consumer has been paid for giving an endorsement.
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