How Celebrities Make Money Tweeting About Products

Next time a celebrity you follow on Twitter “brand drops”, make sure you check for ad identification in the fine print.

Sean Rad founded advertising company Ad.ly has brought you the latest in brand promotions.  With $6 million in venture capital, it holds an arsenal of over 5,000 to promote 150 brands with the newfound “micro-endorsement.”

Notice Khloe Kardashian‘s tweet about Old Navy jeans, Michael Ian Black recommending a movie he’s not in, or Snoop Dogg musing over what size rims fit the Toyota Sienna Minivan? If you mistook these for the real thing, it’s because Ad.ly carefully determines brand/celebrity compatibility and masterminds tweets in each notable’s signature style.

But wait, isn’t a big draw for tweeting celebs and their followers the opportunity to connect on a more personal level with fans? Dallas Mavericks owner Mark Cuban for one, didn’t take to ghost tweeting easily. He describes the experience as “painful at first, but easier and easier because the products and services are respectable.”

And so is that check. Ad.ly CEO Arnie Gullov-Singh says fees for micro-endorsement begin at $1000, and depending on follower count can rise to five figures. Kim Kardashian commands about $10,000 a tweet, but according to Gullov-Singh, “her price keeps going up. The most effective ones can get six figures a quarter.”

To their credit, personalities do maintain a level of control over what they promote. They always have the option to veto a match altogether or edit the contents of their tweets, and ultimately, advertisers make the final decision of who is paired with their brand.

So what’s next for Ad.ly? The plan is to branch out and take social media as a whole by storm. Stay tuned for the invasion of micro-endorsing on your favorite actor, athlete or musician’s Facebook page.