maddnotez":1mico1i5 said:
I am truly sorry not trolling but It just doesn't make any sense to me at all. I agree 100% with your post until you said "even the guitar gods".
I do understand 90% of endorsees only get a discount. Probably not even as good as an old school G.C. Employee.
But lets be real, and no offense to you or anyone else.
An endorsed guitarist that plays for an "up and coming band" that has a small following, maybe big enough to get an endorsement from a less known company. I can see them not getting paid anything. Maybe a discount.
But I find it hard to belive names like JP, Vai, Hammet, whoever else is doing it for a nice chance of exposure.
I do know certain companies refuse to endorse regardless because of costs but. I just dont buy it. names like Mesa do not make alot of money?
They might be the common household name for guitar cabs. I havent checked the fortune 500 but I do not see how they can not be a multi million dollar company.
First off I dont know anybody at Mesa, but I do know people at several other well known companies in and around the SF Bay Area along with several popular and known musicians. I know for a fact that a certain very famous guitarist who has his own amp being sold does not get paid in free gear. He actually has to pay for the amps, albeit at a deep discount wholesale cost level. I have known this guitarist for over 2 decades and if he tells me this, I have no reason to disbelieve him. How he explained it to me on items of like amps and cabs, he pays his discounted price and then writes them off in various methods as part of his business. In his case, his name is his business. Now he does get regular royalty payments from the amp and cab maker, along with other products he endorses, because they use his name in selling the product.
The only kind of free stuff he gets is when companies send him product to test and check out to try and get his endorsement, this does include some fairly expensive product from time to time, but on the scale of full stacks with 100w heads just does not happen even for him, and he does not want it to. He actually sends a great deal of it back, as he simply does not have the space. He has had companies make and loan him equipment, but its not his and every time this has happened he has to give it back to the mfg at the end of the tour. I imagine the company just writes it off as part of advertising. Now he has to pay the cost of hauling this equipment around, insuring it, staff to manage and maintain it. So its not cheap and think what it cost to ship a truckload of gear overseas. You wonder why ticket prices are so high now? On occasion when he see's or hears about a certain piece of gear and wants to try it, his company will contact the mfg and arrangements are made for a demo unit or he rents/leases it. There are several methods as its all got to be accounted for when tax time comes.
As to the exposure question, absolutely he does it for that. Its keep his name in front of people, namely musicians and fans, thus improves his ability to generate royalties, which means sales of product, and performance revenue. He usually does get paid for using his image in an advertisement, but its usually not very much, it mainly covers his cost of doing it with some extra from time to time. If you think advertising is cheap, just call up guitar player and ask them how much a full page ad cost then multiply it for several months.
2 companies in particular I know quite well and believe me they make money but not the kind of margins your thinking of. Mesa Boogie is a company based in Ca. Its one of the most expensive states, in the top 5 I believe, to run a company. Consider all the costs of just 100 person company, then add all the costs related to mfg a product like an amp and you will quickly find that though it may be, as your say a multi million dollar company, it does not necessarily make millions of dollars of profit. Ask some of our mfg's here on the forum, I am sure they can give you the straight scoop on it and a whole lot more background. I sure hope they do make money, why else would you have a business in the first place.