The Best and Worst Celebrity EntrepreneursMarch 14, 2011 – In The News
Darrell D. Miller explains that fame is not a business model for celebrities who may attempt to start up restaurants or brands on the side. “Celebrity is often mistaken for a strategy to build a business, but fame isn’t a plan,” he says. “It’s merely an asset.”
Miller uses Planet Hollywood as a “textbook example of what not to do.” The themed cafes opened in the mid-‘90s with high-profile backing and promotion from a cast of celebrities, including Sylvester Stallone, Bruce Willis, Demi Moore and Arnold Schwarzenegger. “Everyone wanted to go once,” says Miller. “But once you got in, it was a terrible experience. No one wanted to go back.” The company has gone bankrupt twice.
In the digital age, Miller explains that stars can no longer rely on a single source to sustain their income but rather need to “build multiple revenue streams across a variety of platforms to enjoy ongoing financial stability and success.” For example, Ludacris launched a cognac called Conjure in 2009.