Curtis Jackson AKA 50 Cent, was at the top of the world in the early 2000s with his successful debut album “Get Rich or Die Tryin‘.” With his raw lyrics and enigmatic persona, he had conquered not just hip-hop but was a full-fledged cultural icon. During this phenomenal success 50 Cent made a business decision in 2004, which completely revolutionized how endorsement deals entered by celebrities were approached, turning a potential $0 payout into a $100 million windfall.
In 2004, the then-relatively-unknown beverage company Glacéau asked 50 Cent to endorse its Vitaminwater brand. Usually, celebrities would take a fat cash check for this type of deal, but 50 Cent’s manager at the time, the late Chris Lighty, envisioned things a little differently. Lighty knew that while beneficial, a one-time payment is minimal compared to upside potential ownership in the company.
He convinced 50 Cent to forgo the standard endorsement fee in favor of equity in Glacéau-a bet many would have thought far too risky at the time. 50 Cent, ever the shrewd businessman, agreed. The street-smart rapper from the rough streets seemed to know better after Lighty’s advice. By opting for equity, he became a part-owner of the company and aligned his success with that of the company’s growth.
50 Cent dove into promoting Vitaminwater with the same fervor that drove his successful music career. The company even created a flavor in his honor, called “Formula 50.” 50 Cent was very instrumental in the marketing of this flavor-one synonymous with his brand-effectively turning every promotion of the beverage into a two-for-one, boosting both his image and his beverage.
The results were nothing short of spectacular. With 50 Cent’s relentless promotion and Vitaminwater’s broader appeal, Glacéau saw its revenue rise from $100 million to $700 million in three years. It was explosive growth-you could say the setup for one of the most lucrative deals ever pulled in the beverage industry.
That all changed in May 2007, when Coca-Cola, one of the largest beverage companies in the world, paid a whopping $4.1 billion to acquire Glacéau. To 50 Cent, it was the payoff of his well thought out gamble. His equity, popularly believed to be about 10%, thus translated into a payout believed to be about $100 million.
This wasn’t just a personal milestone for 50 Cent; it was a game-changer within the industry. It really showcased that artists could use their influence and platforming to obtain equity deals that would far supersede traditional endorsement earnings.
The success of 50 Cent with Vitaminwater trickled down into the hip-hop industry and beyond. This set a new precedent in how artists and celebrities could approach business opportunities. What many did, instead of taking a one-time cash payout, was seek out equity stakes, realizing how lucrative it would be long-term. This move also underlined the requirement of being actively involved with whatever business they became ambassadors for. 50 Cent didn’t just give a name to Vitaminwater; instead, he participated in its branding and promotion-something that ensured the success of the product was tied directly to his success as an endorser.
Today, 50 Cent’s Vitaminwater deal is often cited as a turning point in celebrity endorsements, inspiring a new generation of artists to think like entrepreneurs-appreciating ownership and long-term investment over instant gratification. Jay-Z, Rihanna, and Dr. Dre have all followed suit, using their influence to secure equity in companies that range from streaming services to fashion lines.
