If you are interested in celebrity net worth and how these individuals earn their money you are in the right spot. There is a variety of celebrities out there in many different genres but for this conversation, we are focusing primarily on Hollywood actors and actresses.
So, How Do Hollywood Celebrities Earn Their Money?
While most of us are lead to believe the bulk of a celebrity net worth is earned from acting that is not the case, the flat amount of money they receive for acting in a movie is more their basic salary. Some of the most successful actors are able to negotiate a variety of favorable terms including the ability to receive additional pay whenever the movie is shown. These residuals are where an actor can really make a huge sum of money in a short amount of time, while the lump sum payment they receive to act in the show motivates them to put on a great performance it is the residual income that is a real game changer. Aside from the residuals, another way the actor can generate income is when the movies are played on syndicated television, right now if you switched on the TV, most of the actors in the movies you are watching will still be paid for the movies they are acting in!
This is a powerful revenue stream to actors that are well established, they have the ability to generate huge sums of money from endorsing products. These products and service providers are hoping that the brand recognition of the actor will help boost sales of the product so they pay the actor an upfront fee plus a percentage of whatever revenue they generate from the promotions. There are actors who earn tens of millions just from these endorsement deals so this is a serious opportunity for actors who have established themselves as household names.
The Book Deal
In the past, we would have to wait until the actor was nearly at the end of their career before we could read about their life and struggles. The majority of celebrities put out their autobiography long before their career has come to an end. One of the main reasons they do this is to maximize their sales by leveraging their 15 minutes of fame. While these ways are how the super famous make their money even average actors can generate a good income by offering acting lessons, if they starred with any well-established actor then it will give their name some credibility and that credibility comes with a fee.
Something we can learn from the lifestyle of these celebrities is while they can earn a huge amount of money they do not always have the discipline to manage it. This lack of discipline is the primary reason the richest celebrities list changes often, they lose their fortunes just as fast as they earn them so it goes to prove the adage that it is not what you earn but what you keep that matters.