Troubled sitcom actor Charlie Sheenstands to earn $1 million this year endorsing products on such social media sites as Twitter, Arnie Gullov-Singh, CEO of Ad.ly, a website that links celebrities with companies and brands online, told CNBC Monday.
“The celebrities get paid a flat fee per tweet for a status update, and it’s based on three things,” explained Gullov-Singh.
Those include the number of fans or followers they have on Twitter, how engaged those fans are with the celebrity’s content, and the celebrity’s past performance of those endorsements and the result they delivered for the brands.
The CEO said that the company has some 1,000 celebrities, including Kim Kardashian, Mark Cuban and Snoop Dogg, in its stable.
Some of its 150 advertisers are Toyota, Sony , Microsoft , At&T and Best Buy .
According to Ad.ly's website, it "syndicates celebrity endorsements in the form of in-stream, display and rich media ad units across Facebook, Twitter, MySpace and more."