8/19/2013 @ 11:00AM
The World's Highest-Paid Models, 2013: Gisele's Earnings Down, Kerr's Are Up
Success as a model requires flawless genes and a lot of luck. The 10 women on FORBES’ list of highest-paid models have something else, too: business sense
forbes.com
Take Gisele Bündchen, who leads the pack for the seventh year in a row with $42 million in earnings, seven times as much as second-place Miranda Kerr (and a bit more than quarterback husband Tom Brady’s $38.3 million).
Bündchen’s earnings may be off $3 million from last year’s total, but the 33-year-old Brazilian has enjoyed a sharp rise in fortune since 2009, when she led the list with $25 million. This is in part due to her successful partnership with Grendene, the Brazilian footwear company, in which she owns a stake.
Since 2012, Grendane’s shares have more than doubled, pushing its valuation to a five-year high. The supermodel mom makes millions from her eco-friendly cosmetics company, Sejaa, and multi-year contracts with international campaigns like Pantene, Oral-B and Sky HDTV.
Our earnings estimates are based on editorial shoots, independent licensing ventures, spokesperson gigs and contracts from beauty and fashion companies from June 2012 to June 2013.
Kerr pulled in $7.2 million in the 12 months ending in June, leaping up the rankings from No. 7 last year, when she earned $4 million. The Australian model first strapped on a pair of Victoria’s Angels wings in 2007. Now, at 30, she’s expanded her portfolio with contracts with Quantas, David Jones and Mango. Like Bündchen and many other models on our list, Kerr is trying to cash in on booming markets outside of the States. In Asia, the launch of her skincare line, Kora, and deals to pitch Lipton Tea and P&G detergent brand Bold helped her move up our list this year.
“Because international exposure is so much greater in value, there’s been this sudden shift in the industry where models are all finding ways to expand their brands and partnerships. It’s a smart business model for them,” says Ed Razek, president and chief marketing office of Limited Brands, Victoria’s Secret’s parent company.
Victoria’s Secret still cultivates much of the top echelon of talent in the modeling business. Six of the 10 women on this year’s list either have Angel contracts, or have appeared in the Victoria’s Secret Fashion Show.
Once known for handing out outsized contracts, Victoria’s Secret has ratcheted back over the years, and multi-year agreements have become a rarity.
“Our contracts are based on the way senior business leaders are paid, which is on incentive compensation. So it’s in the best interest of our business, and in the best interest of these models to perform at the highest level possible that they possibly can,” said Razek.
To be sure, the lingerie retailer isn’t struggling in the least bit. In spring of 2012, Victoria’s Secret reported $542 million in operating income, and $655 million in the fall, totaling $1.2 billion (which was 70% of Limited Brands’ $1.7 billion in operating income). The company pays models less simply because it can — the prestige of being an Angel is rich compensation by itself. Similarly, gigs with hot names like Prada or Fendi don’t pay much, but models can cash in by landing other campaigns through the increased exposure.
Adriana Lima‘s earnings dropped from $7.3 million last year to $6 million, but she still moved up one spot in our ranking to No. 3. Lima has been with Victoria’s Secret since 2000, making her the longest-running Angel. No surprise, her supermodel seniority comes with a super-sized deal, and it’s more lucrative than any other current modeling contract in the company. Most of Lima’s earnings come from her deal with the lingerie retailer.
Of course, an Angel contract isn’t the be-all-and-end-all of fashion. The wingless Kate Moss (No. 7) still managed to pull in $5.7 million, though she took a $3.5 million plunge from last year, when she ranked second. But at 39, the neo-hippie waif can still rock the bad-girl image while maintaining her title as fashion’s most in-demand supermodel, holding multi-year Vogue eyewear contract, deals with Versace and Rimmel. Moss will also be posing nude for Playboy to celebrate her 40th birthday, according to reports.
“Kate still has enormous international presence,” said Ivan Bart, senior vice president and managing director of IMG models, the New York-based modeling agency that represents Moss. “She’s still doing a lot of modeling and business around the world, and she’s got a number of English and European associations.”
Some new faces on the list this year are Liu Wen and Joan Small. Wen (No. 5), who hails from China, raked in $4.3 million over the past year through deals with blue-chip brands Calvin Klein, Hugo Boss and Estée Lauder. The 25-year-old turned heads when she became the first Chinese model to walk in the Victoria’s Secret Fashion Show. But what truly makes Wen watch-worthy is her potential to cash in on her home country’s exploding fashion market, which is expected to triple in size to $200 billion by 2020.
The Puerto Rican model Smalls (No. 8) became the first Latina ambassador for Estée Lauder in 2010 and has since filled her client list with big names: Victoria’s Secret, H&M, Fendi and Givenchy. “A model of color selling luxury products makes a huge statement. Increasingly, brands are trying to connect with consumers by incorporating diversity into their image, and someone like Joan relates well to the key demographics that advertisers really want to reach,” said Bart, whose agency also represents Smalls.
Some likely candidates to make the list next year: Karlie Kloss, the newest addition to Victoria’s Secret’s lineup, and Kate Upton, the commercial-turned-editorial bombshell who Vogue recently deemed “the hottest supermodel on Earth.” Doutzen Kroes and Alessandra Ambrosio, who dropped off the list this year, could make a comeback.
Additional reporting by Brian Solomon.
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Source:
http://www.forbes.com/sites/vannale/2013/08/19/the-worlds-highest-paid-models-of-2013/