Here we go again — another celebrity scandal.

This time David Letterman is defending himself from an alleged extortionist, who has been accused of using knowledge of Letterman’s sexual escapades to blackmail the comedian for $2 million.

Rather than trying to cover it up or deny it, Letterman is trying to be upfront about it, and he’s using textbook PR principles to go on the offensive.

Others should take note because Letterman has done everything right so far. He acted with immediacy, was straight forward, and owned up to his actions.

That’s not to say that everything will be roses for Letterman from now on.

Sure, some people are mad at him and some fans may even boycott his show for a few weeks, but it’s a good bet they’ll come back—if anyone even realizes they are gone. Odds are Letterman will attract even larger audiences because the post-scandal buzz will bring in viewers who don’t normally watch.

All-in-all, Letterman took a bad situation and made it better.

Here’s how he did it:

Letterman got the story out on his terms, rather than having scandalous details dragged out in the press.

By doing this, Letterman established himself as the one who will define the story. Neither the extortionist nor the cable news pundits got the first word—Letterman did.

Letterman’s strategy advanced the story beyond his liaisons with former staffers and instead shifted focus on the bad guy extortionist.

This is not to say that Letterman will get a free pass. History shows that past sex scandals tend to drag on as more details slip out.

However, by addressing it early, the 62-year-old comedian grabbed the reigns of the controversy.

It’s a good thing Letterman did not follow the advice of one of his recent guests—former President Bill Clinton.

Clinton’s affair with Monica Lewinsky is the classic example of how not to handle a crisis.

If Clinton would have admitted to the affair, it still would have been a problem for him, but by trying to conceal it, he just made the situation worse and it turned into a media circus.

A slightly better, but still not great example is that of California Gov. Arnold Schwarzenegger. During his gubernatorial campaign, allegations of sexual misconduct were raised by several women against the movie star.

Schwarzenegger ended up confessing that he had behaved inappropriately in the past. It was vague, but the bottom line is he copped to it.

Unlike his predecessors in scandal making, Letterman had an advantage they didn’t have—a late night television talk show. Letterman had his own stage for coming out. He didn’t have to endure a press conference, or sit through hour long introspection on the Oprah show, or face off against Barbra Walters on a much-hyped interview.

Instead, he called the shots and appeared to be calm. He even came off as folksy by inviting the studio audience into his life by asking them if they would like to hear a story.

There was no better place to do this than on his show. He got to tell his side in front of an audience that consisted of his fans—people who were there because of the fact that they like David Letterman.

Letterman even played off the self-deprecating humor that has come to be associated with his personality throughout the years. During a very serious life problem, Letterman did what he does: make jokes. He kidded the audience, “I know what you’re saying,” he said. “I’ll be darned, Dave had sex.”

How Letterman handled the scandal is a blue print for anyone who works in crisis management. Be upfront and self deprecating if you can. Get your message out on your terms and take control of the story.

You don’t need a talk show either. With tools such as YouTube, you can do exactly what Letterman did and broadcast the message you want to convey. You can even gain a favorable audience like he did. How does posting a video for all of your Facebook friends to view sound?

For now, the hard part is over. The scandal is out and everyone knows about it. And for now, just like on his talk show, Letterman is in control.