Alex Lieberman Profile picture
Cofounder @morningbrew. Cofounder, @storyarb. Host of 60 Second Startup & Founder's Journal.

Feb 21, 2023, 12 tweets

Rihanna was the first female billionaire to perform a Super Bowl half-time show.

What you probably don't realize is most of her money didn't come from music.

Here are 5 lessons any entrepreneur can learn from the Barbadian icon:

In 2017, Rihanna launched Fenty Beauty, a brand now worth >$2.8 billion.

Fenty's success is mindblowing. Some stats:

• Rihanna's stake is worth $1.4 billion
• $550 million in sales in Year 1
• Doubled revenue in 2022
#fentybeauty has 2.2 billion views on TikTok

So how did Fenty get so big so quickly?

And how can you apply these learnings?

Keep reading for:
1) Power of deal structure
2) What makes creator brands successful
3) Build for large, forgotten audiences
4) Create a movement
5) Be okay with strikeouts & singles

Rihanna launched Fenty Beauty at 29.

The cosmetics brand was developed with Kendo, LVMH's incubator, and first went on sale in LVMH-owned Sephora stores.

LVMH paid ~$10 million to do the deal & ownership of the brand is split 50% LVMH, 50% Rihanna.

But before we talk about the product, let's discuss the deal structure.

Because of her equity upside in Fenty, nearly 80% of Rihanna's $1.8 billion net worth comes from the beauty brand.

Keep reading for a mind-blowing comparison...

Take Nike's Jordan Brand.

Since 1984, his rookie year, Michael Jordan has pocketed 5% of all Jordan sales.

That's $10-12 per shoe.

In 2022, Jordan did $5.1 billion in revenue, earning him ~$256.1 million.

MJ is doing just fine, but imagine if he had Rihanna's economics!

Okay back to RiRi.

Why did Fenty 📈 when other creator brands 📉?

3 words: creator-market fit.

Rihanna is a fashion icon.
- 2011: announced fashion venture with Armani
- 2014: named Creative Director of Puma
- 2015: named new face of Dior

Fenty is authentically Rihanna.

But here's a spicy take.

Fenty would have succeeded regardless of Rihanna.

Because it's a 10x product for a large, forgotten audience.

Fenty disrupted an underrepresented cosmetics industry by launching products with 40+ shades.

The brand finally offered "Beauty for All."

Fenty didn't just solve a big problem.

It created a global movement: "The Fenty Effect."

Following its "Beauty for All" campaign & launch of inclusive makeup, Fenty created a chain reaction of inclusive beauty.

CoverGirl, Dior, and others began carrying 40+ shades of makeup.

If you're reading this & thinking: "Everything went right, Rihanna must have caught lightning in a bottle."

You would be wrong.

Rihanna has been trying her hand at business since she launched her first fragrance, Reb'l Fleur, in
January 2011.

Don't believe me?

'05: starts Westbury Road
'05: deal w/ Secret
'11: face of Nivea/Vita Coco
'12: first TV show
'13: MAC collab
'15: co-owner of Tidal
'15: starts Fr8me, beauty agency
'16: Puma collab

She's taken many at-bats, some strikeouts, some singles, all of which informed Fenty's success.

Want more?

1) Follow @businessbarista for more fascinating business case studies.

2) Check out The Crazy Ones, where @jspujji & I analyze Rihanna's entire business career & lessons entrepreneurs can learn:

Listen: link.chtbl.com/DYlut_VA

Watch: bit.ly/3Eq5Q7K

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