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:
Today's journaling prompt is about understanding the foundation of every relationship you have. Plz steal.
Prompt: Which type of attachment style do you have? Secure. Avoidant. Anxious. Or Disorganized.
Descriptions of each below...
"Secure attachment is defined by an ability to build healthy, long-lasting relationships"
Signs:
- can regulate your emotions
- easily trust others
- comfortable being alone
- high self-esteem
- emotionally available
- ability to seek emotional support
- easy to connect with
Avoidant attachment is "defined by failures to build long-term relationships with others"
Signs:
- avoid emotional or physical intimacy
- uncomfortable expressing your feelings
- hard time trusting people
- believe you don’t need others in your life
- “commitment issues“
I've watched religiously for 10+ years & I think it gets a lot right.
1) Gives platform to early-stage founders 2) Strong intrigue with big names putting big $ to work 3) Good storytelling of entrepreneurs' backstories 4) Makes startups feel approachable
But Shark Tank also misses the mark in a few big ways:
1) Not being strategic with judges 2) Not adapting to cord-cutting 3) Not making the audience part of the show 4) Monetizing in multiple ways
I'm building the digital version of Shark Tank on social.
It's called 60 Second Startup.
It's been good, but it's missing an X factor to become massive.
I have a few ideas to add that X. Lemme know what you think...
Format 1: Bracket-style tourney
- 16 startups
- head-to-head pitches
- audience votes on who wins & moves to next round
- winner of tourney gets $10,000 investment from me
Round of 16: 60 Second Startup (general head-to-head pitch)
Round of 8: Product Pitch (head to head)
Round of 4: Monetization/market Pitch (head to head)
Finals: What you'd do with the $ pitch (separate)