Rihanna was the first female billionaire to perform a Super Bowl half-time show.
What you probably don’t realize is that most of her fortune didn’t come from music.
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Becoming a Business Mogul
In 2017, Rihanna launched Fenty Beauty, a brand now worth >$2.8 billion.
Fenty’s success is mind-blowing.
Here are some impressive stats:
- Rihanna’s stake is worth $1.4 billion
- $550 million in sales in Year 1
- Doubled revenue in 2022
- Fenty Beauty has accumulated 2.2 billion views on TikTok
So how did Fenty Beauty grow so big so quickly? And how can you apply these learnings?
Here are 5 lessons any entrepreneur can learn from the Barbadian icon:
- The power of deal structure
- What makes creator brands successful
- Build for large, forgotten audiences
- Create a movement
- Be okay with strikeouts & singles
Rihanna checking out her makeup
The Power of Deal Structure
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 invested ~$10 million to do the deal, and ownership of the brand is split 50% LVMH, 50% Rihanna.
Rihanna with LVMH owner, Bernard Arnault
But before we talk about the product itself, let’s discuss the deal structure.
Because of her equity upside in Fenty Beauty, nearly 80% of Rihanna’s $1.8 billion net worth comes from the beauty brand.
Rihanna holding a stack of cash
Keep reading for a mind-blowing comparison…
Take Nike’s Jordan Brand, for instance.
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!
Creator-Market Fit
Okay, back to RiRi.
Why did Fenty Beauty succeed while other creator brands failed?
It’s simple: 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 Beauty is authentically Rihanna.
Riri by Rihanna
Building for Large, Forgotten Audiences
Here’s a spicy take.
Fenty Beauty would have succeeded regardless of Rihanna.
Because it’s a 10x product for a large, forgotten audience.
Fenty Beauty disrupted an underserved cosmetics industry by launching products with 40+ shades.
The brand finally offered “Beauty for All.”
Beauty for all
Creating a Movement
Fenty Beauty didn’t just solve a big problem.
It created a global movement: “The Fenty Effect.”
Following its “Beauty for All” campaign and launch of inclusive makeup, Fenty Beauty created a chain reaction of inclusive beauty.
CoverGirl, Dior, and others began stocking 40+ shades of makeup.
Shades of makeup
Being Okay with Strikeouts and Singles
If you’re reading this and 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?
Here’s a timeline:
- ’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 Beauty’s success.
Rihanna at the Super Bowl
Conclusion
Want more?
Follow me @businessbarista for more fascinating business case studies.
Check out The Crazy Ones, where Jesse Pujji and I analyze Rihanna’s entire business career and lessons entrepreneurs can learn from.
Listen to the podcast here, or watch the YouTube video below.
Takeaways from Rihanna’s Career & How to Test Your Business Ideas