Forbes magazine recently released its 2022 list of “America’s Richest Self-Made Women” on the list is 34-year-old Rihanna, the youngest to have a net worth of more than one billion dollars. Her $1.4 billion fortune was realized primarily from the triumph of her brand and cosmetics line, Fenty Beauty. So, in summary this means, RiRi has “M.O.E” money. I’ll explain later.
When I tell you I am in RiRi’s Navy (her fan base) for life….that’s what I mean. Not because I am an avid fan of her music. Between you and I, I can only name MAYBE 5 songs of hers. BUT I bet you I can tell you every business shift she has navigated since Fenty launched in 2017.
Why? Because that’s more intriguing to me.
Rihanna’s rise to becoming the youngest self-made BILLIONAIRE in America, is somewhat grounded in two basic principles that I teach to my mentees often.
1. Let what you like, fund what you love.
2. Don’t allow people to keep you where they met you. It’s ok and sometimes critical to evolve.
While people are on social media, nudging Rihanna about “making her next song”, she is in the background amassing a fortune, surpassing musicians in every area (she was named the richest female musician not too long ago), but now in a totally different creative vein. She evolved.
How? How did she build this beauty empire when so many other musicians or celebrities have failed to make their “side hustles” really take off in mainstream? Let’s look at her strategy and see the lessons!
Lesson number 1:
She built based on what she KNEW about. She knew makeup, clothes and what it was like being a woman of color. She loved bold, daring looks and intense colors. She was not afraid of mixing things up in her own appearance. Thus, that freedom spilled into her business model and Fenty’s brand begin to stand for boldness, color, care, and diversity. Her models were diverse not only in ethnicity and skin tone, but in size and shape. Everyone could see themselves in her brand. She created a MOMENT for them. It was intentional.
Lesson number 2:
Rihanna did not price her loyal target market “out of her world”. She didn’t build her marketing strategy around celebrities or use elaborate packages of makeup and lingerie to A-listers as the premise of her blueprint. She built with her “sisters and fans” in mind. The price point remained attainable by those that would eventually be the best guerilla marketing team on earth…her fans. Almost everyone could own a “piece of her brand” and have the OPPORTUNITY to be a part of her success. The chatter grew and her brand grew with it.
Lesson number 3:
Leverage your success by borrowing higher influence in the next rung until you get your own. Rihanna, already on an upward trend decided to join forces with LVMH, which is a French multinational luxury goods conglomerate that manage several prestigious brands. With this move RiRi’s diverse brand, will be joined the likes of Christian Dior and Louis Vuitton. This also exposed her to the luxury market of ultra-high and high-net-worth consumers, while maintaining her space with the traditional middle market. This is something that CDJ & Associates helps to clarify for clients. There is influence that you can leverage to your benefit, if you know how.
Rihanna again, evolved and developed a new high-end EXPERIENCE with the same brand, but at the luxe level and price point. THEN, when it was jointly decided that her ready to wear brand with them should be paused until the market improved, she had built the relationship with LVMH and that “circle of influence” so much so that she was backed with $115 million in new funding. The private equity company, L Catterton, (sidenote: LVMH has a stake in this firm), led a $115 million Series B fundraising round to support Fenty’s growth and expansion into retail. A classic case of borrowing influence, until you get your own.
What’s next for her? “I never thought I’d make this much money, so a number is not going to stop me from working,” Rihanna reported to the New York Times back in 2019. “The money means that I can take care of my family,” she said. “The money means that I can facilitate the businesses that I want to. I can create jobs for other people.”
In short, she can now fund what she loves.
So, to be honest, Rihanna never has to sing again if she doesn’t want to. She still makes around 70 million a year in royalties and downloads from music already recorded. She is no longer just a singer, performer, or musician..still trying to draw people into an experience with her latest hit or catchy lick.
She is now more.
Rihanna is now a Billionaire mogul (and mommy :) and is changing her world and the world around her by acquiring wealth, influence and connections. Then using those tools to build M.O.E. money.. moments, opportunities and experiences.
Learn her lessons and let us help you duplicate that success at your level in YOUR world.
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