Kylie Jenner is a perfect example of the Digital Age we live in. Making money in this New Economy is all about business leverage —NOT hard work.
Kylie Jenner’s outsourcing business model connected to the high-profit cosmetics industry results in outrageous profits. She builds up a personal and a cosmetics brand name with every social media post.
Hard work? With all her outsourcing ready to deploy, all she has to do is to post selfies noting which cosmetic product she’s wearing to her social media followers and that will bring in millions in sales.
Kylie Jenner is clear and living proof that consumers are moving to mobile devices. No wonder retailers are struggling to survive these days!
10 facts about Kylie’s billion-dollar business:
- Kylie’s billion-dollar empire has seven full-time employees and five part-time.
- Her cosmetics business is valued at over $900 million USD.
- Manufacturing? Outsourced to a California business.
- Packing? Outsourced to the manufacturer.
- Sales? Outsourced to the Shopify platform.
- Fulfillment? Outsourced.
- Finance? Her mother handles that.
- Overhead? Extremely low.
- Marketing? Basically zero.
- Secret? Unbelievable attention… To date, she has a staggering +163,000,000 followers on Instagram alone.
Lessons we should learn from Kylie Jenner:
- If you have a huge, dedicated fan base, then you can make millions selling anything to them. They’ll help build up hype and excitement for you, too. In other words, build a loyal community that loves what you do and impress them every time you add a new product. Make them feel like they’re part of this big family. It worked out well for Apple and Harley Davidson, after all. Same thing for Marvel and Disney.
- People are more likely to give you money and other gifts hand over fist when you’re filthy rich than when you’re dead broke. It’s ironic, but it makes sense when you think about it. In their minds, a poor person doesn’t have anything to offer them. They assume they’ll just drag them down. A rich, influential person, however, has a healthy dose of prestige, inspiration, and success to offer them.
- Getting featured on multiple large broadcasts (CNN, Fox News, big Instagram pages, The Steve Harvey show, super-popular YouTube channels, large Facebook pages, Shark Tank, American Idol, etc) is the way to gain insane exposure. You may need to introduce your product to smaller individual groups to get the ball rolling and work your way up to the big leagues I just mentioned.
No business gets featured on those instantly. You’ve gotta work for it. You’ll need to network and partner up with other businesses in your industry to help you boost your sales and exposure. Work with non-profits (ones that cover issues that you’re passionate about, of course). Just telling your friends and family doesn’t go as far in exposing your business, nor does running a bunch of internet ads. You need to show your work to strangers, too.
- Offering something that people demand (but don’t necessarily need) is the way to go. Forget being a school teacher or a firefighter. People want reality TV, Netflix dramas, animated cartoons, and football. They want pop music. Unlike those other services, people don’t necessarily need entertainment, but that doesn’t mean footballers, CEOs of animation studios, and TV/Netflix actors don’t get paid a lot.
- (Especially true for creatives) Don’t focus on getting tons of awards or making something that’s so complex and philosophical that only five people can get it. Focus on providing something that’s unique, but familiar. Offer a creative work that’s unique and stands out, but is relatable to your target audience. Illumination got that right with Despicable Me and the minions. JK Rowling pulled that off with Harry Potter.
- Finally, for the most sobering fact. Kylie Jenner comes from a family that consists of OJ Simpson’s lawyer and a transgender former Olympic champion. Her relatives are highly influential on Instagram and in real life. They’re practically on the same level as the DuPonts, the Waltons, the Bushes, the Clintons, and the Trumps. Unless you do really well at the birth lottery and you’re born to an ultra-rich family or you invent a whole new industry, don’t count on being a billionaire when you’re only 21. Of course, that’s perfectly fine because there’s more to life than being a billionaire.