We all know that celebrities have a big influence on our culture, but they also have a big influence on our spending which allows celebrities to make millions in business.
Most of us are thousands of miles away from the glitz and glamour of Hollywood. It can be a dream to reach celebrity status and generate an income of over a million dollars in a year.
But some celebrities have managed to do that through their business ventures.
Many celebrities who own small businesses manage to flip their business venture into a million if not billion-dollar businesses and gain the title of celebrity entrepreneurs.
Here’s a blog on celebrities making millions in businesses and what we can learn from them.
- How do celebrities earn from their businesses?
- How did they earn all this money?
- Conclusion – Celebrities making millions in business
How do celebrities earn from their businesses?
In today’s digital age, where people can reach out to celebrities with a click of a button, celebrities have been able to parlay their fame into big business.
Whether these celebrities have been in the spotlight for years or have just been able to reach a big audience with a single tweet, they have been able to turn their fame into money.
We all know that we can learn a lot about success from celebrities. They bring a lot of attention to their brands and most celebrities have a story about how they got where they are now.
It is a common misconception that celebrities just get paid to party and don’t have any work to do. In fact, most celebrities have a business head and have been very successful in their ventures.
Dwayne Johnson (The Rock)
Dwayne Johnson (The Rock) is a wrestler turned A-list Hollywood superstar who has made a successful transition into the business world.
He’s now one of the most successful entrepreneurs in the world thanks to his tequila line.
His launch of the Tequila brand Teremana broke records as the biggest launch in spirits history selling 300,000 cases in a year.
The Rock is estimated to have a net worth of $300 million.
Many believe that his Tequila business put him on the road map into a billionaire. He is the first celebrity we feature making millions due to his recent active appearances in media.
Jay-Z is a full-on businessman. There are 7 businesses that have his names on them.
The release of Jay-Z’s first single was not as smooth as expected but he did not falter and he was determined with a goal to become a successful artist.
He started his own music company, Roc-A-Fella Records and it soon took off, bringing in millions of dollars.
With the millions of dollars he had earned from Roc-A-Fella, he started investing in a series of startups and businesses and one of the businesses was Uber.
During the time when Jay-Z made the investment, no one knew what was Uber and today the Uber is worth over $65 billion.
He later started a variety of Roc Nation, a company to help startups, Investment in Cannabis, a Streaming platform, luxury alcohol business, and a clothing line.
Celebrities making millions? nope, it’s billions.
According to Forbes, His current portfolio is around $1.4 billion! Some even said whatever Jay-Z touches become “gold”.
If you are a fan of Keanu Reeves, you would know about his passion for motorcycles.
In 2011, he started Arch Motorcycle Company, LLC which designs and builds motorcycles.
Although the company does not produce large amounts of motorcycles (between 50 to 100 a year), its latest revenue reports suggest that it made a revenue of $2 million last year.
Considering that Keanu Reeves is doing it as a hobby, he is doing quite well.
Although his business ventures are not as amazing as the other celebrities on this list, he is still making millions.
She started her cosmetic line, Kylie Lip Kits in 2015 when she was just 17-years-old and the company was later renamed Kylie Cosmetics.
Her products have been continuously popular even after several years.
Her strategy of using social media to promote her products made her products look strong among the older and established cosmetics brand.
Fast forward to today, the company is estimated to be worth almost a billion dollars.
We covered an article about Kylie Jenner’s business, you can find it here.
Sean ‘Diddy’ Combs
He is another successful businessman.
He was already successful as a solo artist. After earning his first pot of gold, Combs invested and started a series of businesses from fashion lines, spirits, water, advertising agency, content making and so much more.
In 2019, Forbes reported that his estimated net worth is at $740 million.
We can only imagine what wealth he has accumulated now.
Kim Kardashian West
Kim Kardashian West founded two businesses KKW Beauty and Skims.
Her business was so high profile that she was even on the front cover of Forbes magazine.
After her half-sister, Kylie Jenner‘s success in the industry. She performed a similar tactic to promote her products and relied heavily on social media.
Earlier this year, Kardashian‘s net worth has increased and she has officially joined the billion-dollar club in April 2021.
Another multi-millionaire who is successful in the film industry. He is an A-list celebrity and popular from young audiences to old.
He has 4 businesses that are tied to his name
Westbrook Inc. – A multimedia company that produces and manage the Smith’s family content
Just Water – Will Smith co-founded the company with his son Jaden Smith and the business was reportedly worth $100 million in 2019. The products can be found around the world.
Socionado- Smith invested $10,000 in Socionda, Its a company that produces content to promote healthy company culture.
Dreamers VC, a venture capital company that helps bridge Japanese investors and USA startups.
Since 17-years-old, her music was already a hit.
She started Fenty beauty, a makeup and skincare brand and a lingerie line, Savage X Fenty.
She started her fragrance business in 2011 and the company managed to gross $80 million in the very same year.
In 2015, Jay-Z acquired music streaming company, Tidal and Rihanna co-own the music streaming company.
In the same year, she started a business in Los Angeles which helps artists negotiate and strike deals in commercials.
She is a true self-made billionaire that came from a regular background, She did not have a rich dad or mom.
Her net worth is at $1.7 billion, she definitely belongs to this list.
How did they earn all this money?
It’s obvious that Celebrities who are making millions in business have a huge following and one Facebook or Instagram post can earn them a hefty commission.
Some of them have their own product lines and sell them through the huge influence they have.
I’m not famous like celebrities, what can I do?
But what’s stopping you from creating your own social media influence? You might be thinking, “Easier said than done“, well, look around the internet. How many influencers are out there?
What’s important is doing something, finding excuses, or not doing anything will result in nothing but a waste of time.
There are a few ways to do this, one way is to start creating your own Instagram page and Facebook page.
You can always start small and use word of mouth to get your friends to like the page and follow you on social media.
If you have the budget you can always run Instagram or Facebook ads to get more followers on your page.
But before doing all that you have to find out what’s your niche.
Whether you are selling a product or trying to earn a 3rd party commission you will need to first identify the group of audience that will be interested in your product.
Here is an example, if you are running affiliate links on slimming products. You would obviously be targeting an audience that has an interest in exercise and staying in shape.
Facebook ads allow targeting audiences based on their gender, age, interest, and location.
Here are the 4 questions you have to ask yourself before building an audience:
- Who will be interested in what I’m promoting?
- Where are the people that might be interested? (Obviously, you won’t be running ads for slimming products in a country with famine right?)
- What gender would be interested in what I’m promoting?
- What age group prefers my types of products/promotions?
Most content creators fail to engage their audience on social media platforms, You need to reply to them and build a connection with your audience.
Just like how celebrities are making millions in business and constantly appearing in media.
How do we actually make money from these audiences?
We will be talking about three of the most common ways people make money in the digital world and of course, it’s not limited to the list below.
There are many affiliate programs out there such as ClickBank and Amazon Affiliates program. The beauty of this is that you do not need to produce or maintain products.
On every successful referral from your link which leads to customers buying the product your promoting, You earn a small commission from every sale.
There are also affiliate programs that promise passive income, normally these are subscription-based products.
If you notice, on many celebrities’ Instagram they often post photos of themselves with a product and they tagged a product because they are sponsored to do it.
Affiliate links provide you the chance of doing it as well and with lesser restrictions compared to a celebrity endorsement contract.
They often have to sign up a contract which stops them from promoting a competitor’s brand.
There are many affiliate program marketers who work only on their laptops at home and bring in millions of dollars a month, just like the celebrities who are making millions.
Start a website and write engaging content or produce Youtube videos.
The reason why there are so many websites or Youtube channels out there, its because they are making money one way or another.
Some are selling products and many are content-based websites. If you notice there are always advertisements on websites (Just like the one you are reading now XD)
Use the fan base you generated to direct them with links to the website and you will receive a commission when your website or videos gets viewers or clicks.
Selling a product (Hardest and riskiest but most profitable in the long run)
The beauty of selling your own product is that you can control the prices but depending on the type of products you are selling, you might need licenses and you need to check with your local authorities on this.
You will also require a much deeper understanding of the market and conduct extensive research on the product you intend to sell.
If you ever watch Shark Tank, you will realize that many of the businesses successfully grow because of the audience they have on TV, and often it is always the simplest product.
People get to know and learn about the products. But obviously, not every one of us will have a chance on the TV show.
Which further proofs the point of building an audience.
You can have the best product in the world but if no one knows about it, you’re not going to make a single penny.
What can we learn from celebrities who are making millions in businesses?
You should have realized by now marketing is everything, Building an audience is the key.
This is the common key among all the celebrity success stories mentioned above.
The second reason why they succeeded is that they had an interest in the business and not just doing it because it makes money.
Celebrities leverage their influence and their large following audiences to be successful.
It does not matter what you’re selling if you do not have a proper audience-building strategy or most might call it a marketing strategy.
Learn to grow and reinvest on whatever you have earned by putting it back into the business to build a larger audience.
A good example is Youtuber Mr. Beast, who recently spent a few million dollars to make his version of Squid Game.
He is always reinvesting in his brand to build his business further.
Conclusion – Celebrities making millions in business
Here is your takeaway from this article
Audience building is as important as having a good product.
Reinvesting in your business is the only way it will grow
Step out of your comfort zone and start doing something today.
There are quite a number of celebrities making millions in businesses out there and many of them use their popularity to sell or promote products.
This is the key to making them a million or billionaire today.