EOS Lip Balm Shocked Its Makers

The EOS lip balm company has achieved some amazing things since it introduced itself to the beauty world in 2007. One of the things that it did since that faithful day was steal the hearts of celebrity role models around the world. Part of the reason that EOS is as successful is because of the celebrity equation. For every celebrity that uses EOS lip balm, there are several million Facebook fans that use it, too. The company’s sales skyrocketed when female celebs started personally endorsing the products.

The creators of EOS lip balm probably had no idea that they were going to become a hit in what seemed like only a few days. Their primary goal was to manufacturer a beauty product that would be fun to use instead of boring and routine. The plan worked more than anyone expected. Billions of people have purchased the lip balm. In fact, so many people have bought the lip balm that the company’s profits reached $250 million. The success was a pleasant surprise for cofounder, Sanjiv Mehra. Mehra originally just wanted to have some fun and cause a buzz inside of the beauty stores, http://www.ulta.com/brand/eos. Instead, an entire empire came formed.

Mehra’s plan was to shift the focus of lip balm back to women, but that wasn’t the only part of the plan. Once this special lip balm item got attention, it would then become part of a woman’s everyday regime for looking good. The creators never knew that their item would blow up so much that Christina Aguillera and Kim Kardashian would be huge users. Companies like Chapstick, Carmex and Blistex truly got burned when this company started gaining traction. EOS has surpassed both company and only has to worry about Burt’s Bees at this time.

For Adam Goldenberg, Experience Is The Best Education

Adam Goldenberg has a long, extensive history with entrepreneurship and start-up companies. One look at him, though, and you wonder how somebody so young knows so much about starting and building companies. The answer is easy, he started young. Like, 15 years old young.

Young Entrepreneur
When Adam Goldenberg was 13 he started an online bulletin board service, two years later he turned it into an online gaming service, Gamer’s Alliance. It became so popular it was acquired by Intermix Media. Even though he was only 18 at the time, Adam was hired by Intermix and he eventually became the COO of the company. At 20, he was the youngest COO of a publicly held company.

Partnerships Are Formed
While Adam Goldenberg was at Intermix, the company acquired another business, Fitnessheaven.com. That company was started by Don Ressler and he and Adam soon became friends and co-workers. Together, the two of them developed Alena Media an e-commerce and advertising company. Alena generated millions of dollars and was the only profitable part of Intermix. In 2005, News Corp acquired Intermix but despite the profitability of Alena, the company was ignored.

Disappointed with the response of News Corp, the two left Intermix for bigger and better business opportunities.

Read more:
24 questions with JustFab Co-CEO Adam Goldenberg
JustFab wants to be the next H&M

New Ideas, New Opportunities, New Companies
The young and aggressive entrepreneurs worked with former employees of Alena Media and together they launched Brand Ideas, which later became Intelligent Beauty. Through intelligent hiring, creative leadership, and a lot of dedication Intelligent Beauty launched Sensa and Dermstore. The two businesses were highly profitable. In 2008, their hard work was rewarded with $43 million of funding.

In 2010, Intelligent Beauty started JustFab, an online fashion subscription retail service. Based on the solid business model and the experience of Adam Goldenberg and Don, the company received $33 million from Matrix partners. The business was immediately successful and in April of 2012 they received their six millionth subscriber. This was followed by another $76 million of investment from Intelligent Beauty, Rho Ventures, Matrix Partners, and Crossover Ventures.

The company continued to expand to Europe and has over 3 million subscribers in Germany, France, Spain, and the UK. They started FabKids for children’s fashion and Fabletics for athletic wear. In September 2013, they opened their first storefront operation.

So with all this success, Adam says if he could give his younger self any advice it would be, “Ask more, tell less.”

Learn more about Adam Goldenberg on Vator.TV