Two sisters, Adrienne and Stephanie, enter the Shark Tank with their company, How To Be A Redhead. Being a beauty brand for a small community, How To Be A Redhead has done solid business with sales of over a million per year.
Sharks bombarded the two sisters with technical questions, but they answered them confidently and humbly. Mark and Kevin seemed interested in the brand, but did the entrepreneur get a deal on Shark Tank? Check out our How To Be A Redhead update to find out!
How To Be A Redhead Net Worth 2024
Adrienne and Stephanie asked for a $350k investment in exchange for 10% equity in their company. According to the entrepreneurs, How To Be A Redhead’s net worth was $3.5 million. The valuation was understandable since the company had $4.4 million of lifetime revenue with stable net profit. The margins were enough to advocate the high valuation. Mark Cuban offered $350,000 at a valuation of $2.33 million. From the look of it, the current net worth of How To Be A Redhead in 2024 is $3 million. The net worth will grow as the company will put the $350,000 in its working capital. The co-founders never took anything from the profits, a green signal for a higher net worth.
How To Be A Redhead Shark Tank Update
What Happened To How To Be A Redhead After Shark Tank?
For a quick How To Be A Redhead update, since departing from the Shark Tank, How To Be A Redhead has not changed much. The company surely has mentioned Shark Tank on numerous pages of their website. The Shark Tank Limited Edition Kit is the most prominent addition, which provides redheads with 11 beauty products for $255.
There are several announcements on the website. The lifestyle side of the brand is evident from the regular blog updates and production of podcasts since the deal on Shark Tank Season 15 Episode 14.
Did How To Be A Redhead Get A Deal On Shark Tank?
How To Be A Redhead was a community for people with red hair that sold beauty products and engaged them, unlike any other brand. The co-founders sought $350,000 for a 10% share in equity. The business idea and model did not impress Lori Greiner, Robert Herjavec, and Barbara Corcoran, as the investment was not their type.
Kevin O’Leary offered Adrienne and Stephanie $350,000 for $2.5 per order as royalty. Once the initial investment was repaid, the royalty would continue in perpetuity at $1 per order. He also demanded a 10% share in equity of the company.
Mark Cuban offered the duo $350,000 for a 15% share in the company. They happily agreed to Mark’s offer, and they had a deal. Keep reading our How To Be A Redhead update to see what happens next!
| Shark(s) name | Offer | Demand | Counteroffer | Accepted? |
| Mark Cuban | $350,000 | 15% share in the equity of the company | N/A | Yes |
| Kevin O’Leary | $350,000 | 10% equity in the company ‘and’ $2.5 as royalty per order. Once $350,000 is paid back, $1 as royalty per order in perpetuity. | N/A | No |
| Barbara Corcoran | Out | N/A | N/A | N/A |
| Robert Herjavec | Out | N/A | N/A | N/A |
| Lori Greiner | Out | N/A | N/A | N/A |
Adrienne and Stephanie’s Backstory
As for the How To Be A Redhead update, How To Be A Redhead was a website founded by two redhead sisters, Adrienne and Stephanie, in 2011. The sisters had problems finding beauty tips because no one could advise them. They were bullied when they were at school to the point that they used to color their hair blonde.
After creating the website, the duo toured the whole country and organized beauty events for redhead people. They even became L’Oreal’s brand ambassador in 2012. Three or four years of hard work earned them a publishing deal. The book How To Be A Redhead was published in 2016.
After the duo got done with the publishing, they started producing and shipping redhead beauty products. All the products were tested on redheads for ten days and labeled ‘Redhead Friendly.’ Adrienne and Stephanie achieved good logistics and owned a warehouse. Their company helped prove that redheads have a voice.
Initial Pitch
Adrienne and Stephanie started their pitch by calling themselves fierce redheads. They argued that red hair came with vibrant qualities, but people often joked about it, calling it ginger. The beauty product industry never targeted redheads as a prominent market segment.
The duo said that they had a lot of love to give. They created How To Be A Redhead, a beauty brand for the redhead community. They offered eyebrow gels and mascaras in red hot shades to color the light redhead lashes and brows. The glossy shampoo was developed to strengthen and hydrate the hair.
The products were for every redhead, whether they had red hair by birth or choice. The sisters claimed that the redhead community was more than just a color; it was a lifestyle. They sought $350,000 for 10% of the company’s equity share. They presented Sharks with their products and the redhead wigs to get the vibe going.
Queries About The Pitch
Kevin O’Leary started with a light question, asking if redhead women were called witches in the Middle Ages. The sisters confirmed what Kevin said. Adrienne said that they had been dealing with bullying for ages.
Lori Greiner had reservations regarding the pigmentation of the eyebrow gels. Adrienne said that shopping malls and retail stores never had the right shade for redheads. Even stores like Ulta Sephora had no separate section for redheads.
Kevin asked about the ratio of red people when considering the population. Stephanie explained that 2% of the world’s population, around 157 million, was redheaded. However, these stats did not consider people who used to dye their hair red.
Adrienne further explained that someone wrote that they had dyed their hair red and lost the coloring. The duo suggested the person long-wearing dye from their inventory as it was a universal shade of red. All redheads could use the long-wearing dyes. Adrienne added Stephanie had to wear blonde color for seven years because she was lost and could not ask anyone for advice.
Barbara Corcoran curiously inquired if any of the larger brands offered hair color for redheads. Stephanie confirmed that larger companies mostly skipped red shades while going from blonde to brown. Kevin kept arguing that the market was niche. However, the duo kept disagreeing.
Kevin demanded the sales figure in a cocky tone. Adrienne proudly stated that How To Be A Redhead made $833,000 in sales in 2022, is expected to end 2023 at $1.1 million, and is projected to close $2.4 million in 2024.
Mark Cuban inquired the sisters about the brand’s profitability. Stephanie answered that they were profitable. They had earned $88,000 as net profit and $250,000 as gross profit in 2023.
Lori asked where the company used most of their funds. Adrienne elaborated that all the funds from sales were invested back in the inventory. The company had taken no debt. The entity had been operating for the last 12 years and earned $4.4 million in lifetime sales. Over $2 million of lifetime revenue was made in the previous two years.
Robert asked what How To Be A Redhead has been doing in the first ten years since its incorporation. The duo told their journey. I have mentioned their answers in the ‘Backstory’ section of the update. Kevin wanted to confirm if the How To Be A Redhead products were available on the retail shelves. The sisters established selling their beauty products directly to the end consumers.
Robert asked about the product pricing and margin, holding the long-wear eyebrow gel in his hand. Adrienne explained that the long-wear eyebrow gel has a landing cost of $4 and was sold online for $26. Barbara and Kevin asked about the reordering ratio and average order value, respectively. Stephanie said that they retained around 55% of the customers. The average order value was $55, and the cost to acquire a customer was $26 per click.
Mark wanted to know if the company had products for men. Adrienne said that her husband had many in-grown hair. Redhead men had sensitive skin, so the ‘Finally Glossy’ shampoo was the right solution.
Kevin seemed interested in How To Be A Redhead. He said that the sales intrigued him, but he had reservations about how he would get his money back. The duo argued that they were planning to sell their products globally. Once they partner with a large company, the sales would be enough to pay back.
Kevin claimed that large companies only partner with businesses having a turnover of $50 million or more, while How To Be A Redhead only made $1 million in sales. Adrienne insisted that they were the only ones serving redheads. Redheads had proven that they had a market and were loyal enough.
Shark’s Response And Final Deal
Lori said that she loved the name of the company and the way the sisters turned from being teased to being profitable. She advised the duo to enhance the branding of How To Be A Redhead. The logo was too small, so the customers could not relate much to the product. She opted out, stating that this investment was not for her.
Robert also refrained from investing because the business was not his type. Barbara also opted out, as she felt the company did not need a Shark.
Kevin offered Adrienne and Stephanie a combo deal. He offered them $350,000 but demanded $2.5 as a royalty per order. Once $350,000 was paid back as royalty, the royalty per order would reduce to $1 per unit in perpetuity. He also demanded a 10% share in equity at the end.
Mark suggested to the co-founders that their company was not a product but a lifestyle business. He added that the entity was a club for redhead people, so he asked them about their approach to building the community.
Adrienne explained that they have a few methods to expand their community. They produced website content regularly and had a podcast with 10,000 downloads. They even hired a producer for their podcasts.
Mark asked if the duo was okay with making the company a lifestyle community first and keeping their products second. Adrienne said they spent ten years building the community for the same reason.
Mark offered How To Be A Redhead $350,000 for a 15% share in the company. The co-founders agreed in the end. They left Shark Tank, excited to face the upcoming global expansion.
Product Description And Availability
From our How To Be A Redhead update research, How To Be A Redhead sells a variety of products on their website. They have self-developed beauty products made specifically for red-haired people. The Long Wearing Eyebrow Gel and the Finally Glossy Shampoo are the top-selling beauty products developed by the company. It also has lipsticks, mascaras, and concealers in the inventory.
Visitors can subscribe to redhead-approved beauty products in packages. How To Be A Redhead has fast shipping and offers a gift card for orders over $50. As discussed with Mark Cuban, the company publishes blogs on its website daily and produces podcasts to address day-to-day issues faced by redheads.
Availability of How To Be A Redhead products can be a problem because it has no contract with the major retail stores. However, you can visit the official website to check the products and stay up to date.
The product and lifestyle content is difficult for the competitors to copy, as the co-founders have done outstanding research on redhead problems. The 12-year-long experience is challenging to have on your portfolio or replicate.
Conclusion
Regarding the How To Be A Redhead update, Adrienne and Stephanie showed their passion for saving redheads from the troubles the duo faced while they were growing up. How To Be A Redhead pitch was solid in responding to everything that the Sharks bombarded the co-founders with technical questions. Adrienne and Stephanie answered everything confidently, and each answer seemed to strengthen the company’s case.
Lori, Barbara, and Robert did not join the cause to help the redheads. However, Kevin and Mark did offer them deals to expand. Kevin’s deal was a mix of equity and royalty because he banked on the margins to recover his initial investment. Mark trusted the company’s cause with all his heart and asked if the duo was interested in forming a redhead community. The duo agreed, so they had a deal of $350,000 for 15% of equity in the company.
Hi. I’m Daniyal Durrani. A CA-finalist, CPA-UK, and Master in Economics, with a decade-long business studies experience. I work as an Audit and Business Advisory Manager in a globally recognized accounting firm. I have been watching Shark Tank for a long time and have always admired the innovative business ideas. The revolutionary solutions to unaddressed day-to-day problems presented on the show used to impress me like no other thing on TV. Read more About me.