How To Be A Redhead: Shark Tank Red-Haired Entrepreneurship
How to be a Redhead is a unique business that appeared on Shark Tank Season 15 Episode 14. Adrienne and Stephanie Vendetti are sisters, natural redheads, and entrepreneurs. They also created a booming business cleverly named How to Be A Redhead, because of their challenge in finding beauty products tailored for their hair and skin.
How to be a Redhead – The Numbers:
- Amount and equity asked: $350,000 for 10% equity
- Amount and equity received: $350,000 for 15% equity
- Shark(s) in the deal: Mark Cuban
- Valuation of the deal: $2,333,333
Table of Contents
How to Be a Redhead Shark Tank Pitch
The Shark Tank episode featuring How to Be A Redhead aired on February 16, 2024 on ABC. Adrienne and Stephanie Vendetti confidently walked in announcing their company and introducing the company with:
Redheads have been kicked to the curb, left behind, we don’t get any love, but, Sharks, we have so much love to give. And that’s why we created…How To Be A Redhead.
Adrienne and Stephanie Vendetti – Shark Tank
They have been in business for 13 years, and they built a small redhead empire with multiple revenue streams. They mentioned how there are well over 150 million redheaded people in the world, thus opening the market to a gigantic audience.
Moreover, Barbara comments that larger companies must have products with shades of red. However, while common beauty products skip the red going from blonde to brown, Adrienne and Stephanie fill that gap in the market.
Fun Fact: Mark Cuban and Kevin O’Leary wore red wigs, perfectly fitting into the redhead theme of the negotiations. Mark even commented “Tell them sisters, tell them how powerful we are!!”
H2BAR Sales and Costs
When it comes to sales, How to be a Redhead is projected to do $1.1 million this year, last year $833,000, and projected $2,4 next year. They are already profitable with $80,000 out of $250,000 gross profits. They also have no debt, while reinvesting everything back into the product line. This is quite a great achievement.
The lifetime sales are $4.4 million, but about half of that has been done in the first two years. At this point, curiosity arises about the first decade in business. For that, they have been touring the country doing a so-called “Rock it like a Redhead” events. These were confidence beauty events, out of which they started shipping out redhead-approved products.
In terms of margins, an eyeliner is $4 landed and sold for $26. Out of all customers 55% come back. The cost of acquiring a customer is in average $26 cost per click. That leads to a liftime value of customers of around $300.
Mark then asked about men’s products for redheads. For men, they have the Finally Glossy Shampoo.
Negotiation with the Sharks
Lori Greiner mentioned that she loves the name, and how Adrienne and Stephanie transformed the business into a profitable venture. Yet, this was not the best fit for her, and for that reason, she was out. Similarly, Robert Herjavec also left the negotiations feeling that he was not the best shark for this kind of business.
Barbara Corcoran had a different view. She actually thought that How to be a Redhead was wonderful, but they had the whole package and didn’t need a Shark. And with that, she was out.
Kevin O’Leary, as he always does, proposed a royalty deal. He started with matching Adrienne and Stephanie’s request for $350,000 for 10% of the company. Then, he requested $2.5 until he made his money back, then the royalty would have gone down to a single dollar per unit in perpetuity.
Mark Cuban asked a clever question:
You are not a product company, you are a lifestyle company. How do you build your community so that every redhead knows that you have to be part of this community.
Mark Cuban
After a few comments about building this community, Mark made an offer that was straightforward. He offered the $350,000 that the Vendetti sisters requested, but he increased his equity to 15%. That seemed to be ok with Adrienne and Stephanie, and they accepted the deal.
How To Be A Redhead: Origins of the Business
Adrienne and Stephanie Vendetti Background
The Vendetti sisters experienced firsthand the struggle to locate “redhead-friendly” beauty items. As teenagers, they experimented extensively to identify products that would not irritate their sensitive skin or clash with their fair complexion. The lack of available options made them self-sufficient in their beauty regimen, marking the early days of their entrepreneurial journey.
How To Be A Redhead: H2BAR Evolution from Idea to Business
In 2011, their vision materialized as they launched the website howtobearedhead.com. Adrienne, with her fresh college degree, and Stephanie, completing her senior year in business, created the website to celebrate redhead individuality and offer tailored beauty advice. Their mission—to provide a supportive community and to validate the beauty of redheads—quickly transitioned from a passion project to their full-time commitment, embodying both a brand and a best practice guide for redheads worldwide.
What Products Does H2BAR Offer?
H2BAR, short for How to be a Redhead, is designed to meet the unique beauty needs of individuals with red hair. Their products span from specialized makeup to apparel, all curated with the redhead’s sensitive skin and unique hair in mind.
Beauty Products: Eye Care
H2BAR offers an array of eye care products tailored for those with sensitive eyes commonly associated with redheads. Their mascaras, such as Finally Have Lashes® – RED-Y For Lashes Perfectly Auburn Mascara, are crafted to volumize and define without causing irritation, utilizing a clean formula free from common irritants like paraben and silicone.
Apparel: Wear Your Redhead Proudly
Redheads can express their pride with H2BAR’s apparel line, featuring eco-friendly options like 100% combed and ring-spun cotton t-shirts. These garments are designed to celebrate the unique redhead identity with comfort and style.
Hair: Keep Your Fabulous Red Hair Shining
The line also includes hair care specially formulated for red hair types. Products like the Finally Glossy® Hair Shampoo are created to enhance shine and strengthen red hair without depositing color, suitable for all shades of red from auburn to deep chestnut.
Accessories: Gadgets For the Reds and More
In addition to beauty and hair care, H2BAR also provides a selection of accessories that complements the redhead lifestyle, ensuring there is something for every redhead’s needs.
H2BAR Box: Seasonal Collections Right To Your Door
For redheads looking to indulge in a variety of products, H2BAR offers the H2BAR Box – a beauty subscription box delivering a collection of redhead-approved beauty items seasonally, ensuring redheads can enjoy a curated beauty experience all year round.
How Much Do How to Be a Redhair Products Cost?
| Product Category | Main Product Name | Special Attributes | Price Range |
|---|---|---|---|
| Eye Care | Mascara (Various Shades) | Paraben-free, Cruelty-Free, Vegan | $15 – $25 |
| Apparel | T-shirts, Sweatshirts | Eco-friendly, 100% Cotton | $20 – $40 |
| Hair Care | Finally Glossy® Hair Shampoo | Free from Sulfates and Parabens, Vegan | $10 – $25 |
| Accessories | Bobby Pins, Hairties, Mugs | Redhead tested and quality checked | $3-$16 |
| Beauty Box | H2BAR Box | Seasonal Collections, Redhead-Friendly | $70 – $100 per box |
Why is Skincare Important If You Are a Redhead?
For the nerds, the genetics of redheads is defined by a mutation in the MC1R gene, also called melanocortin 1 receptor. It dictates the iconic red locks, freckles, pale and thinner skin, and even an increased production of vitamin D. Thinner skin also places blood vessels and nerves closer to the surface. This makes the skin itself more sensitive to environmental conditions and prone to irritation.
The sensitivity of redhead skin can lead to a higher propensity for dryness, couperose skin (characterized by visibly dilated capillaries, especially around the nose and cheeks), and adverse reactions to shaving.
These physical attributes are due to the reduced amounts of eumelanin and it’s linked to a specific mutation on the MC1R gene on chromosome 16. There is also a higher need for optimal skincare, as the low levels of eumelanin make them more prone to skin cancer.
History and Interesting Facts About Redheads
Red hair is rare, only about 1% of the world’s population has them, although 40% carry the gene for red hair. It requires two carriers of the gene to produce a red-haired child. This means that both mom and dad need to carry a mutation in the MC1R gene to have a red-haired kid.
The red hair variants in the MC1R gene likely first appeared in ancient humans around 30,000-80,000 years ago, coinciding with early migrations out of Africa. This gene mutation results in higher levels of a red/yellow pigment called pheomelanin, which gives hair its red color.
The gene that causes red hair in modern humans is different from that found in Neanderthals, suggesting that red hair evolved separately in Homo sapiens. The origins of red hair in modern humans have been traced back to the Steppes of Central Asia around 100,000 years ago, with the red hair mutation occurring in the M1CR gene. This mutation allowed for better absorption of UV light but also made the skin more sensitive to the sun.
The genetic marker common among redheads can be traced back to its dominance back to the British Isles, although its presence is found in various populations around the world.
In the Middle Ages, redheads were often subject to superstition and myth. There were associations with red hair and various forms of immorality, such as intense sexual desire and moral degradation. Redheads were also stereotyped as untrustworthy and linked to witchcraft, vampirism, and lycanthropy. The Spanish Inquisition is said to have singled out redheads for persecution, believing their hair to be a sure sign that they stole the fires of hell.
How to Be A Redhead Business Model and Marketing
H2BAR, known as How to Be A Redhead, operates within a multi-faceted business model emphasizing redhead-specific products and content.
Direct To Consumer Products
H2BAR offers redhead makeup crafted specifically for red hair and sensitive skin. They market beauty boxes, featuring ‘Redhead Friendly’ products curated to meet the unique needs of redheads. All products go through an internal testing and approval process to guarantee quality and usefulness for redhead customers.
Book Sales
They also generate revenue through book sales. Their book is the blueprint for redheads looking for inspiration and advice. Adrienne and Stephanie offer thoughtful insights on skincare, hair care, makeup, and fashion tailored for the redhead community.
The Sisters are also Influencers
The Vendetti sisters are influencers, potentially offering a separate stream of income for How to Be A Redhead. They amassed 180,000 followers on Instagram and about 49,000 on TikTok. This allows them to reach a wide audience for customer messages. That thanks to their personal brands that amplifies their business’s reach, and their credibility within the redhead niche.
Display Ads
H2BAR utilizes display ads within their website and communications, capitalizing on their niche market to attract advertisers looking to target redheads. A simple web traffic check shows an average of 40,000 visits per month to their website. Using display ads, this translates to about $7,000 per month.
Affiliate Program
They couple their offerings with an affiliate program through Share a Sale. This is a great opportunity for them to create passive income, where the marketing effort is driven by affiliates rather than the business itself. It also allows fostering partnerships with other brands and entrepreneurs, and potentially increasing their exposure, making it a win-win situation.
H2BAR Social Media
@howtobearedhead Cutest mom/daughter award goes to @Morgen 🥰👩🏼🦰 Daughter, Kins, is wearing Perfectly Auburn + Mom, Morgen, is wearing Perfectly Chestnut in the newest #FinallyHaveBrows Enhancing collection ❤️✨ #redheadmakeup #makeupforredheads #mascara #gingertok #fyp ♬ Sugar Plumbin' (NCS) – Reece Taylor
H2BAR is very interactive with the audience on social media. They maintain constant contact with their followers by posting about their daily lives, achievements, ideas and stepping stones. They regularly engage redhead communities on Instagram, Facebook, TikTok, YouTube and through their podcast.
How To Be A Redhead Podcast
The How To Be A Redhead Podcast serves as a hub for discussions about the unique experiences of redheads. It features tips, interviews, and conversations tailored to the interests of the redhead community.
Red Domination on Instagram, Facebook, and TikTok
@howtobearedhead We can’t wait to tell you 😍 BIG announcement on Monday, February 5th 👩🏻🦰 What could it be?!! #fyp #redheads ♬ original sound – How to be a Redhead
On Instagram, Facebook, and TikTok, H2BAR boasts thousands of followers with content that celebrates and empowers redheads. They are very active and I found quite funny how they teased followers about H2BAR appearance of Shark Tank.
They do a wonderful job in sharing their world, the inspiration, and excitement that come along with being entrepreneurs. Users on social media are often tired of watching ads all the time, yet, their presence is quite entertaining and lighthearted, thus making it a nice pop-up throughout your social medial scrolling time.
Customer Reviews
Customers often share their experiences with How To Be A Redhead products. They highlight the ease of finding beauty items tailored for redheads.
Positive Feedback:
- Users express satisfaction with the H2BAR Box, a subscription service delivering redhead-specific beauty products.
- The book “How To Be A Redhead” receives praise for its comprehensive tips on skincare, hair care, and makeup.
Top Rated Items:
- The “Finally Have Brows” tinted eyebrow gel is frequently lauded for its effectiveness for redheads.
- Redhead-friendly makeup has a lot of positive testimonials for its compatibility with sensitive skin and unique redhead tones.
Testimonials:
- Many customers appreciate the sense of community and shared experience the brand fosters.
- Reviewers often recommend the How to be a Redhead subscription box for its value and the variety of products included.
Customer reviews indicate that How to be a Redhead successfully fills a niche in the beauty market, offering products that cater to the specific needs of redheads with a personal touch.
Seb
Seb is a PhD scientist by training, and an entrepreneur by heart. He started his first business while in elementary school, and he got in trouble for it! He then moved onto various online ventures, including consulting and e-commerce. Seb loved Shark Tank since he saw the first episode of Season one on TV. The rest is history.
