How Rhode built a $1B brand in 3 years – and what you can steal

When e.l.f. Beauty announced its $1 billion acquisition of Rhode – the minimalist, skincare-first brand founded by Hailey Bieber – headlines lit up across the beauty and business worlds. A billion-dollar exit in just three years? It’s easy to chalk it up to celebrity power.

But dig deeper, and you’ll find a brand built on sharp strategy, not just selfies. Focused products. Community-led marketing. Smart growth decisions. It turns out Rhode wasn’t just riding the fame train – it was driving it with precision.

There’s a playbook behind the buzz – and it’s one any small brand can learn from. Let’s break down five replicable lessons (plus a bonus move) that can help you build your own Rhode-worthy growth story.

1. Keep your SKU strategy tight

Rhode launched with just a handful of hero products. Instead of flooding the market, they made sure their skincare staples were iconic, refined, and memorable.

What small brands can learn:

• Nail one thing first. Become known for it.
• Fewer SKUs = better feedback loops, tighter inventory management, and clearer brand identity.
• Focus builds trust. Trust builds loyalty. Loyalty builds traction.

Small brand inspo: Cocokind started with MyMatcha and a simple cleansing oil. They didn’t rush. They iterated. And they built a fanbase that trusted them long before expansion.

2. Build in public

Rhode let followers peek behind the curtain. From product testing to packaging design, they involved their audience in the process.

What small brands can learn:

• Share the BTS. Show the messy middle. Let people in.
• Ask for feedback early and often.
• When customers feel part of the journey, they’re more likely to stick around for the destination.

Small brand inspo: Erleia Skin’s IG stories show everything from formulation fails to customer DMs. That transparency? Chef’s kiss.

3. Build a real community, not just hype

Rhode wasn’t chasing virality—they were nurturing belonging. Their brand rituals (think: Glazing Milk moments) created habits and connection.

What small brands can learn:

• Talk with your audience, not at them.
• Start rituals or series they can participate in.
• A small, passionate community > a massive, indifferent one.

Small brand inspo: Superboba hosts monthly tea time convos with fans about skincare routines. No big production. Just real talk.

4. Use influencers with intention

Yes, Rhode had Hailey. But they didn’t stop there. They partnered with aligned creators to extend the brand’s reach and tone.

What small brands can learn:

• Micro-influencers and user-generated content (UGC) = major impact when it’s a good brand fit.
• Go for depth over clout. Prioritize people who get you.
• Build relationships, not one-off posts.

Pro tip: Check out our UGC marketing guide to go from "DMs and desperation" to strategy and results.

5. Know when to grow or exit

Rhode sold at a peak moment: high demand, lots of room to scale. That’s not luck—that’s savvy timing.

What small brands can learn:

• Growth isn’t always linear—it can be strategic.
• Stay self-aware: What does "success" look like for you?
• Smart exits are just as valuable as product launches.

Bonus: Go DTC first, then expand

Rhode was fully DTC until the e.l.f. acquisition. No Sephora. No Target. Just direct relationships with their customers.

What small brands can learn:

• Control the brand experience early on
• Use DTC to test, tweak, and build demand
• Let wholesale chase you, not the other way around

When your brand is ready to expand, check out an on-demand session from our Virtual Conference, The Journey From Ecommerce To Retail, for expert tips.

The takeaway? Strategy > spotlight

Rhode’s billion-dollar exit is a headline, but behind it is a blueprint. Strategic focus, community-first storytelling, intentional influencer partnerships, and thoughtful growth all played a role – not just celebrity status.

Whether you’re in year one or year five of your brand journey, these lessons can help you cut through the noise, connect deeply with your audience, and scale smartly.

Because building a breakthrough brand isn’t about doing more. It’s about doing the right things, really well.

Your turn: What’s your hero product? How are you building in public? Tag us or share your journey on social (@joinsaltbox) – we’re here for it.