How did Daymond John make his first million?
Daymond John, the founder of the iconic streetwear brand FUBU, has an inspiring story of turning a simple idea into a global fashion empire. His path to making his first million is a story of innovation and seizing the right opportunities. Daymond grew up in Queens, New York and later became one of the most successful entrepreneurs in the fashion industry and today known for his appearance on the show Sharktank.
Early Life And The Beginning of FUBU
Daymond was raised by his single mother. Growing up in a lower-income neighborhood, Daymond always had a strong work ethic and entrepreneurial spirit. His mom recalled him always being interested in selling something. From a young age, he took on various jobs, including handing out flyers and working at Red Lobster. However, his true passion was in creating clothes that reflected the style of the emerging hip-hop culture of the late 1980s and early 1990s.
FUBU, which stands for “For Us, By Us,” was born out of John’s desire to create a brand that represented the community and urban lifestyle. He noticed that many big brands were capitalizing on hip-hop cultur. However, there wasn’t much participation from the community. Daymond saw an opportunity to create a fashion line that spoke directly to the people who lived and represented hip-hop.
Mortgaging Their House For Funding
Daymond’s initial challenge was funding. With no outside investment, he needed to find a way to start the business on a shoestring budget. Daymond’s mother played a crucial role in FUBU’s early success. Seeing her son’s passion, she mortgaged their home to raise $100,000 in seed capital. They transformed their house into a mini production facility, sewing hats and shirts with the FUBU logo in the living room and basement.
Daymond and his friends began by making hats, t-shirts, and sweatshirts and selling them locally on the streets of Queens. These initial sales helped the brand gain a small following. However, he knew that in order to reach the next level, he needed more visibility.
The Power of Celebrity Endorsements
One of the smartest moves Daymond made was leveraging the influence of hip-hop artists to promote FUBU. His big break came when he convinced LL Cool J, a fellow Queens native and one of the most famous rappers at the time, to wear a FUBU hat in a Gap commercial. Although the ad was for Gap, LL Cool J famously wore the FUBU hat and even slipped the line “For Us, By Us” into his rap.
This subtle promotion gave FUBU massive exposure, putting it on the radar of millions of viewers. The brand gained credibility almost overnight, and suddenly, FUBU was seen as a symbol of hip-hop culture. Daymond’s ability to understand the power of celebrity endorsements helped him take his brand to the next level.
Partnerships and Major Deals
With the new fame and growing demand, FUBU quickly expanded. Daymond began attending trade shows, where he made connections that would take the brand to the next level. His persistence paid off when he secured a deal with Samsung Textiles, allowing FUBU to mass-produce its clothing. This partnership was a game-changer, providing the resources needed to scale production and distribute the brand nationwide.
By the mid-1990s, FUBU was not only a staple in hip-hop culture but also a multimillion-dollar brand. Daymond’s first million came when FUBU became a national brand, stocked in department stores across the U.S. The brand’s popularity soared, and by 1998, FUBU was generating over $350 million in annual revenue.
Image Attribute: U.S. Embassy Nairobi, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons
