The Nepo Baby Boom: When Fame Becomes a Business Model
There’s something undeniably fascinating about the rise of nepo babies—children of celebrities who leverage their family name into lucrative business empires. A recent report from Overnight Glasses highlights the top 10 businesses owned by these so-called nepo babies, and it’s not just the numbers that are eye-opening. It’s the why behind their success that’s truly intriguing.
Personally, I think what makes this phenomenon so compelling is how it challenges our traditional understanding of entrepreneurship. We’re taught that success comes from hard work, innovation, and grit. But in the case of nepo babies, their biggest asset isn’t a groundbreaking idea—it’s their last name. Take Kylie Jenner’s Kylie Cosmetics, for example. Launched in 2015, the brand reportedly peaked at $500 million in revenue. What’s striking isn’t just the money; it’s the fact that her 34 million social media followers essentially acted as a built-in marketing machine. If you take a step back and think about it, this flips the traditional business model on its head. Instead of building an audience, they start with one.
This raises a deeper question: Is this fair? Critics argue that nepo babies have an unfair advantage, and I can see their point. But here’s where it gets interesting: these businesses aren’t just coasting on fame. Many of them, like Hailey Bieber’s Rhode Skin, have genuinely innovative branding and products. Rhode Skin’s minimalist aesthetic and strong online presence have helped it rake in an estimated $212 million annually. What this really suggests is that while fame opens the door, it’s execution that keeps it open.
One thing that immediately stands out is the diversity of industries these nepo babies are dominating. It’s not just beauty—though that’s a clear frontrunner. Kendall Jenner’s 818 Tequila, for instance, generated around $50 million in 2025, proving that the nepo baby boom extends beyond lip kits and skincare. What many people don’t realize is that these ventures often tap into broader cultural trends. Tequila, hot sauce, protein bars—these aren’t random choices. They’re products that align with the lifestyle branding their families are already known for.
From my perspective, the most underrated aspect of this trend is its psychological impact. When you grow up in the spotlight, entrepreneurship becomes a way to carve out your own identity. Gigi Hadid’s knitwear label, Guest in Residence, isn’t just a business—it’s a statement. Earning $30 million annually, it’s clear that her brand resonates, especially with younger consumers. But what’s more fascinating is how it allows her to step out of her supermodel shadow and into a new role.
A detail that I find especially interesting is the role of social media in all of this. Overnight Glasses CEO Gidon Sadovsky puts it perfectly: “Ten years ago, a famous last name mostly opened doors in entertainment. Now it gives a product millions of Instagram followers before it even exists.” This isn’t just a shift in business strategy—it’s a cultural shift. Social media has democratized fame, but it’s also commodified it. Followers aren’t just fans; they’re potential customers.
This brings me to a broader trend: the blurring of lines between celebrity and entrepreneurship. In the past, celebrities endorsed products; now, they are the products. Brooklyn Beckham’s Cloud23 Hot Sauce, Bella Hadid’s Kin Euphorics—these aren’t side hustles. They’re extensions of their personal brands. And while some may dismiss them as vanity projects, the numbers don’t lie. These businesses are thriving.
But here’s the thing: not every nepo baby venture succeeds. What makes the difference? In my opinion, it’s authenticity. Consumers can sniff out inauthenticity from a mile away. Brands like Georgia May Jagger’s Bleach London, which launched in 2010 and now generates $10 million annually, have stayed relevant because they feel genuine. They’re not just selling a product; they’re selling a lifestyle that aligns with their founder’s persona.
If you take a step back and think about it, the nepo baby boom is a reflection of our obsession with celebrity culture. We’re not just buying products; we’re buying into the fantasy of their lives. And while that might seem superficial, it’s also incredibly smart business. These founders understand their audience because, in many ways, they are their audience.
Looking ahead, I wouldn’t be surprised if this trend continues to grow. As social media evolves, so will the ways in which fame can be monetized. But here’s my prediction: the nepo babies who truly stand out will be the ones who use their platform to create something meaningful—not just profitable.
In the end, the nepo baby boom isn’t just about business; it’s about the power of influence. And whether you love it or hate it, one thing’s for sure: it’s here to stay.
