Ipsy Founder Michelle Phan Creates a Beauty Revolution Through Community and Digital Innovation

Michelle Phan, founder of Ipsy, built one of the most influential beauty platforms from a journey that began with a passion for makeup and an understanding of the digital space. Her rise to prominence in the beauty industry was unconventional, yet she successfully created a billion-dollar company that reshaped how beauty is consumed and shared in the digital age.

Michelle’s journey into beauty entrepreneurship didn’t begin with business school or corporate experience. Instead, it started with a love for makeup and a desire to teach others through video tutorials. In 2007, she uploaded her first makeup tutorial on YouTube, a platform that was just gaining traction at the time. Her approachable teaching style and focus on sharing beauty tips quickly resonated with viewers. What distinguished Michelle from others was her ability to blend creativity with relatability. Her videos were not just about makeup application but were also a reflection of her unique aesthetic and personal story.

As her YouTube channel grew, so did her influence. By 2010, Michelle had amassed millions of subscribers, and her content consistently drew attention from both beauty enthusiasts and major brands. Recognizing the potential of digital content in the beauty space, she took the bold step of creating Ipsy in 2011. The subscription-based service, known for its Glam Bags, offered customers personalized beauty products each month. This model wasn’t new, but Michelle infused Ipsy with a community-driven ethos that set it apart from competitors.

Ipsy’s success lies in its seamless blend of e-commerce and content creation. Michelle understood that consumers were no longer interested in traditional advertising methods. Instead, people wanted to see products in action, learn from influencers they trusted, and be part of a broader community. This led her to position Ipsy not just as a product distribution platform but also as a space where beauty lovers could interact, share, and learn from each other.

The concept of Ipsy capitalized on the growing power of social media and influencers. Michelle’s experience as a content creator gave her an edge—she knew how to engage an audience, build trust, and promote products authentically. Under her leadership, Ipsy cultivated relationships with beauty influencers, offering them a platform to reach larger audiences. These influencers, in turn, became ambassadors for Ipsy, further driving its growth and solidifying its position in the beauty industry.

Ipsy’s signature Glam Bags became a central part of its identity, offering subscribers a selection of sample-sized beauty products tailored to their preferences. The personalized aspect of the service was key to its appeal, allowing customers to explore products they might not have otherwise tried. This model also benefited beauty brands, particularly smaller ones, by giving them access to a wide and engaged audience.

Michelle’s approach to Ipsy was rooted in a deep understanding of the modern consumer. She recognized that beauty was more than just skin-deep for many people—it was a form of self-expression, empowerment, and creativity. Ipsy was built to cater to this mindset, offering not just products but a sense of belonging and connection. The brand’s emphasis on community has been a major factor in its success, and this focus on building relationships with customers continues to be a core part of its strategy.

As the beauty industry evolved, so did Ipsy. Michelle’s leadership ensured that the company stayed ahead of trends, expanding its offerings and deepening its engagement with its customer base. Ipsy introduced new features such as the Ipsy Open Studios, which provided a platform for up-and-coming beauty influencers to grow their audiences and refine their craft. This initiative further positioned Ipsy as a leader in the influencer-driven beauty space.

Michelle’s entrepreneurial journey, however, was not without challenges. Like any startup, Ipsy faced competition and the inevitable hurdles that come with scaling a business. But Michelle’s ability to adapt, her intuition about digital trends, and her unwavering focus on community-building kept the company thriving. She stepped down as Ipsy’s CEO in 2017 but remained actively involved in the brand’s development and growth.

Outside of Ipsy, Michelle continued to explore new ventures and creative projects. Her passion for beauty and her entrepreneurial spirit led her to launch EM Cosmetics, a beauty line she originally introduced in partnership with L’Oréal in 2013. Although the initial launch didn’t meet expectations, Michelle later relaunched EM Cosmetics as an independent brand, taking full ownership and control over its direction. The second iteration of EM Cosmetics reflected Michelle’s more mature vision for beauty, focusing on high-quality products and a direct-to-consumer model.

Michelle’s story is one of resilience and reinvention. She built a personal brand based on authenticity, creativity, and a deep understanding of her audience. This connection with her audience was key to both her success on YouTube and the rapid growth of Ipsy. Even as she shifted focus from the daily operations of Ipsy, Michelle continued to influence the beauty industry through her other projects and her enduring online presence.

One of the most striking aspects of Michelle’s journey is how she used her platform to challenge traditional norms in the beauty industry. She embraced diversity and inclusivity before these values became mainstream in the industry. Through Ipsy, she provided a platform for creators of different backgrounds and skin types, encouraging a more inclusive representation of beauty. This commitment to inclusivity was reflected in the products featured in Ipsy’s Glam Bags, which catered to a wide range of skin tones, types, and beauty preferences.

Michelle’s influence extends beyond beauty. As a pioneering digital entrepreneur, she has inspired countless other creators to pursue their passions and build businesses in the digital space. Her early adoption of YouTube and her innovative approach to beauty e-commerce made her a trailblazer in both industries. Today, her legacy is not just in the success of Ipsy but in the countless creators and entrepreneurs who followed in her footsteps.

The impact Michelle has had on the beauty industry and digital entrepreneurship is undeniable. Her journey from a YouTube content creator to the founder of a billion-dollar company is a testament to her vision, resilience, and ability to adapt in a rapidly changing world. She carved out a new path in the beauty industry, one that prioritized community, inclusivity, and authentic engagement over traditional advertising and retail models.

As Michelle continues to evolve as a creator and entrepreneur, her influence will undoubtedly persist. Ipsy remains a dominant force in the beauty subscription market, with millions of subscribers and a global community of beauty lovers. Michelle’s role in building this brand has cemented her place as one of the most influential figures in modern beauty, and her story serves as an inspiration to aspiring entrepreneurs everywhere.

In a world where success is often defined by numbers and profits, Michelle’s journey is a reminder of the power of staying true to one’s vision. She built a business not just for the sake of profit but to foster a sense of community, creativity, and self-expression. This focus on authenticity is what has made her—and Ipsy—a lasting force in the beauty industry.

Michelle Phan, Co-Founder, Ipsy

Michelle’s approach to Ipsy was rooted in a deep understanding of the modern consumer. She recognized that beauty was more than just skin-deep for many people—it was a form of self-expression, empowerment, and creativity.