DeJoria tells CNBC he looks for three things when deciding whether a brand has potential.
1. Potential to scale
DeJoria looks for products that have the potential to benefit a massive number of people. For instance, his newest venture, Aubio Life Sciences, makes a lip balm that's designed to help cold sores disappear quickly. About two-thirds of the world's population, which is about 3.8 billion people, have the cold-sore virus, says DeJoria. That's a big market.
2. Potential for repeat customers
DeJoria also looks for products that you don't need to sell over and over again. He seeks out products or services that will become part of a customer's routine.
"You don't want to be in the selling business," DeJoria says. Instead, you want to be in the reorder business, where "your product or service is so good, people want to reorder it or reuse it."