[00:02] here was a genius entrepreneur you'd probably call me crazy taylor hit you'd probably call me crazy taylor hit it off the ceiling ceiling however as well as making his insanely entertaining videos
[00:16] mr beast is running the biggest youtube business in history with each video he uploads he seems to offer bigger prizes with bigger budgets which leaves the question how on earth can one 22 year old youtuber have this
[00:28] i mean views paid but when you're giving away private islands and houses like there's something going on we need to investigate what does jimmy know about us don't well in this video we're going to
[00:43] beast if you were trying to monetize your own channel this could be the most important video you watched this year now i've broken down the business behind some other top youtubers in the past
[00:56] interesting case study so far over the years there's been a lot of fortune has come from i've seen people claim he's a trust fund baby an early stage bitcoin investor and even some conspiracy theories that his
[01:10] fake while these explanations are clearly not true when you crunch the numbers on mr beast's channel it does seem quite puzzling he's month just on his employees in rent and in
[01:23] months of 2020 he had already spent 10 million on content spending well over 2 million dollars a month running his channel sure he gets a lot of views but even with a good cpm pretty much no one else
[01:37] spending the truth is jimmy has turned his and through my research i have broken down the three main steps he has taken millions in the bank to learn from these lessons
[01:50] business on youtube let's get straight into things how much money did you catch 1929 and according to google that's when the great depression hit yeah now here's the biggest secret youtubers
[02:06] make more money than people think and what i said earlier isn't entirely could afford to spend this much money on their videos but 99 of people aren't willing to go all in like mr beast
[02:18] by viewing his business through the eyes of a youtuber myself it starts to make across his channels he's averaging about 600 million views a month if we gave him an average rpm of two dollars he'd be bringing in an estimated
[02:30] adsense it's not too much of a stretch to making a further 800k through his sponsorships and merchandise sales which would just about cover the 2 million monthly spending we estimated
[02:44] to bankrupt every month but the economics do make sense in theory however the real genius is in how he got to this stage in the first place and that starts with step number one crowdfunding his ideas
[02:57] now the concept of crowdfunding is nothing new but the way mr visa is really smart in business a crowdfunding scenario is product and lots of like-minded people come
[03:10] become a reality now by no means my saying mr beast is his accountant is probably the most stressed out human being in the world concept over to his videos he reinvests everything he makes from
[03:25] his audience back into his channel which creates a feedback loop he makes a merch then he makes an even better video using that money and the process is repeated just read this tweet about his exclusive
[03:39] merch launch in august this is crowdfunding his supporters bought tens of thousands of t-shirts to help make his 40 million video a reality same model the entire time but why does this work for him why are
[03:53] people so willing to support him the answer is mr beast is purpose driven wants to take his videos to a level never seen before on youtube and make the world a better place while doing so this gives him incredibly
[04:08] buy-in which is a term i use to describe how dedicated a subscriber bases to with youtubers if you buy their merch and watch their mid-roll ads you their pockets which is perfectly fine but with jimmy
[04:22] you feel like you're helping him change youtube and make other people's lives standing for something attracts other people to get behind you about before sure there are lots of people who just casually watch mr
[04:35] but his clear mission and constant reinvestment means more and more people turn into super fans who helped fund his ideas and back him building this tribe of supporters who want to see him succeed means that when
[04:47] he does sell to his audience he gets results like this see this giant cube of shirts here i have to sign every single one of these shirts in this cube and it could literally take me weeks what the heck guys do you hate me
[05:00] mr beast to apply this idea to your own channel believe in you and what you are trying to achieve are you actually creating with your content
[05:12] you've got to think about more than just money and mr beast is living proof now this is all heartwarming and positive but let's you don't get to this stage without having a really strong strategy to grow
[05:25] your business which takes us on to step number two mr beast is building a monopoly on youtube people don't really like to admit that youtube is a competitive market but the top creators are in direct competition
[05:37] and attention to stand out you need to offer something different and be ahead of the curve we can call this a channel's unique others can't perhaps it's a new way of editing
[05:50] superior thumbnail designs or even being the first to jump on a new trend that something works they all rush to replicate it on their own channel which in turn leads to saturation and less results for everyone
[06:04] very difficult to replicate well then you have a youtube monopoly and this is what mr beast has done in traditional business the idea of monopolies is a bit controversial but for creators it's more of a mindset
[06:18] thing than anything else the easier to replicate your content is having mr beast is pretty much impossible to every time he uploads it's something that hasn't been done before and
[06:31] his format of high budget videos and projects means there was a clear barrier if you look at his last three uploads you'd need to be a multi-millionaire with a team of 30 plus people to replicate these ideas
[06:44] ksi's last three uploads hundreds if not thousands of other few hours now obviously ksi is doing just fine but there's a reason why every video mr beast uploads gets over 20 million views
[06:59] not pointing any fingers but right now anyway mr beast owns his this is one of the reasons his channel has not plateaued and his business he has found a formative content where he has virtually no competition
[07:14] and this should be the goal for every creator now the way you or me get there is going to be different to mr beast unless you're a secret billionaire but i things about your content that others can't replicate
[07:26] and making them a part of your strategy not everyone can build a monopoly this now it would be wrong for me to make a video on mr beast's business model and not mention how he has revolutionized
[07:39] brand deals used to have a pretty bad rep on youtube i would say they were too many it didn't take much to be labelled as annoying part of the video you couldn't wait to skip
[07:53] however youtubers such as mrbeast and david dobrik have really flipped this on using a new strategy for sponsors that we can all learn from mr beast makes brands part of the video and the overall story
[08:06] this is a completely different way of viewing them they are not dead space interesting segment that people won't just skip look how he integrates apex legends here in one of his recent videos
[08:18] buying hundreds of gallons of chemicals was surprisingly expensive which is why video battle royale all three of the boys are going to be playing a game of apex legends and if they win we're going to give carl's mom
[08:31] they win we're going to give carl's mom 10 000 but if they lose we're gonna have start searching he turned what can often be a boring part of the video jimmy also makes it clear that the sponsors help make the videos better
[08:45] to the budget with his brand deals everyone is a videos the sponsor gets the best advertising their video interrupted if anything it's improved this is a
[09:01] philosophy that every youtuber can apply which is actually pretty cool because i so pay attention and let's see if i can apply any of these lessons myself something in it for you i want to thank skillshare for
[09:15] an online learning community that i always entrepreneurs the entire platform is built to make i first started using skillshare last year and since then i have quadrupled in
[09:29] a lot of the skills i have learned such as recording high quality voiceovers making animations and storytelling have really helped take my channel to the next level i've just finished this amazing class from the main editor of
[09:41] the yes theory channel thomas dyer he shares so many insider secrets that advantage of this is the sort of thing you won't find on youtube also if you want to learn how i make my own videos i've made a full
[09:53] class talking through my entire process in under an hour you'll be making your very own animated whiteboard videos and i'll let you in on a secret it's really easy skillshare is super affordable as it is
[10:05] link in my description will get a free trial of skillshare premium to thank you for watching this far into the video i'll be giving away part of my all you have to do is like and comment on this video for your chance to win 100
[10:18] amazon voucher overall i think mr beast could well be youtube's first and these three steps are part of what is going to get him there let me know in as always i hope you enjoyed this breakdown and until the next one i'll
[10:32] breakdown and until the next one i'll see you at the top