Why MrBeast Will be Worth $100 Billion

Video

Summary

• Leverage is key in growing your business quickly. MrBeast invests millions in his videos, but he achieves a massive return on investment through global impressions and translations.
• A media company can scale efficiently by merging product and marketing. The more you enhance your content, the more your marketing reach extends.
• In consumer-packaged goods (CPG), simplicity is golden. Manufacturing items like chocolate bars is straightforward and profitable, with significant scaling potential into more frequently purchased products like beverages.
• Strong brands allow for premium pricing. Investing in brand power lets you charge more for commoditized products, reinvest in innovation, and further strengthen the brand, creating a virtuous cycle.
• Embrace humility to learn and grow. No matter your success level, recognize that you can always learn from others, even if they aren't as far along on their professional journey.
• Forming a 'god squad' is critical. Attract top talent by being inclusive and showing a clear path to success, aiming to win but with integrity and a desire to do good.
• Collaboration over competition can amplify success. Partnering with others, regardless of their audience size, can lead to mutual growth and broader reach.
• The infinite game mindset ensures longevity. By focusing on passion over profit, you can leverage time as a key advantage and continuously build upon your successes.

How To Take Action

Implementing Growth Strategies for Small Businesses and Personal Growth

Leverage is Key

• A good way of doing things is to start by focusing on how you can maximize what you put into your business. If you're making videos or content, spend time making them really good so more people want to watch and share.

Merge Product and Marketing

• I would suggest that if you're creating something, make sure it's so cool that it's basically marketing itself. If you're selling, say, handmade crafts, your products should be so unique and awesome that people talk about them and that gets you free marketing.

Simplicity in Consumer-Packaged Goods (CPG)

• Keep things simple and go for products that are easy to make and sell. If you make cookies or homemade soaps, remember, they're simple, like chocolate bars, and can be profitable. Stick to what you're good at and what's easy to scale.

Build a Strong Brand for Premium Pricing

• Invest your time and creativity in building a strong brand. If you have a lawn mowing service, make your brand so trusted and liked that people are willing to pay more for you than the other guy. Use that extra money to make your service even better.

Embrace Humility to Learn and Grow

• Always be ready to learn from others. You can learn from anyone, even if they're not as big or experienced. Ask for advice, read books, and watch videos from other people who are good at what they do.

Form a 'God Squad'

• Get the best team you can. Treat them well and show them how they can succeed with you. If you're running a coffee shop, hire people who love coffee as much as you do and want to make the best coffee in town.

Collaboration Over Competition

• Partner with others whenever you can. If you find another business that's not a direct competitor, like a book store next to your coffee shop, work together on promotions to help both of you grow.

The Infinite Game Mindset

• Focus on what you love and the money will follow. If your passion is gardening, start a blog or YouTube channel sharing gardening tips. Over time, you'll become a go-to person for gardening advice, and that could turn into more opportunities for growth and income.

Quotes by Alex Hormozi

"When you have a media company, your product is your marketing"

– Alex Hormozi

"Every single person who views this video, he gets some money off of"

– Alex Hormozi

"Jim is smart enough to know that he doesn't know everything"

– Alex Hormozi

"He's trying to hire a god Squad and he's doing it aggressively"

– Alex Hormozi

"He's playing an infinite game"

– Alex Hormozi

Full Transcript

hundred billion dollars and it's going to happen faster than you think so Jim this is me calling my shop for you there's eight points that I want to make and stick around to the end because I'm actually gonna react to one of his latest videos with Tom Brady and Pete Davidson over a nice lunch of feastables never scoop dessert so first is he has massive leverage in terms of what he puts in versus what he gets out so he may spend a million two million even four million dollars on a video but the amount of Impressions that that one video gets across the world because he also translates it is worth hundreds of millions let me give you an idea of what Beast Industries is all about in terms of the ecosystem across like four five six YouTube channels he's got 183 million subscribers and that doesn't include the international channels which are more than half of his audience on top of that he's got Tick Tock he's got Instagram he's got Twitter and in aggregate he's got over 300 million plus subscribers they're also incredibly engaged no I can't even hear in 2022 Mr Beast had the fastest growing account on Tick Tock and YouTube two of the platforms that has the most eyeballs right now he has the most of them you think about the amount of creators on each of those platforms and he was literally number one on both his biggest videos are bigger than the Super Bowl it's hard for people to comprehend that on the business side he's got Beast Burger which is a ghost kitchen which basically leverages the network of restaurants that already exist and then he uses his distribution base of customers to buy stuff on an app and then it gets delivered and filled on from whatever local restaurants he's already partnered with the next thing he's got Beast gaming which is where he'll try and make apps and video games because he has a big gaming audience but I think we're the real winner for him is going to be and this is what I would make my bet on is that he's going to be going all in on feastables number two is that when you have a media company your product is your marketing which is one of the unique advantages that only media companies have meaning the more you spend on your product which is your media the more marketing ends up happening if you don't know who I am my name is I make these videos because I hope to attract other business owners towards us that are doing over a million dollars a year in profit so we can invest in your business in office scale there's a ton of Leverage for media creators because what they sell and how they Market themselves are one in the same and with that leverage he's able to gain access to other people's massive distribution Paces he was surprised how much Joe Rogan's podcast with him you invest so much money into the show yeah I don't I don't I don't why do I need money how many older people started recognizing him from that podcast he can get on Joe Rogan he can get on flagrant one trillion dollars I give you right now I bought everything I wanted in life he can get on impulsive because they know that if he's on their podcast that podcast will crush because he brings his own audience and so whenever he does knock on the door the door is open for him number three is that cpg makes a ton of sense for him because so many people eat chocolate eat chips eat pretzels and a lot of those people are in his audience right now feastables is probably going to pay three to four hundred million dollars this year in sales manufacturing chocolate bars or chips or water is not overwhelmingly complex compared to making a software or an app or something like that what we are seeing with feastables just with chocolate is a drop in the bucket compared to how big this brand will be once he enters bigger more profitable categories what I mean by that is how many chocolate bars does the average person buy a week now how many sports beverages or water do people consume per week and purchase per week significantly more and so if he goes into those categories even if the same number of people purchased get 10 times the revenue he's currently getting with chocolate bars and right now he's selling out faster than any other brand my team had to go to a zillion different grocery stores and we still couldn't find these nuts because they're sold out almost everywhere he's taking up more shelf space and pushing through his product at a faster rate than any other brand on the category it's been absurd face whatever I thought we were gonna sell we're doing like five times better it's kind of shifted my whole mindset like retail space when you have a brand this big it's just so op if Jim has realized the power of cpg and the reason that it's so powerful in the influencer space is that most people don't have incredibly strong Affinity to the brands that they consume most brands are really old they just like have been drinking it because they've always drank it not because they actually made a conscious decision I could go stand in any Walmart in America and I would have to take 100 photos so those same people when they go into Walmart will buy my products it's just because people are like oh it's that guy from YouTube and they buy it but as soon as one of the influencers that you saw come up and that you were a fan of or even recognized you'll be more likely to take it currently these work out at 2 pound 90 per bar which is obviously more expensive than your average Supermarket chocolate oh it smells good and maybe even pay a little bit of a premium on top of the Commodities product and you can measure the strength of a brand based on how much of a premium you can charge on a commoditized product if I have two white t-shirts and one of them has an LV logo on it and this one can go for a hundred dollars and this one goes for one dollar then I have significant branding and pricing power as a result of that well right now the richest man in the world Bernard Arnold owns the Sprint and a zillion other luxury Brands because she understands the pricing power of brand and those gross profits that you can generate for selling the same thing is what you can then reinvest in Innovation staying ahead and marketing even more to reinforce the brand and that's what becomes the brand flywheel is that you to create a little bit of a premium you make the spread you reinvest that into The Branding itself then that reinforces the brand you can raise the price more increase the spread and then around and around you go until you have this incredibly strong brand that's established that consumers in general are willing to pay more for number four is that he's able to monetize the widest base of his audience at the most basic level every single person who views this video he gets some money off of his media his content touches the broadest audience which is simply entertainment everybody can watch Mr BEAST's content and so his products as a consequence he gets to reach everyone with what he sells but what's the level underneath of that if someone paid Mr Beast for an integrated ad inside of one of his videos we have a very serious problem my mom is currently online shopping and I don't think she has honey installed on her computer they believe they're going to make significantly more than they paid him off of that ad he would then make more money promoting his own thing and make up the Arbitrage you have to try these nuts so if someone gets 10 to 1 or 20 to 1 by paying him 20 million dollars a year to Market their their thing then it means that he might be able to get 200 million or 400 million a year marketing his thing because it stays within the brand and it's congruent number five is that Jim is smart enough to know that he doesn't know everything yeah for the most part I don't know what I'm doing trying to absorb knowledge as much as possible and I'll just call people I'll be like I don't know what I'm gonna learn off to you I'll do everything I can to add value to you in exchange just teach me everything you know like people who run a snack business and I've done that like five hours a day it's actually really hard for me to imagine being one of the most popular people on planet Earth in your early 20s and not letting that get to your head and having had many conversations with him he's confident that he can kill it but he's incredibly open-minded to listening to people who he feels has expertise outside of what he has mastered he hits up people anyone who he thinks he can learn anything from and he doesn't judge the fact that he's further ahead than some business people because think about this if he raised at one and a half billion or 1.6 or whatever it was for Beast Industries he's technically a billionaire on paper why would he talk to somebody who's not a bill dinner on paper because he still feels like there are things that he can learn from them and then Implement into his machine and instantly get to 10 or 50 or 100. he still texts thumbnails for his videos to some of his close buddies just to get their feedback because at the end of the day he cares about winning more than being right number six is that he's trying to hire a god Squad and he's doing it aggressively so he wants the uh Avengers of business and content to be on his team in-house he will do whatever it takes to win no matter what he gets people to move in with him in his house so that he can indoctrinate them into the Mr B's way of doing things which is just when it all costs without hurting anyone and do good while you do it smart people recognize the fact that he's growing like crazy and they want to get on the ship number seven is that it's amazing how collaborative rather than competitive he is now don't get me wrong he's super competitive as a person but I think a lot of his him against him but he's willing to collaborate with other creators rather than cut them down he helps people out on their first Channel with no subscribers he does tick tock videos with tick talkers that aren't nearly as big as him he sees the world as larger than a zero-sum game meaning we can just both win and I think that's actually been one of his low key secret to success is because early on he was masterminding with all these guys who were all together they're trying to get millions of subscribers and all of them did we're all super small YouTubers and we basically talked every day for a thousand days in a row and did nothing but just like hyper study like what makes a good video what makes a good thumbnail what what's good pacing like how to go viral and we would just call it like daily masterminds you know this is me just putting my theoretical hat on but I'll bet that him seeing that all of them could win when they all worked together and they all won faster and bigger than if they worked on their own probably changed the way he saw the world in terms of how he creates and how everyone can win together and number eight is that Jim is playing an infinite game and what I mean by that is that he's in the game to play the game by any stretch he doesn't need money anymore and if you lost everything tomorrow he would still make YouTube videos and the reason I know that is because when he had nothing he made YouTube videos I'm always gonna be making videos yeah 100 I'm stupid and there's also just like I'm like Predator this thing all right have 30 years of my life I don't care when I look at you like a parallel storyline where I wonder will he ever stop making videos yeah cause he's 25 now I know 10 years from now I'm like you know I'm 35. 10 years from now I'll be getting started and because he plays the game that way he's gonna have one of the biggest piece of Leverage that everyone underplays which is time he's already got almost a decade of experience under his belt in his low 20s in terms of like entrepreneurial years he's actually older than people give him credit for but still has 60 70 years ahead of him where he can continue to compound that he's just getting started and he's a master of content and over the next decade he'll become a master of business now let's talk about what that means from evaluation perspective a company that's fast growing that has significantly better margins because they don't have nearly the marketing costs because most times when the biggest costs in them is inventory and marketing and so if you can cut out an entire massive cost center and get instant National recognition or International recognition the the potential of the brand day one already becomes a billion 10 billion Etc and for that reason I think that Mr Beast will be a sense of billionaire and it's also because he has so much time to do it all right so I'm going to enjoy a nice Mr Beast feastable chocolate bar while I watch one dollar versus one billion dollar yacht thank you and after stepping on board it was pretty clear why this yacht only cost one dollar if you have to ask how much it costs to carry a can't afford it you crack a windshield it's like there's 200 Grand I don't need this giant ship all to myself so I wanted to share this experience with you guys my subscribers this is great you know everybody makes interesting stuff and he's able to like Find humor in everyday things and like I just I always know like man I'm like God I gotta be better I'm not sure used to be a melter if you like this video then you'll love the next video how you can get rich in the new economy breaking down Kylie Jenner Mr Beast The Rock and many others that are capitalizing on this huge influencer wave