Why Billionaires LOVE MrBeast
tech billionaires love mr beast in 2019
elon musk donated a million dollars to
team trees shortly after toby lutky the
founder of shopify donated a million and
one dollars to top the chart lots of big
names have come and gone on youtube but
mr beast clearly has something special
that makes all these tech billionaires
love what he’s doing mr beast was one of
the most impressive people i’ve met in a
really really really long totally agree
oh he’s gonna be a multi multi
billionaire that’s chamath pali hapatia
one of silicon valley’s most well-known
billionaires we all know that mr beast
has grown a huge fan base but making a
billion dollars is no small feat and
it’s definitely never been done before
on youtube in order to crack the three
commas club you typically need to be
pioneering an entirely new technology
and that’s how chamath usually makes his
money chamoth comes from the tech world
and was one of the first executives at
facebook he knows how to identify
entrepreneurs who are dreaming big and
planning for the future take virgin
galactic for example where chamoth is
chairman of the board the company is
worth over three billion dollars but
that makes sense it’s literally rocket
science mr beast just makes youtube
videos so how is he going to make a
billion dollars
plenty of big youtubers have made lots
of money and then fizzled out so what
makes chamoth so sure that jimmy
donaldson will be able to break out and
keep up with the billionaires in silicon
valley in order to answer this i
compared jimmy’s operation first to
other youtube channels and then to
popular tech startups what i found
really shocked me so i boiled down my
findings into three key takeaways that
explain why mr beast is more like a
silicon valley tech founder than a
typical youtuber i just kept going and
reinvesting and basically the entire
time the last like eight or nine years
like every dollar i’ve made i just spent
it the next month in content i just did
that every single month and it just kept
getting bigger and bigger and here we
are
first up we have to talk raw numbers
obviously jimmy is breaking records left
and right on here he now has 165 million
subscribers across all of his channels
and broke 20 billion views last year
those are some pretty staggering numbers
and they’ve clearly led to some big
paydays from youtube directly as well as
sponsors and even the most conservative
estimates peg his earnings in the tens
of millions of dollars everyone knows
that big youtubers can wind up making
millions of dollars the problem is that
these earnings typically top out very
quickly sure a kid in the living room
can become a millionaire before their
20th birthday but they’re never going to
build a business that could go public on
the nasdaq these youtube channels are
fundamentally lifestyle businesses but
mr beast is trying to be the first
youtuber to break out of that mold his
plan starts with continually investing
any money he earns into making better
and better videos the first time he got
a sponsorship deal for 10 grand he gave
it all away in the next video and he’s
repeated that formula over and over
again consistently reinvesting every
dollar he makes for growth it’s a great
model and it’s clearly working well just
look at the 10 million warehouse complex
he was able to buy in north carolina
this is the exact mindset that tech
founders have when building a startup
they aggressively reinvest in order to
capture as much of the market as
possible the name of the game is getting
big and building a moat around your
business so competitors can’t attack you
and that’s essentially what jimmy is
doing he’s building a machine for
churning out high budget youtube videos
so that no one will be able to compete
with him but even so those numbers still
look small in comparison to most silicon
valley businesses keep in mind mr b
spent 10 million on an entire facility
facebook makes 10 million dollars every
single hour successful technology
companies are all about scale and even
though jimmy is incredibly successful by
youtube standards he just isn’t in the
same league as typical tech startups
silicon valley money is on another level
just look at the private plane that
chamath purchased for 75 million dollars
that’s more than seven times as
expensive as jimmy’s entire studio
complex jimmy might be courtside seat
rich at this point but chamoth is by the
whole team rich literally chamoth owns
the golden state warriors but all that
ridiculous flexing aside chamath clearly
knows there’s something special going on
inside of that studio in north carolina
even if they aren’t bringing in silicon
valley type money just yet the question
still remains though if the actual
numbers jimmy is putting up aren’t
enough to turn heads in the tech world
then why is he getting all this
attention you were making no money you
had very little audience yeah i remember
thinking like every day back then like
i’m never gonna be a youtuber after like
year after year this is never gonna
happen but yeah but you still stuck with
it
if you look at his content you’ll see
that he perfectly fits the mold of a
silicon valley tech founder this is
because he’s not only extremely
hard-working but he’s also incredibly
innovative if you scroll back through
his channel you’ll see that he spent
years studying what worked and what
didn’t on youtube and became obsessed
with the platform then once he’d learned
the basics of how to make good videos he
started pushing things forward some of
his first viral videos were completely
untested formats that really broke the
mold no one had tried to count to 100
000 before on youtube so it stuck out
and got a ton of views this kind of
outside the box thinking is worshipped
in silicon valley so you can see why
chmath would bet on jimmy but here’s the
thing there are plenty of other weird
creators on youtube making bizarre
content and they aren’t getting this
much attention so that can’t be it i’m
sure those traits are important but we
all know what really makes a mr beast
video stand out on youtube the giveaways
in pretty much every video jimmy is
giving away hundreds of thousands of
dollars he’s an incredibly charitable
individual and has said that no matter
how much money he makes he intends to
give it all away this really makes jimmy
stand out from the crowd on youtube so
many creators are obsessed with material
wealth and just want to buy a fancy car
or expensive watch as soon as possible
it’s honestly a breath of fresh air to
see someone strike it so big on youtube
and still be able to stay humble but
plenty of people in silicon valley
donate massive amounts of money in fact
there’s even a website called the giving
pledge where you can see dozens of tech
billionaires who promised to give away
more than half of their wealth it’s
almost expected at this point that if
you make billions of dollars in tech
you’re going to give it to charity
eventually jimmy has donated millions of
dollars to charity but that’s just a
drop in the bucket by the standards of
big tech so if it’s not his
philanthropic efforts that are getting
him all this recognition then what is it
well there’s actually just one thing
that makes mr beast completely different
from every other youtube creator he’s
not actually a creator anymore let me
explain in a typical technology company
there are two kinds of roles individual
contributors and managers the individual
contributors actually write the code and
the managers just set the strategy no
one expects elon musk to assemble all
those teslas by hand after all elon is a
manager and that’s why he’s been able to
create such a massive company as a tech
company grows there’s often a moment
where the founders stop being individual
contributors and become managers mark
zuckerberg really was writing code in
the early days of facebook but now he
has thousands of software developers
working for him and he can focus
entirely on creating a long-term
strategy most creators on youtube never
make the transition from individual
contributor to manager they just can’t
figure out how to delegate properly so
they can never achieve truly massive
scale one of jimmy’s closest
collaborators is mark rober but mark’s
channel couldn’t be more different from
jimmy’s part of that then is also the
edit and packaging that together and i i
just don’t know how i would outsource
that to be clear i absolutely love mark
robert’s content and clearly he’s doing
incredibly well he’s just not thinking
about scale in the same way as mr beast
over the last year mark posted just one
new video per month where mr beast is
now posting dozens of videos across more
than 10 different channels and even
channels that are focused on business
seem to still be hesitant to scale as
aggressively as mr beast everything is
done by me so every word you hear from
me is scripted by me every topic is
picked by me yep i film everything
myself graham stefan also runs a great
channel and makes a fantastic living
through youtube and his related
businesses but he just isn’t thinking
like a silicon valley startup at least
not yet these are super common beliefs
but they hold creators back from their
full potential mr beast understands that
it’s simply impossible for him to do
everything himself so he has to delegate
you know every youtuber says it’s like
no one will ever be able to replicate my
style it’s i gotta edit it but newsflash
someone can it’s actually not as
difficult as you think and that’s the
key to scaling a business becoming a
great manager you’ll never be able to
learn everything yourself so you have to
delegate just look at mr b’s squid game
video he had an entire visual effects
team working round the clock to deliver
hollywood level results even if jimmy
spent the next 10 years studying visual
effects he’d never be able to create
what an experienced team could do the
same can be said for his spanish
language channel if he insisted on doing
everything himself he would need to
learn spanish and film everything twice
which would slow his entire production
down instead he works with a team to dub
his existing videos and delegates
everything what makes mr b so unique is
the fact that he stopped trying to do
everything himself and really focused on
scaling his team that’s why chamath and
the other tech moguls are betting on
jimmy for the long term if you like this
video you’ll love my analysis of how
squid game is changing forward language
entertainment so check it out here and
thanks for watching
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