Why MrBeast Will be Worth $100 Billion

The Game w/ Alex Hormozi
12 Jul 202311:37

Summary

TLDRIn this insightful video script, the speaker analyzes Mr. Beast's rapid rise to wealth, attributing it to strategic investments, massive leverage, and an expansive media ecosystem. Highlighting Beast Industries' growth, the speaker discusses Mr. Beast's various ventures, including Beast Burger and Feastables, and emphasizes his unique marketing strategy, leveraging his media presence to boost sales. The script also touches on Mr. Beast's collaborative spirit, open-mindedness, and long-term vision, predicting his inevitable journey to becoming a billionaire.

Takeaways

  • 😀 Mr Beast's content creation is highly leveraged, with significant returns on investment compared to the costs of production.
  • 🌐 Mr Beast has a vast digital ecosystem with over 300 million subscribers across various platforms, including YouTube, TikTok, Instagram, and Twitter.
  • 📈 His audience engagement is exceptional, with Mr Beast's account being the fastest-growing on TikTok and YouTube in 2022.
  • 🍔 Beast Industries includes ventures like Beast Burger, a ghost kitchen, and Beast Gaming, but the speaker bets on Feastables as the most promising.
  • 📺 Media companies like Mr Beast's have the unique advantage of their product being their marketing, allowing for greater reach and impact.
  • 🍫 Mr Beast's Feastables brand is poised for significant growth, especially if it expands into more profitable categories like sports beverages or water.
  • 💰 The brand power of Feastables is evident in its ability to sell out products and command a premium in the market.
  • 🎥 Mr Beast's broad audience base allows for monetization at multiple levels, from basic views to integrated ads within his videos.
  • 🧠 He is open to learning and collaborates with others, seeking knowledge and expertise to grow his business ventures.
  • 💪 Mr Beast is building a 'god squad' of top talent in business and content creation, emphasizing teamwork and collaboration.
  • 🔁 He plays the 'infinite game,' focusing on long-term growth and innovation rather than short-term gains, which positions him for sustained success.

Q & A

  • What is the estimated future net worth of Mr. Beast according to the video?

    -The video suggests that Mr. Beast is projected to be worth over a hundred billion dollars in the future.

  • What is

    -null

Outlines

00:00

💰 Mr Beast's Path to Billionaire Status

This paragraph discusses Mr Beast's potential to become a billionaire due to his massive online presence and strategic business moves. With over 300 million subscribers across various platforms, his leverage in content creation is significant, translating to hundreds of millions in impressions. His ecosystem includes Beast Industries, which encompasses multiple YouTube channels, international channels, and social media platforms. Mr Beast's business ventures include Beast Burger, a ghost kitchen, and Beast Gaming, but the real potential lies in Feastables, his consumer product brand. The paragraph emphasizes the importance of marketing and leveraging media to create a brand with pricing power, which can be reinvested to strengthen the brand further.

05:01

🚀 Mr Beast's Business Acumen and Collaborative Spirit

The second paragraph highlights Mr Beast's business intelligence and his approach to monetizing his audience base. It points out that he is able to capitalize on the broad appeal of his content to sell products to a wide audience, and that he is likely to earn back more than the cost of any integrated ads through his own promotions. The speaker admires Mr Beast's humility and willingness to learn from others, despite his success. It also touches on his strategy to hire top talent and his collaborative nature with other creators, which has been key to his growth. The paragraph concludes with the notion that Mr Beast is playing the long game, with time on his side to continue compounding his success.

10:04

🛳 The Infinite Game of Mr Beast's Entrepreneurial Journey

The final paragraph delves into the concept of Mr Beast playing an 'infinite game', where his passion for creating content is not driven by the need for money but by his love for the craft. It suggests that his approach to business and content creation will allow him to become a master in both fields over time. The speaker uses the metaphor of a one-dollar yacht to humorously illustrate the idea of wealth and value perception. The paragraph ends with a teaser for a future video that will explore how influencers like Mr Beast, Kylie Jenner, and The Rock are capitalizing on the 'new economy' to amass wealth.

Mindmap

Keywords

💡Leverage

Leverage in the context of the video refers to the ability to gain a greater result or advantage with a relatively small effort or investment. Mr. Beast uses his leverage to maximize the impact of his investments in video production, which results in massive global impressions. The script mentions, 'he has massive leverage in terms of what he puts in versus what he gets out,' illustrating how his investment in a single video can yield hundreds of millions in impressions.

💡Impressions

Impressions, in the video script, is a metric used to measure the number of times Mr. Beast's content is seen or viewed across various platforms. The script states, 'the amount of Impressions that that one video gets across the world,' highlighting the global reach and viewership of his content, which is a key factor in his success and potential wealth accumulation.

💡Beast Industries

Beast Industries is the overarching ecosystem of Mr. Beast's media and business ventures. It includes multiple YouTube channels, social media platforms, and associated businesses like Beast Burger and Feastables. The script explains, 'Beast Industries is all about in terms of the ecosystem across like four five, six YouTube channels,' showcasing the scale and diversity of Mr. Beast's brand.

💡Engagement

Engagement in the video script refers to the level of interaction and interest from Mr. Beast's audience across his various platforms. The script notes, 'they're also incredibly engaged,' which is crucial for building a loyal following and increasing the value of his media company.

💡Ghost Kitchen

A ghost kitchen, as mentioned in the script, is a restaurant that operates solely for delivery and takeaway, without a physical dining space. Beast Burger is an example of this, leveraging existing restaurant networks for delivery services, which is a strategic business move that aligns with modern consumer trends.

💡CPG

CPG stands for Consumer Packaged Goods, which are the products that Mr. Beast's company, Feastables, produces, such as chocolate bars and chips. The script points out, 'cpg makes a ton of sense for him,' emphasizing the relevance of CPG to his audience and the potential for high sales volume and profitability.

💡Branding Power

Branding power is the ability of a brand to command a premium price and influence consumer purchasing decisions. The script discusses, 'you can measure the strength of a brand based on how much of a premium you can charge,' indicating that Mr. Beast's brand has the power to sell products at higher prices due to its strong recognition and appeal.

💡Monetization

Monetization in the video refers to the process of converting Mr. Beast's audience and media presence into revenue. The script states, 'he's able to monetize the widest base of his audience,' which means that his content reaches a broad audience, allowing him to generate income from various sources, including his own products and advertising.

💡Collaboration

Collaboration, as highlighted in the script, is Mr. Beast's approach to working with other creators rather than competing against them. The video mentions, 'he's willing to collaborate with other creators,' which has been a key factor in his growth and success, as it fosters a community and allows for mutual benefits.

💡Infinite Game

The term 'infinite game' in the script refers to Mr. Beast's long-term perspective and commitment to his endeavors, regardless of immediate financial gains. The script says, 'he's playing an infinite game,' suggesting that his motivation is not solely based on money but on a passion for creating content and building his brand over time.

💡Masterminding

Masterminding in the video script is the process of collaborating and sharing ideas with like-minded individuals to achieve common goals. The script describes, 'he was masterminding with all these guys,' which implies that Mr. Beast's success is partly due to the collective knowledge and strategies developed through these collaborative sessions.

Highlights

Mr Beast's potential to become worth over a hundred billion dollars through strategic investments and leveraging his massive online presence.

The ecosystem of Beast Industries, including multiple YouTube channels with a combined 183 million subscribers and a strong presence on TikTok, Instagram, and Twitter.

Mr Beast's engagement and growth on social media platforms, being the fastest-growing account on TikTok and YouTube in 2022.

The business ventures of Mr Beast, such as Beast Burger, a ghost kitchen leveraging existing restaurant networks, and Beast Gaming, targeting his gaming audience.

The strategic focus on Feastables, a brand with high sales potential, and the comparison of its growth to other brands in the market.

The power of CPG (Consumer Packaged Goods) for Mr Beast, capitalizing on the affinity of his audience for snack products.

Mr Beast's ability to monetize his audience at the most basic level through media content that appeals to a broad demographic.

The advantage of media companies in marketing, where the product itself is also the marketing tool, allowing for greater leverage.

Mr Beast's approach to learning from experts in various fields and his open-mindedness to new ideas and strategies.

The hiring strategy of Mr Beast, aiming to assemble a 'god squad' of top talent in business and content creation.

Mr Beast's collaborative nature, working with other creators and helping them grow, rather than viewing the industry as a zero-sum game.

The long-term vision of Mr Beast, playing an 'infinite game' with no immediate need for money, focusing on the joy of creating content.

The potential for Mr Beast to become a billionaire due to his business acumen, time on the market, and ability to leverage his brand.

The humorous approach of Mr Beast in his content, finding ways to entertain and engage his audience with everyday situations.

The evaluation perspective on Mr Beast's business, highlighting the potential for high growth and better margins due to reduced marketing costs.

Mr Beast's content strategy, focusing on creating a brand that resonates with consumers and can command a premium in the market.

The importance of brand power and pricing power in the success of Mr Beast's business ventures, allowing for reinvestment in innovation and marketing.

Transcripts

play00:00

Mr Beast is going to be worth over a

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hundred billion dollars and it's going

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to happen faster than you think so Jim

play00:05

this is me calling my shop for you

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there's eight points that I want to make

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and stick around to the end because I'm

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actually gonna react to one of his

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latest videos with Tom Brady and Pete

play00:12

Davidson over a nice lunch of feastables

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never scoop dessert so first is he has

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massive leverage in terms of what he

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puts in versus what he gets out so he

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may spend a million two million even

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four million dollars on a video but the

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amount of Impressions that that one

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video gets across the world because he

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also translates it is worth hundreds of

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millions let me give you an idea of what

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Beast Industries is all about in terms

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of the ecosystem across like four five

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six YouTube channels he's got 183

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million subscribers and that doesn't

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include the international channels which

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are more than half of his audience

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on top of that he's got Tick Tock he's

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got Instagram he's got Twitter and in

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aggregate he's got over 300 million plus

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subscribers they're also incredibly

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engaged

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no I can't even hear in 2022 Mr Beast

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had the fastest growing account on Tick

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Tock and YouTube two of the platforms

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that has the most eyeballs right now he

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has the most of them you think about the

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amount of creators on each of those

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platforms and he was literally number

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one on both his biggest videos are

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bigger than the Super Bowl it's hard for

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people to comprehend that on the

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business side he's got Beast Burger

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which is a ghost kitchen which basically

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leverages the network of restaurants

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that already exist and then he uses his

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distribution base of customers to buy

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stuff on an app and then it gets

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delivered and filled on from whatever

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local restaurants he's already partnered

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with the next thing he's got Beast

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gaming which is where he'll try and make

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apps and video games because he has a

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big gaming audience but I think we're

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the real winner for him is going to be

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and this is what I would make my bet on

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is that he's going to be going all in on

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feastables number two is that when you

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have a media company your product is

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your marketing which is one of the

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unique advantages that only media

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companies have meaning the more you

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spend on your product which is your

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media the more marketing ends up

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happening if you don't know who I am my

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name is

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I make these videos because I hope to

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attract other business owners towards us

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that are doing over a million dollars a

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year in profit so we can invest in your

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business in office scale there's a ton

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of Leverage for media creators because

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what they sell and how they Market

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themselves are one in the same and with

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that leverage he's able to gain access

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to other people's massive distribution

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Paces he was surprised how much Joe

play02:16

Rogan's podcast with him you invest so

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much money into the show yeah I don't I

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don't I don't why do I need money how

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many older people started recognizing

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him from that podcast he can get on Joe

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Rogan he can get on flagrant one

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trillion dollars I give you right now I

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bought everything I wanted in life he

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can get on impulsive because they know

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that if he's on their podcast that

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podcast will crush because he brings his

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own audience and so whenever he does

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knock on the door the door is open for

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him number three is that cpg makes a ton

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of sense for him because so many people

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eat chocolate eat chips eat pretzels and

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a lot of those people are in his

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audience right now feastables is

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probably going to pay three to four

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hundred million dollars this year in

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sales manufacturing chocolate bars or

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chips or water is not overwhelmingly

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complex compared to making a software or

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an app or something like that what we

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are seeing with feastables just with

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chocolate is a drop in the bucket

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compared to how big this brand will be

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once he enters bigger more profitable

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categories what I mean by that is how

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many chocolate bars does the average

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person buy a week

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now how many sports beverages or water

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do people consume per week and purchase

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per week significantly more and so if he

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goes into those categories even if the

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same number of people purchased get 10

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times the revenue he's currently getting

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with chocolate bars and right now he's

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selling out faster than any other brand

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my team had to go to a zillion different

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grocery stores and we still couldn't

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find these nuts because they're sold out

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almost everywhere he's taking up more

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shelf space and pushing through his

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product at a faster rate than any other

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brand on the category it's been absurd

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face whatever I thought we were gonna

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sell we're doing like five times better

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it's kind of shifted my whole mindset

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like retail space when you have a brand

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this big it's just so op if Jim has

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realized the power of cpg and the reason

play04:00

that it's so powerful in the influencer

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space is that most people don't have

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incredibly strong Affinity to the brands

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that they consume most brands are really

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old they just like have been drinking it

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because they've always drank it not

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because they actually made a conscious

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decision I could go stand in any Walmart

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in America and I would have to take 100

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photos so those same people when they go

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into Walmart will buy my products it's

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just because people are like oh it's

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that guy from YouTube and they buy it

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but as soon as one of the influencers

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that you saw come up and that you were a

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fan of or even recognized you'll be more

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likely to take it currently these work

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out at 2 pound 90 per bar which is

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obviously more expensive than your

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average Supermarket chocolate oh it

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smells good and maybe even pay a little

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bit of a premium on top of the

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Commodities product and you can measure

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the strength of a brand based on how

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much of a premium you can charge on a

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commoditized product if I have two white

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t-shirts and one of them has an LV logo

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on it and this one can go for a hundred

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dollars and this one goes for one dollar

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then I have significant branding and

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pricing power as a result of that well

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right now the richest man in the world

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Bernard Arnold owns the Sprint and a

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zillion other luxury Brands because she

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understands the pricing power of brand

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and those gross profits that you can

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generate for selling the same thing is

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what you can then reinvest in Innovation

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staying ahead and marketing even more to

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reinforce the brand and that's what

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becomes the brand flywheel is that you

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to create a little bit of a premium you

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make the spread you reinvest that into

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The Branding itself then that reinforces

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the brand you can raise the price more

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increase the spread and then around and

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around you go until you have this

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incredibly strong brand that's

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established that consumers in general

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are willing to pay more for number four

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is that he's able to monetize the widest

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base of his audience at the most basic

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level every single person who views this

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video he gets some money off of his

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media his content touches the broadest

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audience which is simply entertainment

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everybody can watch Mr BEAST's content

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and so his products as a consequence he

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gets to reach everyone with what he

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sells but what's the level underneath of

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that if someone paid Mr Beast for an

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integrated ad inside of one of his

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videos we have a very serious problem my

play06:01

mom is currently online shopping and I

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don't think she has honey installed on

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her computer they believe they're going

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to make significantly more than they

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paid him off of that ad he would then

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make more money promoting his own thing

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and make up the Arbitrage you have to

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try these nuts so if someone gets 10 to

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1 or 20 to 1 by paying him 20 million

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dollars a year to Market their their

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thing then it means that he might be

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able to get 200 million or 400 million a

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year marketing his thing because it

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stays within the brand and it's

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congruent number five is that Jim is

play06:31

smart enough to know that he doesn't

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know everything yeah for the most part I

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don't know what I'm doing trying to

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absorb knowledge as much as possible and

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I'll just call people I'll be like I

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don't know what I'm gonna learn off to

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you I'll do everything I can to add

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value to you in exchange just teach me

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everything you know like people who run

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a snack business and I've done that like

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five hours a day it's actually really

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hard for me to imagine being one of the

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most popular people on planet Earth in

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your early 20s and not letting that get

play06:53

to your head and having had many

play06:56

conversations with him he's confident

play06:57

that he can kill it but he's incredibly

play07:00

open-minded to listening to people who

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he feels has expertise outside of what

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he has mastered he hits up people anyone

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who he thinks he can learn anything from

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and he doesn't judge the fact that he's

play07:10

further ahead than some business people

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because think about this if he raised at

play07:14

one and a half billion or 1.6 or

play07:15

whatever it was for Beast Industries

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he's technically a billionaire on paper

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why would he talk to somebody who's not

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a bill dinner on paper because he still

play07:22

feels like there are things that he can

play07:24

learn from them and then Implement into

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his machine and instantly get to 10 or

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50 or 100. he still texts thumbnails for

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his videos to some of his close buddies

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just to get their feedback because at

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the end of the day

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he cares about winning more than being

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right number six is that he's trying to

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hire a god Squad and he's doing it

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aggressively so he wants the uh Avengers

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of business and content to be on his

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team in-house he will do whatever it

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takes to win no matter what he gets

play07:50

people to move in with him in his house

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so that he can indoctrinate them into

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the Mr B's way of doing things which is

play07:55

just when it all costs without hurting

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anyone and do good while you do it smart

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people recognize the fact that he's

play08:01

growing like crazy and they want to get

play08:03

on the ship number seven is that it's

play08:05

amazing how collaborative rather than

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competitive he is now don't get me wrong

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he's super competitive as a person but I

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think a lot of his him against him but

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he's willing to collaborate with other

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creators rather than cut them down he

play08:16

helps people out on their first Channel

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with no subscribers he does tick tock

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videos with tick talkers that aren't

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nearly as big as him he sees the world

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as larger than a zero-sum game meaning

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we can just both win and I think that's

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actually been one of his low key secret

play08:30

to success is because early on he was

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masterminding with all these guys who

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were all together they're trying to get

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millions of subscribers and all of them

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did we're all super small YouTubers and

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we basically talked every day for a

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thousand days in a row and did nothing

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but just like hyper study like what

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makes a good video what makes a good

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thumbnail what what's good pacing like

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how to go viral and we would just call

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it like daily masterminds you know this

play08:53

is me just putting my theoretical hat on

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but I'll bet that him seeing that all of

play08:59

them could win when they all worked

play09:01

together and they all won faster and

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bigger than if they worked on their own

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probably changed the way he saw the

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world in terms of how he creates and how

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everyone can win together and number

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eight is that Jim is playing an infinite

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game and what I mean by that is that

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he's in the game to play the game by any

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stretch he doesn't need money anymore

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and if you lost everything tomorrow

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he would still make YouTube videos and

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the reason I know that is because when

play09:25

he had nothing he made YouTube videos

play09:27

I'm always gonna be making videos yeah

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100 I'm stupid and there's also just

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like I'm like Predator this thing all

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right have 30 years of my life I don't

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care when I look at you like a parallel

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storyline where I wonder will he ever

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stop making videos yeah cause he's 25

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now I know 10 years from now I'm like

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you know I'm 35. 10 years from now I'll

play09:45

be getting started and because he plays

play09:47

the game that way he's gonna have one of

play09:49

the biggest piece of Leverage that

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everyone underplays which is time he's

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already got almost a decade of

play09:55

experience under his belt in his low 20s

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in terms of like entrepreneurial years

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he's actually older than people give him

play10:00

credit for but still has

play10:03

60 70 years ahead of him where he can

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continue to compound that he's just

play10:09

getting started and he's a master of

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content and over the next decade he'll

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become a master of business now let's

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talk about what that means from

play10:18

evaluation perspective a company that's

play10:20

fast growing that has significantly

play10:22

better margins because they don't have

play10:23

nearly the marketing costs because most

play10:24

times when the biggest costs in them is

play10:27

inventory and marketing and so if you

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can cut out an entire massive cost

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center and get instant National

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recognition or International recognition

play10:36

the the potential of the brand day one

play10:38

already becomes a billion 10 billion Etc

play10:41

and for that reason I think that Mr

play10:44

Beast will be a sense of billionaire and

play10:46

it's also because he has so much time to

play10:48

do it all right so I'm going to enjoy a

play10:49

nice Mr Beast feastable chocolate bar

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while I watch one dollar versus one

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billion dollar yacht thank you and after

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stepping on board it was pretty clear

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why this yacht only cost one dollar if

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you have to ask how much it costs to

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carry a can't afford it you crack a

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windshield it's like there's 200 Grand I

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don't need this giant ship all to myself

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so I wanted to share this experience

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with you guys my subscribers

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this is great you know everybody makes

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interesting stuff and he's able to like

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Find humor in everyday things and like I

play11:19

just I always know like man I'm like God

play11:21

I gotta be better

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I'm not sure

play11:25

used to be a melter if you like this

play11:27

video then you'll love the next video

play11:28

how you can get rich in the new economy

play11:30

breaking down Kylie Jenner Mr Beast The

play11:33

Rock and many others that are

play11:34

capitalizing on this huge influencer

play11:36

wave

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