MrBeast, the YouTube phenomenon known for his outlandish stunts, incredibly generous giveaways, and high production quality videos, has dropped a huge confession on a recent podcast.
Despite boasting hundreds of millions of views per video, MrBeast, whose real name is Jimmy Donaldson, revealed the surprising truth about the problems he faces with brand sponsorship for his videos, and admitted that his videos don’t make money, but actually cost him about a million dollars apiece.
MrBeast’s Video Costs Can Exceed Yearly Advertiser Spends
In a recent clip uploaded to YouTube, MrBeast highlighted the disconnect between his channel’s astronomical viewership and the limitations of traditional advertising on YouTube. “Our views are crazy,” he says, “sometimes videos get 200 million views.“
This viewership translates to immense potential for advertisers. However, he argued that the current advertising model struggles to adequately compensate creators for such massive audiences. He explained the advertisers’ dilemma:
For a lot of people that advertise on YouTube, it’s like literally half their entire yearly spend on YouTube would have to go to me for one video.
This creates an impasse – brands can’t afford to pay what MrBeast’s viewership deserves, and he feels undervalued as a result of the down-negotiating.
MrBeast Loses Money On Videos Despite High Viewership
So, how much revenue do MrBeast’s videos generate, if any? Speaking about it, he said:
My videos don’t make money. Even when I do a brand deal on a video, I still lose money. I lose like over a million dollars a video.
This is a staggering and unexpected sum, especially considering the sheer number of views his videos generate. Here, MrBeast shed light on the hidden costs behind his elaborate productions. Building elaborate sets, organizing massive challenges, and giving away life-changing sums all chip away at profit margins, even with brand deals.
MrBeast went on to explain his solution to the problem – building his own companies. He recognized the power of his own brand as a means of promoting products he owns. This allows him to capture the full value his viewership creates, bypassing the limitations of traditional advertising. “You know that if I promote something that it […] actually leads to real sales,” he stated.
Gaming Is An Important Venture For MrBeast
While MrBeast’s business ventures are crucial, let’s not forget his roots in gaming. His channel features a wide variety of gaming content, with mostly popular titles such as Minecraft and Fortnite.
These gaming-focused videos often showcase his competitive spirit and humorous commentary, attracting a huge audience of gamers. He also admitted on the podcast that gaming is a viable side gig for him that helps offset the production costs of his larger projects.
This revelation raises concerns about the future of online content creation and the sustainability of the current YouTube advertising model. MrBeast, the largest YouTuber with unparalleled viewership, openly admits he struggles to make money. This brings into question the potential financial limitations faced by other smaller YouTubers.
While his path may not be replicable by every YouTuber, MrBeast offers valuable insights. He’s proven that building a strong brand and fostering a loyal audience can unlock opportunities beyond traditional advertising revenue. Whether it’s Minecraft challenges, ‘Last to Leave Wins’ competitions, or extravagant giveaways, MrBeast’s content continues to push boundaries.
