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How Mr. Beast Made 97 Million Dollar Empire
From YouTube?

Beast Made 97 Million Dollar Empire

22-Year-old Mr. Beast aka Jimmy Donaldson is known as YouTube’s Biggest Philanthropist. In June 2020, he revealed in a tweet that he spent 10 million dollars on content in the first 6 months of 2020. But the question arises how is he earning so much money and what is his unique strategy that other You Tubers are not able to follow?

Let's see the breakdown of his 97 Million Dollar Empire that he made from YouTube. He has three major sources of income: AdSense, brand partnerships and merchandise sales. Now let's do a breakup of how much income is each platform contributing to his 97 million empire.

1) By Ads (Google AdSense)

The Ad revenue can be calculated by simple mathematics. Just multiply Page views and Ad Rate (CPM) to get the earnings of a You Tuber.Mr. Beast has mainly two famous YouTube channels: Mr. Beast and Mr. Beast Gaming. Now let's calculate his income through both channels.

To calculate his income, we will need his average Page views and CPM. According to Social blade, his main channel gets 10 Million Page Views per day and the gaming channel gets 7 Million Page Views per day. We will take CPM or Ad Rate as $7 which is the standard for the USA.

Now,

Ad revenue = (10 Million + 7 Million)/1000 * 7 = $121K per day.

And the monthly income will be $3.67 Million/month and after AdSense taking their own commissions he gets $1.2 million.

2) By Brand Partnerships or Sponsorships

He makes a good amount of money from his brand partnerships also. He makes sponsored videos in such a way that you never get bored. If you look at other You Tubers sponsor videos, you must get bored and want to skip those boring videos but not in the case of Mr. Beast. He makes the brand a part of his own story in the video.

According to Noah Kagan, he makes 2.64 and 1.32 sponsor videos on his gaming and main channel respectively. He charges $150,000 and $390,000 per video on his gaming and main channel respectively.

On gaming channel, he makes 2.64 * $150,000 = $396,000 per month.

On main channel, he makes 1.32 * $390,000 = $522,720 per month.

So the total amount he earns through brand partnerships is $10 million.

3) By Merchandise

Mr. Beast has also got a huge line of merchandise and you know what? His merchandise contributes the most to his 97 million dollar empire. In his merchandise collection, he has shirts, tees, sweaters, joggers and much more. He also partnered with Nike and Supreme to make launch his own editions.

He sells nearly about 1 Million merchandise per month and if we assume a conversion rate of 20%, then must be earning about $6 million per month. The reason why he is able to sell his merchandise in huge numbers is that he launches his limited-edition merchandise. For instance, once he sold 68,337 signed shirts and it took him 12 days to sign the shirts.

One reason that why people are supporting him is because he is purpose-driven and got a mission to bring a change in other people's life.

So if you all the three income sources from different platforms, it sums up to a 97 million dollar empire. Although he earns a lot he then again reinvests that money to come up with better content in the next video. And another reason that he is successful is that he has a great team of about 30 people. He has also stepped into the food delivery business by launching MrBeast Burger and making a profit of nearly $17k per day.


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