WEBVTT 1 00:00:00.000 --> 00:00:05.960 There's a ton of leverage for media creators because what they sell and how they market themselves are one and the same. 2 00:00:05.960 --> 00:00:14.160 And with that leverage, he's able to gain access to other people's massive distribution paces that might even be different audiences than him. 3 00:00:17.440 --> 00:00:22.400 Welcome to the game where we talk about how to sell more stuff to more people in more ways and build businesses worth owning. 4 00:00:22.400 --> 00:00:25.080 I'm trying to build a billion dollar thing with acquisition.com. 5 00:00:25.080 --> 00:00:29.280 I always wished pesos, musk and buffet had documented their journey, so I'm doing it for the rest of us. 6 00:00:29.280 --> 00:00:30.240 Please share and enjoy. 7 00:00:32.720 --> 00:00:37.240 Mr. Beast is going to be worth over a hundred billion dollars and it's going to happen fast than you think. 8 00:00:38.120 --> 00:00:40.240 So Jim, this is me calling my shot for you. 9 00:00:40.800 --> 00:00:46.360 In 2022, Mr. Beast had the fastest growing account on TikTok and YouTube. 10 00:00:46.680 --> 00:00:50.360 So two of the platforms that have the most eyeballs right now, he has the most of them. 11 00:00:50.360 --> 00:00:55.520 You think about the amount of creators on each of those platforms and he was literally number one on both. 12 00:00:56.320 --> 00:01:03.520 The reason that I'm so bullish on him isn't because of what he currently is accomplished, but because of how he approaches his accomplishments in general. 13 00:01:03.800 --> 00:01:14.760 The fact that he actually transitioned platforms, not that he stopped YouTube, but was able to build the team and understand content to such a degree that he could come to the game late on TikTok. 14 00:01:14.880 --> 00:01:24.480 Because relative to other creators who have been on there, he waited years before he decided to get on TikTok and then still beat everyone on the platform within his first 12, 24 months. 15 00:01:24.720 --> 00:01:32.320 Like to me, that's a sign of a champion and it's that approach that he has to everything that I think is why he's going to be worth $10 billion. 16 00:01:32.320 --> 00:01:33.880 And I'm going to give you some numbers to back that up. 17 00:01:33.880 --> 00:01:35.480 And if you don't know who I am, my name's Alex from Ozeon. 18 00:01:35.480 --> 00:01:39.880 Acquisition.com to portfolio companies that just about $200 billion a year, an aggregate, I make these guys. 19 00:01:39.880 --> 00:01:45.720 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 and help it scale. 20 00:01:45.960 --> 00:01:53.560 Right now, I think the entire world is under indexed on how valuable influencer traffic is. 21 00:01:53.560 --> 00:01:58.280 Even though people still talk about influencers and like, it's, it's almost feels like it's old now. 22 00:01:58.280 --> 00:02:00.520 I still think they're wildly underpriced. 23 00:02:00.800 --> 00:02:02.400 And so let me just give you a couple ideas here. 24 00:02:02.760 --> 00:02:08.280 So Logan Paul, KSI and Jake Paul recently partnered on prime, right? 25 00:02:08.640 --> 00:02:15.960 And in trailing 90 in internal sales, meaning like what they sold to distributors, not what the distributors marked it up as. 26 00:02:16.360 --> 00:02:23.360 They did over 250 million in revenue, which means that they're pacing over a billion this year in sales in the company. 27 00:02:23.880 --> 00:02:30.680 And they were able to do that with almost no marketing budget because of the reach of Logan, KSI and Jake Paul. 28 00:02:31.080 --> 00:02:37.000 But here's the kicker. Mr. Beast is bigger than all of them put together just from a views and subscribers perspective. 29 00:02:37.040 --> 00:02:40.160 And this isn't me throwing rocks. I'm just looking at the numbers of total subscribers. 30 00:02:40.360 --> 00:02:44.680 And to be fair, you know, Logan owns 20% or whatever he owns of of that. 31 00:02:44.680 --> 00:02:48.120 It's more than Acquisition.com does in revenue. So like, that's not me throwing shade. 32 00:02:48.160 --> 00:02:54.320 The reason that I make this content is because as a businessman, I can see how undervalued an audience is. 33 00:02:54.320 --> 00:02:56.120 And I'm just attaching a different backend. 34 00:02:56.320 --> 00:03:01.920 So rather than having a consumer based product, I have a business product, which is really just me buying into businesses. 35 00:03:02.360 --> 00:03:06.200 Now, let's talk about what that means from a valuation perspective. 36 00:03:06.560 --> 00:03:14.280 So a company that's fast growing that has significantly better margins because they don't have nearly the cost, the marketing cost, because most times CPG, 37 00:03:14.280 --> 00:03:18.680 so consumer pack of goods, when the biggest costs in them is inventory and marketing. 38 00:03:18.960 --> 00:03:27.120 And so if you can cut out an entire massive cost center and get instant national recognition or international recognition, 39 00:03:27.520 --> 00:03:33.320 then the potential of the brand day one already becomes a billion, 10 billion, et cetera. 40 00:03:33.600 --> 00:03:40.400 And so the fact that right now, I would say that their company could probably trade at a few billion right now. 41 00:03:40.400 --> 00:03:44.040 Like, as soon as they finish this year with a billion in sales, they'll probably be able to trade at multiple billions. 42 00:03:44.520 --> 00:03:49.280 And the fact that Jim has a significantly larger audience than they do. 43 00:03:49.480 --> 00:03:53.600 And he's international in a way that they are not like he is an Indian channel. 44 00:03:53.600 --> 00:03:54.640 He is Spanish channels. 45 00:03:54.640 --> 00:03:55.520 He is Chinese. 46 00:03:55.520 --> 00:03:59.720 He has he's translated all of these things so you can get even wider and wider reach. 47 00:04:00.120 --> 00:04:04.200 And so the tradeoff is that right now, he's got feastables, right? 48 00:04:04.480 --> 00:04:11.080 And so despite the fact that Mr. Beast has Mr. Beast gaming, he has the ghost kitchen that he does with Beastburger. 49 00:04:11.400 --> 00:04:17.920 In my opinion, where he will generate all of his wealth is actually not in gaming and not in the ghost kitchen. 50 00:04:17.920 --> 00:04:24.920 And I'll give you my explanation why the ghost kitchen just has really, really bad margins in general. 51 00:04:25.200 --> 00:04:30.680 And so even though that company probably does, I think I heard in a podcast, it does a few hundred thousand dollars a day in sales, 52 00:04:30.960 --> 00:04:34.200 he might actually only receive net 10% of that. 53 00:04:34.360 --> 00:04:36.560 Now, then he also has a partner who has half of that. 54 00:04:36.760 --> 00:04:41.240 And so it's a very small percentage of that that he's able to actually collect in cash flow. 55 00:04:41.240 --> 00:04:43.560 And that thing would probably trade on earnings. 56 00:04:43.800 --> 00:04:47.920 And so it might be worth a hundred, maybe a hundred and fifty million dollars. 57 00:04:47.920 --> 00:04:51.200 Now, not saying it's small money, but I said a hundred billion. 58 00:04:51.200 --> 00:04:54.000 And so compared to that, it's kind of negligible. 59 00:04:54.520 --> 00:04:55.600 Now, let's talk about gaming. 60 00:04:56.440 --> 00:05:01.160 So gaming absolutely has the potential to become from an opportunity vehicle perspective. 61 00:05:01.160 --> 00:05:04.160 And he has one of the biggest, if not the biggest, gaming channel on YouTube. 62 00:05:04.560 --> 00:05:13.040 But it's just that I think right now, Jim has realized the power of CPG and there are more people who eat chocolate than play video games. 63 00:05:13.480 --> 00:05:21.040 And just like what I think he's witnessed with what Logan, Paul, Jake, Paul case I've done with prime is that there's even more people who drink beverages. 64 00:05:21.680 --> 00:05:25.880 Think about how much chocolate any consumer is going to buy per week, right? 65 00:05:26.080 --> 00:05:28.640 Probably not a ton, maybe a bar, right? 66 00:05:29.000 --> 00:05:36.360 Now, compare that to how many cases of water or energy drink or sports drink that you might consume. 67 00:05:36.360 --> 00:05:42.680 Because if you become a regular consumer of a beverage, you usually just keep buying that beverage over and over and over again. 68 00:05:43.000 --> 00:05:49.920 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. 69 00:05:49.920 --> 00:05:51.440 Most brands are really old. 70 00:05:51.640 --> 00:05:52.760 People don't remember the come up. 71 00:05:52.760 --> 00:05:57.160 They just like have been drinking it because they've always drank it, not because they actually made a conscious decision. 72 00:05:57.160 --> 00:06:02.120 They might have got introduced to Pepsi or Coke or one of their sub brands, by the way, but not everything they have is evil. 73 00:06:02.360 --> 00:06:05.680 One of the sub brands that they own and then just like they just continue to drink that. 74 00:06:05.880 --> 00:06:12.800 But as soon as one of the influencers that you saw come up and that you are a fan of or even recognized and you're like, oh, this is John's company. 75 00:06:12.920 --> 00:06:14.240 I watched John's videos. 76 00:06:14.480 --> 00:06:18.440 Then even if it's water that's branded John's water, we wouldn't brand it that way. 77 00:06:18.600 --> 00:06:25.000 You'll be more likely to take it and maybe even pay a little bit of a premium on top of the commoditized product. 78 00:06:25.200 --> 00:06:29.120 And that's where the opportunity exists for these massive brands. 79 00:06:29.320 --> 00:06:33.560 Now, these are personal brands, but they are still brands in general. 80 00:06:33.760 --> 00:06:39.120 And you can measure the strength of a brand based on how much of a premium you can charge on a commoditized product. 81 00:06:39.120 --> 00:06:47.560 And so for example, if I have two white t-shirts and one of them has an LV logo on it and this one can go for $100. 82 00:06:47.560 --> 00:06:49.520 And this one goes for $1. 83 00:06:49.720 --> 00:06:53.440 Then I have significant branding and pricing power as a result of that, right? 84 00:06:53.640 --> 00:06:56.480 And that discrepancy is the strength of the brand. 85 00:06:56.680 --> 00:06:59.320 Now, how powerful the brand do we know this is? 86 00:06:59.520 --> 00:07:04.120 Well, right now the richest man in the world owns this brand, so pretty damn valuable, right? 87 00:07:04.320 --> 00:07:11.160 So Bernard or no owns Louis Vuitton and a zillion other luxury brands because he understands the pricing power of brand. 88 00:07:11.280 --> 00:07:21.840 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. 89 00:07:22.040 --> 00:07:30.840 And that's what becomes the brand Firewheel is that you create a little bit of a premium, you make the spread, you reinvest that into the branding itself. 90 00:07:31.040 --> 00:07:36.320 Then that reinforces the brand, you can raise the price more, increase the spread and then around and around you go. 91 00:07:36.320 --> 00:07:40.960 And so you have this incredibly strong brand that establish that consumers in general are willing to pay more for it. 92 00:07:41.160 --> 00:07:45.920 And if you think about enterprise value in general, it's a discount apply to future cashless from a business. 93 00:07:46.120 --> 00:07:59.400 And if pricing power is the strongest lever on cashless in a business, which it is, by the way, like for example, if I had a business that, you know, ran 50% margins and I double the price and I get the same amount of people to sell, then I triple the profit of the business. 94 00:07:59.400 --> 00:08:03.080 I went from 50 to 150 in terms of actual profit. 95 00:08:03.280 --> 00:08:09.760 And so pricing is the strongest lever on how much money a business actually makes and what is the strongest lever on pricing brand. 96 00:08:09.960 --> 00:08:17.240 And so building a strong brand gives you influence over the strongest lever of profit for a business, which then translates into the highest enterprise value. 97 00:08:17.440 --> 00:08:24.320 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. 98 00:08:24.600 --> 00:08:33.240 Based on the until I have and this isn't me validating that these are the actual numbers, but basically until that I have right now, feastables is probably going to pay three to four hundred million dollars this year in sales. 99 00:08:33.440 --> 00:08:41.040 All right. Now if we assume a 20 to 25% margin for that business, then it's going to do a hundred million dollars in profit. 100 00:08:41.240 --> 00:08:45.360 Now that business on its own would probably be valued at over a billion. 101 00:08:45.560 --> 00:08:49.960 Now Mr. Beast has already sold chunks of beast industries that over a billion dollar valuation. 102 00:08:49.960 --> 00:08:54.280 So from he's already a billionaire, if you don't know that, like he's already a billionaire from an equity value perspective. 103 00:08:54.480 --> 00:09:01.640 And so all I'm making the argument is that he's going to hundred X his net worth over the rest of his life, which actually I think is a very easy argument for me to make. 104 00:09:02.000 --> 00:09:14.040 And so the thing is is that he was able to accomplish that with one tenth of the distribution of Logan Paul KSI and whatnot in terms of their brick and mortar distribution. 105 00:09:14.240 --> 00:09:19.680 So think about it like this, he might have five times the brand size and he's got one tenth of the distribution. 106 00:09:20.200 --> 00:09:27.040 And so there's a 50 X discrepancy between what their sales are, which we can prove and have been public and what I think his sales could be. 107 00:09:27.240 --> 00:09:30.840 Now again, this is only on chocolate. 108 00:09:31.600 --> 00:09:36.120 And the idea is not like Mr. Beast isn't going to make his most of his money on chocolate. 109 00:09:36.240 --> 00:09:39.840 Chocolate was the first thing that he saw everyone would buy. 110 00:09:40.120 --> 00:10:02.760 And so the next follow up is like, okay, well then is it chocolate or feastables the brand and then you have feastables chips and you have feastables water and you have feastables energy drinks that he can then category by category crush everyone else with because he will have a stronger brand because when it's compared to three other bottles that look like the ones you've always seen and then you see feastables, what are you going to do? 111 00:10:02.960 --> 00:10:15.960 You'll probably try it once and if it's at least as good and to be fair or to be real, your perspective on the brand in a real way will influence how good you think it tastes. 112 00:10:16.320 --> 00:10:20.800 So just like there's a famous wine experiment where they had expensive medium and cheap wines. 113 00:10:20.800 --> 00:10:27.760 They had people taste test them and people rank them expensive medium and cheap, but what they didn't know is that the wines are all the same and they just change the labels. 114 00:10:28.000 --> 00:10:37.640 So how you perceive the brand also influences how much you like it and so if you have strong affinity for Mr. Beast, which millions of people do, he could even have an identical product and people will perceive it as better. 115 00:10:39.480 --> 00:10:54.960 And so I think that the fact that he can do three or four hundred million dollars with chocolate bars shows that when he gets into far larger categories with larger lifetime values and larger average purchase like sports drinks, like energy drinks where people will consume one or multiple per day. 116 00:10:54.960 --> 00:11:01.240 Like most people aren't even multiple chocolate bars today, but people will drink multiple gate rates or multiple powers or multiple energy drinks per day. 117 00:11:01.240 --> 00:11:03.160 And again, that's just the beverage category. 118 00:11:03.400 --> 00:11:15.520 Like he can still come out with other verticals and knowing Mr. Beast, he'll do his research and he will look at what is the largest category by revenue across the widest base because he has his audience is everyone. 119 00:11:15.840 --> 00:11:18.960 And so he needs to find products that everyone consume. 120 00:11:19.320 --> 00:11:23.040 And then for that reason, he will be able to sell more than anyone else. 121 00:11:23.280 --> 00:11:34.640 If we were to 50X the sales and that's again, his chocolate versus beverages, which is a unfair pairing, he could already be worth it from that and that doesn't include global. 122 00:11:35.160 --> 00:11:39.840 That's just US and he has a larger audience outside of the US than he does inside the US. 123 00:11:40.080 --> 00:11:52.400 So right now, if Jim goes into a 7-11, person after person will walk in and take a picture with him, which means that here he has mass brand awareness, which is the hardest thing to accomplish and the most expensive thing to accomplish. 124 00:11:52.720 --> 00:11:59.280 And so he has this brand that's already established and all he has to do is plug in distribution into that brand. 125 00:11:59.520 --> 00:12:04.000 And so with every added distribution, he will just generate more revenue instantly. 126 00:12:04.280 --> 00:12:08.520 And likely from what I understand with these, he sells out faster than under the other brand. 127 00:12:08.880 --> 00:12:15.440 So he's taking up more shelf space and pushing through his product at a faster rate than any other brand on the category. 128 00:12:17.560 --> 00:12:27.760 Hey guys, real quick, if you're new to the podcast, I have a book on Amazon called 100 million dollar offers that over 8,000 five star reviews, it has almost a perfect score, you can get it for 99 cents on Kindle. 129 00:12:27.960 --> 00:12:31.080 The reason I bring it up is that I put over a thousand hours into writing that book. 130 00:12:31.320 --> 00:12:33.160 And it's my biggest gift for our community. 131 00:12:33.160 --> 00:12:40.360 So it's my very shameless way of trying to get you to like me more and ultimately make more dollars to that later on in your business career. 132 00:12:40.360 --> 00:12:41.360 I can finish the part with you. 133 00:12:41.360 --> 00:12:42.400 So that's my gift. 134 00:12:42.400 --> 00:12:45.000 Go check it out, Amazon and back to the show. 135 00:12:46.680 --> 00:12:53.200 And so when he applies that to multiple things in the vertical feastables will just grow and grow and expand and expand. 136 00:12:53.440 --> 00:12:55.480 And so do I think that you could do it in gaming? 137 00:12:55.480 --> 00:13:04.240 Sure, but kind of why bother because you could just do this and do it all in all the way and get to a centibillion. 138 00:13:04.960 --> 00:13:12.760 And just to give you some context, my team had to go to a really different grocery stores and we still couldn't find these nuts as one of the Zogabars because they're sold out almost everywhere. 139 00:13:13.280 --> 00:13:13.640 Right. 140 00:13:14.000 --> 00:13:20.200 And Jim's already learned a lot about like how to taste test these things and what's crazy is that he's in his early 20s. 141 00:13:20.320 --> 00:13:32.080 Like he's just getting started and he's a master of content and over the next decade he'll become a master of business because he has access to the best and smartest people in the world because of his brand. 142 00:13:32.320 --> 00:13:36.440 And so he can immediately, you know, jump to, hey, Elon, what should I do? 143 00:13:36.800 --> 00:13:37.080 Right. 144 00:13:37.080 --> 00:13:38.800 And Elon will probably respond. 145 00:13:39.040 --> 00:13:42.600 So let me give you an idea of what beast industries is all about in terms of the ecosystem. 146 00:13:42.600 --> 00:13:51.400 So 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. 147 00:13:51.680 --> 00:13:57.640 On top of that, he's got TikTok, he's got Instagram, he's got Twitter, and in aggregate, he's got over 300 million plus subscribers. 148 00:13:57.680 --> 00:14:00.880 And I think the main argument I would make there is that they're also incredibly engaged. 149 00:14:01.120 --> 00:14:11.640 Like there's a difference between Mr. Beast and another mega influencer who just has 200 million Instagram followers versus him where people have been following and watching his videos. 150 00:14:11.800 --> 00:14:23.000 And they have seen him start from counting backwards or counting forwards to a million or whatever it was as a kid to seeing him become and live out his own vision in front of people of what he wanted to create. 151 00:14:23.280 --> 00:14:26.160 And he has tremendous goodwill because of the amount of philanthropy work that he does. 152 00:14:26.400 --> 00:14:28.440 And so he has one of these strongest brands out there. 153 00:14:28.640 --> 00:14:35.880 Now on the business side, he's got Beastburger, which is a ghost kitchen, which basically leverages the network of restaurants that already exist. 154 00:14:36.120 --> 00:14:44.000 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. 155 00:14:44.000 --> 00:14:47.640 And I know he's got a few hundred restaurants that are already there, so he can already hit national distribution. 156 00:14:48.000 --> 00:14:49.800 But I don't think that's where he's going to make the main money. 157 00:14:50.200 --> 00:14:55.520 The next thing he's got Beast Gaming, right, which is where he'll try and make apps and video games because he has a big gaming audience. 158 00:14:55.720 --> 00:15:05.080 He also has translation services, which I don't know what's going to happen with AI because AI is moving at such a fast pace that that might have been started and might not be the best opportunity vehicle for him now 159 00:15:05.120 --> 00:15:06.640 versus when he started only a few years ago. 160 00:15:07.120 --> 00:15:15.040 But I think where 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. 161 00:15:15.320 --> 00:15:19.040 Because feastables, if you think about, if you're an influencer, you have a massive audience. 162 00:15:19.040 --> 00:15:22.920 What you want to do is simply reverse engineer maximum enterprise value. 163 00:15:22.960 --> 00:15:27.240 And the way you do that is number of sales, time's lifetime gross profit, all right. 164 00:15:27.520 --> 00:15:34.440 And so what that means is, what do I, what do the most amount of people in my audience want multiplied by? 165 00:15:34.920 --> 00:15:38.480 What is the most gross profit I can make per customer, all right. 166 00:15:38.720 --> 00:15:43.400 And so an example of one that I've told Mr. Jimmy that I'm still making my make my point here. 167 00:15:43.440 --> 00:15:48.920 I still think you should start a credit card and start a banking platform, just saying, because what is banking about trust, right? 168 00:15:48.920 --> 00:15:54.800 Everybody would switch to a Beast card and then there's a zillion ways you can monetize because the wedge product for most consumers into banking is a card. 169 00:15:55.040 --> 00:15:58.480 And then you can offer loans, you can do all sorts of stuff, anyways, you might not want to do that. 170 00:15:58.760 --> 00:16:10.360 But if we're looking at what is everyone use banking and what makes the most life time gross profit banking and we look at what businesses have been around the longest banks, then I think that that's a really strong competitive thing. 171 00:16:10.400 --> 00:16:18.880 That being said, 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. 172 00:16:19.120 --> 00:16:26.600 And I think that what we are seeing with feastables just with chocolate is a drop in the bucket compared to how big this brand will be. 173 00:16:26.760 --> 00:16:33.560 Once he enters bigger, more profitable categories, and what I mean by that is, okay, how many chocolate bars is the average person by a week? 174 00:16:33.720 --> 00:16:41.080 Now, how many sports beverages or water do people consume per week and purchase per week, significantly more? 175 00:16:41.320 --> 00:16:50.400 And so if he goes into those categories, he might be able to, in and of itself, even if the same number of people purchase, get 10 times the revenue is currently getting with chocolate bars. 176 00:16:50.560 --> 00:17:00.760 Now, his chocolate bar distribution compared to some of the biggest competitors that are out there in the space is a 10th or 20th in terms of actual brick and mortar locations that sell his stuff. 177 00:17:00.960 --> 00:17:03.720 And right now, he's selling out faster than any other brand. 178 00:17:03.920 --> 00:17:19.560 And so he's still way under indexed on how much revenue he could be making from what I would consider a less than ideal product for how many people he could potentially sell and the life's and gross property could achieve with a different vertical, which Jim Smart and he will do that next. 179 00:17:20.160 --> 00:17:35.040 And what I respect about Jim is that he's just here to win it, like 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 just he can indoctrinate them into the mysteries way of doing things, which is just win it all costs without hurting anyone and do good while you do it. 180 00:17:35.240 --> 00:17:36.280 That's me consolidating it. 181 00:17:36.640 --> 00:17:40.360 But there's eight points that I want to make in terms of why I really think he's getting a hundred billion. 182 00:17:40.720 --> 00:17:44.600 So first is he has massive leverage in terms of what he puts in versus what he gets out. 183 00:17:44.640 --> 00:17:58.880 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 like his biggest videos are bigger than the Super Bowl. 184 00:17:58.960 --> 00:18:05.160 It's hard for people to comprehend that and he can make one of those Super Bowl videos every single week if he wanted to. 185 00:18:05.360 --> 00:18:07.880 And there's no other people who he's advertising against. 186 00:18:07.920 --> 00:18:09.160 It's just him. 187 00:18:09.280 --> 00:18:21.800 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. 188 00:18:21.800 --> 00:18:32.040 And so the stuff you put out, which you spend money on because people consume your product as media also doubles as your media department in terms of how do I market my thing. 189 00:18:32.320 --> 00:18:38.720 And so there's a ton of leverage for media creators because what they sell and how they market themselves are one and the same. 190 00:18:39.000 --> 00:18:47.080 And with that leverage, he's able to gain access to other people's massive distribution pages that might even be different audiences than him. 191 00:18:47.240 --> 00:18:57.720 So when I talked to Jim the other day, he was talking about how he was surprised how much Joe Rogan's podcast with him, how much, how many older people started recognizing him from that podcast, right? 192 00:18:57.840 --> 00:19:14.320 And so he can get on flagrant, he can get on Joe Rogan, he can get on impulsive and all these other ones because he's already established this brand because they know that if he's on their podcast, that podcast will crush because he brings his own audience. 193 00:19:14.520 --> 00:19:17.520 And so that's the leverage that he brings to every conversation. 194 00:19:17.680 --> 00:19:20.160 And so whenever he does not on the door, the door is open for him. 195 00:19:20.320 --> 00:19:23.680 Number three is that he's able to monetize the widest base of his audience. 196 00:19:23.680 --> 00:19:30.520 So like at the most basic level, when he, when he monetizes all the ad sense, every single person who views his video, he gets some money off of, right? 197 00:19:30.720 --> 00:19:32.200 But what's the level underneath of that? 198 00:19:32.200 --> 00:19:46.720 And so an interesting concept here is that if someone paid Mr. Beast like for an integrated ad inside of one of his videos, fundamentally, they believe that they're going to make significantly more by paying him for the integration, then they're going to, sorry, 199 00:19:47.280 --> 00:19:50.760 they believe they're going to make significantly more than they paid him off of that ad. 200 00:19:50.960 --> 00:19:56.720 And so he would then make more money promoting his own thing and make up the arbitrage. 201 00:19:56.920 --> 00:20:07.680 So if someone gets 10 to 1 or 20 to 1 by paying him $20 million a year to market their thing, then it means that he might be able to get 200 million or 400 million a year marketing his thing. 202 00:20:07.880 --> 00:20:14.720 And that's not to mention the fact that if he says, hey, check out Shopify or hey, check out Pepsi or whatever, right? 203 00:20:14.720 --> 00:20:19.080 I know he wouldn't do Pepsi, but you get the idea. Why would he not do that because he's trying to get it going to consumer products. 204 00:20:19.280 --> 00:20:25.360 But point is, there's also some degradation of the call to action. 205 00:20:25.560 --> 00:20:30.400 So what I mean is, if Mr. Beast talks about Mr. Beast stuff, it's all Mr. Beast. 206 00:20:30.600 --> 00:20:36.480 If he talks about something else, then there's a certain amount of trust that gets lost, not with him, but just like he doesn't own Shopify. 207 00:20:36.680 --> 00:20:39.800 And so a certain percentage of people are just like, why don't I want to do that? 208 00:20:39.880 --> 00:20:44.800 Whereas if he's promoting his own thing, the trust transfers 100% from him to the product. 209 00:20:45.000 --> 00:20:55.280 So if someone else can make 10x on his ads, then he might be able to make 100x on his ads because it stays within the brand and it's congruent. 210 00:20:55.480 --> 00:21:02.800 And some point underneath of that is that his media, his content, touches the broadest audience, which is simply entertainment, right? 211 00:21:02.800 --> 00:21:07.640 People want to be entertained because they want to be tracked from lives, whatever, but everybody can watch Mr. Beast's content. 212 00:21:07.840 --> 00:21:13.720 And so his products, as a consequence, he gets to reach everyone with what he sells. 213 00:21:13.920 --> 00:21:20.240 If I started a chocolate bar, it might not even resonate at all with my audience because one, I think a lot of my audits is probably relatively off-conscious. 214 00:21:20.440 --> 00:21:26.160 A lot of them are entrepreneurs trying to be better and they might not be like, well, Alex, chocolate bar is not really like on brand for you, right? 215 00:21:26.360 --> 00:21:30.160 Now if I sold nasal strips, then that might be very on brand because they would have breathed better. 216 00:21:30.200 --> 00:21:34.600 They want to perform better, they want to sleep better, all those things that are a lot, and I do it and they know I live this stuff, right? 217 00:21:34.800 --> 00:21:42.200 And so again, the consequence here is we want to sell the thing that the most people in the audience will buy. 218 00:21:42.400 --> 00:21:53.960 Number four is that, and this is the main reason I believe that the CPG angle, so consumer package goods compared to his software-sized gaming play, we'd better for him, is that it takes a, it's like getting into software is 219 00:21:54.000 --> 00:21:56.200 starting incredibly hard in competitive space. 220 00:21:56.400 --> 00:22:08.320 Now he has this huge competitive advantage of having the big brand, but I think that he doesn't basically why introduce another risk variable when he could just do a very simple business model and have a superior brand on top of it. 221 00:22:08.520 --> 00:22:19.080 And so like manufacturing, you know, the chocolate bars or chips or water is not overwhelmingly complex compared to making a software or an app or something like that. 222 00:22:19.240 --> 00:22:27.520 And so he can leverage the fact that with his, with his audience, he can have a very simple transactional business and then focus the rest of his time on distribution. 223 00:22:27.720 --> 00:22:33.720 Number five is that Jim is smart enough to know that he doesn't know everything, and that would be very tough. 224 00:22:33.920 --> 00:22:41.120 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 gets your head. 225 00:22:41.480 --> 00:22:52.360 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. 226 00:22:52.640 --> 00:23:05.280 And so now, is he going to take advice on concept from a lot of people? I mean, I think he listens to everybody because he wants to take anything that he can, but he takes that same win winners attitude to every other thing that he doesn't business. 227 00:23:05.280 --> 00:23:13.840 And so 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. 228 00:23:14.240 --> 00:23:20.440 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. 229 00:23:20.720 --> 00:23:24.320 Right. And so why would he talk to somebody who's not a billionaire on paper? 230 00:23:24.560 --> 00:23:31.640 Because he still feels like there are things that he can learn from them and then implemented to his machine and instantly get to 10 or 50 or 100. 231 00:23:32.360 --> 00:23:45.680 And just as like a micro example, like he still texts, like the thumbnails that he's thinking about going on for his videos to some of his close buddies that are super high YouTubers just to get their feedback because at the end of the day, he cares about winning more than being right. 232 00:23:46.080 --> 00:23:55.800 Number six is that he's trying to hire a God squad and he's doing it aggressively. So he wants the Avengers of business and content to be on his team in house. 233 00:23:56.200 --> 00:24:05.560 And the thing that he has that's again, the huge advantage of the personal brand is that smart people recognize the fact that he's growing like crazy and they want to get on the ship. 234 00:24:05.840 --> 00:24:12.080 And so the access to town that he has the same way as access to expertise is second to none. 235 00:24:12.120 --> 00:24:21.320 And so he can get someone to take a pick up to join beast industries for one of the verticals he wants to go after who are maybe even underpaid, not that saying that he doesn't pay well. 236 00:24:21.320 --> 00:24:25.680 But I'm saying like they're willing to take a smaller slice because they believe in the bigger pie. 237 00:24:26.160 --> 00:24:31.440 And the reason able to do that is because the value they're getting from Mr. Beast and Beast industries isn't just monetary. 238 00:24:31.600 --> 00:24:42.400 So even because the thing is that the more he develops his brand, the more just saying I work to beast industries, I work for Mr. Beast becomes an asset that you get to live with for the rest of your life that you can then leverage in other places. 239 00:24:42.400 --> 00:24:46.800 So the trade is still a great trade. It's just not all denoted in money. 240 00:24:47.440 --> 00:24:55.000 Number seven is that he for being so young, it's amazing how collaborative rather than competitive he is now don't be wrong. 241 00:24:55.000 --> 00:24:58.200 He's super competitive as a person, but I think a lot of it is him against him. 242 00:24:59.400 --> 00:25:02.960 But he's willing to collaborate with other creators rather than cut them down. 243 00:25:03.000 --> 00:25:07.720 And so he spends time like he he helps people out on their first channel with no subscribers. 244 00:25:07.880 --> 00:25:11.560 He does TikTok videos with TikTokers that aren't nearly as big as him. 245 00:25:12.160 --> 00:25:17.240 And he does that because he sees the world as larger than a zero sum game, meaning we can just both win. 246 00:25:17.440 --> 00:25:28.880 And I think that's actually been one of his low key secrets to success is because early on he was masterminding with all these guys who are all together trying to get millions of subscribers and all of them did. 247 00:25:29.000 --> 00:25:33.600 And I think, you know, this is me just putting my theoretical hat on. So I'm going into conjecture. 248 00:25:33.960 --> 00:25:50.800 But I'll bet that him seeing that all of them could win when they all work 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. 249 00:25:50.800 --> 00:25:56.160 And I think that might have actually been a really core pillar of why he is more open to collaboration and helping everyone. 250 00:25:56.200 --> 00:25:58.560 And number eight is that Jim is playing an infinite game. 251 00:25:58.680 --> 00:26:02.320 And what I mean by that is that he's in the game to play the game. 252 00:26:02.600 --> 00:26:05.360 Like by any stretch, he doesn't need money anymore, right? 253 00:26:05.360 --> 00:26:10.080 He's got a billion dollar, you know, plus billion dollar valuation personally in terms of his net worth. 254 00:26:10.320 --> 00:26:13.560 And if he lost everything tomorrow, he would still make YouTube videos. 255 00:26:13.680 --> 00:26:16.840 And the reason I know that is because when he had nothing, he made YouTube videos. 256 00:26:17.160 --> 00:26:24.000 And because he plays the game that way, he's going to have one of the biggest piece of leverage that everyone under plays, which is time, right? 257 00:26:24.000 --> 00:26:30.720 Because it doesn't matter like on a long enough time horizon, you can actually pursue a lower leverage opportunity and still win huge. 258 00:26:30.920 --> 00:26:36.640 It just takes a longer time, but he is in a high leverage opportunity vehicle and he has time. 259 00:26:36.840 --> 00:26:41.560 So he's already got almost a decade of experience under his belt in his low 20s. 260 00:26:41.680 --> 00:26:46.400 And so in terms of like entrepreneur years, he's actually older than people give him credit for. 261 00:26:46.880 --> 00:26:56.800 But he's still being old for what he's given credit for still has 60, 70 years ahead of him where he can continue to compound that. 262 00:26:57.080 --> 00:27:02.240 Meaning his audience compounds unto itself, his media compounds unto itself. 263 00:27:02.640 --> 00:27:11.640 And so if you imagine any reasonable rate of progress over that 60, 70 year period, I feel incredibly confident that he can hit that 264 00:27:11.640 --> 00:27:14.080 centipede and probably far more than that.