Jimmy (MrBeast) explains why you’re better off than most creators:
Jimmy (MrBeast):
95% of creator brands right now five years from now will not exist.
And then— but you have to think of the opportunity cost for the creator, because imagine an inverse scenario where instead of launching popcorn— promoting popcorn a bunch, promoting, promoting, promoting, promoting, promoting for two years, and then realising,
‘Oh this isn’t working out,’
then slowly shutting down over the next few years, and essentially net nothing. Because it’s very hard to be a profitable business.
Yeah, now imagine that where you basically— best case scenario it’s a wash — let’s say they don’t lose any money, versus one where instead of promoting the popcorn they’re doing brand deals.
And it’s like someone who’s getting $50,000 a brand deal, and they do brand deal, brand deal, brand deal, brand deal, brand deal, brand deal, brand deal, brand deal, brand deal, brand deal over the course of 4 years.
Like, there a multimillion-dollar net difference — and that’s assuming you don’t even invest the multiple millions of dollars in the stock market, and the gains and stuff.
There’s like— the opportunity cost is actually massive.
And I think a lot of creators starting brands are just wildly messing up.
Like I think they would be way— because most of them aren’t entrepreneurs and they’re just gonna fail. And they’d be so much better off just doing brand deals, and putting that effort into their content or, like i said, just doing a royalty deal with someone who actually knows what they’re doing.
Raj:
Or, like, partner with someone who knows how to—
Jimmy:
Exactly. Because, like, the odds of them running a product at scale and, you know, having twenty percent margin, and being able to do all these things, or having— it’s just not going to happen for most creators.
— end of vid clip: @ minute 49:38
He’s right:
- most creator brands will be gone in 5 years.
What separates you from most creators (besides reading this far down the page) is you probably know something about email marketing.
The brands that will disappear are led by creators who rely on their channel subscribers and followers to keep their product hot. What does that mean?
That means YouTube, IG, TikTok, Patreon… any non-owned platform you’re focusing on can drop a new update or algo tweak and freeze your whole business in an instant.
If you’ve been making that mistake, the fix isn’t hard. Start with the Platform Owner Checklist, then book a Roadmap Workshop.
— Tang
Jimmy “MrBeast” Donaldson’s owned platforms include: Mr. Beast Burger, Feastables, and Lunchly.
