The MrBeast Strategy of Advertising

YouTuber Jimmy Donaldson, better known as MrBeast, is the king of YouTube. That’s not an exaggeration—many other YouTubers would tell you the same thing. MrBeast epitomizes what it means to be a successful YouTuber, with his channels collectively valued at an estimated $10–20 billion. His main channel boasts 320 million subscribers, making it the highest on YouTube by far.

When Jimmy first started gaining popularity through challenge videos, such as counting to 100,000, he caught the attention of major sponsors. In one notable video, he proposed giving money to the homeless and requested $10,000 from a sponsor to make it happen. Allegedly, the sponsor initially offered $5,000, but Jimmy insisted on $10,000, arguing that it would make a more compelling title and attract more viewers. He was right—the video went viral and catapulted him into the spotlight. This strategic business mindset played a key role in his rise to stardom over the next decade.

Like most YouTube channels, MrBeast earns revenue from clicks and ads. Every time someone watches one of his videos, he receives a small cut from YouTube’s ad revenue, in addition to striking his own deals with companies for embedded advertisements. This business model is highly lucrative, as many of his videos surpass 10 million views within hours of being uploaded. Over the years, people speculated that MrBeast had seemingly unlimited funds because of his frequent donations to charities and his generosity with video participants. What most people didn’t realize, however, is that for nearly a decade, MrBeast never took a profit.

Here’s how his strategy worked: Suppose MrBeast earned $20,000 in ad revenue and sponsorships from a video. Instead of pocketing the profit, he would reinvest the entire amount into his next video’s production, whether that meant funding donations, stunts, or enhancing the overall production value. When that video made him $35,000, he would follow the same strategy, reinvesting all of it into the next one. This reinvestment approach created a snowball effect, consistently raising the quality and scope of his content, which, in turn, attracted more sponsors and viewers.

This relentless reinvestment strategy has helped transform MrBeast into the cultural phenomenon he is today. By consistently reinvesting his profits, he has ensured that each new video offers immense value to viewers.

While I don’t anticipate making much financial success from Whalers, I believe writing is a pursuit fueled more by passion than wealth. I have a day job that sustains me, but the idea of applying MrBeast’s strategy to advertising my book intrigues me.

Here’s my thinking: If I spend $200 on advertising during launch week, drawing attention and potential readers to my novel, and if I make $300 in sales, why not reinvest that $100 profit straight back into advertising? By continuously funneling profits into advertising, I could attract more readers, accumulate more reviews, and build a strong foundation for future releases. Over time, this reinvestment could amplify my readership, so that when my next book debuts in a year or so, I’ll have a base of engaged readers ready to support it.

In the short term, this approach may not be financially lucrative. But in the long run, it could prove to be the most effective strategy for achieving lasting success as an author.

It may take a decade, but I’m ready to see it through.

Whalers debuts in February 2025.