The MrBeast & Logan Paul Monetization Model to Emulate

0:00Welcome to Marketing School, the only podcast that provides daily top-level marketing tips and strategies from entrepreneurs that practice what they preach and live what they teach. Let's start leveling up your marketing knowledge with your instructors, Neil Patel and Eric Hsu.

0:20All right, so we're going to talk about the Mr. Beast and Logan Paul monetization model to emulate. So I'll set the stage real quick for this one. So most people, when they think about Mr. Beast and Logan Paul, they think about Beast Burger. So that's Mr. Beast, you know, burger chain. There's Feastables, which is like his chocolate bars. Logan Paul has Prime. time you know he has i think that's kind of the main thing that he has going on obviously they both monetize through ads as well and so we want to talk about you know how their also makes quite a bit of money monetizing his own brand like wrestling for wwe i think it's called yeah wwe yep yep he's paid as a wrestler there so they're continuing i mean and they're gonna like i think logan's gonna start fighting again or something so both of them are really good at building audience that's one piece of it the one thing i wanted to set the stage for here and we could go back and forth is that most people think, you know, back in the day, right?

1:10You know, the argument is, oh, you should build a business first. Now these two are kind of flipping it around where they're going with audience first. And then the audience is then leading into the monetization models and they can kind of pick the monetization models. Right. And Neil, actually, if you think about you too, or if you think like, let's look at Gary V too, you led with the audience first, right? And then you tried different monetization models with courses. You tried it with, you know, agency, you tried it with different things. You even gave away free one-on-one calls, right? But at the end of the day, the monetization model that works for you is agency.

1:40So my point of saying all this is that you might lead with the audience first, and then you pick the monetization model that works. So go ahead. Yeah. I actually think the better approach is you build your brand. I think that's a new way. And then you monetize it. Whether it's corporate or personal, you build the brand, you build the audience, and then you figure out how to monetize it. There's so many people who have done this. Celebrities are countless examples. The Kardashians are countless examples. Beats by Dre, another example. They had the audience. Dr. Dre was really well known for audio and music.

2:12And then from there, he built the headphone company. And I watched the documentary on it. This is a long time ago. And I remember people were pitching like sneaker companies and other stuff. He's like, that's not related to me. Let me focus on what I know and what I'm known for. And that model works out extremely well. You just have to focus on, all right, can I end up focusing on creating a brand? Can I create enough unique content out there and push it out where I can build the audience I need to monetize it? Because if you're in B2C, hundreds and thousands of followers is enough. You need millions.

2:46And if you're in B2B, you need hundreds and thousands of very relevant followers for it to work. Yeah. So here's what I'll say too. Kevin Kelly, he's the guy that created Wired. And he's known as, I think at one point, he's known as the most interesting man, not the Dos Equis guy. But point being, he talked about you need a thousand true fans, right? And so we're not saying that you need to have an audience of 100 ,000, that'd be great, or millions like these two, right? But let's take a look at our friend, Alex and Leila Hormozy. And so for them, they've created this business brand and they've been able to leverage that brand to do business deals, right?

3:19They want to basically buy into companies. And oftentimes, the brand creates this halo effect where you're able to get deals done at better terms. And so for example, I do have agencies that reach out to me. And some people will offer to... They want to partner up. And some people straight up say, hey, we're doing a couple million dollars right now. And we'll give you 25%, right? And then I can figure out how to negotiate the deal where it's even better for both sides. But that's the power of the brand at the end of the day. And if you're out there, like for us, it's not like Neil and I are very showy.

3:48We're not going to go crash a plane or something like that. But we're just going to share our knowledge around operating a business and we enjoy doing it. And so that's how our brands are, right? And so you're going to be able to get better deals, right? And sometimes it's funny, Neil, you talk about shoes, but you look at Kanye or, you know, yay and the Yeezys, right? Oh, like he made these comments. And then all of a sudden he got, the deal, the deal got pulled and now they're like, oh, let's rework the deal. And so point being like, you know, Are they trying to rework the Kanye deal with Yeezys?

4:17Yeah. Where I read it was like, they lost so much revenue from it that they're trying to rework the deal now. So we're not going to try to get political here or, or talk about, you know, what he said or didn't say. It's just the fact of the matter that it's funny that Adidas is trying to like bring them back into the deal. But, you know, at the end of the day, like we talked about Mr. Beast, we talked about Logan Paul, but even look at Jake Paul. So, you know, Jake Paul, I met the guy, super humble guy, right? And, you know, he's, you know, carving his own path with boxing, but he's also doing all these other business deals.

4:42He's got a VC firm with my friend, Jeffrey, right? And, you know, they created a new like betting company called Better. And so they're just doing a lot of interesting things. But I think what you're going to see is people are going to learn to build their audiences and then they're going to learn business. And, you know, I think because there's such a wealth of information available online now that it's super easy for people to learn kind of the business aspects, or I should say super simple. It's not easy. It's simple. Anything else, Neil? No, that's it. All right. Please don't forget to rate, review, subscribe, and also hit us on YouTube as well.

5:13And that's it. We appreciate you joining us for this session of Marketing School. Be sure to rate, review, and subscribe to the show and visit marketingschool.io for more resources based on today's topic, as well as access to more episodes that will help you find true marketing success. That's marketingschool.io. Until next time, class dismissed.