How did $10,000, a homeless person, and counting to 100,000 change the trajectory of my startup?
It was May 2017 and my VP of Marketing at Quidd showed me a video of @MrBeast. Back then, Jimmy was making videos in his bedroom and we were experimenting with influencer sponsorships, when virtually no one was doing it.
We watched him count to 100,000 in a single, 24-hour long video. We loved it, and so did the YouTube algorithm. So we took a bet. Offered him $10,000 for a simple shoutout. Rather than take the money, Jimmy had the brilliant idea to give it away.
That giveaway format helped propel MrBeast in the early days.
For us? It blew the doors off of every other marketing channel we'd tried, helped us get to the #1 rank in the US App Store, and was instrumental in our next funding round.
The lesson? Small tests in unproven channels can become your biggest growth lever, which can lead to significant business outcomes.
This is why we created Factory. To help cutting-edge companies bet on frontier marketing channels, and find hidden pockets of demand before their competitors do.
Entering a market without a prior passion is an underrated founder advantage.
When you have no personal opinion on the answer, every market interaction becomes active listening.
You're solving a puzzle, not defending a worldview.
Passion biases signal detection. Especially in the early days when you need to learn fast.
I bet the real value is increasing the percentage of your day spent “walking while away from desk” as humans unpack and repack thoughts better while moving at ~3 mph. The rate at which stimulus comes to you on a walk is in that sweet spot of slow but not too slow to form new ideas, synthesize old ones, and find breakthroughs that otherwise wouldn’t come to you staring at a screen.
Limbic hacking to boost engagement might also be considered deception, which seems to move through the population from a very common starting point: the most susceptible to it goes first and sends the signals for what’s coming to the broader population next. High screen time/day is probably the signal of that vulnerable leading edge, and unfortunately that probably correlates to lower incomes as “IRL time” is vastly more expensive than screen time for a child or young adult.
Hiring sprees can be signals of a few things happening internally, each positive, neutral, and negative. But licensing AI tech from another company seems neutral to negative, like buying a bridge until you can catchup or starting to execute plan b (buy vs. build).
It’s probably just the existence of the cash pile that matters most, but a stunning admission that the “build” path was floundering (which it shouldn’t given supposed past milestones announced and the data advantage). (I mean, when does credibility start to diminish?).
AI startups that specialize might have exit moments going forward if the “build paths” of foundational AI companies start to flounder.
In the episodic story arc that he’s crafting, the summit is like calling in a guest star that will temporarily boost ratings and silence the critics that are growing louder and more critical about the worsening quality of the writing.
What’s the world going to be like when this happens:
- now: 5 video ads/10,000 people/day
- future: 5 video ads/person/sec
This is the near-term reality of the “press a button, get an outcome” vision that Zuck wants.
In talking to over 200 performance marketers the last six months, many said that if the dial down Meta spend, they see immediate drops to sales. Immediate.
Due to the underlying incentives, this *can’t not* be the future.
@sarahtavel So true. I think of it as: is there a platform that didn’t eventually do this? Kind of the natural progression if there’s money to be made, big markets to win, and costs to make a return on.
It’s also that watches are more durable and last longer in terms of materials. Sneakers, even unworn, can degrade and breakdown over 10 years. Watches less so. Not that Gen-Z is thinking long-term and about family heirlooms, but as a long-term flip, watches can stay in good condition for longer.
I don't know who needs to hear this, but @PSAcard is now upcharging cards in the $500-$1000 range to $74.99.
Previously, they would only be upcharged to $39.99.
Have no idea why they scrapped this, but spending $75 to grade a $500 card is BAD.
In terms of business models, is there one more polarizing than free to play?
It preys on whales (free-to-prey), but it also democratized games, that in combination with a new platform (iPhone) increased the number of global video game players TENFOLD.
It simultaneously made gaming worse while expanding its access.
Phase 5: Giving Back
On June 15, 2017, uploaded a video where he gave $10,000 to a homeless man using his brand deal money.
This turned out to be a viral formula for the MrBeast channel, combining large sums of money with generosity / positivity.
This video also laid the foundations for Jimmy’s 'Reinvest Everything' mindset towards making content on youtube.