Why does mr beast give away money? Here are 7 reasons.

We all kind of get why Mr. beast gives money out. It helps him grow the YouTube audience and draw more attention. But that is not the only reason. In this article, we will explore why does mr beast give away money.

1. Giving away money is his video content.

His video content is mainly about giving away money and people want to watch him continue to do so.

In one interview he mentioned how he started with the giving away money content.

When he was 18 years old, he got a couple of thousand from an ad sponsor. And he thought what if he just gave the money away and tried to make more than that? He tried his plan and discovered that it worked.

His idea resulted in his first viral video, in which he gave $10,000 to a random homeless man. That video gets millions of views. Since then, all of Mr. Beast’s videos have been around giving money out to people. Each and every video is a great hit. He cracked the code of getting online traffic.

He did the same process every month, ever since. The money kept rising to millions of dollars. And it became his business model! Today, giving away money is what Mr. Beast is paid to do on YouTube now, and it defines who he is. He created his brand and reputation by giving money to complete strangers.

And, of course, he’ll continue to give out a lot more in the future. That is how he makes his videos, and he will continue to do so if he wants to continue creating content. Mr. Beast mentioned that he makes $3 to $4 million each month, thus he has enough money to keep doing so!

 

2. It may stem from his Christian faith

Beast has frequently stated that by the time he dies, he will give away all of his money. Why does he think that way? We may look into his childhood. Mr. Beast, aka Jimmy Donaldson, graduated from Greenville Christian Academy, a private secondary school in North Carolina. We may presume that if his parents were not Christians, they would not send him to a Christian school.

Mr. Beast grew up in North Carolina, which is a Christian state. 77 percent of North Carolina adults are Christian. Giving is essential to the Christian faith. Christians regard their possessions, both material and spiritual, as gifts from God. God loves a cheerful giver and God is also a self-sacrificing giver.

Mr. Beast would learn about giving away from Christian doctrine and his parents, which explains why Mr. Beast is such a generous and kindhearted person.

3. Mr. Beast feels that it is fun to help others in need.

According to Mr. Beast, Giving money away is very fun.

Because he can watch people’s reactions and how their faces light up. He also said it was interesting to observe how people respond when they anticipate $1 but are given $100.

He described giving away money can give him a mix of feelings. It is an interesting thing for him, and it is also what he enjoys doing.

Moreover, he has many creative ways to give money away is make it more fun to watch his videos. For example, he donates $50,000 to random Twitch streamers with 0 viewers. The streamer was both surprised and happy.

 

No one has created content like this before. It is just very entertaining to watch him give money out in unexpected ways.

4. Mr. Beast has not yet married.

When it comes to donating money to charity, most married couples should make decisions together.

In general, single men are more giving. One study also mentioned that people who are single are more generous with their money than married men. Data from the same study revealed that married men paid less money to friends than unmarried men.

Mr. Beast is not married and has no children yet, so he has more financial freedom and fewer family obligations. Being single, also implies he is free to do anything he wants without consulting anyone.

Mr. Beast also claimed to be the poorest person in terms of cash since he reinvests everything in the next video. But, if he were married and his wife disagreed with what he is doing, could he continue to invest all of his money the way he does now? I think it could be a little bit difficult.

Women are much less likely to take a financial or gambling risk than men. Putting all of the money into the next video is a gamble. Most married women would not want their husbands to gamble away the entire family’s wealth on YouTube content creation.

I’m not saying he’ll stop donating money after he gets married, but if he was married when he went viral, the outcome today would be different.

5. The more he gives away, the more he makes

You can’t give away a lot if you don’t make as much. However, Mr. Beast can make even more money than he gives away.

For example, in his most watched video “squid game in real life”, He gave away $456,000 to create the 25-minute video. But the result is good. He has 323 million views for this single video as of December 2022.

Let’s do simple math for his investment. YouTubers can make $3 to $5 per 1000 views. When we take the minimum $3 as the incentive rate, his gross revenue for this video is at least $1,059,000. Meanwhile, he can expect at least $603,000 profit from this video. So, he makes much more than he spent.

An annual ROI of 7% or above is considered an excellent ROI for a stock or for an investment. Mr. Beast’s video ROI rate is more than 100% in less than a year, indicating that this business model is more than satisfactory.

I believe that anyone who has this ROI rate for investment will continue to do so like Mr. Beast.

6. Giving away is tax deductible

For Mr. Beast, donation or giving away is a business expense that is tax deductible. A tax-deductible business expense is an expense that is “ordinary, necessary, and reasonable” and helps a business produce revenue. 

Why is Mr. Beast’s donation tax deductible? Because people aren’t watching his videos if he is not giving away $100,000. That makes his donation a required business expense.

As a result, if he gives way 1 million dollars for video production and earns 2 million dollars from the videos in a given month, his taxable income is only 1 million dollars for that month.

In general, charitable donations can be deducted up to 50% of adjusted gross income calculated without taking into account net operating loss. So, Mr. Beast’s contribution to other charitable organizations can likewise be utilized as a tax-deductible, which can save him tons of money.

7. Giving away is a marketing strategy for his content 

Giving away is also an excellent practice of emotional marketing. Emotional marketing is a strategy used by businesses to target particular human emotions in order to engage customers. It could be a furious, sad, or joyous emotion. Giving away content is always accompanied by the concepts of “surprise” and “unexpected” which are extremely enticing to the audience.

Do you want to know how much marketing fee Mr. Beast can save by giving out free stuff?

Let’s use Mr. Beast’s Beast video “I gave my 40,000,000th subscriber 40 cars” as an example he has 114 million views for this video. This video was made to encourage more people to subscribe to him. He said he spent more than $30,000 to buy those cars.

Google charge, on average, $1 to $2 per click. We can assume that one view equals one click because you can’t watch a video without clicking on it. Then he saves at least 114 million in advertising fees to encourage people to view it.

Moreover, building trust is the first step in any type of business. Giving away free stuff is a great approach to gaining the trust of your audience.  

Youtubers’ business is “selling” their content to audiences. To encourage the audience to watch videos, YouTubers must first acquire trust and convince their audience that they are kind people. And giving something away for free always helps in this situation! No one will consider Mr. Beast a bad guy when he is offering free money in exchange for nothing in return.

In conclusion, giving money away is a win-win scenario in every manner.  Above mentioned reasons explain why does mr beast give away money and why he will continue to do so.

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If you want to know how Andrew Tate made his money, please read this article.