Monday, August 3, 2026

Markets & Business

MrBeast and top creators pivot from ads to vertical business models

YouTubers are increasingly diversifying into vertically integrated businesses to mitigate the volatility of platform-dependent ad revenue and brand deals.

MrBeast and top creators pivot from ads to vertical business models

The creator economy is shifting away from ad-dependent revenue models toward vertical integration, as creators seek to build businesses that outlast algorithm changes. This transition is significant given the scale of the YouTube creative ecosystem, which contributes $55 billion to the U.S. GDP and has created 490,000 full-time jobs. Rather than relying on platform policies, creators are establishing parallel businesses, including product lines and consumer brands.

Jimmy Donaldson, known as MrBeast, who has 442 million subscribers, serves as a primary example of this diversification. In November 2025, The Times reported that the YouTuber is set to open a theme park in Saudi Arabia, with rides supposedly inspired by his video content. He also plans to establish a mobile virtual network operator (MVNO)—a wireless communications services provider that does not own the wireless network infrastructure—and announced the acquisition of banking app Step in February 2026. What started with a merchandise store in 2018 has expanded into a business portfolio, including his snack brand, Feastables. At launch, Feastables sold 1 million bars, generating $10 million in initial sales. In 2024, Feastables generated roughly $250 million in revenue and $20 million in profit, making it more profitable than his YouTube content and Beast Games series, while his media business lost approximately $80 million.

Other creators are following similar paths, leveraging their subscriber bases to build brands:

  • Chamberlain Coffee (Emma Chamberlain, 12 million subscribers): Launched in 2019, the brand reached approximately $20 million in revenue in 2023. According to Business Insider, it is expected to rebound with projected revenue growth of over 50% by 2025, reaching more than $33 million, and is aiming for profitability by 2026.
  • Prime (Logan Paul, 23.6 million subscribers): Co-founded with KSI, the brand surpassed $1.2 billion in sales in 2023, though sales in the U.K. dropped about 70% from 2023 to 2024. Paul’s Maverick Apparel made between $30 million and $40 million in 2020.
  • Ryan’s World (Ryan Kaji, nearly 40 million young viewers): His toy and apparel line generated over $250 million in revenue in 2020.
  • Nerdy Nummies (Rosanna Pansino, 14.8 million subscribers): Expanded her brand into cookbooks and tools.

While these ventures offer growth, they also introduce risks, including regulatory scrutiny and reputational challenges. For instance, Logan Paul has faced scrutiny alongside controversies such as his allegedly scammy NFT project, CryptoZoo. However, other influencers provide a blueprint for brand building. Michelle Phan, who gained fame in 2007, co-founded the beauty subscription service Ipsy and EM Cosmetics. Similarly, Huda Kattan founded Huda Beauty in 2013, selling a minority stake in 2017 before buying it back to maintain control.

Why it matters

The creator economy is maturing from a content-first model to a business-first model, where influencers leverage their distribution to capture value across the supply chain rather than relying on platform algorithms.