One of the leaders in the Jesus Movement of the 1960s and 1970s, a pastor and an evangelist, Jim Palosaari was born into a goat-farming family in the Upper Peninsula of Michigan and grew up in Wisconsin. He spent his early adult years in the theater, and eventually became a Christian with his future wife Susan through the Jesus Movement in Seattle. He joined up with Linda Meissner's Jesus People Army and was discipled by her. After she had the Jesus People Army join up with the Children of God Jim tried to dissuade her, but was unsuccessful.

Jim went on to start a number of communes, including Jesus People Milwaukee, which split up to become Christ is the Answer, JePUSA, and Jesus People Europe. In Europe Jim formed the band Sheep and the rock musical Lonesome Stone, as well as starting the largest Christian music festival in the world, Greenbelt, which still was operating in the early 21st century.

Back in the United States, Palosaari formed a second commune, the Highway Missionaries, which traveled around North America evangelizing, calling the church to repentance, and living communaly. They often traveled about showing the movie Brother Sun Sister Moon, about the life of St. Francis, whom Jesus Freaks greatly identified with. An abortive record company and the rock band Servant also came out of Palosaari's efforts, and was the first Christian rock band to use lasers or have an extensive light show. They in turn gave Petra their start.