Originally published at https://tranandy.substack.com.
What is the Passion Economy?
This up-and-coming topic is popularized by Li Jin, founder of Atelier Ventures. She defines the Passion Economy as a space where “the value of unique skills and knowledge can be unlocked, augmented, and surfaced to consumers.”
My current definition of the Passion Economy is individuals leveraging digital platforms to explore their creativity, hone their skills, and earn income, enabling connections through a two-way beneficial relationship.
Today, we’ll dig into the Passion Economy’s value proposition for creators and consumers, analyze whether it’s for you, and share some resources where you’ll be able to learn more about this topic.
The Value Proposition for Creators
The top ten publishers on Substack, a platform that allows writers to create email newsletters, earn about $7 million in revenue. (Forbes)
Before platforms such as Substack, there was the gig economy. Users worked flexible schedules but would have to accept orders with a set price from platforms such as Uber. While the gig economy is here to stay, creators can now monetize their unique skills by building audiences and selling products and services.
The difference here is how creators are adding value to their audience. An article written in 2008 by Kevin Kelly discusses the idea of 1000 true fans. Instead of trying to reach as many people as possible with little interaction, you focus on a stronger connection with 1000 fans. For creators, this is achievable by focusing on a niche and offering unique content, a community, and/or access to you.
The Value Proposition for Consumers
Because creators in the Passion Economy have access to digital platforms, consumers have more offerings to choose from. They are often more affordable, accessible, and aligned with their current interests and skillsets.
For example, consumers can decide to subscribe to daily updates from Stratechery, which provides “analysis of the strategy and business side of technology and media, and the impact of technology on society.” For $120 USD yearly, this would be a strong alternative to the Financial Times, for example.
Is the Passion Economy for me?
Passion is made up of a unique combination of skills and interests, which can change over time. The actual meaning of passion in Latin is “to suffer.” For some, being your own boss and having total responsibility for your company works. Choosing to be a creator in the Passion Economy is hard work. You will make mistakes, but in the end, the learnings that you walk away with will make it all worth it.
Author of the book The Passion Economy, Adam Davidson, recommends this for individuals who have a full-time job working for an organization: “do the job, show up on time, but start identifying the things that seem to set them apart. Note that, and start to think how you can build those capabilities and communicate them, and communicate the value of them up the chain.”
Is the Passion Economy for everyone? No, but everyone should try it out without a doubt. I am working on a stealth startup, and I cannot wait to see what impact it will have on others. Subscribe to my newsletter to get updates on my progress!
I recommend taking a look at the following to learn more about the Passion Economy:
- Li Jin: “The Passion Economy and the Future of Work” (a16z)
- Adam Davidson: The Passion Economy (affiliate link)
- Jon M. Jachimowicz, Joyce He, and Julián Arango: “The Unexpected Benefits of Pursuing a Passion Outside of Work” (HBR)
Originally published at https://tranandy.substack.com.
