What's The Passion Economy? Why Is It The Future Of Work?
10 minute read
Written by Liam Donoghue, Marketing Executive
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What is the Passion Economy?
‘The Passion Economy is the Future of Work’ - Li Jin
The Passion Economy is a new way for individuals to monetize their skills. It lets freelancers and entrepreneurs scale their businesses exponentially and earn passive income. It removes the shackles associated with freelance, ‘gig’ work, and provides platforms for users to produce content that can be consumed at all times.
This makes the ‘time for money’ dynamic, which is an essential part of the gig economy, obsolete. The gig economy demands participants simultaneously work a job whilst scanning the horizon for their next one. This uncertainty can cause massive financial stress.
The Passion Economy, on the other hand, gives individuals the freedom to work when they want, from where they want. It provides people with passive income and allows people to pursue their passions and positively change the world around them, it makes the world a more confident and passionate place.
We recently interviewed the author of The Passion Economy book, Adam Davidson. He shared his insights and thoughts on the passion economy and explained the rules of this new economic framework. Watch the show below.
Where Did This Economy Come From?
The passion economy lets you work anywhere.
The last ten years have seen a revolution in work. What society now considers a ‘job’ has changed beyond recognition. The rise of companies like Uber, Deliveroo & Fiverr has allowed people to monetize their time in services like transport, graphic design, and food delivery.
These marketplaces gave thousands the opportunity to be self-employed but often required workers to focus on consistency and efficiency. They told individuals they could ‘be their own bosses’, but the reality was freelancers tied to hours sheets, trading time for money in the tough ‘gig economy’.
The reaction to this state of affairs led to the creation of new digital platforms that emphasize users’ individuality. These platforms let users earn money in a way that highlights and celebrates their individual skills and personality instead of squashing them.
These new platforms give users; better support growing their businesses and suites of tools to make them stand out in a busy marketplace.
This has created a new model of entrepreneurship.
Why is it better than the 'gig economy'?
Working in the gig economy can be a stressful prospect
The gig economy takes power away from individuals providing a service. Freelancers’ have to deal with insecure revenue streams that increase a person’s financial vulnerability.
When people don’t know where their next paycheck is coming from they’ll often undercut each other to secure jobs. This creates a destructive cycle where: freelancers undercut each other on price, companies pay less for skilled services, freelancers need to work longer hours to make ends meet.
It's a race to the bottom with the only winner being the big, established businesses, who can get labor for cheap.
The Passion Economy rejects this state of affairs. It shifts the power dynamic back in favor of the individual. It lets people scale their skills on a one-to-many basis.
Workers no longer need to trade time for money and fight to keep their heads above water in the gig economies race to the bottom. Instead, they can earn passive income, scale their clients exponentially, and have the freedom to work when they choose.
Is it really the future of work?
Automation is making traditional forms of work obsolete.
Automation, globalization, and the internet have fundamentally changed the way we view work. The concept of the ‘steady job’ is disappearing. Manual jobs and repetitive tasks are being phased out of existence: they’re being replaced with robots and algorithms.
Self-driving cars aren’t a thing of the future anymore. They’re soon going to be on the roads and all around us. The advent of this technology highlights why we need to change our relationship with work. Technology is going to make the ‘professional driver’ obsolete. People need to find new ways to make money and find meaning in their lives.
As society moves into this new age we need to re-address how we make money. The 9-to-5 is history, people want flexibility, freedom, and purpose from their job. Most importantly, they want to do something they’re passionate about. The Passion Economy can provide all of these needs and in that sense, it is the future of work.
Where Does Passion.io Fit Into All Of This?
Passion.io is a no-code app creation platform. We provide a suite of tools that lets individuals build their own mobile apps to teach their skills to others. We also provide the information and mindset people need to scale their business and share their skills with the world.
By servicing this passionate movement, we can give everyone the tools they need to positively impact the world. The Passion Economy motivates us to continue our mission and we’ve spoken about the successor to the gig economy on several podcasts.
Can This New Economy Work For Me?
'Increasingly, the lines between hobbies, careers and personal brands are blurring’ Adam Davidson, co-founder of NPR’s Planet Money & author of the Passion Economy
Participation in this new economy is available to everyone. To be eligible to take part, all you need is a skill you’re passionate about, and the motivation to share it with the world.
Your passion can be anything at all. A strange collection of interests or two unrelated activities you’ve combined together. To take part in this economy you need to define your unique passion. This is the single most important, and often hardest, part of joining the Passion Economy.
It isn’t enough to be passionate about something. You need to make sure what you’re passionate about is very niche. To be successful in this economy you don’t need to be a celebrity with millions of followers. What you need is a highly engaged niche of people who you provide a service for. If you’re the only person who can help this small niche of people then you’ll always have an active and real customer base. Defining your niche is an essential part of becoming a member of the Passion Economy. You cannot succeed without it.
Once you’ve determined this you’re well on your way to becoming an active member of the economy. Once you’ve defined your passion you need to market your expertise to a niche community that will go crazy for what you have to offer. When you combine your ideal customer with your passion you’ll be blown away by how profitable the niche you’ve carved out in the Passion Economy can be.