The market for community applications enabling the passion economy is experiencing tremendous growth and audience retention globally, helping creators to earn money by selling products such as e-books, coaching, tips, advice and niche content.
Over the past century, we have seen the transition of our economy from a materials-based economy to an information-based and digital technology-based economy, resulting in an explosion of data used by brands and platforms to attract customers. attention of consumers. Sometimes digital products and services are free in exchange for our attention and our personal information, including our footprints in the digital world.
This attention economy comes with a high price: an invasion of privacy, a polarized opinion-based society, a black hat search engine or click tricks for ad revenue. Is the attention economy in decline? Consumers no longer like being the target of algorithm-based marketing or being the dots in their search for the data stream. There is a trend towards a decrease in the time spent on social networks by a large part of the population. The authors see a growing practice of individuals creating and sharing content with the community with similar passions. It marks a break from the usual practice of sharing and consuming non-specific content with a growing awareness of spending too much time on social media ignoring the monetary value of time.
The ad-based revenue model that has seen many social platforms become the most valuable tech companies won’t work for them for the next trillion dollar valuation. Welcome to the passion economy, or economy of creators, which has created a platform for interactions based on shared interest. The passion economy provides an opportunity to capitalize on our passion and creativity by engaging content owners with an engaged community. Whether it is a culinary skill or a piece of painting by creative and supposedly faceless ordinary people, giving rise to a new form of market with enormous potential for trade and economy. Individuality is key, with passionate people on both sides of the platform.
While the usual marketplace or digital platform mainly deals with products, this new marketplace deals with creative services or works of people. The passion economy gives people the freedom to work when they want, where they want, and most importantly, what they want. Creators can monetize their community instead of fiddling with the system to get people’s attention. Fashion designers, health and fitness experts, movie personalities, politicians, artists, musicians, celebrities, YouTubers have a common problem, creating a platform to share their passion with a community. Many community media platforms have sprung up to fill this gap, such as Disciple.
Unlike Facebook or a website, it allows the community to host, create, manage and control their own private social apps, providing their own mobile meeting spaces to interact. These community apps help find a large-scale audience for creators to turn their passion into a livelihood. With the lowering of the barrier to entrepreneurship, the passion economy offers a wider choice of products or services to consumers, becoming the next big disruptor in all industries. Talent-based industries risk being disrupted by passion-economy audiences. This is a red flag for incumbents as new entrants offer a wide range of innovative choices. The passion economy heralds the era of micro-influencers where they can support themselves without selling to aggregators or giant organizations. Etsy, a player in the creator economy, sold masks worth $346 million between April and June 2020.
The market for community applications enabling the passion economy is experiencing tremendous growth and audience retention globally, helping creators to earn money by selling products such as e-books, coaching, tips, advice and niche content. There are three main elements in the passion economy that work together; the creator, who creates the company with passion; the digital platform, which accompanies the creator to produce or serve; and the market, where the transaction takes place.
During the pandemic, Alex, the founder of “Hello My Tribe”, has created an online community where a new mom can share her motherhood challenges and experiences with other moms who have gone through the same ordeal. She launched an online course focused on wellbeing for postpartum mothers and an app where women can connect to seek advice and support each other. Many research results reveal that Gen Z are growing tired of their routine tasks and want flexibility, freedom, and most importantly, the purpose of doing something they are passionate about. This next generation will influence our professional future and make way for the passion economy. Power is now shifting from the attention economy to the passion economy, driven by many faceless long-tail creators, from marketing to the public to marketing to the community, with individual talent unbundling the business in creative space.
While the size of the passion economy market is under consideration, one can easily guess how big it would be in India, a land with over a billion minds freely pursuing their dreams and passion. The passion economy is also creating a new model of entrepreneurship. According to the report by Positive Moves Consulting Pvt. Ltd., more than 60% of senior executives left their senior management positions last year in India to join smaller companies, unicorns/soon to be unicorns or private equity-backed small/medium-sized companies.
They preferred to create personal wealth gains instead of fixed salaries. According to the ET, a senior executive like Vivek Sundar joined Cuemath from Swiggy; Vivek Gambhir at Cipla’s boat; Suhail Sameer at BharatPe of RPG; and Nikhil Chopra at Cipla’s JB Chemicals. Can India weave the magic of this new disruption called the passion economy to lead the new global trading order?
The article is written by Dr. Mafruza Sultana, Jagdish Sheth School of Management and Dr. Asit K Barma, Director and Professor, Bharathidasan Institute of Management.