What is a new business form “Passion Economy” that makes individuality a selling point instead of a bug?



Li Jin, an Internet business expert, discusses the characteristics of the “ Passion Economy ” that goes beyond innovations such as Uber and Lyft, and the new business that the Passion Economy brings.

The Passion Economy and the Future of Work

The predecessor of the “Passion Economy” advocated by Jin was the gig economy represented by Uber and Lyft. The ride-sharing service, which fully automates the matching of supply and demand through an application-centric platform, has brought about innovation not only in the transportation industry but also in the way workers work.

However, Jin said, “The work is often monotonous, despite the gig economy saying“ everyone can be a president ”,” he said. I pointed out that it was difficult.

In fact, in the United States where ride sharing services are widespread, the problems of the gig economy have already surfaced, and it has developed into a situation where laws and regulations are carried out because `` it is just a disposable worker '' .

A bill to regulate `` business undertaking work on the Internet '' such as Uber is passed-gigazine

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As an example of the “passion economy” to replace such a gig economy, Jin has listed the following services, which can be broadly classified into six categories. The first is a podcast service such as Anchor . The second is a voice-based distribution service such as Knowable or Spoon . The third is a paid subscription service for newsletters such as Substack and Revue . The fourth is video distribution services such as Teachable and Udemy . The fifth is a learning platform for children such as VIPKID . The sixth is a professional learning platform like Torch .

Jin points out that these passion economies have the following characteristics:

◆ Even if you are not an expert, you can start the service individually
In the past, in order to start any kind of distribution service, it was necessary to develop websites and apps from scratch using knowledge of software development. However, in recent years in the web site that can be created that has been refined even without knowledge of coding

Webflow and, it is possible to make the PWA app only to prepare the underlying data in the Google spreadsheet Glide services such as appeared It is.



“With the emergence of these services, it is now an individual unit, not a company, that conducts business based on creative skills,” Jin points out. It is said that the passion economy is characterized by the ability to launch a business that meets their needs on an individual basis against the backdrop of building a new platform.

◆ Individuality is not a bug but a selling point
Jin pointed out that the conventional platform was 'to standardize work without losing individuality,' says 'Passion economy demands diversity from users, so differences tend to be emphasized rather. ' For example, at Outschool , which offers a video chat learning service, distributors can create their own curriculum, or develop classes based on requests from students and their parents.

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In the platform that distributes content in individual units, there is always the risk that users will be taken by competing distributors, but it is also possible to acquire fixed customers by providing unique content that makes use of individuality . For this reason, Jin says, “Passion economy is also suitable for businesses that offer long-term and bilateral services among individuals, such as learning and home education.”

◆ Mainly digital contents and virtual services
There are platforms in the past that can do business on an individual basis, but they are mainly physical products and services such as Amazon and Shopify that deal with physical goods, Uber which is a face-to-face service. It was content.

On the other hand, all of the services mentioned above by Jin as a passion economy are SaaS platforms that can be completed on the Internet. For this reason, Jin believes that the Passion Economy has the advantage of being “independent of location” for both service providers and users.

◆ Growing business continuously
According to Jin, while traditional platforms that benefit from advertising and usage fees are centered on one-off transactions, the Passion Economy, which profits part of creators' profits, Incentives to boost growth and success are easy to work.

For example, Walden , a dedicated learning platform for entrepreneurs, comes with a standard service that matches entrepreneur training program providers and entrepreneurs, while Prenda , an educational service for small classrooms, has teachers. There are curriculums, PCs and other equipment provided, making it easy for creators to concentrate on their work.

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Jin said, “With the advent of a new platform, entrepreneurs can turn personality and creativity into profits,” and the passion economy that allows individuals to fully utilize their unique skills and knowledge He expressed his view that it will grow rapidly in a few years.

in Note, Posted by log1l_ks