Four implications of disruption theory for the Passion Economy

Now, a new entrepreneurship stack has emerged for online content creators: scaled social networks democratize distribution, and new platforms make it easier than ever to create and monetize content.

On the supply side, according to a Dartmouth study on latent entrepreneurship, 71% of Americans (110M) would prefer to be self-employed. This huge contingent of aspiring entrepreneurs suggests that many individuals will embark down the “enterprization of consumer” journey, initially exploring side hustles and earning supplemental income, with some ... See more

Self-improvement is a $10 billion industry in the US. Creators are selling their own self-improvement courses on video course platforms, and creating their own seminars/workshops related to this topic.

The disruptive potential of the creator-led online fitness market is in relation to gyms, boutique fitness classes, and personal trainers that provide community and accountability, but are expensive and inconvenient for many consumers. By leveraging digital platforms like Fitplan or Playbook, or even just enabling payments or donations on Zoom/othe... See more

Passion Economy’s scope extends into any industry where the customer doesn’t view the product/service as a commodity, but cares deeply about the specific individual involved in its creation.

Adult learning/continuing education is a $55 billion industry in the US. Creators in the Passion Economy are chipping away at continuing education through video courses, audio courses, e-books, and other educational resources.

The North American market for health & fitness was over $32 billion in 2017. Creators are creating their own offerings using new platforms like Playbook, Fitplan, and Blok Fitness, which have the potential to disrupt the boutique fitness and personal training industries.

According to the Re:Create Coalition’s study on America’s New Creative Economy, in 2017, 5.6M creators on Instagram earned revenue through sponsored posts. Contrast that with Patreon’s entire base of 150,000 creators who earn revenue through membership subscriptions—representing just 2.7% of Instagram’s income-earning creator base.

Because the market size of total creators who can potentially monetize through non-ad-based means is uncertain and appears small, and because direct user payments represent a lower-margin business than advertising (Patreon’s take rate starts at 5%, whereas ad-based platforms often keep 100% of ad revenue), incumbents are not incentivized to iterate... See more