The Passion Economy and How It’s Bringing Us One Step Closer to the American Dream

A defining factor of the current Generation Z is that there is no “one-size-fits-all” description of success. Gen Z has gone through economic downturns and pandemics, and has developed a resilient core as a result. In this generation, it’s important to be authentically you and build your life on your own terms. It’s fitting that we are now transforming from the gig economy of the 2010s to a passion economy model of the 2020s and beyond. The American Dream states that the opportunity for prosperity and success is out there for everyone. It’s been seen as this unattainable ideal, however, the passion economy is bringing us one step closer to actualizing this.

The Difference Between the Gig and Passion Economies

The 2010s was filled with startups touting themselves as “the Uber for X”. Workers in the gig economy served as independent contractors to fulfill basic jobs like delivering a burrito or driving someone from point A to B on platforms like Uber, DoorDash, Instacart, etc. The passion economy is different because of the meaning of its title word. A “passion” doesn’t feel like a job, so people can pursue whatever they want and actually follow their dreams. While the gig economy is still thriving, platforms that allow you to cash in on your likeness on social media or writing on an online publication (like this Medium article!) are being popularized. Work in this new economy is still gig or independent work, however the focus is now on one’s passions and creativity.

The Current State

In the 2010s, content creation rose by way of platforms like Instagram, Youtube, and Twitter. People realized that they could generate large audiences and demand for their content, and then monetize off of that. As a result, a whole economy of startups and platforms that enable creators monetize off of their content, have emerged. Everyone has their own passions and now you can make money off of it. You can be successful on a big scale such as becoming an influencer with millions of followers doing brand deals or on a small scale as an artist selling pieces on Etsy. It’s truly an economy for everyone. The one thing in common is that passion businesses begin by focusing on a small specialized market or niche that the creator has some knowledge in and passion about. Here are some notable types of “passions” and platforms to monetize them on:

Passion economy model:

The passion economy model is a little different from the gig economy model. Instead of fulfilling existing demands (ex. someone needing a ride or delivering a burrito), creators need to generate demand for the space they are creating in. This is how the passion economy model looks like:

Why is the Passion Economy Successful?

The passion economy is successful because both sides of the marketplace are equals. In the traditional gig economy, the corporations employing gig workers hold all the power. However, now the power lays in the hands of both creators and their audience. Supply and demand will come to an equilibrium as both sides have a passion for the subject. Here are the 2 main reasons that this model is successful:

Creators are motivated to create

When you are doing something that you are passionate about, it doesn’t feel like what we traditionally think of as “work”. Therefore, creators will be more motivated to create. They will be motivated to produce content on all of the available platforms and methods of monetization. These passions may be activities that people already do in their free time, so why not make some money off of it. Alternatively, this could be a space that a potential creator wants to explore, so the option for monetization could be the extra nudge to get someone to try this new thing. Ultimately, people would rather put their time and effort into something they are passionate about. An option for monetization will motivate creators to create.

There is something for everybody

No two people are the same, so everyone has different niches. There are a limitless range of offerings by creators in this space. It’s hard to be a copycat in the passion economy because passions are authentic and therefore, cannot be replicated. On the other side, consumers will always find a creator that they resonate with and want to support. People would rather support an individual that they can relate to rather than a big corporation. There will always be supply and demand in this economy.

What the Future Needs to Look Like

Currently in the passion economy, it’s only easy to make a living if you are one of the top creators on a platform. Not everyone can be like Kim Kardashian or Addison Rae, so some sort of “middle class” needs to be established. The passion economy creates a more flexible and enjoyable “work” schedule for creators, so I would love to see people comfortably making a living without having to have millions of followers.

In summary, the passion economy is bringing us all one step closer to the American Dream. The new wealth of opportunities available will make it easier to achieve financial stability, have a successful career, diversify income streams, gain a public platform, and make a name for yourself. By no means is this a perfect industry, but, hopefully it can become more equitable in the future and we can see anyone truly thrive as a creator in the passion economy.