The Passion Economy: Mass Standardization to Monetising Individuality

Error 404 Web Page not found
We know this error code as we have encountered it many times. There is one more Error 402 – which means ‘Payment Required’. However, 402 was the unfinished task from the founders of WWW, Tim Berners Lee.

Idea back then
It was thought, every visitor must pay something to view a page but there was no actualization of this idea and mechanism back then. Even today, it is difficult to go micro online and collect it.

The model where users pay
Most of it on the web was free and it was never built on a user-pay model. Then came an advertisement-based model by Yahoo. Google and Facebook took it to a completely another level. Amazon was during the same time was creating a giant e-commerce model

Addition of Payment infra
The rise of payment firms like Square and PayPal and revolutionary platform like UPI in India is helping business grow online. Then comes the Stripe.

Stripe
The latest funding hits the valuation for them at $95 Bn making it the most valuable unlisted private company, ever. They claim their mission is to increase the GDP of the internet. This is bold. It shows the shift of WWW from advertising to payments to subscriptions.

Where are we today
The advertising market today is worth $470 Bn and E-commerce is worth $5 Tn and share of 18% overall worldwide retail market.

Concerns
General people are unhappy with this growth due to privacy concerns and other relevant data breaches. Data monetization and destruction of privacy is an actual concern. But the rise of this ‘Passion Economy’ is totally new.

Passion Economy
It is all about enabling people with an online following to make money from followers. It began in China. Developments to this came from Twitch, Patreon, and then Substack. YouTube just took it again to another level.

What will Shift
Mass Standardization to Monetising Individuality. Some estimates to this economy are, there are 5 crore creators, of which 20 lakhs make more than 0.1 Mn USD annually.

Etsy Story
This is the website for artisanal goods and retail sales, sold $346 Mn of masks.

Long Tail
2006 book by Chris Anderson, who predicted that products in low demand can equal the market share of blockbuster rivals. This can be made possible if tools of production are available to all.

Summary
There is a whole new economy opening up for everyone. “15-Min world fame for everyone” by Andy Warhol is coming true and yes all along with monetization!

Read More: https://www.livemint.com/opinion/columns/the-passion-economy-and-the-web-s-hot-new-business-model-11617293111157.html
Photo: Welcometothejungle

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