The Passion Economy, The Gig Economy, and The Difference

Last updated on November 3rd, 2021 at 03:45 am

The future of work is here. And it’s neither the golden age, nor the Hunger Games of our generation.

Li Jin of a16z thoroughly broke down the future of work here. Some highlight reel stats:

The top-earning writer on newsletter platform Substack earns $500,000+ a year from reader subscriptions
The top creator on video course platform Podiaa earns $100,000+ a month
One of the top creators on artist platform Patreon earns $95,000+ a month (source)

In the future of work, platform users can build audiences at scale and monetize their passions. This is dubbed the Passion Economy: more and more people making a living off their art and individuality, whether it’s by playing video games, making videos, or writing thought pieces.

The Passion Economy is indicative of the continued convergence of technology, entertainment, and media.

It’s also very different from what’s been dubbed the Gig Economy, “turnkeys ways for people to make money in narrow services like food delivery, parking, or transportation.”

From Jin’s piece:

Which is right for you: Gig or Passion Economy?

Perhaps neither.

Having a full-time job can be a wonderful experience. Security, benefits, and none of the headaches to keep the lights on.

Contrary to motivational Instagram accounts and MLM Facebook groups selling leggings and sanitary napkins, I do not believe everyone is cut out to “be your own boss.” The pressure is enormous and can lead to a lot of unhappiness.

If you’re trying to earn a full-time income in the Gig economy, the numbers can be bleak:

The Economic Policy Institute ballparks the hourly rate of the average Uber driver in the US at $9.21 after expenses, with no benefits.
The median earnings per hour during peak times is $19 per hour, before expenses (source)
The average TaskRabbit earns $110 per month (source)

I didn’t find hard numbers on the average hourly rate for those making their income via the Passion Economy. But it’s worth pointing out that while start up costs are low, most creators agree it can take years to earn a full-time income, and there are no guarantees.

Earning Money On the Side

However, if you’re supplementing vs trying to replace your full-time income, it’s a different story.

Maybe you’re not happy with your 9-5 salary and you don’t see a viable path to compensation increases. The Gig and Passion Economy provide more avenues than ever to close the gap.

Or if you’re pursuing a creative career (acting, writing, whatever), it’s nice to have options to scrape together your rent money. In August 2010, I wrote about my debate to take a restaurant job or plunge directly into entertainment. If today’s gig or passion opportunities were available to me back then, I might have made a different decision.

Here’s a glance at some of the new digital platforms:

This doesn’t include the “new-old fashioned way” of making money as an influencer on the vanguard social media platforms (Instagram, Facebook, Twitter, or Snap) OR on the new platforms:

Tic Tok – Sharing short music videos
Triller – Sharable short videos
Cameo – Personalized video shout-outs

Makin’ It Rain (With Years of Consistent Hard Work)

In theSkimm newsletter, they share recent accomplishments of its members. Here’s an accomplishment recently posted:

“Nadia has pursued her photography business on the side since 2010. After nine years, she’s ready to focus on it full-time.”

The Gig and Passion Economies are opening doors to more Nadias — people who diligently pursue what they love on the side until it becomes financially viable to turn that side-thang into a full-time-thang.

More examples:

If you’ve been working on your own side-thang, keep going.

It may not pay the bills at the start.

It may not pay the bills for the next 10 years.

But there are more ways to make it possible.

What side hustle do you have planned for the next year? What excites you the most about it? I’d love to know, feel free to share in the comments.