There is a new type of business model that all industries need to watch out for, the passion industry.
Passion industry starts with creative, but it can be applied to a wide range of professions. In contrast with small/medium businesses — the passion industry focuses exclusively on micro-businesses, where an individual or two can leverage technology to reach an economic of scale of millions of users simply by doing something unique. If you’re a content creator (painter, singer, TikToker, etc.), you are here for the ride. Even traditional professionals (Product Managers, Engineers, Lawyers, Teachers) are also finding ways to create content and reach their niche audience.
In the passion industry, creativity and personalization (as Value Proposition) are all you need to setup a booming businesses. The arrival of new social platforms and communication tools (TikTok, Clubhouse, Twitter Spaces, Zoom) coupled with advance payment method and delivery services (as Capabilities) has allowed any creative individual to build an audience around them and deliver services to their customers at scale.
In this industry, niche market is not small as long as you can reach a global audience. Your content can be delivered via newsletter, YouTube, online-courses, etc. The more customers you have, the more profitable you are because the cost structure doesn’t increase much.
How can any organization make use of such trends of technology? They need to think about user-generated content in their growth loops more. They need to come up with new business models that leverage the community setting and network effects. For mainstream businesses who have been focused on professional content, they need to setup semi-autonomous units to innovate around community-generated content. They need to resolve the conflicts between centralized and decentralized quality control in content creation and distribution. They need to step up and embrace the power of Machine learning in personalization niche content and find relevant community target.
References:
https://www.thedrum.com/opinion/2020/04/14/the-passion-industry-was-having-moment-now-its-booming
