CMO at Altar.io
A few months ago I wrote about the latest instalment of the web mimicking real-life: The Passion Economy Marketplace. Within the article, I discussed how it brings local artisans to a global audience – and how that relates to “Homo Deus” – a civilisation advancing through a hyper-connected world.
We see broadcasters bring a vast array of individual knowledge and skills to the web. Reaching a potential audience of over four billion people, and growing, with their specialised fields.
Since I last wrote about The Passion Economy I’ve been thinking about new ideas for underserved sectors within passion economy marketplaces that are ripe for disruption. I’ll cover them in more detail later in this article.
But first, we’ve already seen makers of different crafts sell and gain a following on a range of passion economy platforms. Here are just a few examples:
Overcast is one of the most popular podcasting apps on the market.
Users flock to it for its playback customisation options, ability to organise podcasts & competitive pricing model.
The popularity of the app makes it easy for creators to distribute podcasts. Creators can also monetise their podcasts through a Patreon or other payment link.
Substack offers a free newsletter service that’s easy to set up and looks professional. Creators use Substack to build newsletters to share their knowledge with their community. It’s free to use and offers a subscription service so you can monetise your readership.
The Google of online courses, Udemy is an online learning platform that allows passion economy creators to share their passions in the form of video lessons.
Creators can earn money from their videos, with Udemy taking a percentage of every sale.
Skillshare also allows passion economy creators to upload video lessons to their communities. They focus more on “creative” lessons. Skillshare teachers can monetise their passion through royalties, referring users to the platform & referring teachers to the platform.
Etsy is, arguably, the largest online marketplace for handcrafted items in the world.
Here, creators can sell anything from handmade jewellery to clothing and home decor.
Despite these great platforms, I believe there is a blue ocean of new verticals within the passion economy for individuals to bring their skills to the world stage with new, specialized marketplaces in many areas.
There’s currently a debate between passion economy creators about choosing to be in a marketplace.
In a digital goods marketplace, like Skillshare or Medium, creators earn a percentage based on the time a paying customer is on his/her content.
The formula for creators is, therefore:
x users * monthly fee of the platform * time spent on own content — platform commission.
This is good in terms of discoverability for new creators. However, big creators with a recognizable name will tend to move to SaaS. This allows them to price their creations themselves and not share their revenue with other creators via time spent.
On a SaaS platform like Substack or Patreon, customers subscribe to a specific creator. This harms discoverability, as they rarely come across other, potentially interesting creators.
The revenue generation formula is easier to understand and more appealing, especially for well-known passion economy creators. It is simply a monthly fee, decided by the creator, minus the commission charged by the platform they’re using.
The solution I propose is more of a blend: a SaaS Marketplace model.
This solution would allow for the discoverability that marketplaces provide plus the individual pricing leveraged by the SaaS model.
A SaaS Marketplace model would provide additional liquidity overall. More customers would try out new creators, on top of subscribing to their own favourites.
The SaaS Marketplace approach also allows creators to recommend other creators to follow. As well as recommendations based on interests that allow users to filter and discover new creators easily.
Nowadays, the world has gotten used to subscriptions, from Spotify to Adobe, and Birchboxes to Netflix. There are, however, some verticals that are ripe for fresh ideas for the marketplace subscription model. We’ll get to them shortly, but first, it’s important to make sure your project has the potential to become a marketplace.
It’s important to know if your project has potential as a marketplace. Namely, you need to know how to create a well-balanced marketplace where you can contact and cajole an initial group of creators. As well as having channels to find willing clients/subscribers.
Constant, unique, streams from unique creators Discoverability (users find new creators and vice versa)Subscriptions for both physical and digital products & get value for money
These aren’t passion economy ideas but are still ripe for subscription models.
Do you have any ideas for other topics ripe for a subscription marketplace intervention to bring creators closer to users? I’m sure there’s many, feel free to comment.
This Article was also published here, by André Lopes.
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