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Single Operated Newsletter - What is the Passion Economy?
Being an Uber or Lyft driver is not taking part in The Passion Economy. Keep reading to discover why...
These new platforms share a few commonalities:
They're accessible to everyone, not only existing businesses and professionals
They view individuality as a feature, not a bug
They focus on digital products and virtual services
They provide holistic tools to grow and operate a business
They open doors to new forms of work
The Passion Economy VS Trading Time for Money
It's important to understand the difference between a "Passion Project" and trading time for money in the Gig economy.
If you're trying to earn a full-time income in the Gig Economy, the numbers can be bleak:
The Economic Policy Institute estimates 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.
The average TaskRabbit earns $110 per month
The biggest challenge in trading time for money is that your income is limited.
When you're trading time for money, your income will always be limited. The second reason for income limits is that the more we make, the more we'll lose. Employee tax is the most heavily taxed income there is, and the more income we earn, the more tax we face. Whether you're paid $15 or $150 per hour, your income is limited by the number of hours you can put in.
The number one way to stop trading time for money is to build an income-producing asset.
Entrepreneurs have known this forever, but traditional entrepreneurship isn't without problems:
Huge startup costs
Lots of risk
Tough to scale