New TIL: The rules of the passion economy

content/til/2024-06-12-the-rules-of-the-passion-economy.md

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+---
+title: The rules of the passion economy
+author: Yanir Seroussi
+type: til
+date: 2024-06-12T02:50:00+00:00
+url: /til/2024/06/12/the-rules-of-the-passion-economy/
+summary: Summary of the main messages from the book The Passion Economy by Adam Davidson.
+showBreadcrumbs: true
+tags:
+  - books
+  - business
+  - career
+  - quotes
+---
+I recently read [The Passion Economy by Adam Davidson](https://www.goodreads.com/book/show/45152042-the-passion-economy). The book has some good stories, but I felt like it stretched the main idea a bit too much towards the end (especially the part that glorified Google).
+
+That said, I liked the chapter about the rules of the passion economy, so I'm posting them here for future reference:
+1. **Pursue intimacy at scale:** Identify what you love and do well, match your passion to those who want it, and listen to customer feedback.
+2. **Only create value that can't be easily copied.**
+3. **The price you charge should match the value you provide:** Price drive costs, value is a conversation, passion pricing is a service, note your best alternative to a negotiated agreement, charge a lot and then earn it, pay may come in other ways than money, keep changing your prices and offerings, salary is a price, the price you charge should feel good to you, pricing low isn't a strategy, and pricing is your value. 
+4. **Fewer passionate customers are better than a lot of indifferent ones:** Value pricing requires selling to the right people, don't rush into a niche too quickly, the best customers are those who seek you out (eventually), and passion/pricing/value/customers are all different views of the same thing.
+5. **Passion is a story:** You're selling a story – it better be true, always tell the truth, you must tell your story – it is told in every detail of the business. 
+6. **Technology should always support your business, not drive it:** Do what tech and large industry can't do, tech-driven scale creates space for businesses built on value and passion, and tech tends toward bigness (so stay small).
+7. **Know what business you're in, and it's probably not what you think:** Change your value capture constantly and your value creation slowly. 
+8. **Never be in the commodity business, even if you sell what other people consider a commodity.**
+
+Much of this aligns with lessons I've learned about running a solo business (see references at the top of [my post on LinkedIn as a teachable skill](https://yanirseroussi.com/til/2024/04/11/linkedin-is-a-teachable-skill/)). In fact, I learned about the book from [an episode of The Business of Authority](https://www.thebusinessofauthority.com/episodes/the-passion-economy-with-adam-davidson-replay), a podcast that explored the same ground as the rules across years of inspiring episodes.