Prosumer is a word that arose out of the Web 2.0 world. It is the combination of producer and consumer. Basically, it stresses the idea that these individuals merged. For example, content creators on a platform such as YouTube are also consumers of videos.
The same is true for most social media networks.
It is a concept that is not only understood, but expanding. We are seeing an expansion of both the gig economy as well as social media. This means that sellers on Amazon are also buyers.
We tend to spend a great deal of time focusing upon the differences between the existing system and some of what is proposed to happen as the next generation of things unfolds. Today we will look at another angle.
Going Beyond Prosumer
A prosumer serves two economic roles: that of producer and consumer. There is something missing in the equation.
When we think about Amazon, Facebook, or YouTube, we all are essentially guests. Our participation is only with their permission. We have no stake in the platforms, nor any of the financial benefits.
Naturally, the more active the platform, our chances of making a sale (or getting viewers) is increased. From this perspective, it is easy to see why the masses gravitate towards those applications.
What is missing is ownership. We are driven to these companies because they offer the potential to achieve some ends that we see. Perhaps the individual is greater exposure for a business. Traditional social media is usually incorporated into the strategy.
Through the activity, there is the potential that the business might benefit. What is guaranteed is the platform will be enhanced. Whether the individual's business gains is of not relevance to the platform. Instead, the latter takes the incremental gain in value and spread it throughout.
Web 3.0 seeks to change there. Here we have a situation where ownership can not only apply to the platform but also the network it is tied to. This is a multi-level approach that is not offered with Web 2.0.
While Web 2.0 people focus upon income, Web 3.0 introduces a completely new focus.
Equity
Have you ever noticed that when it comes to Warren Buffett, Jeff Bezos, or Elon Musk, we never hear what their incomes are? The reality is incomes do not matter to these people. That is a toolfor the masses, not the wealthy.
It is hard to dispute the fact that income is not usually the way to wealth. While some high earners can turn that into a tremendous sum, most of us are stuck with a situation where our expenses usually rise to meet our incomes. Thus, we tend not to get ahead.
The reason this is catastrophic is because wealth comes from owning assets. This is why we hear the net worth of the people mentioned.
Web 3.0 introduces this premise.
While prosumers on Web 2.0 are after income, those engaged with Web 3.0 have the opportunity to enjoy equity positions. They could have an ownership stake in either the platform or the network.
Of course, this conveys another shift. We need to alter the mindset. No longer are people users. Instead, they have an ownership position.
In other words, these people transitioned from content creator to platform owner. This is prosumer on steroids.
From Income To Value
What we have is a move toward value.
The goal of everyone who has stake should be to increase the value of his or her holdings. To achieve this end, either more tokens or coins need to be added or the value of what is held expands.
Obviously, a mixture of the two is even better.
The word "value'" is this situation is intentional. There is a difference in price. We are not talking about a pump. On the contrary, this is directing us to the idea of long-term value creation by building in ways that keep enhancing platform value.
What is advantageous is that digital platforms naturally capture this value and distribute it. That is why they tend to become so much larger than their industrial counterpart. In an upcoming article we will discuss the multi-layer impact we can have and how it can generate wealth.
Did you know that Elon Musk is now working at Tesla for free. The terms of his contract were fulfilled in the sense the targets were hit. Due to some legal issues, no new plan is in place yet.
Some news were made about a response Musk made to a tweet. Do you think this centered around the salary he was looking for? Not at all. It was about stake.
Also, the last contract was based upon him reaching certain metrics of performance that were value related. His compensation has no salary tied to it.
This shows where the true golden goose is.
Web 3.0 starts the process of getting people to look in this direction. How much one is making is secondary to what one is worth. Many would say that generating $10K-$15K per year creating content would be a nice addition. When we look across the Internet, most are not making this from their content.
That said, it is a lot easier for someone to have holdings in a successful platform that appreciate by that same $10K per year. This is where the focus needs to be.
Prosumer on steroids.