"The Evolution of the Economy: From Information to Creator to Product"

"The Evolution of the Economy: From Information to Creator to Product"

The economy is constantly evolving, with new categories emerging every few years. It all started with the "Information Economy" in the 90s, where the focus was on the exchange of information and knowledge. Since then, we have witnessed the rise of various economies such as the Attention Economy, the Sharing Economy, the On-Demand Economy, the Crypto Economy, the Creator Economy, and the Ownership Economy.

A common thread among these economies is the concept of economic empowerment. Jeff Jordan, a seasoned entrepreneur, emphasized the importance of building platforms that help people make money. This principle holds true for many successful platforms that have achieved significant growth. Without the ability to serve as a central node in their own economy, platforms may struggle to reach their full potential.

Interestingly, many consumer platforms, such as Instagram, Youtube, and Twitch, did not initially start out as ways for people to make money. They were primarily focused on providing fun, connection, and fame. However, as these platforms grew, users realized the potential to generate income from them, which changed the trajectory of these companies. Economic empowerment became a driving force for their success.

The emergence of the "creator economy" further solidified the importance of economic empowerment. Becoming a creator not only offered the potential for fame and connection but also allowed individuals to pursue their creative passions as a career. As Vitalik famously stated, even a billion dollars of capital cannot compete with a project that has a soul. The creator economy has become an integral part of the overall economy and is here to stay.

The key to building a successful platform lies in its ability to inspire and motivate people. Initially, platforms must be fun, cool, or interesting enough to attract users. However, they must also be able to sustain a real economy and provide opportunities for users to make money. This dual focus on enjoyment and economic empowerment is the foundation for building a thriving platform.

Transitioning from a product manager to a product leader is a challenging journey. After achieving product-market fit, product leaders must navigate four different categories of product problems: feature work, growth work, scaling work, and product-market fit expansion. Each of these categories requires specific attention and sequencing to ensure overall success.

To excel as a product leader, one must possess knowledge of all types of product problems and effectively guide their team to prioritize and tackle them. The focus shifts from maximizing the return of individual types of work as a senior product manager to maximizing the overall return on investment across different types of product work. The role becomes less about personal output and more about enabling the team to deliver exceptional results.

Product leaders must also expand their influence beyond their immediate scope of control. They need to identify and address the full set of obstacles that may hinder their problem area and leverage their influence to drive action across the organization. Influencing others, particularly those who are not directly involved in their function or problem area, becomes a critical skill to master.

Crossing the canyon from a senior product manager to a group product manager requires creating more scope and opportunities for the organization. While it is important to delegate and empower the team, it is equally crucial to escalate the right problems and ensure they receive the necessary attention. Striking the right balance between decision-making and problem escalation is key to driving growth and success as a product leader.

In conclusion, the evolution of the economy from the information age to the creator age to the product age highlights the importance of economic empowerment and the ability to inspire and motivate users. Building platforms that offer both enjoyment and financial opportunities is the key to success. As product managers transition to product leaders, they must master the art of prioritization, delegation, and influence. By effectively managing the different categories of product problems and expanding their impact beyond their immediate sphere, product leaders can drive their teams and organizations to new heights of success.

Actionable Advice:

1. Focus on building a platform that not only provides fun and enjoyment but also enables users to make money. Economic empowerment is a powerful driver of growth and success.
2. Transition from being a problem solver to an influencer. Learn how to effectively influence others outside your direct span of control to solve problems and drive action.
3. Strive to strike the right balance between decision-making and problem escalation as you progress from a senior product manager to a product leader. Delegate and empower your team while still ensuring that the right problems receive attention.