How Millennials Can Earn from a Data-Driven Economy
The onset of globalization and ubiquitous connectivity has brought in profound changes in the way we work and do business. While freelancing has been a common practice for decades, it was during the year 2015 when it became so popular that it was coined the “year of the gig economy”. Without a doubt, this decade has marked the true arrival of freelancing and the so-called solopreneurship economy, and the trend looks to stay.
Such a trend is predicted to quickly overtake regular jobs. In fact, this year, 84 percent of hiring managers have reported planning to hire mostly freelance workers instead of regular ones. Gig economy trends are in tune with how everything else grown to become “on-demand”, whether it’s housing (Airbnb), cars (Uber), or the thousands of food delivery services around the world.
According to a recent study by the Resolution Foundation, the current generation of youth — particularly those in the early 30s — earn much less than the previous generations at the same age. Millennials earn 4 percent less than Generation X, although still better than the previous generation: the Baby Boomers.
Perhaps there is a cultural aspect to these trends. Baby Boomers came in the wake of post-war era of reconstruction, while Gen-Xers oversaw the dawn of the information age. Millennials, on the other hand, live in the era of on-demand everything.
Millennials as digital natives
Millennials are primarily the generation of “digital natives”. Most of this generation were born at a time when computers, the internet, and connected devices were already prevalent. This generation is also the most active on digital networks — social media, sharing sites, and the like. This means millennials have the most online data exposure which includes personal information, photos, videos, and other content.
Whether we like it or not, businesses are already profiting from the data they acquire from us. It could be your search history or browsing preferences, the topics you like reading about, or even your demographic information — businesses are using (and sometimes selling) this data to keep a profile on users. This is then utilized to target advertising or content back at users that businesses feel will provide “value”.
With recent developments like the EU’s General Data Protection Regulation or GDPR, there is a growing awareness about the need to protect user data. Tech-savvy millennials are actually considered the most protective about their privacy, and hence smarter and more capable of keeping their digital lifestyles in check.
Furthermore, in the wake of massive data leaks and scandals (16 this year already between January and August), users are beginning to realize the value of personal data. Today’s on-demand economy requires a paradigm shift. Young earners — millennials especially — can have several lucrative avenues for earning in a data-driven economy including:
- Platforms that reward users for data-sharing activities
- Platforms that reward users for shopping, and
- Platforms for reward users for surveys or insights
Platforms to earn through data sharing
There is merit to sharing some of our data, as long as we can actually benefit from these data-sharing activities. This can be done through participation in data-driven economies that benefit users and businesses who share data. iTrue, an emerging blockchain startup, offers this as a benefit to users, developers, and businesses. “Our mission is to empower each individual to have control over their personal data, how it is used, and how to profit from it,” says Jack Cheng, the company’s CEO. “Our platform does not sell data directly. Rather, it enables users, clients, and developers to benefit from sharing data and participating in the decentralized application marketplace.”
iTrue goes beyond simply assuring its users and developers of privacy. The company wants to revolutionize how users authenticate their identity by utilizing biometrics, thus negating the need for passwords or even gadgets like smartphones to gain access.
Platforms to earn through online shopping
“Selling” one’s data can also be done passively. For example, the mere fact that you use loyalty cards whenever you make a purchase means you are sharing some shopping habits with the retail store while earning points in exchange.
Similarly, some credit card companies offer rebates whenever you buy fuel at certain refuelling stations for instance. These programs encourage loyalty while rewarding users in the form of points, rebates, or freebies.
An online platform, Shopkick, has been rewarding users for shopping at both major and small retail outlets, online and offline. The platform provides discounts and shopping rewards, giving users some monetary benefit for sharing their shopping habits.
Platforms to earn through surveys & insights
Another avenue for earning through data would be from user-generated content. No businesses would pay users for social media posts unless they have already accumulated a massive following. But platforms like Usertesting offer a way to earn extra cash when you watch a video, visit a website, or complete a survey. Another example is Swagbucks, wherein users earn from completing a bucket of tasks including visiting websites, completing surveys, or doing a few small tasks online.
Businesses utilize these platforms to gain insight from users in the form of survey responses. For example, it can be used in lieu of focus groups. It can also be used for subjective A/B testing purposes. In the end, these platforms collect and aggregate user data and their active responses in exchange for some nominal rewards.
The takeaway
Sharing data in exchange for rewards will probably not make you rich. However, given the challenges of an on-demand economy, this will be one of the most accessible ways that users and businesses can benefit from an increasingly connected population. As the saying goes, you are sharing your data anyway, so might as well earn from it.
