Dear Quartz members—
First businesses sold commodities that they could grow or mine; then they sold goods that they made; then they sold services; then experiences. This week’s field guide is about the emerging transformation economy—selling us a better version of ourselves.
Transformation isn’t just about health and wellness—although definitely that, too—it’s also changing the business model of industries from higher education to management consulting, reports Quartz’s Jenni Avins in her state of play. Any business that combines customers’ aspirations with a focus on outcomes is part of the transformation economy, she argues.
When Jenni booked a trip to a spiritual retreat in Taos, New Mexico as part of her reporting, she didn’t think she needed transforming But, as she recounts in this deeply moving personal essay, after three days of meditation, revelation, and “healing exercises” alongside 15 strangers, she began to come to terms with a feeling of “spiritual longing” that she’d not recognized before.
No job represents the transformation economy better than the increasingly popular role of “life coach.” The job site Indeed lists over 1,000 openings for “life coach,” reports Quartz’s Dan Kopf, and its share of job openings has doubled since 2016. You can even buy appointments with life coaches on Airbnb.
TO DISCUSS WITH FRIENDS OVER DINNER…
- Self-improvement was an $11 billion market last year, estimates Marketdata, which projects that personal coaching will be a $1.3 billion business by 2022.
- There were 50,000 professional coaches globally, as of 2016, according to the International Coach Federation.
- The rise of the transformation economy has coincided with a decrease in religious faith in the US, which may help to explain Americans’ collective desire for meaning and self-actualization.
- Esalen, the 27-acre retreat in Northern California once at the forefront of the “human potential movement,” is perhaps the original epicenter of the transformation economy. It is especially relevant today given its popularity among the Silicon Valley elite. (We’ll publish a QZ&A with Terry Gilbey, Esalen’s CEO, later this week.)
…OR WITH US, NEXT WEEK, ON THIS CALL
Join Jenni and Quartz culture and lifestyle editor Oliver Staley on Weds., Dec. 4, for a discussion about life coaches, meditation retreats, and the growing transformation economy. (Details below.)
ANSWERING YOUR ETF QUESTIONS
Thank you to all of you who joined last week’s call on ETFs. (The recording will be available shortly in our conference call archive.) We didn’t get to answer every question, including one from Greg who asked what was happening with actively managed ETFs.
Elizabeth MacBride, author of our field guide, kindly answered:
“An actively managed ETF is set up to match a benchmark index, but it can deviate from the benchmark. This could help the fund adjust in a volatile or falling market to limit losses or cope with liquidity concerns, and arguably, pick more winning stocks. But under new SEC rules, some actively managed funds aren’t going to disclose their holdings each day, as ETFs have up to now. One source remarked to me that ETFs are looking more and more like mutual funds—but somewhat cheaper.”
CONFERENCE CALL SCHEDULE
Mon., Nov. 25, 11am ET: Quartz tech editor Mike Murphy and reporter Michael J. Coren will discuss Tesla’s strange-looking new pickup truck, dubbed the “cybertruck.” They’ll cover whether pickup truck buyers want electric vehicles, debate the pros and cons of the cybertruck’s Blade Runner-esque aesthetic, and what Ford and other recent entrants into the electric vehicle market mean for Tesla’s future.
Wed., Dec. 4, 11am ET: Jenni and Oliver will discuss this week’s field guide on the transformation economy.
We’ll be taking questions and comments live on each of these video conference calls, accessible at the usual location.
If you’d like to dial in, use the following numbers:
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For all of the numbers, the access code is 722 994 440.
With best wishes for a productive week, and a happy Thanksgiving for those of you celebrating it,
Walter Frick
Membership editor, Quartz