Yesterday evening, the Summit Series held a pitch competition to give $50,000 to one young startup. Unlike other competitions, the winner was determined by the audience -- not just by voting but by actually trading shares on a simulated market. When all was said and done, the winner was crowdfunding for founders startup ProFounder, the new startup of Kiva co-founder Jessica Jackley.
I believe that over the next five to ten years, the number of people who decide to strike an entrepreneurial path is going to increase dramatically. Some of this will be new people (schmuks like me, in fact) who join existing low-barrier-to-entry startup fields like software. But a lot more of it is going to be people building homebased or "lifestyle" businesses.
For these groups, the state of current funding just doesn't work. These are groups who are unlikely to ever have (or sometimes even want) returns that would justify traditional angel investment, much less venture capital. Bank loans, when they are available, add nothing to the founder's company except cash and interest rates.
Even for entrepreneurs who need bigger infusions of capital, crowdfunding from friends, communities and contacts might bring the benefit of creating a team of loyal evangelists and lead supporters right from the beginning. ProFounder works on a debt and revenue sharing model, so people theoretically get their money back, plus a rate of return based on how well the company is doing. It can accommodate capital raises up to $1,000,000.
I'll admit, I've been and to some extent remain pretty skeptical of the crowdfunding for entrepreneurs idea. It's hard (if not impossible) to make it work legally if people are getting equity for their investments, and debt is often not an attractive option for companies that are going to need a series of pivots to achieve a fit between the product and the problem they're trying to solve. What's more, undercapitalization (a business that raises $18,000 instead of $30,000 and tries to make it work, for example) could be a major problem.
All that said, there are some places where it makes a lot of sense. Like I mentioned above, for small home-based businesses that don't need huge amounts of capital to get started. I think that we're just going to see more and more of this. There are already a huge number of eBay businesses and Etsy businesses. I think we'll start to see Airbnb businesses soon, as well. Beyond these platforms, I think people will continue to want to open restaurants, pet supply stores, and all the other businesses where local still matters.
For that sort of group, raising money on a site like ProFounder means that they're basically rolling marketing and customer acquisition into the process of funding, which could be a really valuable process. What's for sure is that we're going to need a more complex funder environment for a new generation of businesses, so I'm glad to have them experimenting no matter what comes of it.
The prize was funded by Presumed Abundance, a new fund which I've written about previously that builds in a pay-it-forward mechanism into every investment. When companies are successful, they become angels with presumed abundance and fund a new set of companies with the money they made. $10,000 of the $50,000 investment prize will be churned right back into a scholarship fund to help people attend Summit.
To Learn More Click Here
Saturday, May 15, 2010
EC Roundup: Crowdfunding, fundraising and the state of venture capital
Here’s the latest from VentureBeat’s Entrepreneur Corner.
What’s better for startups? Partnerships or incorporation? – Thinking about partnering with a friend of colleague to start a new company? Attorney Scott Edward Walker says you should think twice when considering this route vs. incorporation, as it can be wrought with potential problems that could affect your personal finances.
The new face of venture capital: The rise of crowdfunding – Conventional VC networks often produce poor returns. Serial entrepreneur Kevin Lawton believes that as startup financing continues to evolve, crowdsourcing and crowdfunding will augment or replace traditional methods and create the high-return VC of the future.
Should an entrepreneur have an MBA? – Traditional thinking holds that most entrepreneurs don’t need MBAs, but serial entrepreneur Steve Blank argues that it’s not as simple as some have argued. Whether you need the advanced degree really comes down to the trajectory of your career.
It’s a relationship, not a transaction: Tips for fundraising entrepreneurs – While it’s not easy for entrepreneurs to find funding these days, that doesn’t mean you should jump at just any offer. Nat Goldhaber, co-founder and managing director of Claremont Creek Ventures, offers advice on how to ensure you have a good relationship with your investor.
The state of venture capital – The post-recession world is a tough one for venture capitalists – and it’s not likely to get easier, says Intel Capital Vice President Lisa Lambert. In this thought leader lecture, she gives her thoughts on what she sees as the coming consolidation.
To Learn More Click Here
What’s better for startups? Partnerships or incorporation? – Thinking about partnering with a friend of colleague to start a new company? Attorney Scott Edward Walker says you should think twice when considering this route vs. incorporation, as it can be wrought with potential problems that could affect your personal finances.
The new face of venture capital: The rise of crowdfunding – Conventional VC networks often produce poor returns. Serial entrepreneur Kevin Lawton believes that as startup financing continues to evolve, crowdsourcing and crowdfunding will augment or replace traditional methods and create the high-return VC of the future.
Should an entrepreneur have an MBA? – Traditional thinking holds that most entrepreneurs don’t need MBAs, but serial entrepreneur Steve Blank argues that it’s not as simple as some have argued. Whether you need the advanced degree really comes down to the trajectory of your career.
It’s a relationship, not a transaction: Tips for fundraising entrepreneurs – While it’s not easy for entrepreneurs to find funding these days, that doesn’t mean you should jump at just any offer. Nat Goldhaber, co-founder and managing director of Claremont Creek Ventures, offers advice on how to ensure you have a good relationship with your investor.
The state of venture capital – The post-recession world is a tough one for venture capitalists – and it’s not likely to get easier, says Intel Capital Vice President Lisa Lambert. In this thought leader lecture, she gives her thoughts on what she sees as the coming consolidation.
To Learn More Click Here
Category
crowdfunding,
crowdsourcing,
kevin lawton
Web extra: More Resources for Crowdsourcing
If you’re a small-business owner, your resources are probably limited. The following sites can help you employ crowdsourcing to help with everything from marketing and design to innovation for products and services.
Marketing and Design
RedesignMe
This creative online community with thousands of innovated students, designers and marketers is ready to help you with your ideas. Use RedesignMe for product design, logo design, idea generation or marketing concepts for your company.
crowdSPRING
CrowdSPRING offers logo, graphic design and writing services for small businesses at an affordable price. Post your creative project, creatives submit their ideas, and then you choose the one you like best. Set your own price and deadline. An average project gets more than 100 entries.
Atizo
Atizo connects your business with outside innovators and collaborators to create new ideas and concepts for your company.
Freelancers Platforms
TopCoder
Join a community of competitive software developers, programmers and graphic designers who build software for companies ranging from Fortune 100s to small businesses.
Spudaroo
Use this crowdsourcing site for your copywriting needs. Get your business material professionally produced, including business plans, Web content, presentations and press releases.
Clickworker
Thousands of Clickworkers can assist in the fast and efficient processing of projects for your business.
Open Innovation Software
Imaginatik
This company helps solve your business’s biggest, most important problems, such as boosting revenue growth and profitability, increasing collaboration, maintaining sustainability, and improving processes. It specializes in innovation, idea management and developing methods, processes, and software tools to help your business thrive.
Spigit
Tap into the minds of your employees, customers and partners to help drive the value of your company. Spigit’s innovation management software helps your business improve process efficiencies, decrease time to market, discover subject-matter experts within your organization, and connect people across departmental and geographic boundaries.
Fellowforce
This portal of experts from around the world can help your business with advice and ideas, like giving innovated ideas for a marketing campaign, boosting your company’s PR, and developing products and services.
Intermediary Open Innovation Services
Big Idea Group
This site has an open source network of 13,000 problem solvers and inventors to solve your innovation challenges. It will help develop and execute your innovations and generate ideas in products, services and marketing.
Chaordix
Chaordix is a multipurpose crowdsourcing engine for open innovation, market prediction, brand collaboration, research and discovery for your company.
Peer Production
CrowdSpirit
Involve innovators outside of your business to assist in design for innovative products and services.
To Learn More Click Here
Marketing and Design
RedesignMe
This creative online community with thousands of innovated students, designers and marketers is ready to help you with your ideas. Use RedesignMe for product design, logo design, idea generation or marketing concepts for your company.
crowdSPRING
CrowdSPRING offers logo, graphic design and writing services for small businesses at an affordable price. Post your creative project, creatives submit their ideas, and then you choose the one you like best. Set your own price and deadline. An average project gets more than 100 entries.
Atizo
Atizo connects your business with outside innovators and collaborators to create new ideas and concepts for your company.
Freelancers Platforms
TopCoder
Join a community of competitive software developers, programmers and graphic designers who build software for companies ranging from Fortune 100s to small businesses.
Spudaroo
Use this crowdsourcing site for your copywriting needs. Get your business material professionally produced, including business plans, Web content, presentations and press releases.
Clickworker
Thousands of Clickworkers can assist in the fast and efficient processing of projects for your business.
Open Innovation Software
Imaginatik
This company helps solve your business’s biggest, most important problems, such as boosting revenue growth and profitability, increasing collaboration, maintaining sustainability, and improving processes. It specializes in innovation, idea management and developing methods, processes, and software tools to help your business thrive.
Spigit
Tap into the minds of your employees, customers and partners to help drive the value of your company. Spigit’s innovation management software helps your business improve process efficiencies, decrease time to market, discover subject-matter experts within your organization, and connect people across departmental and geographic boundaries.
Fellowforce
This portal of experts from around the world can help your business with advice and ideas, like giving innovated ideas for a marketing campaign, boosting your company’s PR, and developing products and services.
Intermediary Open Innovation Services
Big Idea Group
This site has an open source network of 13,000 problem solvers and inventors to solve your innovation challenges. It will help develop and execute your innovations and generate ideas in products, services and marketing.
Chaordix
Chaordix is a multipurpose crowdsourcing engine for open innovation, market prediction, brand collaboration, research and discovery for your company.
Peer Production
CrowdSpirit
Involve innovators outside of your business to assist in design for innovative products and services.
To Learn More Click Here
Category
crowdfunding,
crowdsourcing,
crowdspring,
web resources
The Diaspora Project and Kickstarter: The Power of (Micro)Funding a Good Idea
$162,376 pledged on kickstarter.com for the Diaspora Project with a goal of $10,000
a massive response! (as of Saturday 15th May 2010.
Since we broke the story about the Diaspora Project last week, the plans for an open source, distributed alternative to Facebook has seen widespread press. But just as importantly, funding for the undertaking has skyrocketed.
The Diaspora Project is the brainchild of four NYU computer students, and as Sarah Perez noted in her article, while the concepts of "open source" and "distributed network" might not normally have mass appeal, the latest round of privacy concerns with Facebook have helped to generate a lot of attention for the project and the concepts behind it.
The project is currently being hosted on Kickstarter, a site that lets entrepreneurs crowdsource funding. Kickstarter allows entrepreneurs to set a funding goal and deadline, as well as offer an optional set of rewards to their backers. Projects that don't reach that goal have their pledges returned.
In Kickstarter's words, the service demonstrates that "good idea, communicated well, can spread fast and wide" and that "a large group of people can be a tremendous source of money and encouragement."
Last week, Diaspora was $2000 short of their $10,000 goal with under a month left to go until reaching their deadline. Yesterday, when Techcrunch wrote about the project, funding stood at around $60,000. As of this morning, they have raised over $90,000 from over 2100 backers, including some fairly big names in the tech industry, and still have 19 days of fundraising to go.
Kickstarter offers a sliding scale, of sorts, for donations, and most of the funding for the Diaspora Project has come in small amounts. While 4 backers have pledged over $2000, most backers have opted to donate $5, $10, or $25. The latter has been the most popular donation amount, with almost 900 individuals committing $25. That $25 will get you a CD, some stickers, and a t-shirt - and the satisfaction of helping support a Facebook alternative.
While certainly the Diaspora Project is well-timed, their use of the Kickstarter platform also points to the power of crowdsourced microfunding - particularly for a project that many people outside typical investment circles are finding compelling and important.
Kickstarter.com The Diaspora Project
Click To Watch Video
To Learn More Click Here
a massive response! (as of Saturday 15th May 2010.
Since we broke the story about the Diaspora Project last week, the plans for an open source, distributed alternative to Facebook has seen widespread press. But just as importantly, funding for the undertaking has skyrocketed.
The Diaspora Project is the brainchild of four NYU computer students, and as Sarah Perez noted in her article, while the concepts of "open source" and "distributed network" might not normally have mass appeal, the latest round of privacy concerns with Facebook have helped to generate a lot of attention for the project and the concepts behind it.
The project is currently being hosted on Kickstarter, a site that lets entrepreneurs crowdsource funding. Kickstarter allows entrepreneurs to set a funding goal and deadline, as well as offer an optional set of rewards to their backers. Projects that don't reach that goal have their pledges returned.
In Kickstarter's words, the service demonstrates that "good idea, communicated well, can spread fast and wide" and that "a large group of people can be a tremendous source of money and encouragement."
Last week, Diaspora was $2000 short of their $10,000 goal with under a month left to go until reaching their deadline. Yesterday, when Techcrunch wrote about the project, funding stood at around $60,000. As of this morning, they have raised over $90,000 from over 2100 backers, including some fairly big names in the tech industry, and still have 19 days of fundraising to go.
Kickstarter offers a sliding scale, of sorts, for donations, and most of the funding for the Diaspora Project has come in small amounts. While 4 backers have pledged over $2000, most backers have opted to donate $5, $10, or $25. The latter has been the most popular donation amount, with almost 900 individuals committing $25. That $25 will get you a CD, some stickers, and a t-shirt - and the satisfaction of helping support a Facebook alternative.
While certainly the Diaspora Project is well-timed, their use of the Kickstarter platform also points to the power of crowdsourced microfunding - particularly for a project that many people outside typical investment circles are finding compelling and important.
Kickstarter.com The Diaspora Project
Click To Watch Video
To Learn More Click Here
Category
crowdfunding,
crowdsourcing,
Diaspora,
facebook,
kickstarter
Friday, May 14, 2010
Rate-a-Trailer: Iron Sky





Nobody likes Nazis, not even in the future. This is why directors love having the Third Reich in their film: they embody a timeless evil that everyone can agree to hate. Simply by slapping a swastika onto a soldier’s uniform, the wing of a plane, or having an entire space station built in the image of one on the moon, viewers can instantly recognize the bad guys.
The Finnish film Iron Sky is described as a science-fiction comedy, which, with nothing but the trailer to go on, doesn’t make a whole lot of sense to us at the moment. All we know is that near the end of the clip, the words “SEND US YOUR MONEY” are seen flying through space amongst fighter jets as the sun starts to emerge behind some unidentifiable planet. That’s because the project is being funded entirely through crowdsourcing.
Iron Sky (Finnish: Rautataivas) is an upcoming Finnish feature-length comedy science fiction film from the makers of the Star Wreck series, directed by Timo Vuorensola and produced by Samuli Torssonen as their next project after the success of Star Wreck: In the Pirkinning.[3][4][5] Aboard as screenwriter for Iron Sky is the award-winning Finnish author Johanna Sinisalo.[6][7] The film is being created by the Energia Productions, Blind Spot Pictures and Cinet production companies. It is estimated to be released in cinemas early 2011.
As World War II comes to an end in 1945, Hans Kammler and other German scientists make a breakthrough in anti-gravity research. From a secret base in the Antarctic, Nazi spaceships are sent to the "dark side" of the Moon to establish the military base "Schwarze Sonne" (Black Sun).[3] Their plan is to build a powerful fleet and return to conquer Earth. The film is set in the year 2018 when their descendants finally return.[3][5]
ironsky.net
invest in ironsky
To Learn More Click Here
Category
crowdfunding,
crowdsourcing,
iron sky
Thursday, May 13, 2010
Crowd-funded sites find stock market style
Online retail just became a lot more interesting and interactive.
With the advent of social networking, many fashion websites are heeding technology’s call to utilize a new business fad aptly named “crowd funding” to provide clients with support.
Crowd funding first appeared in France in 2004 and has since spread to the business worlds of the United States and other European countries. The basic idea behind this Internet phenomenon mixes social networking and monetary donations to provide business sponsorship.
Fashion sites using this medium include catwalkgenius.com from the United Kingdom, the Chicago-based cameesa.com and the upcoming fashionstake.com.
Catwalkgenius.com uses a system in which adult visitors to the site living within the UK or Ireland can invest in a designer — based on photographs of sample pieces — in increments of 11 pounds to fund a collection by that designer. Once a designer reaches their funding goal, which could be anywhere from 5,000 to 50,000 pounds, the designer then has six months to produce and sell a clothing line earning at least equal revenue to what the investors had given.
If all goes as planned and the collection earns as much as what it cost to produce, a percentage of the profits goes to the catwalkgenius.com users who previously invested in that designer.
This kind of stock market approach to the fashion industry promises great benefits for both consumer and designer. Customers decide which creative minds to invest in, and the up-and-coming fashion designer receives the funding he or she might not have otherwise had to produce his or her own clothing line. This creates a support group for new designers, giving them the monetary and social backbone needed to survive in the fickle fashion industry.
However, risks are always present in any stock market. If a designer does not meet his or her funding goal, the line never launches, and investors lose the money they had advanced to the designer’s aid.
Although catwalkgenius.com only allows for UK and Ireland residents 18 years of age or older to financially back designers, the site does receive and ship orders to and from the United States and Europe. Fashionstake.com is set to launch very soon and will provide the United States with a version of catwalkgenius.com in which American consumers can become active shareholders of designers.
So the next time you have dreams of being a fashion star, try asking for donations from your friends or family members to fund your line. Just make sure you have enough money to go around once you become famous.
To Learn More Click Here
With the advent of social networking, many fashion websites are heeding technology’s call to utilize a new business fad aptly named “crowd funding” to provide clients with support.
Crowd funding first appeared in France in 2004 and has since spread to the business worlds of the United States and other European countries. The basic idea behind this Internet phenomenon mixes social networking and monetary donations to provide business sponsorship.
Fashion sites using this medium include catwalkgenius.com from the United Kingdom, the Chicago-based cameesa.com and the upcoming fashionstake.com.
Catwalkgenius.com uses a system in which adult visitors to the site living within the UK or Ireland can invest in a designer — based on photographs of sample pieces — in increments of 11 pounds to fund a collection by that designer. Once a designer reaches their funding goal, which could be anywhere from 5,000 to 50,000 pounds, the designer then has six months to produce and sell a clothing line earning at least equal revenue to what the investors had given.
If all goes as planned and the collection earns as much as what it cost to produce, a percentage of the profits goes to the catwalkgenius.com users who previously invested in that designer.
This kind of stock market approach to the fashion industry promises great benefits for both consumer and designer. Customers decide which creative minds to invest in, and the up-and-coming fashion designer receives the funding he or she might not have otherwise had to produce his or her own clothing line. This creates a support group for new designers, giving them the monetary and social backbone needed to survive in the fickle fashion industry.
However, risks are always present in any stock market. If a designer does not meet his or her funding goal, the line never launches, and investors lose the money they had advanced to the designer’s aid.
Although catwalkgenius.com only allows for UK and Ireland residents 18 years of age or older to financially back designers, the site does receive and ship orders to and from the United States and Europe. Fashionstake.com is set to launch very soon and will provide the United States with a version of catwalkgenius.com in which American consumers can become active shareholders of designers.
So the next time you have dreams of being a fashion star, try asking for donations from your friends or family members to fund your line. Just make sure you have enough money to go around once you become famous.
To Learn More Click Here
Category
catwalkgenius,
crowdfunding,
crowdsourcing,
fashionstake.com
The lazy CEO’s 10-step guide to crowdsourcing every business task
Whether you are starting a new company or are just the laziest CEO ever, there’s great news for you — the explosion in crowdsourcing strategies and solutions means you might be able to get started without any full-time employees! If you have projects or jobs that need to be completed quickly and inexpensively, here are some tips for getting the crowd to do your heavy lifting:
1. You need a name for your business. One iPhone developer put the task of naming his e-reader out to the crowd through Amazon’s Mechanical Turk, and $27.50 and 500 responses later came up with the name iReadFast. That’s even cheaper than the Silicon Valley tradition of getting a few friends together with a few cases of beer before godaddy.com crushes your dreams.
2. Now your great new name needs an eye-catching logo. 99 Designs helps companies crowdsource graphic design work to a broad network of artists and designers who compete to submit the best idea. You offer a payment price for the best logo, then pick the one you like best from the submissions.
3. Once you cover those basics, you probably need lots of money. Immediately. Crowdsource your funding with Kickstarter, a funding platform for artists, designers, filmmakers, musicians, journalists, inventors, explorers and more. You name the amount of money you need to do something; people in turn pledge amounts in support of this project or business. If you receive enough pledges, your donors’ payments are processesed and you receive the full amount. You can incentivize your crowdfunders in creative ways with items like t-shirts, books, etc.
4. In the digital age, you will probably need code development or programming. TopCoder claims to have been crowdsourcing since 2001, before there was a name for this phenomenon. It runs competitions with prizes that enable participants to compete for the best software, development and employment services solutions. To make an amazing webpage, oDesk can connect you with a web developer (or any other sort of freelancer you may seek). Its tools enable you to view progress on the project as work is completed.
5. No product will be successful without customers – and that means marketing. Go to Trada, a search engine marketing and optimization company that lets the crowd pick the best keywords for your company or campaign.
6. With your website and your AdWords account, you have a solid online presence. Find leads in the industries you are targeting with Jigsaw (recently acquired by Salesforce.com). It lets people upload contact information in exchange for the ability to download other people’s contact information. If you want all the phone numbers of all the execs, there’s a way to make it happen. Jigsaw has what it claims to be the world’s largest database of contact information.
7. Now that you have these leads, it’s time to take a good look in the mirror and decide whether or not you really want to call them all. Chances are you don’t, which is right about when you want to visit LiveOps. The company specializes in call center outsourcing where you can set the script that you want “your” sales people to use. It has thousands of people (many of whom are stay at home mothers) in the United States who make the calls from their own homes.
8. In the inevitable event that your customers get angry, use Get Satisfaction, where they can help each other. Get Satisfaction gives your customers a place to ask questions and voice complaints about your product. Often, your customer is the best person to respond to an issue another customer is having.
9. Now that you have a healthy business you need to make sure that you invest in R&D to stay ahead of the competition. This is the point at which you want to visit InnoCentive, a company that allows you to outsource research and development of any kind. It lets you set bounties for the discovery of new things. This could range from a new compression algorithm to a new drug.
10. By now you are undoubtedly big enough and prosperous enough to have your own corporate social responsibility efforts. Samasource lets you send microtasks to youth, refugees and women in developing countries. Your rich friends who are iPhone/iPad users can support this via GiveWork (iTunes link), an app developed with CrowdFlower that allows users to donate their time to charity by double checking the work done by Samasource workers.
Crowdsourcing isn’t just a buzzword –- it’s an effective way for companies to get started fast and iterate quickly with less overhead. All of these companies offer a service with less upfront commitment than traditional outsourcing -– and that advantage really shines when it comes to early stage companies.
To Learn More Click Here
1. You need a name for your business. One iPhone developer put the task of naming his e-reader out to the crowd through Amazon’s Mechanical Turk, and $27.50 and 500 responses later came up with the name iReadFast. That’s even cheaper than the Silicon Valley tradition of getting a few friends together with a few cases of beer before godaddy.com crushes your dreams.
2. Now your great new name needs an eye-catching logo. 99 Designs helps companies crowdsource graphic design work to a broad network of artists and designers who compete to submit the best idea. You offer a payment price for the best logo, then pick the one you like best from the submissions.
3. Once you cover those basics, you probably need lots of money. Immediately. Crowdsource your funding with Kickstarter, a funding platform for artists, designers, filmmakers, musicians, journalists, inventors, explorers and more. You name the amount of money you need to do something; people in turn pledge amounts in support of this project or business. If you receive enough pledges, your donors’ payments are processesed and you receive the full amount. You can incentivize your crowdfunders in creative ways with items like t-shirts, books, etc.
4. In the digital age, you will probably need code development or programming. TopCoder claims to have been crowdsourcing since 2001, before there was a name for this phenomenon. It runs competitions with prizes that enable participants to compete for the best software, development and employment services solutions. To make an amazing webpage, oDesk can connect you with a web developer (or any other sort of freelancer you may seek). Its tools enable you to view progress on the project as work is completed.
5. No product will be successful without customers – and that means marketing. Go to Trada, a search engine marketing and optimization company that lets the crowd pick the best keywords for your company or campaign.
6. With your website and your AdWords account, you have a solid online presence. Find leads in the industries you are targeting with Jigsaw (recently acquired by Salesforce.com). It lets people upload contact information in exchange for the ability to download other people’s contact information. If you want all the phone numbers of all the execs, there’s a way to make it happen. Jigsaw has what it claims to be the world’s largest database of contact information.
7. Now that you have these leads, it’s time to take a good look in the mirror and decide whether or not you really want to call them all. Chances are you don’t, which is right about when you want to visit LiveOps. The company specializes in call center outsourcing where you can set the script that you want “your” sales people to use. It has thousands of people (many of whom are stay at home mothers) in the United States who make the calls from their own homes.
8. In the inevitable event that your customers get angry, use Get Satisfaction, where they can help each other. Get Satisfaction gives your customers a place to ask questions and voice complaints about your product. Often, your customer is the best person to respond to an issue another customer is having.
9. Now that you have a healthy business you need to make sure that you invest in R&D to stay ahead of the competition. This is the point at which you want to visit InnoCentive, a company that allows you to outsource research and development of any kind. It lets you set bounties for the discovery of new things. This could range from a new compression algorithm to a new drug.
10. By now you are undoubtedly big enough and prosperous enough to have your own corporate social responsibility efforts. Samasource lets you send microtasks to youth, refugees and women in developing countries. Your rich friends who are iPhone/iPad users can support this via GiveWork (iTunes link), an app developed with CrowdFlower that allows users to donate their time to charity by double checking the work done by Samasource workers.
Crowdsourcing isn’t just a buzzword –- it’s an effective way for companies to get started fast and iterate quickly with less overhead. All of these companies offer a service with less upfront commitment than traditional outsourcing -– and that advantage really shines when it comes to early stage companies.
To Learn More Click Here
Category
crowdflower.com,
crowdfunding,
crowdsourcing
Cash-strapped entrepreneurs get creative
Got a great business idea but no money to finance it? It's the age old problem faced by would-be entrepreneurs. But a new generation of online funding platforms is taking the pain out of raising capital to get new ventures off the ground.
The platforms cater for everyone from starving artists to tech start-ups. They allow anyone with a business proposition to post an online pitch which goes straight into the offices and homes of potential investors and donors across the world.
When Los Angeles-based design students Jesse Genet, 22, and Stephan Angoulvant, 24, needed to raise $12,000 (£8,000) to launch Lumi Co, a printing and design company, they decided to bypass traditional avenues and cut out the middle men.
They registered with Kickstarter.com, a site aimed at anyone in the creative industries.
"Kickstarter seemed like a really good match for our product. It allows anyone with a creative dream to make it a reality," says Angoulvant.
Rewards system
The creators of every project must set a cash goal and a time limit, though there is no limit on how much people can raise. If they reach the goal within the time limit they get to keep the pledges. If they don't, all pledges are returned.
Kickstarter takes 5% commission on all projects which are successfully funded.
Continue reading the main story Perry Chen
It's not about philanthropy or charity. It's about patronage and commerce
Perry Chen Kickstarter co-founder
Crucially, the owners of all businesses and projects funded through the site keep 100% ownership of their ventures.
The incentive for backers is both altruistic and actual. "Everyone must offer a system of rewards," says Kickstarter co-founder Perry Chen. "It's not about philanthropy or charity. It's about patronage and commerce."
Genet and Angoulvant surpassed their fundraising goal, securing $13,598 from people who pledged anything from $1 to over $1,000. As an incentive they offered backers gifts from their range including wallets and bags.
The feedback the young entrepreneurs received from would-be investors enabled them to refine their products and gave them lots of ideas for their business going forward. It also provided them with a ready made group of potential customers.
The 650 projects which have so far succeeded in meeting their funding goals through Kickstarter include a woman who is circumnavigating the globe solo by boat, a band recording their first CD and a cartoonist travelling to Afghanistan to do political sketches.
Since Kickstarter was launched by five friends in April 2009, pledges have come in from 70,000 people around the world.
Connecting people
Feedthemuse.net is the brainchild of a group of Philadelphia-based music industry professionals. It is popular among musicians and other creatives who accept pledges from as little as $1. The majority of pledges to fund new CDs and tours have come from friends, families and fans.
Continue reading the main story
Grow VC appealed to us because it is very international and it is for small companies
Eric Cheng Chief executive, Emagist
Taking a more traditional investor/entrepreneur approach is Grow VC. Founded in February by Jouko Ahvenainen and Valto Loikkanen, Grow VC bills itself as the first global crowdfunding tool for web and mobile start-ups. Through the site, start-ups can secure initial funding ranging from $10,000 to $1m.
The site has 2,500 registered users in 108 countries worldwide. Some 25% of Grow VC users are in the US, 11% in the UK and 7% in India.
"From the start we knew we wanted to make it very international so that investors and start-ups around the world could connect with each other," says Ahvenainen.
The total capital raised through the site so far is $12.8m.
Entrepreneurs using Grow VC include Eric Cheng, the chief executive of Hong Kong gaming company Emagist.
"Venture capitalists here are looking for big companies," says Cheng. "Grow VC appealed to us because it is very international and it is for small companies."
Petra Soderling Petra Soderling invests $20 a month through Grow VC
Within a few months, Emagist outgrew the site. But through Grow VC it made contact with venture capitalists in Europe, the US and mainland China.
Growth potential
Along with professional investors, a growing number of ordinary people with an interest in investing have been logging on to Grow VC.
Petra Soderling heard about Grow VC on Twitter and is making the minimum Grow VC investment of $20 a month. "For me it's about investing and hoping to see a profit but also about using a small amount of money to help small companies," she says.
Not everyone is successful.
Among those who failed are New York-based Englishman Toby Daniels. His business idea, Betacup, seeks to reduce the amount of landfill in the US resulting from disposable coffee cups. Although he did not reach his funding goal, Starbucks heard about what he was trying to do on Kickstarter and offered to donate the $20,000 needed to get his plans off the ground.
"This would never have happened if we hadn't made contact with a small but engaged group on the site who got our story out there," says Daniels.
Kickstarter co-founder Perry Chen believes these new funding tools have a lot of potential for growth. "You are reaching out to your audience in a very new way which is very involving and makes them feel a strong connection," he says. "We might not be ready for Avatar 2 but the scope is huge."
To Learn More Click Here
The platforms cater for everyone from starving artists to tech start-ups. They allow anyone with a business proposition to post an online pitch which goes straight into the offices and homes of potential investors and donors across the world.
When Los Angeles-based design students Jesse Genet, 22, and Stephan Angoulvant, 24, needed to raise $12,000 (£8,000) to launch Lumi Co, a printing and design company, they decided to bypass traditional avenues and cut out the middle men.
They registered with Kickstarter.com, a site aimed at anyone in the creative industries.
"Kickstarter seemed like a really good match for our product. It allows anyone with a creative dream to make it a reality," says Angoulvant.
Rewards system
The creators of every project must set a cash goal and a time limit, though there is no limit on how much people can raise. If they reach the goal within the time limit they get to keep the pledges. If they don't, all pledges are returned.
Kickstarter takes 5% commission on all projects which are successfully funded.
Continue reading the main story Perry Chen
It's not about philanthropy or charity. It's about patronage and commerce
Perry Chen Kickstarter co-founder
Crucially, the owners of all businesses and projects funded through the site keep 100% ownership of their ventures.
The incentive for backers is both altruistic and actual. "Everyone must offer a system of rewards," says Kickstarter co-founder Perry Chen. "It's not about philanthropy or charity. It's about patronage and commerce."
Genet and Angoulvant surpassed their fundraising goal, securing $13,598 from people who pledged anything from $1 to over $1,000. As an incentive they offered backers gifts from their range including wallets and bags.
The feedback the young entrepreneurs received from would-be investors enabled them to refine their products and gave them lots of ideas for their business going forward. It also provided them with a ready made group of potential customers.
The 650 projects which have so far succeeded in meeting their funding goals through Kickstarter include a woman who is circumnavigating the globe solo by boat, a band recording their first CD and a cartoonist travelling to Afghanistan to do political sketches.
Since Kickstarter was launched by five friends in April 2009, pledges have come in from 70,000 people around the world.
Connecting people
Feedthemuse.net is the brainchild of a group of Philadelphia-based music industry professionals. It is popular among musicians and other creatives who accept pledges from as little as $1. The majority of pledges to fund new CDs and tours have come from friends, families and fans.
Continue reading the main story
Grow VC appealed to us because it is very international and it is for small companies
Eric Cheng Chief executive, Emagist
Taking a more traditional investor/entrepreneur approach is Grow VC. Founded in February by Jouko Ahvenainen and Valto Loikkanen, Grow VC bills itself as the first global crowdfunding tool for web and mobile start-ups. Through the site, start-ups can secure initial funding ranging from $10,000 to $1m.
The site has 2,500 registered users in 108 countries worldwide. Some 25% of Grow VC users are in the US, 11% in the UK and 7% in India.
"From the start we knew we wanted to make it very international so that investors and start-ups around the world could connect with each other," says Ahvenainen.
The total capital raised through the site so far is $12.8m.
Entrepreneurs using Grow VC include Eric Cheng, the chief executive of Hong Kong gaming company Emagist.
"Venture capitalists here are looking for big companies," says Cheng. "Grow VC appealed to us because it is very international and it is for small companies."
Petra Soderling Petra Soderling invests $20 a month through Grow VC
Within a few months, Emagist outgrew the site. But through Grow VC it made contact with venture capitalists in Europe, the US and mainland China.
Growth potential
Along with professional investors, a growing number of ordinary people with an interest in investing have been logging on to Grow VC.
Petra Soderling heard about Grow VC on Twitter and is making the minimum Grow VC investment of $20 a month. "For me it's about investing and hoping to see a profit but also about using a small amount of money to help small companies," she says.
Not everyone is successful.
Among those who failed are New York-based Englishman Toby Daniels. His business idea, Betacup, seeks to reduce the amount of landfill in the US resulting from disposable coffee cups. Although he did not reach his funding goal, Starbucks heard about what he was trying to do on Kickstarter and offered to donate the $20,000 needed to get his plans off the ground.
"This would never have happened if we hadn't made contact with a small but engaged group on the site who got our story out there," says Daniels.
Kickstarter co-founder Perry Chen believes these new funding tools have a lot of potential for growth. "You are reaching out to your audience in a very new way which is very involving and makes them feel a strong connection," he says. "We might not be ready for Avatar 2 but the scope is huge."
To Learn More Click Here
Category
bbc,
crowdsourcing,
kickstarter
Wednesday, May 12, 2010
Morning Read: The rise of ‘crowdfunding’
The rise of “crowdfunding”: Arguing that the existing venture capital model is broken, Entrepreneur Kevin Lawton provides an introduction to “crowdfunding.” The idea is that traditional methods of screening investments aren’t working well (such as relying on human networks), so VCs need to rely on the wisdom of crowds to pitch in and drive consensus–the direction a number of other industries seems to be moving in. GrowVC is an early example. “As it matures, crowdfunding will become the norm,” Lawton says, “and span many business disciplines and multiple rounds.”
Say No to VC tax breaks: Credit peHUB’s Dan Primack with an excellent, and more importantly intellectually honest and non-pandering post about venture capital tax breaks. At a time when everyone seems to think they deserve lower taxes no matter what their salary and there’s little sense of shared sacrifice, it would’ve been easy for Primack to go with the flow and endorse the industry’s conventional wisdom. Instead, Primack picks apart the rationale for preserving the tax break and calls out what it is: a loophole that for little reason taxes capital gains at a far lower rate than other types of profits.
Medicare “cuts” to some are “savings” to others: One in five Medicare hospital patients returns to the hospital within 30 days–at a cost to Medicare of $12 billion to $15 billion a year–and by 90 days the rate rises to one of three, writes Maggie Mahar. A portion of that represents potential savings to the federal government, and that’s why it’s encouraging that the health reform law cuts Medicare reimbursements to hospitals with particularly high rates of avoidable readmissions.
Reform cost estimates go up: More bad news for reform advocates (and good news for those looking for more to fodder to complain about Obamacare)–the Congressional Budget Office estimates that the health reform law will cost $65 billion more than previously thought.
No annual meeting for you: Already unpopular with the FDA, investors and the Justice Department, device maker Boston Scientific can add antagonist to the list: the media. The company barred the media from its annual meeting, despite having let reporters attend in the past. A spokesman then declined comment as to the reason(s) why. Not exactly the corporate transparency that seems to be all the b-school rage these days.
Get out of the stock market: That’s the advice from Reuters’ excellent financial reporter Felix Salmon in the wake of last week’s meltdown and bounceback. “We are entering an era of massive volatility,” Salmon says. “You, as an individual investor, just simply don’t have the risk appetite to be able to deal with that kind of volatility.”
To Learn More Click Here
Say No to VC tax breaks: Credit peHUB’s Dan Primack with an excellent, and more importantly intellectually honest and non-pandering post about venture capital tax breaks. At a time when everyone seems to think they deserve lower taxes no matter what their salary and there’s little sense of shared sacrifice, it would’ve been easy for Primack to go with the flow and endorse the industry’s conventional wisdom. Instead, Primack picks apart the rationale for preserving the tax break and calls out what it is: a loophole that for little reason taxes capital gains at a far lower rate than other types of profits.
Medicare “cuts” to some are “savings” to others: One in five Medicare hospital patients returns to the hospital within 30 days–at a cost to Medicare of $12 billion to $15 billion a year–and by 90 days the rate rises to one of three, writes Maggie Mahar. A portion of that represents potential savings to the federal government, and that’s why it’s encouraging that the health reform law cuts Medicare reimbursements to hospitals with particularly high rates of avoidable readmissions.
Reform cost estimates go up: More bad news for reform advocates (and good news for those looking for more to fodder to complain about Obamacare)–the Congressional Budget Office estimates that the health reform law will cost $65 billion more than previously thought.
No annual meeting for you: Already unpopular with the FDA, investors and the Justice Department, device maker Boston Scientific can add antagonist to the list: the media. The company barred the media from its annual meeting, despite having let reporters attend in the past. A spokesman then declined comment as to the reason(s) why. Not exactly the corporate transparency that seems to be all the b-school rage these days.
Get out of the stock market: That’s the advice from Reuters’ excellent financial reporter Felix Salmon in the wake of last week’s meltdown and bounceback. “We are entering an era of massive volatility,” Salmon says. “You, as an individual investor, just simply don’t have the risk appetite to be able to deal with that kind of volatility.”
To Learn More Click Here
Category
crowdsourcing,
growvc,
kevin lawton
Crowdsourcing goes global: The NYT’s “Moment in Time”
Visit the New York Times’ Lens blog today, and you’ll find an image slightly different from the high-quality photographs that normally populate the outlet: a spinning globe, highly stylized, its surface popping with piles of pictures.
“Here it is,” the site announces: “Earth, covered by stacks of thousands of virtual photographs, corresponding in location to where they were taken by Lens readers at one ‘Moment in Time.’”
The moment in question? Sunday before last, at 11 a.m. EST — the time when the paper asked its users to take photos in an image-gathering project that was equal parts collaborative art and crowdsourcing on steroids.
The invitation to participate:
Attention: everyone with a camera, amateur or pro. Please join us on Sunday, May 2, at 15:00 (U.T.C./G.M.T.), as thousands of photographers simultaneously record “A Moment in Time.” The idea is to create an international mosaic, an astonishingly varied gallery of images that are cemented together by the common element of time.
The feature’s editors — James Estrin, who conceived of it and oversaw its implementation, David Dunlap (who wrote much of the project’s witty instructions and textual updates), and Josh Haner (who, along with Aron Pilhofer, Jacqui Maher, and the Times’ vaunted interactive news team, helped facilitate the behind-the-scenes tech masterminding) — expected that the blog’s invitation would elicit a couple thousand photos. And that organizing and presenting them would take a couple days.
But: they received, in the end, over 10,000 user-generated submissions, Estrin told me — from photographers amateur and professional, from around the world. (Actually, they received over 13,000 at first — then removed some from the pile when it became obvious, whether by lighting or timestamp or other indicators, that the photos weren’t, in fact, taken at the allotted time.) And the process of organizing all that content took well over a week — a fact about which Dunlap repeatedly (and wittily) apologized. In a post entitled “Patience,” Dunlap wrote, “We have to ask it of you once again. Our interactive ‘Moment in Time’ gallery isn’t ready yet.”
We were bold — O.K., maybe a bit foolhardy — to think we would only need two or three days to prepare a complex three-dimensional computer display showing more than 13,000 photographs from around the world; organized geographically and searchable by topic, with captions and photo credits as coherent and accurate as possible. It’s obviously taken us longer than that and will almost certainly take us a day or two more. (We’re getting out of the prediction business for now.) We simply hadn’t had the experience of dealing with such numbers before. The popular “Documenting the Decade” project, for example, drew only 2,769 submissions.
Please bear with us while we take the time we need to get it right…Be assured that we’ll post as soon as we can. And don’t think for a moment that we’ve been using this time to weed out pictures of cats, dogs, tulips and coffee cups. There’ll be plenty.
And plenty, indeed, there are. The pictures (sortable by fellow-user recommendation, but also by Community, Arts and Entertainment, Family, Money and the Economy, Nature and the Environment, Play, Religion, Social Issues, Work, and — my personal favorite — Other) are, in general, high-quality and compelling. There’s the predictable fare — meditative close-ups of flowers, pictures of cats — but there’s also more surprising and evocative stuff: a grandmother and grandson in Bangladesh, a couple lounging in bed (caption: “My boyfriend and I planned a big adventure for Sunday morning, but we both ended up sick”), an Amish horse-and-buggy (caption: “We live in a part of Pennsylvania where wifi and No-fi coexist pretty well”).
“A Moment in Time” (and, with that, I’ll try not to use the project’s name again in this post — so that you won’t, as I did, get something unfortunate stuck in your head as a result of repeated exposure) is aesthetically compelling and socially revealing. It also suggests the Times’ openness to exploring avenues of documentation and expression that don’t fall into the neat categories of traditional journalism.
“I was driving to work, and it just hit me: Okay, we’ll get thousands of people around the world to take a photograph at the same moment,” Estrin told me of the project’s inception. And the goals of the project mix the artistic and the journalistic to the point that it’s difficult to tell where the journalism ends and the aesthetic begins: first, to produce a valuable document, one that records — to an extent — a particular moment as it’s lived out across the world. Second, from the social media angle, to facilitate the sense of shared identity that comes with “doing things as a community around the world — doing the same things at the same time.” Ultimately, Estrin says, the project was about “the intentional profundity of the moment.”
Whether the feature represents journalism, or something more, or something less, the reaction it’s received from Times users offers a lesson for news organizations chasing after the holy grail-and-sometimes-white-whale that is reader engagement. If the project’s participatory outpouring is any indication, it has struck a nerve with Times users. In a good way. And the ‘why’ in that is instructive. The project involved an assignment with specific instructions; users weren’t merely being asked for something — a hazy invitation to contribute — but to provide something specific, and easily attainable. And to provide something, moreover, that would be part of a project with a clearly defined, but also inspiring, purpose: to document the world, via its many corners, at a particular moment. That mix of depth and breadth, of pragmatism and idealism, can be a potent incitement to action — a fact evidenced by the thousands of images currently blanketing the globe over at the Lens blog.
To Learn More Click Here
“Here it is,” the site announces: “Earth, covered by stacks of thousands of virtual photographs, corresponding in location to where they were taken by Lens readers at one ‘Moment in Time.’”
The moment in question? Sunday before last, at 11 a.m. EST — the time when the paper asked its users to take photos in an image-gathering project that was equal parts collaborative art and crowdsourcing on steroids.
The invitation to participate:
Attention: everyone with a camera, amateur or pro. Please join us on Sunday, May 2, at 15:00 (U.T.C./G.M.T.), as thousands of photographers simultaneously record “A Moment in Time.” The idea is to create an international mosaic, an astonishingly varied gallery of images that are cemented together by the common element of time.
The feature’s editors — James Estrin, who conceived of it and oversaw its implementation, David Dunlap (who wrote much of the project’s witty instructions and textual updates), and Josh Haner (who, along with Aron Pilhofer, Jacqui Maher, and the Times’ vaunted interactive news team, helped facilitate the behind-the-scenes tech masterminding) — expected that the blog’s invitation would elicit a couple thousand photos. And that organizing and presenting them would take a couple days.
But: they received, in the end, over 10,000 user-generated submissions, Estrin told me — from photographers amateur and professional, from around the world. (Actually, they received over 13,000 at first — then removed some from the pile when it became obvious, whether by lighting or timestamp or other indicators, that the photos weren’t, in fact, taken at the allotted time.) And the process of organizing all that content took well over a week — a fact about which Dunlap repeatedly (and wittily) apologized. In a post entitled “Patience,” Dunlap wrote, “We have to ask it of you once again. Our interactive ‘Moment in Time’ gallery isn’t ready yet.”
We were bold — O.K., maybe a bit foolhardy — to think we would only need two or three days to prepare a complex three-dimensional computer display showing more than 13,000 photographs from around the world; organized geographically and searchable by topic, with captions and photo credits as coherent and accurate as possible. It’s obviously taken us longer than that and will almost certainly take us a day or two more. (We’re getting out of the prediction business for now.) We simply hadn’t had the experience of dealing with such numbers before. The popular “Documenting the Decade” project, for example, drew only 2,769 submissions.
Please bear with us while we take the time we need to get it right…Be assured that we’ll post as soon as we can. And don’t think for a moment that we’ve been using this time to weed out pictures of cats, dogs, tulips and coffee cups. There’ll be plenty.
And plenty, indeed, there are. The pictures (sortable by fellow-user recommendation, but also by Community, Arts and Entertainment, Family, Money and the Economy, Nature and the Environment, Play, Religion, Social Issues, Work, and — my personal favorite — Other) are, in general, high-quality and compelling. There’s the predictable fare — meditative close-ups of flowers, pictures of cats — but there’s also more surprising and evocative stuff: a grandmother and grandson in Bangladesh, a couple lounging in bed (caption: “My boyfriend and I planned a big adventure for Sunday morning, but we both ended up sick”), an Amish horse-and-buggy (caption: “We live in a part of Pennsylvania where wifi and No-fi coexist pretty well”).
“A Moment in Time” (and, with that, I’ll try not to use the project’s name again in this post — so that you won’t, as I did, get something unfortunate stuck in your head as a result of repeated exposure) is aesthetically compelling and socially revealing. It also suggests the Times’ openness to exploring avenues of documentation and expression that don’t fall into the neat categories of traditional journalism.
“I was driving to work, and it just hit me: Okay, we’ll get thousands of people around the world to take a photograph at the same moment,” Estrin told me of the project’s inception. And the goals of the project mix the artistic and the journalistic to the point that it’s difficult to tell where the journalism ends and the aesthetic begins: first, to produce a valuable document, one that records — to an extent — a particular moment as it’s lived out across the world. Second, from the social media angle, to facilitate the sense of shared identity that comes with “doing things as a community around the world — doing the same things at the same time.” Ultimately, Estrin says, the project was about “the intentional profundity of the moment.”
Whether the feature represents journalism, or something more, or something less, the reaction it’s received from Times users offers a lesson for news organizations chasing after the holy grail-and-sometimes-white-whale that is reader engagement. If the project’s participatory outpouring is any indication, it has struck a nerve with Times users. In a good way. And the ‘why’ in that is instructive. The project involved an assignment with specific instructions; users weren’t merely being asked for something — a hazy invitation to contribute — but to provide something specific, and easily attainable. And to provide something, moreover, that would be part of a project with a clearly defined, but also inspiring, purpose: to document the world, via its many corners, at a particular moment. That mix of depth and breadth, of pragmatism and idealism, can be a potent incitement to action — a fact evidenced by the thousands of images currently blanketing the globe over at the Lens blog.
To Learn More Click Here
Crowdsourcing and the challenge of payment
An unusual Distributed Work Meetup was held last night in four different cities simultaneously, arranged through many hours of hard work by Lukas Biewald and his colleagues at distributed work provider CrowdFlower.
With all the sharing of experiences and the on-the-spot analyses taking place, I didn't find an occasion to ask my most pressing question, so I'll put it here and ask my readers for comments:
How can you set up crowdsourcing where most people work for free but some are paid, and present it to participants in a way that makes it seem fair?
This situation arises all the time, with paid participants such as application developers and community managers, but there's a lot of scary literature about "crowding out" and other dangers. One basic challenge is choosing what work to reward monetarily. I can think of several dividing lines, each with potential problems:
* Pay for professional skills and ask for amateur contributions on a volunteer basis.
The problem with that approach is that so-called amateurs are invading the turf of professionals all the time, and their deft ability to do so has been proven over and over at crowdsourcing sites such as InnoCentive for inventors and SpringLeap or 99 Designs for designers. Still, most people can understand the need to pay credentialed professionals such as lawyers and accountants.
*
Pay for extraordinary skill and accept more modest contributions on a volunteer basis.
This principle usually reduces to the previous one, because there's no bright line dividing the extraordinary from the ordinary. Companies adopting this strategy could be embarrassed when a volunteer turns in work whose quality matches the professional hires, and MySQL AB in particular was known for hiring such volunteers. But if it turns out that a large number of volunteers have professional skills, the whole principle comes into doubt.
*
Pay for tasks that aren't fun.
The problem is that it's amazing what some people consider fun. On the other hand, at any particular moment when you need some input, you might be unable to find people who find it fun enough to do it for you. This principle still holds some water; for instance, I heard Linus Torvalds say that proprietary software was a reasonable solution for programming tasks that nobody would want to do for personal satisfaction.
*
Pay for critical tasks that need attention on an ongoing basis.
This can justify paying people to monitor sites for spam and obscenity, keep computer servers from going down, etc. The problem with this is that no human being can be on call constantly. If you're going to divide a task among multiple people, you'll find that a healthy community tends to be more vigilant and responsive than designated individuals.
I think there are guidelines for mixing pay with volunteer work, and I'd like to hear (without payment) ideas from the crowd.
Now I'll talk a bit about the meetup.
Venue and setup
I just have to start with the Boston-area venue. I had come to many events at the MIT Media Lab and had always entered Building E14 on the southwest side. The Lab struck me as a musty, slightly undermaintained littered with odd jetsam and parts of unfinished projects; a place you could hardly find your way around but that almost dragged creativity from you into the open. The Lab took up a new building in 2009 but to my memory the impact is still similar--it's inherent to the mission and style of the researchers.
For the first time last night, I came to the building's northeast entrance, maintained by the MIT School of Architecture. It is Ariel to the Media Lab's Caliban: an airy set of spacious white-walled forums sparsely occupied by chairs and occasional art displays. In a very different way, this space also promotes open thoughts and broad initiatives.
The ambitious agenda called for the four host cities (Boston, New York, San Francisco, and Seattle) to share speakers over videoconferencing equipment. Despite extensive preparation, we all had audio, video, and connectivity problems at the last minute (in fact, the Boston organizers crowdsourced the appeal for a laptop and I surrendered mine for the video feed). Finally in Boston we disconnected and had an old-fashioned presentation/discusser with an expert speaker.
In regard to the MIT Media Lab and Architecture School, I think it's amusing to report that Foursquare didn't recognize either one when I asked for my current location. Instead, Foursquare offered a variety of sites across the river, plus the nearby subway, the bike path, and a few other oddities.
We were lucky to have Jeff Howe, the WIRED contributor who invented the term Crowdsourcing and wrote a popular book on it. He is currently a Nieman Fellow at Harvard. His talk was wildly informal (he took an urgent call from a baby sitter in the middle) but full of interesting observations and audience interactions.
He asked us to promote his current big project with WIRED, One Book, One Twitter. His goal is to reproduce globally the literacy projects carried out in many cities (one happens every year in my town, Arlington, Mass.) where a push to get everyone to read a book is accompanied by community activities and meetups. Through a popular vote on WIRED, the book American Gods by Neil Gaiman was chosen, and people are tweeting away at #1b1t and related tags.
Discussion
With the sponsorship by CrowdFlower, our evening focused on crowdsourcing for money. We had a few interesting observations about the differences between free Wikipedia-style participation and work-for-pay, but what was most interesting is that basic human processes like community-building go in both places.
Among Howe's personal revelations was his encounter with the fear of crowdsourcing. Everyone panics when they first see what crowdsourcing is doing to his or her personal profession. For instance, when Howe talked about the graphic design sites mentioned earlier, professional designers descended on him in a frenzy. He played the sage, lecturing them that the current system for outsourcing design excludes lots of creative young talent, etc.
But even Howe, when approached by an outfit that is trying to outsource professional writing, felt the sting of competition and refused to help them. But he offered respect for Helium, which encourages self-chosen authors to sign up and compete for freelance assignments.
Howe is covering citizen journalism, though, a subject that Dan Gillmor wrote about in a book that O'Reilly published We the Media, and that he continues to pursue at his Mediactive site and a new book.
Job protection can also play a role in opposition to crowdsourcing, because it makes it easier for people around the world to work on local projects. (Over half the workers on Mechanical Turk now live in India. Biewald said one can't trust what workers say on their profiles; IP addresses reveal the truth.) But this doesn't seem to have attracted the attention of the xenophobes who oppose any support for job creation in other countries, perhaps because it's hard to get riled up about "jobs" that have the granularity of a couple seconds.
Crowdsourcing is known to occur, as Howe put it, in "situations of high social capital," simply meaning that people care about each other and want to earn each other's favor. It's often reinforced by explicit rating systems, but even more powerful is the sense of sharing and knowing that someone else is working alongside you. In a blog I wrote a couple years ago, I noted that competition site TopCoder maintained a thriving community among programmers who ultimately were competing with each other.
Similarly, the successful call center LiveOps provides forums for operators to talk about their experiences and share tips. This has become not just a source of crowdsourced help, and not even a way to boost morale by building community, but an impetus for quality. Operators actually discipline each other and urge each other to greater heights of productivity. LiveOps pays its workers more per hour than outsourcing calls to India normally costs to clients, yet LiveOps is successful because of its reputation for high quality.
We asked why communities of paid workers tended to reinforce quality rather than go in the other direction and band together to cheat the system. I think the answer is obvious: workers know that if they are successful at cheating, clients will stop using the system and it will go away, along with their source of income.
Biewald also explained that CrowdFlower has found it fairly easy to catch and chase away cheaters. It seeds its jobs with simple questions to which it knows the right answers, and warns the worker right away if the questions are answered incorrectly. After a couple alerts, the bad worker usually drops out.
We had a brief discussion afterward about the potential dark side of crowdsourcing, which law professor Jonathan Zittrain covered in a talk called Minds for Sale. One of Zittrain's complaints is that malicious actors can disguise their evil goals behind seemingly innocuous tasks farmed out to hundreds of unknowing volunteers. But someone who used to work for Amazon.com's Mechanical Turk said people are both smarter and more ethical than they get credit for, and that participants on that service quickly noted any task that looked unsavory and warned each other away.
As the name Mechanical Turk (which of course had a completely unrelated historical origin) suggests, many tasks parceled out by crowdsourcing firms are fairly mechanical ones that we just haven't figured out how to fully mechanize yet: transcribing spoken words, recognizing photos, etc. Biewald said that his firm still has a big job persuading potential clients that they can trust key parts of the company supply chain to anonymous, self-chosen workers. I think it may be easier when the company realizes that a task is truly mechanical and that they keep full control over the design of the project. But crowdsourcing is moving up in the world fast; not only production but control and choice are moving into the crowd.
Howe highlighted Fox News, which runs a UReport site for volunteers. The stories on Fox News' web site, according to Howe, are not only written by volunteers but chosen through volunteer ratings, somewhat in Slashdot style.
Musing on the sociological and economic implications of crowdsourcing, as we did last night, can be exciting. Even though Mechanical Turk doesn't seem to be profitable, its clients capture many cost savings, and other crowdsourcing firms have made headway in particular fields. Howe hails crowdsourcing as the first form of production that really reflects the strengths of the Internet, instead of trying to "force old industrial-age crap" into an online format. But beyond the philosophical rhetoric, crowdsourcing is an area where a lot of companies are making money.
To Learn More Click Here
With all the sharing of experiences and the on-the-spot analyses taking place, I didn't find an occasion to ask my most pressing question, so I'll put it here and ask my readers for comments:
How can you set up crowdsourcing where most people work for free but some are paid, and present it to participants in a way that makes it seem fair?
This situation arises all the time, with paid participants such as application developers and community managers, but there's a lot of scary literature about "crowding out" and other dangers. One basic challenge is choosing what work to reward monetarily. I can think of several dividing lines, each with potential problems:
* Pay for professional skills and ask for amateur contributions on a volunteer basis.
The problem with that approach is that so-called amateurs are invading the turf of professionals all the time, and their deft ability to do so has been proven over and over at crowdsourcing sites such as InnoCentive for inventors and SpringLeap or 99 Designs for designers. Still, most people can understand the need to pay credentialed professionals such as lawyers and accountants.
*
Pay for extraordinary skill and accept more modest contributions on a volunteer basis.
This principle usually reduces to the previous one, because there's no bright line dividing the extraordinary from the ordinary. Companies adopting this strategy could be embarrassed when a volunteer turns in work whose quality matches the professional hires, and MySQL AB in particular was known for hiring such volunteers. But if it turns out that a large number of volunteers have professional skills, the whole principle comes into doubt.
*
Pay for tasks that aren't fun.
The problem is that it's amazing what some people consider fun. On the other hand, at any particular moment when you need some input, you might be unable to find people who find it fun enough to do it for you. This principle still holds some water; for instance, I heard Linus Torvalds say that proprietary software was a reasonable solution for programming tasks that nobody would want to do for personal satisfaction.
*
Pay for critical tasks that need attention on an ongoing basis.
This can justify paying people to monitor sites for spam and obscenity, keep computer servers from going down, etc. The problem with this is that no human being can be on call constantly. If you're going to divide a task among multiple people, you'll find that a healthy community tends to be more vigilant and responsive than designated individuals.
I think there are guidelines for mixing pay with volunteer work, and I'd like to hear (without payment) ideas from the crowd.
Now I'll talk a bit about the meetup.
Venue and setup
I just have to start with the Boston-area venue. I had come to many events at the MIT Media Lab and had always entered Building E14 on the southwest side. The Lab struck me as a musty, slightly undermaintained littered with odd jetsam and parts of unfinished projects; a place you could hardly find your way around but that almost dragged creativity from you into the open. The Lab took up a new building in 2009 but to my memory the impact is still similar--it's inherent to the mission and style of the researchers.
For the first time last night, I came to the building's northeast entrance, maintained by the MIT School of Architecture. It is Ariel to the Media Lab's Caliban: an airy set of spacious white-walled forums sparsely occupied by chairs and occasional art displays. In a very different way, this space also promotes open thoughts and broad initiatives.
The ambitious agenda called for the four host cities (Boston, New York, San Francisco, and Seattle) to share speakers over videoconferencing equipment. Despite extensive preparation, we all had audio, video, and connectivity problems at the last minute (in fact, the Boston organizers crowdsourced the appeal for a laptop and I surrendered mine for the video feed). Finally in Boston we disconnected and had an old-fashioned presentation/discusser with an expert speaker.
In regard to the MIT Media Lab and Architecture School, I think it's amusing to report that Foursquare didn't recognize either one when I asked for my current location. Instead, Foursquare offered a variety of sites across the river, plus the nearby subway, the bike path, and a few other oddities.
We were lucky to have Jeff Howe, the WIRED contributor who invented the term Crowdsourcing and wrote a popular book on it. He is currently a Nieman Fellow at Harvard. His talk was wildly informal (he took an urgent call from a baby sitter in the middle) but full of interesting observations and audience interactions.
He asked us to promote his current big project with WIRED, One Book, One Twitter. His goal is to reproduce globally the literacy projects carried out in many cities (one happens every year in my town, Arlington, Mass.) where a push to get everyone to read a book is accompanied by community activities and meetups. Through a popular vote on WIRED, the book American Gods by Neil Gaiman was chosen, and people are tweeting away at #1b1t and related tags.
Discussion
With the sponsorship by CrowdFlower, our evening focused on crowdsourcing for money. We had a few interesting observations about the differences between free Wikipedia-style participation and work-for-pay, but what was most interesting is that basic human processes like community-building go in both places.
Among Howe's personal revelations was his encounter with the fear of crowdsourcing. Everyone panics when they first see what crowdsourcing is doing to his or her personal profession. For instance, when Howe talked about the graphic design sites mentioned earlier, professional designers descended on him in a frenzy. He played the sage, lecturing them that the current system for outsourcing design excludes lots of creative young talent, etc.
But even Howe, when approached by an outfit that is trying to outsource professional writing, felt the sting of competition and refused to help them. But he offered respect for Helium, which encourages self-chosen authors to sign up and compete for freelance assignments.
Howe is covering citizen journalism, though, a subject that Dan Gillmor wrote about in a book that O'Reilly published We the Media, and that he continues to pursue at his Mediactive site and a new book.
Job protection can also play a role in opposition to crowdsourcing, because it makes it easier for people around the world to work on local projects. (Over half the workers on Mechanical Turk now live in India. Biewald said one can't trust what workers say on their profiles; IP addresses reveal the truth.) But this doesn't seem to have attracted the attention of the xenophobes who oppose any support for job creation in other countries, perhaps because it's hard to get riled up about "jobs" that have the granularity of a couple seconds.
Crowdsourcing is known to occur, as Howe put it, in "situations of high social capital," simply meaning that people care about each other and want to earn each other's favor. It's often reinforced by explicit rating systems, but even more powerful is the sense of sharing and knowing that someone else is working alongside you. In a blog I wrote a couple years ago, I noted that competition site TopCoder maintained a thriving community among programmers who ultimately were competing with each other.
Similarly, the successful call center LiveOps provides forums for operators to talk about their experiences and share tips. This has become not just a source of crowdsourced help, and not even a way to boost morale by building community, but an impetus for quality. Operators actually discipline each other and urge each other to greater heights of productivity. LiveOps pays its workers more per hour than outsourcing calls to India normally costs to clients, yet LiveOps is successful because of its reputation for high quality.
We asked why communities of paid workers tended to reinforce quality rather than go in the other direction and band together to cheat the system. I think the answer is obvious: workers know that if they are successful at cheating, clients will stop using the system and it will go away, along with their source of income.
Biewald also explained that CrowdFlower has found it fairly easy to catch and chase away cheaters. It seeds its jobs with simple questions to which it knows the right answers, and warns the worker right away if the questions are answered incorrectly. After a couple alerts, the bad worker usually drops out.
We had a brief discussion afterward about the potential dark side of crowdsourcing, which law professor Jonathan Zittrain covered in a talk called Minds for Sale. One of Zittrain's complaints is that malicious actors can disguise their evil goals behind seemingly innocuous tasks farmed out to hundreds of unknowing volunteers. But someone who used to work for Amazon.com's Mechanical Turk said people are both smarter and more ethical than they get credit for, and that participants on that service quickly noted any task that looked unsavory and warned each other away.
As the name Mechanical Turk (which of course had a completely unrelated historical origin) suggests, many tasks parceled out by crowdsourcing firms are fairly mechanical ones that we just haven't figured out how to fully mechanize yet: transcribing spoken words, recognizing photos, etc. Biewald said that his firm still has a big job persuading potential clients that they can trust key parts of the company supply chain to anonymous, self-chosen workers. I think it may be easier when the company realizes that a task is truly mechanical and that they keep full control over the design of the project. But crowdsourcing is moving up in the world fast; not only production but control and choice are moving into the crowd.
Howe highlighted Fox News, which runs a UReport site for volunteers. The stories on Fox News' web site, according to Howe, are not only written by volunteers but chosen through volunteer ratings, somewhat in Slashdot style.
Musing on the sociological and economic implications of crowdsourcing, as we did last night, can be exciting. Even though Mechanical Turk doesn't seem to be profitable, its clients capture many cost savings, and other crowdsourcing firms have made headway in particular fields. Howe hails crowdsourcing as the first form of production that really reflects the strengths of the Internet, instead of trying to "force old industrial-age crap" into an online format. But beyond the philosophical rhetoric, crowdsourcing is an area where a lot of companies are making money.
To Learn More Click Here
Category
99designs.com,
crowdflower.com,
crowdsourcing,
innocentive,
lukas biewald,
springleap
5 Ways to Crowdsource Easily, Legally & with Quality
When Jeff Howe coined the term "Crowdsourcing" in a 2006 Wired cover story, journalism was just tiptoeing beyond comments into the wild world of reader blogs.
Four years later, as journalism organizations race to find new remedies for a painful revenue drought, crowdsourcing is spreading into news organizations in a myriad of ways.
Beyond blogging, readers are gathering data, opening doors to fresh information sources, and in some cases, starting competitive or collaborative sites of their own. In so doing, they're converting community building from an afterthought into a key strategy for forward-looking news outlets.
One of the primary ideas that emerged over the course of a two-day Poynter conference on user content and crowdsourcing last week was that cultivating reader participation is not just about telling more stories with fewer resources. Nor is it just about users offering commentary or neighborhood news.
It's about cultivating fundamentally new kinds of stories and capitalizing more efficiently on the expertise and passions of the people formerly known as the audience. Here are five of the conference's key takeaways.
Structure is Crucial
Crowdsourcing is more science than sorcery, said Amanda Michel, ProPublica's director of Distributed Reporting. Carefully crafting a call to action is the key to getting readers to participate in news gathering.
Throwing out a blind call for tips or ideas may yield an occasional gem, but Michel's experience, with the Huffington Post's Off the Bus campaign coverage -- and in several recent projects at ProPublica -- demonstrates that targeted questions tend to yield more fruitful data that can be sifted, mapped and analyzed as part of a reporter's fact-gathering process.
Make it Easy
Michel advised news organizations to make it as simple as possible for readers to participate in ways that are relevant and meaningful. Draw on participants' specific experience and expertise, she says. Stay in touch with them. Share their characteristics in a database to draw on when needed. ProPublica recently asked readers to help reporter Paul Kiel gather information about the mortgage crisis.
Those who had sought a mortgage modification were invited to fill out a quick form on the site expressing interest. To lower the barrier to participation, the initial step required just the reader's name, e-mail address and ZIP code. Filling out that brief form got the ball rolling. Eventually, more than 800 participants answered a series of questions, providing valuable data about their experiences navigating the mortgage system. Their answers, anecdotes and insights planted the seeds for multiple stories.
Cultivate Civility
In the midst of his launch week heading up Honolulu start-up CivilBeat.com, former Rocky Mountain News editor John Temple said his long career had taught him the value of building a vibrant community founded on constructive conversation. "People are drawn to the idea that they can have a dialogue in a place that's not a sludge pit," Temple told conference participants during a Skype video chat three days after the site debuted.
He said having the entire staff of 12 start on the same day enabled Civil Beat to begin with an internal culture of openness to parallel the site's community focus. "We have to be able to disagree without being disagreeable," he said.
Watch Your Language
Labels matter in the eyes of the law. That was evident in a presentation by Alison Steele, an attorney who has represented Poynter and the Poynter-owned St. Petersburg Times. Sites that draw heavily on reader contributions have to pay close attention to legal nuances that govern how contributors/volunteers/members are treated. Something as subtle as how an organization refers to its participating readers could make a significant difference in those participants' legal standing.
Inviting readers to be "members" of a site and to contribute to data gathering may be more legally secure if you classify those readers as "sources." Using titles that blur the line between readers and employees is asking for trouble down the road. For example, news organizations that ask readers to provide, without compensation, work similar to that provided by paid employees may find themselves in conflict with IRS and other government regulations.
The Crowd Can Measure Quality
In addition to leading voices from within the fourth estate, the conference also spotlighted crowdsourcing approaches from leaders of non-traditional and international outlets. Helium CEO Mark Ranalli described his content aggregation site as the world's largest editorial community. More than 160,000 writers have contributed 1.8 million pieces to Helium over the past three years.
Peer writers rate articles up or down, and Ranalli says a growing number of journalism sites are buying the best of the articles to fill gaps in their coverage. It's not about replacing journalists, but supplementing them, he says, though some fear that the broad availability of cheap, aggregated content may curtail opportunities for professional journalists.
As journalism draws in a growing number of citizen participants, new resources are surfacing to address the crowdsourcing boom. A new role has emerged, for instance, for conduits between news organizations and bloggers and other members of the so-called Fifth Estate. John Wilpers of the Innovation Media Consulting Group spoke about the mutual benefits of the blogger-news organization partnerships.
J-Lab's Jan Schaffer described her organization's support for several initiatives by news organizations to incorporate local bloggers in their news reports.
Susan Karol of the Suburban Newspapers of America Association described research tracking reader attitudes toward content submitted by other readers.
In addition, Howard Finberg, Poynter's director of Interactive Learning, announced a new online certification program for journalism training to supplement its extensive and constantly updated NewsU curriculum. The program enables journalism newcomers to develop and demonstrate a grounding in the basic skills and values of news.
Unresolved Questions
Crowdsourcing remains very much in beta mode in the journalism world.
Experiments are common, but standard practices are still taking shape. Here are a few issues the journalism world has yet to iron out.
*
How will legal authorities categorize claims against news sites from disgruntled reader-contributors dissatisfied with their authorial designation, their compensation, or the use of their intellectual property?
*
To what extent will aggregated content sites (such as Helium, Demand Media and Associated Content) change the business landscape for professional writers?
*
In Jeff Howe's presentation on the roots of crowdsourcing, he cited the dramatic impact of iStockPhoto.com on market prices for professional stock photography. Will professional writers see rates similarly bottom out?
To Learn More Click Here
Four years later, as journalism organizations race to find new remedies for a painful revenue drought, crowdsourcing is spreading into news organizations in a myriad of ways.
Beyond blogging, readers are gathering data, opening doors to fresh information sources, and in some cases, starting competitive or collaborative sites of their own. In so doing, they're converting community building from an afterthought into a key strategy for forward-looking news outlets.
One of the primary ideas that emerged over the course of a two-day Poynter conference on user content and crowdsourcing last week was that cultivating reader participation is not just about telling more stories with fewer resources. Nor is it just about users offering commentary or neighborhood news.
It's about cultivating fundamentally new kinds of stories and capitalizing more efficiently on the expertise and passions of the people formerly known as the audience. Here are five of the conference's key takeaways.
Structure is Crucial
Crowdsourcing is more science than sorcery, said Amanda Michel, ProPublica's director of Distributed Reporting. Carefully crafting a call to action is the key to getting readers to participate in news gathering.
Throwing out a blind call for tips or ideas may yield an occasional gem, but Michel's experience, with the Huffington Post's Off the Bus campaign coverage -- and in several recent projects at ProPublica -- demonstrates that targeted questions tend to yield more fruitful data that can be sifted, mapped and analyzed as part of a reporter's fact-gathering process.
Make it Easy
Michel advised news organizations to make it as simple as possible for readers to participate in ways that are relevant and meaningful. Draw on participants' specific experience and expertise, she says. Stay in touch with them. Share their characteristics in a database to draw on when needed. ProPublica recently asked readers to help reporter Paul Kiel gather information about the mortgage crisis.
Those who had sought a mortgage modification were invited to fill out a quick form on the site expressing interest. To lower the barrier to participation, the initial step required just the reader's name, e-mail address and ZIP code. Filling out that brief form got the ball rolling. Eventually, more than 800 participants answered a series of questions, providing valuable data about their experiences navigating the mortgage system. Their answers, anecdotes and insights planted the seeds for multiple stories.
Cultivate Civility
In the midst of his launch week heading up Honolulu start-up CivilBeat.com, former Rocky Mountain News editor John Temple said his long career had taught him the value of building a vibrant community founded on constructive conversation. "People are drawn to the idea that they can have a dialogue in a place that's not a sludge pit," Temple told conference participants during a Skype video chat three days after the site debuted.
He said having the entire staff of 12 start on the same day enabled Civil Beat to begin with an internal culture of openness to parallel the site's community focus. "We have to be able to disagree without being disagreeable," he said.
Watch Your Language
Labels matter in the eyes of the law. That was evident in a presentation by Alison Steele, an attorney who has represented Poynter and the Poynter-owned St. Petersburg Times. Sites that draw heavily on reader contributions have to pay close attention to legal nuances that govern how contributors/volunteers/members are treated. Something as subtle as how an organization refers to its participating readers could make a significant difference in those participants' legal standing.
Inviting readers to be "members" of a site and to contribute to data gathering may be more legally secure if you classify those readers as "sources." Using titles that blur the line between readers and employees is asking for trouble down the road. For example, news organizations that ask readers to provide, without compensation, work similar to that provided by paid employees may find themselves in conflict with IRS and other government regulations.
The Crowd Can Measure Quality
In addition to leading voices from within the fourth estate, the conference also spotlighted crowdsourcing approaches from leaders of non-traditional and international outlets. Helium CEO Mark Ranalli described his content aggregation site as the world's largest editorial community. More than 160,000 writers have contributed 1.8 million pieces to Helium over the past three years.
Peer writers rate articles up or down, and Ranalli says a growing number of journalism sites are buying the best of the articles to fill gaps in their coverage. It's not about replacing journalists, but supplementing them, he says, though some fear that the broad availability of cheap, aggregated content may curtail opportunities for professional journalists.
As journalism draws in a growing number of citizen participants, new resources are surfacing to address the crowdsourcing boom. A new role has emerged, for instance, for conduits between news organizations and bloggers and other members of the so-called Fifth Estate. John Wilpers of the Innovation Media Consulting Group spoke about the mutual benefits of the blogger-news organization partnerships.
J-Lab's Jan Schaffer described her organization's support for several initiatives by news organizations to incorporate local bloggers in their news reports.
Susan Karol of the Suburban Newspapers of America Association described research tracking reader attitudes toward content submitted by other readers.
In addition, Howard Finberg, Poynter's director of Interactive Learning, announced a new online certification program for journalism training to supplement its extensive and constantly updated NewsU curriculum. The program enables journalism newcomers to develop and demonstrate a grounding in the basic skills and values of news.
Unresolved Questions
Crowdsourcing remains very much in beta mode in the journalism world.
Experiments are common, but standard practices are still taking shape. Here are a few issues the journalism world has yet to iron out.
*
How will legal authorities categorize claims against news sites from disgruntled reader-contributors dissatisfied with their authorial designation, their compensation, or the use of their intellectual property?
*
To what extent will aggregated content sites (such as Helium, Demand Media and Associated Content) change the business landscape for professional writers?
*
In Jeff Howe's presentation on the roots of crowdsourcing, he cited the dramatic impact of iStockPhoto.com on market prices for professional stock photography. Will professional writers see rates similarly bottom out?
To Learn More Click Here
Category
civilbeat.com,
crowdfunding,
crowdsourcing,
J Lab,
propublica
Tuesday, May 11, 2010
Crowdsourcing to help university magazine produce list of 100 must-read articles
A magazine for emerging journalists produced by staff and students at Australian University La Trobe is compiling a guide to 100 articles every journalist should read.
Upstart magazine is publishing student's commentaries on articles they have selected as part of a project with La Trobe's new Global Communications Masters degree. The project team has selected 50 articles, which will be drip fed through to the website, but are asking for suggestions from readers and journalists to create a collaborative list.
The 100 articles project isn't intended to be a definitive guide, but a showcase of the varied influences and debates affecting journalism and journalists, both past and present, Lawrie Zion, senior lecture and editor-in-chief of Upstart, told Journalism.co.uk. The new Masters is an international course, with this year's intake including students from more than seven countries, and the list will reflect this global outlook, he added.
"It's not meant to be complete, but a way of stimulating discussion about journalism from everywhere," he said. The discussion can be followed and suggestions made on Twitter using the #100articles hashtag.
The list so far includes 'And then they came for me...' by murdered Sri Lankan journalist Lasantha Wickrematunge and 'Censorship' by Karl Marx, as well as articles on blogging and journalism, and the investigative journalism venture Politico.
Forthcoming pieces to be put on the list include a feature on nature journalism from Time magazine and a piece on the impact of search engine optimisation from the Telegraph. Articles from as far back as the first declaration of a journalism school in the US to those published in recent weeks will run side-by-side to encourage discussion of new issues for journalists alongside debate around the values of journalism.
Not all the submissions will be text-based - clips of Jon Stewart will soon feature - reflecting a wider effort by the journalism school to teach students to work across multiple platforms. The commentaries provided by students show how a piece of journalism can engage and stimulate a reader on a personal level, said Zion.
"I'm less interested in creating a canon of journalism and more interested in encouraging a conversation. We want to be part of the fight to keep journalism as part of the fourth estate, but we don't want people who write about fashion or blog just about coffee to feel out of place reading Upstart. All kinds of writing and the broader conversation of journalism have a place here," said Zion.
"I don't want our students to fall for the line that journalism is one kind of platform and one kind of topic and content."
To Learn More Click Here
Upstart magazine is publishing student's commentaries on articles they have selected as part of a project with La Trobe's new Global Communications Masters degree. The project team has selected 50 articles, which will be drip fed through to the website, but are asking for suggestions from readers and journalists to create a collaborative list.
The 100 articles project isn't intended to be a definitive guide, but a showcase of the varied influences and debates affecting journalism and journalists, both past and present, Lawrie Zion, senior lecture and editor-in-chief of Upstart, told Journalism.co.uk. The new Masters is an international course, with this year's intake including students from more than seven countries, and the list will reflect this global outlook, he added.
"It's not meant to be complete, but a way of stimulating discussion about journalism from everywhere," he said. The discussion can be followed and suggestions made on Twitter using the #100articles hashtag.
The list so far includes 'And then they came for me...' by murdered Sri Lankan journalist Lasantha Wickrematunge and 'Censorship' by Karl Marx, as well as articles on blogging and journalism, and the investigative journalism venture Politico.
Forthcoming pieces to be put on the list include a feature on nature journalism from Time magazine and a piece on the impact of search engine optimisation from the Telegraph. Articles from as far back as the first declaration of a journalism school in the US to those published in recent weeks will run side-by-side to encourage discussion of new issues for journalists alongside debate around the values of journalism.
Not all the submissions will be text-based - clips of Jon Stewart will soon feature - reflecting a wider effort by the journalism school to teach students to work across multiple platforms. The commentaries provided by students show how a piece of journalism can engage and stimulate a reader on a personal level, said Zion.
"I'm less interested in creating a canon of journalism and more interested in encouraging a conversation. We want to be part of the fight to keep journalism as part of the fourth estate, but we don't want people who write about fashion or blog just about coffee to feel out of place reading Upstart. All kinds of writing and the broader conversation of journalism have a place here," said Zion.
"I don't want our students to fall for the line that journalism is one kind of platform and one kind of topic and content."
To Learn More Click Here
How to crowdsource a magazine in 48 hours!
New Tools + Old Media + Coffee = 48 Hour Magazine
What did you do last weekend? Chances are you were slightly less productive than the 48 Hour Magazine crew, who spent Friday through Sunday creating a high-quality magazine from start to finish.
The idea - an "experiment in using new tools to erase media's old limits" - came to Alexis Madrigal, Sarah Rich, and Mat Honan one night over beers at Toronado. The San Francisco-based trio, all of whom have worked in web and print publishing for years, decided 48 Hour Magazine was both simple and crazy enough to potentially work: "We'll unveil a theme and you'll have 24 hours to produce and submit your work. We'll take the next 24 to snip, mash and gild it. The end results will be a shiny website and a beautiful glossy paper magazine, delivered right to your old-fashioned mailbox." They promised contributors it would be fun, too: "No long commitments. No pitches. No grinding editing process. You make good stuff fast; we publish it with other good stuff."
It helped that the founding group members (which also include Heather Champ, Dylan Freed, and Derek Powazek) are all experienced and talented enough to, more or less, wing it. Unthought-of problems started popping up as soon as 48 Hour Magazine debuted: for example, thousands of people signed up to be notified of the magazine's theme instead of the few hundred the editors had envisioned.
At 12 p.m. on Friday, May 7, the theme was announced: "Hustle." Mat said the founders spent weeks debating the theme, tossing around words like "Risk," "Debt," and "Chance" before making a decision that, in retrospect, "seems so incredibly obvious" that he can't believe they didn't come up with it instantly.
There wasn't much hustling going on when I stopped by 48 Hour Magazine headquarters (at the Mother Jones offices) at 7 p.m. on Friday. Six hundred people had already submitted short stories, reported pieces, photography, and poetry, but the few editors sitting around the former Rolling Stone conference table seemed rather relaxed. The team had just selected a photo that they were certain they wanted in the final magazine, but otherwise were more excited than busy. Mat showed me the tent he was planning on sleeping in that night. A fair amount of whiskey drinking was taking place.
When I returned on Saturday to help edit, the atmosphere had changed significantly and multiple conference rooms were filled with local writers and editors who wanted to pitch in. Alexis - who had only slept a few hours on what Mother Jones staffers call "The Intern Bench" because it's the least comfortable place to sit - showed me how to rate the submissions as they rolled in at a rate of about three or four every minute. The rest of the second tier editors and I decided whether each piece deserved a "yes" or a "no," after which Mat, Alexis, and Sarah had the final say.
Although everyone was hard at work, it was still almost eerily serene. Problems arose - the server was slow, depending on who you asked we were getting too much fiction/didn't have enough fiction, etc - but each issue was quickly resolved with diligence and humor. People thrived on the adrenaline rush of stress: editors joked about out of body experiences, took taco and doughnut breaks, and shared favorite submissions with the people around them. Dogs scampered around the office. Simply put, everyone was happy.
After submissions closed at 4 p.m., the hard work began - copy-editing, fact checking, and layout design - and didn't stop until 48 Hour Magazine closed shop on Sunday at noon. Around 30 pieces out of 1,502 made it into the final, 60-page magazine, which will be available for purchase on MagCloud within the next week or so (click here for more information on where the profits will go). I can't give too much away, but some of my favorite stories involve the (fictional) Lady Gaga of the future, taffy, a musical history of hustling, and roadside doctors of dubious expertise.
My one complaint is that the majority of approved submissions came from established journalists, many of whom are the founders' friends and co-workers. While I understand why the editors wanted to include so many of their friends' pieces (they were awesome), I wish that 48 Hour Magazine represented a more varied demographic of writers. Maybe next time.
So, what now? Can 48 Hour Magazine serve as a feasible example for other publications, or will it follow in McSweeney's Panorama experiment's footsteps (I loved Panorama, but was dismayed by Dave Eggers' claims that out-of-work journalists can achieve financial success by following Panorama's model. Unless Michael Chabon and James Franco are willing to be your unpaid interns, good luck)?
"I don't think 48 Hour Magazine is just an art project," Mat said. "I originally thought of it as a sort of 'zine, but it became so much bigger than that." He stressed that the 48 Hour Magazine team wasn't trying to replace or "fight back" against traditional print journalism, but that he hoped the project could serve as inspiration.
"We're putting out a very high quality product in a short amount of time using a lot of crowdsourced tools. That's something that traditional publishers can and should embrace."
Mat thinks both niche publishers and mainstream media can follow 48 Hour Magazine's lead. Smaller publishers in particular can embrace profit from the model by using services like MagCloud that let you print on demand: "a wonderful way for startups to put out a product without having a giant amount of upfront capital investment."
What about more established magazines? "If you really want to throw the resources at it, it's something that even traditional publishers can pull off - a fast, crowd- sourced, imperfect kind of thing." Mat used the recent Gulf oil spill as an example: "it would be really easy for a widely-read blog or magazine publisher to put out a magazine about the spill in a timely fashion that would crowdsource using all sorts of people, images, photos, essays, and first person accounts."
There's a reason why so many of today's most exciting journalism ventures - from 48 Hour Magazine to California Watch - are based out of the Bay Area. Northern Californians are infamously laid back, open to new ideas, and sometimes foolishly optimistic. In other words, they're too busy brainstorming to be scared and cynical of the future. 48 Hour Magazine is a perfect example of how we need to replace whining with creative innovation to reinvigorate the journalism industry
Read more: http://www.sfgate.com/cgi-bin/blogs/culture/detail?&entry_id=63234#ixzz0nch8h2MT
to Learn More Click Here
What did you do last weekend? Chances are you were slightly less productive than the 48 Hour Magazine crew, who spent Friday through Sunday creating a high-quality magazine from start to finish.
The idea - an "experiment in using new tools to erase media's old limits" - came to Alexis Madrigal, Sarah Rich, and Mat Honan one night over beers at Toronado. The San Francisco-based trio, all of whom have worked in web and print publishing for years, decided 48 Hour Magazine was both simple and crazy enough to potentially work: "We'll unveil a theme and you'll have 24 hours to produce and submit your work. We'll take the next 24 to snip, mash and gild it. The end results will be a shiny website and a beautiful glossy paper magazine, delivered right to your old-fashioned mailbox." They promised contributors it would be fun, too: "No long commitments. No pitches. No grinding editing process. You make good stuff fast; we publish it with other good stuff."
It helped that the founding group members (which also include Heather Champ, Dylan Freed, and Derek Powazek) are all experienced and talented enough to, more or less, wing it. Unthought-of problems started popping up as soon as 48 Hour Magazine debuted: for example, thousands of people signed up to be notified of the magazine's theme instead of the few hundred the editors had envisioned.
At 12 p.m. on Friday, May 7, the theme was announced: "Hustle." Mat said the founders spent weeks debating the theme, tossing around words like "Risk," "Debt," and "Chance" before making a decision that, in retrospect, "seems so incredibly obvious" that he can't believe they didn't come up with it instantly.
There wasn't much hustling going on when I stopped by 48 Hour Magazine headquarters (at the Mother Jones offices) at 7 p.m. on Friday. Six hundred people had already submitted short stories, reported pieces, photography, and poetry, but the few editors sitting around the former Rolling Stone conference table seemed rather relaxed. The team had just selected a photo that they were certain they wanted in the final magazine, but otherwise were more excited than busy. Mat showed me the tent he was planning on sleeping in that night. A fair amount of whiskey drinking was taking place.
When I returned on Saturday to help edit, the atmosphere had changed significantly and multiple conference rooms were filled with local writers and editors who wanted to pitch in. Alexis - who had only slept a few hours on what Mother Jones staffers call "The Intern Bench" because it's the least comfortable place to sit - showed me how to rate the submissions as they rolled in at a rate of about three or four every minute. The rest of the second tier editors and I decided whether each piece deserved a "yes" or a "no," after which Mat, Alexis, and Sarah had the final say.
Although everyone was hard at work, it was still almost eerily serene. Problems arose - the server was slow, depending on who you asked we were getting too much fiction/didn't have enough fiction, etc - but each issue was quickly resolved with diligence and humor. People thrived on the adrenaline rush of stress: editors joked about out of body experiences, took taco and doughnut breaks, and shared favorite submissions with the people around them. Dogs scampered around the office. Simply put, everyone was happy.
After submissions closed at 4 p.m., the hard work began - copy-editing, fact checking, and layout design - and didn't stop until 48 Hour Magazine closed shop on Sunday at noon. Around 30 pieces out of 1,502 made it into the final, 60-page magazine, which will be available for purchase on MagCloud within the next week or so (click here for more information on where the profits will go). I can't give too much away, but some of my favorite stories involve the (fictional) Lady Gaga of the future, taffy, a musical history of hustling, and roadside doctors of dubious expertise.
My one complaint is that the majority of approved submissions came from established journalists, many of whom are the founders' friends and co-workers. While I understand why the editors wanted to include so many of their friends' pieces (they were awesome), I wish that 48 Hour Magazine represented a more varied demographic of writers. Maybe next time.
So, what now? Can 48 Hour Magazine serve as a feasible example for other publications, or will it follow in McSweeney's Panorama experiment's footsteps (I loved Panorama, but was dismayed by Dave Eggers' claims that out-of-work journalists can achieve financial success by following Panorama's model. Unless Michael Chabon and James Franco are willing to be your unpaid interns, good luck)?
"I don't think 48 Hour Magazine is just an art project," Mat said. "I originally thought of it as a sort of 'zine, but it became so much bigger than that." He stressed that the 48 Hour Magazine team wasn't trying to replace or "fight back" against traditional print journalism, but that he hoped the project could serve as inspiration.
"We're putting out a very high quality product in a short amount of time using a lot of crowdsourced tools. That's something that traditional publishers can and should embrace."
Mat thinks both niche publishers and mainstream media can follow 48 Hour Magazine's lead. Smaller publishers in particular can embrace profit from the model by using services like MagCloud that let you print on demand: "a wonderful way for startups to put out a product without having a giant amount of upfront capital investment."
What about more established magazines? "If you really want to throw the resources at it, it's something that even traditional publishers can pull off - a fast, crowd- sourced, imperfect kind of thing." Mat used the recent Gulf oil spill as an example: "it would be really easy for a widely-read blog or magazine publisher to put out a magazine about the spill in a timely fashion that would crowdsource using all sorts of people, images, photos, essays, and first person accounts."
There's a reason why so many of today's most exciting journalism ventures - from 48 Hour Magazine to California Watch - are based out of the Bay Area. Northern Californians are infamously laid back, open to new ideas, and sometimes foolishly optimistic. In other words, they're too busy brainstorming to be scared and cynical of the future. 48 Hour Magazine is a perfect example of how we need to replace whining with creative innovation to reinvigorate the journalism industry
Read more: http://www.sfgate.com/cgi-bin/blogs/culture/detail?&entry_id=63234#ixzz0nch8h2MT
to Learn More Click Here
Category
48 hour magazine,
crowdsourcing,
Journalism,
publishing
Saturday, May 8, 2010
Hung parliament: crowdsource anaylsts predict tough time for David Cameron
Accurate in their forecasts so far, Guardian crowd suggests Conservative leader will struggle to form a government
On the eve of polling day we set you an election results predictor quiz in which we asked you to guess how many seats each of the three main parties would win, and to predict who would form the next government and what this administration might look like. More than 3,400 of you took part, and your collective best guess, which we reported yesterday, turned out to be spot on. You accurately predicted that the Conservatives would win the most seats and highest vote share with Labour second on both measures, that we would have a hung parliament, and that we would not know until at least the weekend who would be the new prime minister.
So far, so good. So what does the wise Guardian crowd forecast will be the outcome of this weekend's coalition talks? The omens are not good for David Cameron's attempts to form a government with the support of the Liberal Democrats. Only 48% of you expected to see the Conservative leader eventually named prime minister, while slightly over half of you expected that the deal to emerge would be a Labour-Lib Dem one.
Having delved deeper into the results we can report that 19 of you accurately forecast the Tory tally of 306 seats. Discounting two very late and suspiciously accurate entries that appear to have been submitted after the election results were in, none of these also got the Labour and Lib Dem vote exactly right - along with the rest of us you tended to overestimate the Lib Dems' share at up to 119 votes (they ended up with 57). Overall, the most accurate prediction came from a user identifying themselves as ajho, who put Labour on 250 and the Lib Dems on 65. If the rest of ajho's predictions are equally accurate, then we should expect to end up with Cameron heading a minority government. Perhaps Cameron's offer to Nick Clegg yesterday was just too pusillanimous to cut the mustard.
To Learn More Click Here
On the eve of polling day we set you an election results predictor quiz in which we asked you to guess how many seats each of the three main parties would win, and to predict who would form the next government and what this administration might look like. More than 3,400 of you took part, and your collective best guess, which we reported yesterday, turned out to be spot on. You accurately predicted that the Conservatives would win the most seats and highest vote share with Labour second on both measures, that we would have a hung parliament, and that we would not know until at least the weekend who would be the new prime minister.
So far, so good. So what does the wise Guardian crowd forecast will be the outcome of this weekend's coalition talks? The omens are not good for David Cameron's attempts to form a government with the support of the Liberal Democrats. Only 48% of you expected to see the Conservative leader eventually named prime minister, while slightly over half of you expected that the deal to emerge would be a Labour-Lib Dem one.
Having delved deeper into the results we can report that 19 of you accurately forecast the Tory tally of 306 seats. Discounting two very late and suspiciously accurate entries that appear to have been submitted after the election results were in, none of these also got the Labour and Lib Dem vote exactly right - along with the rest of us you tended to overestimate the Lib Dems' share at up to 119 votes (they ended up with 57). Overall, the most accurate prediction came from a user identifying themselves as ajho, who put Labour on 250 and the Lib Dems on 65. If the rest of ajho's predictions are equally accurate, then we should expect to end up with Cameron heading a minority government. Perhaps Cameron's offer to Nick Clegg yesterday was just too pusillanimous to cut the mustard.
To Learn More Click Here
Category
crowdsourcing,
hung parliament,
politics
The Customer Knows Best
Using crowdsourcing to build a better business
Rob Langstaff knows shoes. He spent 16 years working for Adidas, including three years as president of Adidas Japan and one year as president of Adidas America. Yet, when he walked away from the second largest athletic shoe company and started his own business in June 2008, it wasn’t to impart his extensive expertise on shoes to others, but to let others design the shoes they wanted to wear.
“I thought that a lot of companies had lost touch with their customers,” Langstaff says. “In a lot of market-driven companies where you’re marketing to the 17- to 25-year-old bracket, the marketing managers are usually men in their 40s and 50s.” Instead, Langstaff wanted to take a bottom-up approach, giving customers input into the design. “You get a lot more diversity and range of ideas.”
From that concept of tapping into an existing customer base, sprang RYZ (pronounced rise), Langstaff’s online shoe company featuring a line of shoes designed and selected by customers who vote on the ones they like best. The winning designer, chosen partly by users’ votes and company officials’ discretion, wins $1,000. RYZ then manufactures the shoe and sells it on its Web site.
RYZ is among an increasing number of companies embracing this customer-knows-best approach. Jeff HoweWhile each follows a slightly different model, they all fall under the umbrella of crowdsourcing, a term coined in 2006 by Jeff Howe, a contributing editor at Wired and author of the book Crowdsourcing: How the Power of the Crowd Is Driving the Future of Business. The term is loosely defined as taking a problem usually handled by a specific person (typically an employee) and presenting it to a broad, undefined group of people, or the crowd.
Using the Crowd to Solve Problems
The best-known example of crowdsourcing is Wikipedia, the free, user-contributed online encyclopedia. Netflix also used a crowdsourcing model to improve its movie recommendation system, awarding $1 million last September to a team that came up with a better algorithm.
But you don’t have to base your business’s entire product or service on crowdsourcing to benefit from the wisdom of the masses and develop a stronger connection with your client base. Companies that specialize in providing crowdsourcing solutions are increasingly popular among small businesses that want to build relationships and tap into the community for feedback, while potentially saving time and capital that would be spent on solving big problems or brainstorming innovations. Some examples:
* Companies like InnoCentive act as the middlemen between businesses with wide-ranging problems and people who want to try and solve them for a fee. Businesses, which may remain anonymous, post their challenges and corresponding bounties, and InnoCentive’s solver community of experts can work on whatever problem they want at their own leisure to try for prizes.
* The website Brand Tag asks users to type in the first word or phrase that comes to mind when they see a particular brand, giving each company a list of searchable tags associated with their brand.
* Lead Vine allows business owners to post sales leads they’re seeking, name their referral fee and have the online community act as an extended sales force.
* And Inkling Markets provides crowdsource testing of your online or product designs, as well as identification of the most promising projects in your portfolio.
Engaging Your Community
Online T-shirt companies Threadless, founded in 2000, and Cameesa in 2008, use different variations of crowdsourcing to design and select T-shirts to sell on their Web sites. Threadless uses a combination of voting and its own discretion to determine which T-shirts are printed, while Cameesa relies solely on crowdfunding, in which Cameesaparticipants buy shares of the design they like, and shirts that reach $500 get printed and offered for sale. Then each shareholder receives a free T-shirt and royalties for every shirt sold. The winning artist receives $250 plus $2 for each sale after 125 have been sold.
But you don’t have to employ a specialized service to get a taste of what crowdsourcing could do for your business. If you’re savvy on Facebook or Twitter, try using those sites to reach out to your existing communities or fans. For example, says Howe, “if I were running a moving company, I’d want to be on Twitter and Facebook, talking to everyone who’s moving and finding out what their concerns are,” he says. You can use this feedback to improve customer service, tailor discounts or target certain areas of town. Whether or not the people who provided the feedback become actual clients or not is irrelevant. The point, Howe says, is that you are building and engaging a community. “Find your constituents and become friends with them.” Retail giant Best Buy’s Geek Squad is now on Twitter, answering its customers’ questions. Wikipedia founder Jimmy Wales points out that often other people who are not part of the Geek Squad will see the question, know the answer and respond. “And it’s sort of engaging the whole community,” Wales says. One question can elicit multiple answers, and other people who may have the same question can also benefit. This kind of interaction builds brand identification and customer loyalty.
The Biggest Drawback... and Benefit
Some of the benefits of crowdsourcing are obvious. For one, it’s cheap, although experts say that shouldn’t be the only reason to employ it. Crowdsourcing also can empower customers and engender loyalty. By giving customers the power to design the shoes they want, Langstaff says they feel a certain ownership of the company. The same would hold true for a company that used Facebook to tap into its customer base for help in solving a customer service challenge.
While there are many benefits to crowdsourcing, there also can be disadvantages. One is the quality or reliability of the product, whether it’s T-shirt designs, market predictions or encyclopedic information.
Cameesa co-founder Kamil Chmielewski says he worried the site wouldn’t attract serious artists. Cameesa has tweaked the rules, such as taking down a design if it doesn’t get funding after 30 days, but ultimately, Chmielewski’s concerns were unfounded. The company currently has 140 designs on the site, and the quality is constantly improving, he says.
Relinquishing control can make business owners uneasy, but Chmielewski says it’s worth the risk to discover what research and development often fail to provide: what customers want. “We do feel that the problem with companies these days is that they believe they know what the people want,” he says.
Crowdsourcing takes some of the guesswork out of establishing your customers’ motivations for buying. And today, businesses using crowdsourcing are continually refining their models to help shape and drive business. People from all over the world can now work together, share ideas and form communities. And experts agree that community is really what crowdsourcing is all about.
To Learn More Click Here
Rob Langstaff knows shoes. He spent 16 years working for Adidas, including three years as president of Adidas Japan and one year as president of Adidas America. Yet, when he walked away from the second largest athletic shoe company and started his own business in June 2008, it wasn’t to impart his extensive expertise on shoes to others, but to let others design the shoes they wanted to wear.
“I thought that a lot of companies had lost touch with their customers,” Langstaff says. “In a lot of market-driven companies where you’re marketing to the 17- to 25-year-old bracket, the marketing managers are usually men in their 40s and 50s.” Instead, Langstaff wanted to take a bottom-up approach, giving customers input into the design. “You get a lot more diversity and range of ideas.”
From that concept of tapping into an existing customer base, sprang RYZ (pronounced rise), Langstaff’s online shoe company featuring a line of shoes designed and selected by customers who vote on the ones they like best. The winning designer, chosen partly by users’ votes and company officials’ discretion, wins $1,000. RYZ then manufactures the shoe and sells it on its Web site.
RYZ is among an increasing number of companies embracing this customer-knows-best approach. Jeff HoweWhile each follows a slightly different model, they all fall under the umbrella of crowdsourcing, a term coined in 2006 by Jeff Howe, a contributing editor at Wired and author of the book Crowdsourcing: How the Power of the Crowd Is Driving the Future of Business. The term is loosely defined as taking a problem usually handled by a specific person (typically an employee) and presenting it to a broad, undefined group of people, or the crowd.
Using the Crowd to Solve Problems
The best-known example of crowdsourcing is Wikipedia, the free, user-contributed online encyclopedia. Netflix also used a crowdsourcing model to improve its movie recommendation system, awarding $1 million last September to a team that came up with a better algorithm.
But you don’t have to base your business’s entire product or service on crowdsourcing to benefit from the wisdom of the masses and develop a stronger connection with your client base. Companies that specialize in providing crowdsourcing solutions are increasingly popular among small businesses that want to build relationships and tap into the community for feedback, while potentially saving time and capital that would be spent on solving big problems or brainstorming innovations. Some examples:
* Companies like InnoCentive act as the middlemen between businesses with wide-ranging problems and people who want to try and solve them for a fee. Businesses, which may remain anonymous, post their challenges and corresponding bounties, and InnoCentive’s solver community of experts can work on whatever problem they want at their own leisure to try for prizes.
* The website Brand Tag asks users to type in the first word or phrase that comes to mind when they see a particular brand, giving each company a list of searchable tags associated with their brand.
* Lead Vine allows business owners to post sales leads they’re seeking, name their referral fee and have the online community act as an extended sales force.
* And Inkling Markets provides crowdsource testing of your online or product designs, as well as identification of the most promising projects in your portfolio.
Engaging Your Community
Online T-shirt companies Threadless, founded in 2000, and Cameesa in 2008, use different variations of crowdsourcing to design and select T-shirts to sell on their Web sites. Threadless uses a combination of voting and its own discretion to determine which T-shirts are printed, while Cameesa relies solely on crowdfunding, in which Cameesaparticipants buy shares of the design they like, and shirts that reach $500 get printed and offered for sale. Then each shareholder receives a free T-shirt and royalties for every shirt sold. The winning artist receives $250 plus $2 for each sale after 125 have been sold.
But you don’t have to employ a specialized service to get a taste of what crowdsourcing could do for your business. If you’re savvy on Facebook or Twitter, try using those sites to reach out to your existing communities or fans. For example, says Howe, “if I were running a moving company, I’d want to be on Twitter and Facebook, talking to everyone who’s moving and finding out what their concerns are,” he says. You can use this feedback to improve customer service, tailor discounts or target certain areas of town. Whether or not the people who provided the feedback become actual clients or not is irrelevant. The point, Howe says, is that you are building and engaging a community. “Find your constituents and become friends with them.” Retail giant Best Buy’s Geek Squad is now on Twitter, answering its customers’ questions. Wikipedia founder Jimmy Wales points out that often other people who are not part of the Geek Squad will see the question, know the answer and respond. “And it’s sort of engaging the whole community,” Wales says. One question can elicit multiple answers, and other people who may have the same question can also benefit. This kind of interaction builds brand identification and customer loyalty.
The Biggest Drawback... and Benefit
Some of the benefits of crowdsourcing are obvious. For one, it’s cheap, although experts say that shouldn’t be the only reason to employ it. Crowdsourcing also can empower customers and engender loyalty. By giving customers the power to design the shoes they want, Langstaff says they feel a certain ownership of the company. The same would hold true for a company that used Facebook to tap into its customer base for help in solving a customer service challenge.
While there are many benefits to crowdsourcing, there also can be disadvantages. One is the quality or reliability of the product, whether it’s T-shirt designs, market predictions or encyclopedic information.
Cameesa co-founder Kamil Chmielewski says he worried the site wouldn’t attract serious artists. Cameesa has tweaked the rules, such as taking down a design if it doesn’t get funding after 30 days, but ultimately, Chmielewski’s concerns were unfounded. The company currently has 140 designs on the site, and the quality is constantly improving, he says.
Relinquishing control can make business owners uneasy, but Chmielewski says it’s worth the risk to discover what research and development often fail to provide: what customers want. “We do feel that the problem with companies these days is that they believe they know what the people want,” he says.
Crowdsourcing takes some of the guesswork out of establishing your customers’ motivations for buying. And today, businesses using crowdsourcing are continually refining their models to help shape and drive business. People from all over the world can now work together, share ideas and form communities. And experts agree that community is really what crowdsourcing is all about.
To Learn More Click Here
Category
crowdsourcing,
netflix,
rob langstaff,
RYZ,
threadless
Tuesday, May 4, 2010
Google Taps Employees to Crowdsource Its Venture Capital Arm

Google unveiled its strategy for its year-old venture-capital-funding arm Monday: Follow the tips from Google employees to find companies worth investing in that also need help from Google’s immense computing power in the hopes of making billions down the road.
Google Ventures plans to invest $100 million a year in startups, following on nine initial investments in 2009, ranging from an electric vehicle manufacturer to a company finding ways to bring product-placement ads to online images.
At a briefing Monday with reporters, Google Ventures partners David Krane and Bill Maris struggled to explain the scattershot strategy, until CEO Eric Schmidt dropped in to explain.
“This is not a stalking horse for acquiring companies — if people want to get bought, they are going to talk us,” Schmidt said. “What we have found, with Bill’s leadership, is that Googlers know a lot of people and the employee and knowledge base we can tap are literally thousands of people. The average VC firm doesn’t have access to that knowledge. So, in theory, that gives us a competitive advantage.”
As for why Google is investing, the trio explained that it gives Google a shot at making hundreds of millions from the next Google, as well as keeping itself current and active in emerging technology. Its investments range from less than $500,000 to tens of millions per company — but Google has no interest in launching a competitor to incubators such as TechStars and Y Combinator that specialize in helping webcentric companies launch for tens of thousands of dollars in initial funding.
“Venture investing is a long-term game,” Schmidt said. “Ten years from now, Silicon Valley will be just as vibrant — it always is, and we want to be a player there forever,” Schmidt said.
Schmidt and Maris emphasized that Google wasn’t trying to disrupt the venture capital field, and that it wants to partner with established firms, even if some firms are currently wary of Google’s motives.
Moreover, they argued that companies should want Google’s money because it has a deep well of resources it can use to help companies — even ones that aren’t doing anything like what Google is doing.
Maris suggested the example of a company working on DNA analysis or regenerative medicine.
“Think about the data and the numbers you have to crunch,” Maris said. “There are obvious ways we can help.”
And Google employees themselves could find a windfall, as well. Already, employees feed two or three tips a day to the fund, and Maris promises that if any of the funded companies turns into a cash gusher, the original tipster would be well-rewarded.
“If the company you refer to us is the next Twitter or Facebook, that would be great for you,” Maris said. “It’s not considered ‘Googly’ to just cash the billion-dollar check and walk away.”
That said, any such payday would be years off, and referrers don’t get any equity or a finder’s fee — just the promise that they’ll be treated fairly.
Google is far from the first large tech company to have its own venture capital arm. In fact, on the same day Google briefed reporters, chip giant Intel announced its VC arm had put $15 million into three companies, including one focused on information for taking care of the elderly.
Google’s current portfolio is similarly widespread. On Monday, it added Corduro, a company that offers an innovative online payment system. It also funds an English-teaching site called English Central, a future predictions company, an antibody discovery company and a service that turns ordinary web links into commission-generating links for websites or publications.
To Learn More Click Here
Category
crowdsourcing,
google,
Venture Capital
Sunday, May 2, 2010
Advice From Founders Who Bootstrapped Their Way to Success
In my last post, I discussed why the odds of a rookie entrepreneur getting seed financing from a VC are very slim. The reality is that less than 5% of venture money goes to seed-stage startups; VCs typically invest when a company has a working product, a tested business model, and a strong management team. It’s the entrepreneurs who take the risk; not the VCs. They beg and borrow money from friends and family, max out their credit cards, and sometimes make do by living at home with their parents. Yet, very often, it’s the VCs who get the glory. I don’t think that’s fair. So in this post, I’m going to highlight three bootstrapped companies, and share the advice of their founders. In my books, entrepreneurs are the real heroes—those who make the innovation happen. They are the ones you should be following on Twitter and learning from, not boastful VCs.
Take Chicago-based Threadless. Its founder, Jake Nickell, built a very profitable $40 million business by bringing crowdsourcing to the mundane world of t-shirt design. Threadless sells millions of tee shirts every year and has been growing annually at double-digit percentage rates. It was founded in 2000, after Nickell, then a 20-year-old web developer, won a t-shirt-design contest. With an investment of $1000, he built a website to which people submitted t-shirt designs, and the favorites were printed in limited-edition runs. In 2006, the company had gained traction, was generating nearly $10 million in revenue, and took a small investment from Insight Venture Partners.
My Q&A with Jake:
Would you have taken a VC investment if you could have, when you started?
Definitely not, as I was starting a hobby and not a business. It’s kind of like asking if I would consider a VC investment to help me start learning to skateboard. Sure, I’d spend a couple hundred bucks on a board, some pads and maybe some materials to build a ramp, but I’m not looking for millions or even hundreds or tens of thousands to just create something for fun. Even if I was starting a business, I don’t think I was raised that way or have that type of personality. I didn’t even have my first credit card until I was maybe 23, so I really just don’t do well with spending money I don’t have.
Why did you take investment and how has that experience been? What changed after taking VC?
We were having major operations trouble and weren’t incredibly excited about fixing it ourselves. I never finished college and my background is more in art/programming. In ’05 if you ordered a tee during our holiday sale, you’d probably get it three weeks after Christmas. We had a few choices… outsource all that stuff (but still have to manage it), work with consultants to help us figure out what to do, or to get someone who knew what they were doing to invest in the company and help us. We felt that last option was best.
The experience has been great. There was no shortage of interest from VC firms in investing in us, so we got to be pretty choosy about whom we worked with. We got really comfortable with Insight as they had some programs in place for helping us, and we got along really well with them. A lot has changed after taking the VC—we are now operationally sound and actually ship orders out in a decent timeframe!
What advice would you give fellow entrepreneurs?
If you want your life to be fun as an entrepreneur, I suggest going into it with realistic expectations and to measure your success in different ways than financially. I’ve done well financially with Threadless, but if I had to give up one thing, the money would be the first thing to go. The happiness, relationships, enrichment in others’ lives, the community that now exists; the opportunities brought to artists—that’s the success that really matters for Threadless. Build your business in a way that lets you say that, and mean it too.
Pointabout is a Washington D.C. based startup that markets a mobile-application builder, AppMakr.com. Founded in 2008, by Scott Suhy, Daniel R. Odio, Sean Shadmad, and Isaac Mosquera, the company started building custom apps for companies like Disney, The Washington Post, Newsweek, and Politico. They used this revenue to fund the development of their flagship product. Two years later, the Pointabout is profitable, with revenues approaching $2 million annually. It’s not that the founders didn’t try raising VC; things are even tougher in D.C. than in Silicon Valley, so they decided to bootstrap.
My Q&A with the team:
Would you have been better off if you could have raised VC when you started?
We’re really glad we didn’t. It’s easy to burn through a lot of cash trying to figure your business out. Bootstrapping (especially in a recession) has forced us to focus on what works, and on gaining traction. The right time to take money is when you have something that works and you want to blow it out of the water with explosive growth. Taking money too early often hurts more than it helps, and looking back on our growth, we believe that would have likely been the case with us.
Did you have to make major tradeoffs by going down the custom development/consulting route?
Sure, we made plenty of trade-offs. Many tough round-table meetings. We funded our growth by developing our AppMakr.com product based on custom app consulting revenue. This month we’ve been successful enough to break out our P&Ls so we can draw a line in the sand between the consulting and product divisions. We’ll continue to separate these two as we grow. The product drives consulting revenue when clients want features that it can’t provide. And since the consulting side is close to the customer, it helps drive our product roadmap.
What advice would you give entrepreneurs?
Focus hard and focus on your core. Almost anyone can make any one thing great if they focus on it and dedicate their life to it. If all you did was think about how to make one specific thing awesome every day, you would succeed.
Entrepreneurism is glamorized and romanticized, but at the end of the day, it’s really, really hard work, and it requires a lot of sacrifice—not just from you, but from the people around you. Make sure your friends and family are ready to support you, and then jump in. Don’t let the fear keep you from doing it. You only live once, so if this is what you’re passionate about, don’t have any regrets looking back on your life. Just do it.
I’ve written about the dearth of women and minorities in tech entrepreneurship. Timothy Bernard Jones, an African-American entrepreneur, is one of the rare success stories. He founded Buzzient in 2007, to market a SaaS application that enables users to integrate social media into business applications. It allows Oracle CRM to integrate data from Twitter, Facebook, and YouTube, for example. Having been an associate at a VC firm in his past, Jones decided to forsake VC and to bootstrap instead. He wants to build considerable value before seriously considering venture capital. With revenues in the “low millions of dollars” and having achieved profitability, Buzzient certainly seems on track.
I asked Tim how much of a factor his skin color was in his decision not to raise VC.
I wouldn’t say being black put either me or Buzzient at a disadvantage, but bootstrapping has been a big advantage. I have had absolutely no illusion about being able to walk into a VC pitch wearing a t-shirt and flip-flops and walk out with a term sheet. I know that if I had dropped out of college, there is no way I would be considered “entrepreneurial” or “visionary”; I’d just be “a college dropout”. So, in my case, and for the company I lead, we’ve created a culture of self-sufficiency that is very different from the mentality I see with so many venture-funded companies. Look, we’ve already outlasted tons of venture-funded companies, and I think that’s a direct result of the survival mentality we created early on.
What were the keys to your success?
The first rule is to relentlessly focus on your customers. We have Global 5000 clients, such as Xerox, Credit Suisse, and Perkin Elmer, who rely on Buzzient for social-media insights on their existing and prospective customers. VC-backed companies often go off on tangents based on business-school strategy sessions and the like; as a bootstrapped company you live and die by how happy and successful your customers are, and in keeping them so. Everything revolves around customer focus; what people you bring into the company and when, what technology you build and what features you add to the specification; everything. If we’d not focused as much on customers, Buzzient would not have made it through the recession.
What advice would you give entrepreneurs?
Don’t believe the hype and noise about how “easy” it is to do a startup and how money is literally falling from heaven into startups. Every time I drive by Sand Hill Road, I see clumps of “fresh fish”, shuffling from pitch to pitch, who equate raising VC with having a successful company. Look, this is hard; if you’re really building something of value, it’s going to be hard, and you have to be prepared to endure a lot. The finish line is liquidity for your shareholders, investors, and employees, not a VC raise.
I’d also advise entrepreneurs to not follow VC insights on what sectors to build companies in. VCs for the most part are following trends, not looking ahead of the curve. So, as an entrepreneur you fundamentally have to do something outside the scope of what VCs are currently investing in; if not you’ll end up doing yet another me-too company that doesn’t stand out. That means you have to consciously ignore a lot of the noise about trends, who got funded, the “blah blah blah” of the tech world. That’s the only way you’ll be able to focus on creating your own unique value proposition.
All these entrepreneurs have great advice to offer, don’t they? There are thousands like these who have paved the entrepreneurial trails—thousands whom you should listen to and learn from.
Read more: http://techcrunch.com/2010/05/01/advice-from-founders-who-bootstrapped-their-way-to-success-2/#ixzz0mn7oEH9s
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Take Chicago-based Threadless. Its founder, Jake Nickell, built a very profitable $40 million business by bringing crowdsourcing to the mundane world of t-shirt design. Threadless sells millions of tee shirts every year and has been growing annually at double-digit percentage rates. It was founded in 2000, after Nickell, then a 20-year-old web developer, won a t-shirt-design contest. With an investment of $1000, he built a website to which people submitted t-shirt designs, and the favorites were printed in limited-edition runs. In 2006, the company had gained traction, was generating nearly $10 million in revenue, and took a small investment from Insight Venture Partners.
My Q&A with Jake:
Would you have taken a VC investment if you could have, when you started?
Definitely not, as I was starting a hobby and not a business. It’s kind of like asking if I would consider a VC investment to help me start learning to skateboard. Sure, I’d spend a couple hundred bucks on a board, some pads and maybe some materials to build a ramp, but I’m not looking for millions or even hundreds or tens of thousands to just create something for fun. Even if I was starting a business, I don’t think I was raised that way or have that type of personality. I didn’t even have my first credit card until I was maybe 23, so I really just don’t do well with spending money I don’t have.
Why did you take investment and how has that experience been? What changed after taking VC?
We were having major operations trouble and weren’t incredibly excited about fixing it ourselves. I never finished college and my background is more in art/programming. In ’05 if you ordered a tee during our holiday sale, you’d probably get it three weeks after Christmas. We had a few choices… outsource all that stuff (but still have to manage it), work with consultants to help us figure out what to do, or to get someone who knew what they were doing to invest in the company and help us. We felt that last option was best.
The experience has been great. There was no shortage of interest from VC firms in investing in us, so we got to be pretty choosy about whom we worked with. We got really comfortable with Insight as they had some programs in place for helping us, and we got along really well with them. A lot has changed after taking the VC—we are now operationally sound and actually ship orders out in a decent timeframe!
What advice would you give fellow entrepreneurs?
If you want your life to be fun as an entrepreneur, I suggest going into it with realistic expectations and to measure your success in different ways than financially. I’ve done well financially with Threadless, but if I had to give up one thing, the money would be the first thing to go. The happiness, relationships, enrichment in others’ lives, the community that now exists; the opportunities brought to artists—that’s the success that really matters for Threadless. Build your business in a way that lets you say that, and mean it too.
Pointabout is a Washington D.C. based startup that markets a mobile-application builder, AppMakr.com. Founded in 2008, by Scott Suhy, Daniel R. Odio, Sean Shadmad, and Isaac Mosquera, the company started building custom apps for companies like Disney, The Washington Post, Newsweek, and Politico. They used this revenue to fund the development of their flagship product. Two years later, the Pointabout is profitable, with revenues approaching $2 million annually. It’s not that the founders didn’t try raising VC; things are even tougher in D.C. than in Silicon Valley, so they decided to bootstrap.
My Q&A with the team:
Would you have been better off if you could have raised VC when you started?
We’re really glad we didn’t. It’s easy to burn through a lot of cash trying to figure your business out. Bootstrapping (especially in a recession) has forced us to focus on what works, and on gaining traction. The right time to take money is when you have something that works and you want to blow it out of the water with explosive growth. Taking money too early often hurts more than it helps, and looking back on our growth, we believe that would have likely been the case with us.
Did you have to make major tradeoffs by going down the custom development/consulting route?
Sure, we made plenty of trade-offs. Many tough round-table meetings. We funded our growth by developing our AppMakr.com product based on custom app consulting revenue. This month we’ve been successful enough to break out our P&Ls so we can draw a line in the sand between the consulting and product divisions. We’ll continue to separate these two as we grow. The product drives consulting revenue when clients want features that it can’t provide. And since the consulting side is close to the customer, it helps drive our product roadmap.
What advice would you give entrepreneurs?
Focus hard and focus on your core. Almost anyone can make any one thing great if they focus on it and dedicate their life to it. If all you did was think about how to make one specific thing awesome every day, you would succeed.
Entrepreneurism is glamorized and romanticized, but at the end of the day, it’s really, really hard work, and it requires a lot of sacrifice—not just from you, but from the people around you. Make sure your friends and family are ready to support you, and then jump in. Don’t let the fear keep you from doing it. You only live once, so if this is what you’re passionate about, don’t have any regrets looking back on your life. Just do it.
I’ve written about the dearth of women and minorities in tech entrepreneurship. Timothy Bernard Jones, an African-American entrepreneur, is one of the rare success stories. He founded Buzzient in 2007, to market a SaaS application that enables users to integrate social media into business applications. It allows Oracle CRM to integrate data from Twitter, Facebook, and YouTube, for example. Having been an associate at a VC firm in his past, Jones decided to forsake VC and to bootstrap instead. He wants to build considerable value before seriously considering venture capital. With revenues in the “low millions of dollars” and having achieved profitability, Buzzient certainly seems on track.
I asked Tim how much of a factor his skin color was in his decision not to raise VC.
I wouldn’t say being black put either me or Buzzient at a disadvantage, but bootstrapping has been a big advantage. I have had absolutely no illusion about being able to walk into a VC pitch wearing a t-shirt and flip-flops and walk out with a term sheet. I know that if I had dropped out of college, there is no way I would be considered “entrepreneurial” or “visionary”; I’d just be “a college dropout”. So, in my case, and for the company I lead, we’ve created a culture of self-sufficiency that is very different from the mentality I see with so many venture-funded companies. Look, we’ve already outlasted tons of venture-funded companies, and I think that’s a direct result of the survival mentality we created early on.
What were the keys to your success?
The first rule is to relentlessly focus on your customers. We have Global 5000 clients, such as Xerox, Credit Suisse, and Perkin Elmer, who rely on Buzzient for social-media insights on their existing and prospective customers. VC-backed companies often go off on tangents based on business-school strategy sessions and the like; as a bootstrapped company you live and die by how happy and successful your customers are, and in keeping them so. Everything revolves around customer focus; what people you bring into the company and when, what technology you build and what features you add to the specification; everything. If we’d not focused as much on customers, Buzzient would not have made it through the recession.
What advice would you give entrepreneurs?
Don’t believe the hype and noise about how “easy” it is to do a startup and how money is literally falling from heaven into startups. Every time I drive by Sand Hill Road, I see clumps of “fresh fish”, shuffling from pitch to pitch, who equate raising VC with having a successful company. Look, this is hard; if you’re really building something of value, it’s going to be hard, and you have to be prepared to endure a lot. The finish line is liquidity for your shareholders, investors, and employees, not a VC raise.
I’d also advise entrepreneurs to not follow VC insights on what sectors to build companies in. VCs for the most part are following trends, not looking ahead of the curve. So, as an entrepreneur you fundamentally have to do something outside the scope of what VCs are currently investing in; if not you’ll end up doing yet another me-too company that doesn’t stand out. That means you have to consciously ignore a lot of the noise about trends, who got funded, the “blah blah blah” of the tech world. That’s the only way you’ll be able to focus on creating your own unique value proposition.
All these entrepreneurs have great advice to offer, don’t they? There are thousands like these who have paved the entrepreneurial trails—thousands whom you should listen to and learn from.
Read more: http://techcrunch.com/2010/05/01/advice-from-founders-who-bootstrapped-their-way-to-success-2/#ixzz0mn7oEH9s
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