Crowdsourcing is the process of getting work or funding, usually online, from a crowd of people. The word is a combination of the words ‘crowd’ and ‘outsourcing’. The idea is to take work and outsource it to a crowd of workers.
Famous Example: Wikipedia. Instead of Wikipedia creating an encyclopedia on their own, hiring writers and editors, they gave a crowd the ability to create the information on their own.
Types of CrowdSourcing:
• Crowdsource Design: If you’re looking for a logo design, you can tell a crowd of designers what you want, how much you will pay, and your deadline. All interested designers will create a finished design specifically for you. You can keep whichever design you like the best.
• Crowdfunding: Crowdfunding involves asking a crowd of people to donate money to your project. For example, if you want to raise $10,000 to pay for studio time to record a new CD, crowdfunding can help you raise that money.
• Microtasks: Microtasking involves breaking work up into tiny tasks and sending the work to a crowd of people. If you have 1,000 photos on your website that need captions, you can ask 1,000 individual people to each add a caption to one photo. Break up the work and decide the payment for each completed task (typically .01¢ – .10¢ per task).
• Open Innovation: If you are unsure of where to begin with an idea for a business opportunity, whether it’s product design or perhaps a marketing firm, crowdsourcing can help through open innovation. Open innovation allows people from all aspects of business such as investors, designers, inventors, and marketers to collaborate into a functional profit making reality.
Crowdsourcing’s biggest benefit is the ability to receive better quality results, since several people offer their best ideas, skills, & support. Crowdsourcing allows you to select the best result from a sea of ‘best entries,’ as opposed to receiving the best entry from a single provider. Results can be delivered much quicker than traditional methods, since crowdsourcing is a form of freelancing. You can get a finished video within a month, a finished design or idea within a week, and microtasks appear within minutes.