'The principle of competitions is very simply offering a prize for the winning entry to a defined task.
Online platforms now enable competitions to be run for a wide variety of small creative tasks. These tap large crowds of providers from which the best work can surface.
Based on information contained in the brief, individuals enter the contest, get feedback from the client, and submit revised entries if they wish. The client then chooses a winner who gets a pre-defined reward. (In some cases runners-up are also given prizes, or a broader range or participants are given payment for participating. The client gets the design or new idea and owns the copyright.)
There are a number of web platforms that facilitate this process, with some of them focusing on one particular area such as graphic design, video production, or data analytics. The platform has a pre-registered crowd of workers, and also provides the technology that allows the competition to be run effectively."
Open vs closed contests
"Most platforms will allow you to declare whether the contest is open or closed. Open contests allow those entering to see each other’s entries and often the feedback others receive. Closed contests keep the entries private."
"Using a competition platform allows especially smaller businesses to be exposed to a wide variety of ideas and approaches that may not be available in-house" ... it is usually "significantly less expensive than going to a traditional design agency for straightforward tasks such as product logo design."
However, "There are many in the graphic design community who refuse to participate in competitions and actively lobby against them. They believe that participating in competitions devalues the work of professionals because they are providing “on spec” work that they will likely not be paid for, as well as leaving them open to intellectual property theft."
For example: Sarah Sturtevant of Integrated Marketing Solutions posted a competition on Crowdspring, getting 122 entrants to compete for a $375 logo assignment. (p. 140, Getting Results from Crowds).
"Some larger competitions are still being run using traditional approaches where competitors deal directly with the client. However an increasing proportion of corporate competitions are shifting over to the competition platforms, as they can handle all the logistics required."
The Emergence of Community-Oriented Skillsharing Sites
" In January, the U.S. jobless rate was 8.3 percent, on its way down from last summer's rate of 9.1 percent.
That's why the rise of online marketplaces, so-called peer-to-peer job sites like Task Rabbit are so exciting. They promise to generate new employment opportunities, or let just about anyone earn some extra income.
"We're enabling people to invest in and engage with folks in their community in a way that I think we've forgotten," says Leah Brusque, a former programmer with IBM who founded Task Rabbit in 2008, just as the recession was unfolding. "And we've done that by turning them into micro-entrepreneurs."
Online job sites have been around a while, of course, and even sites like e-lance and oDesk have become viable markets to outsource highly-skilled jobs such as programming, design and writing tasks.
But what makes Task Rabbit and the growing number of others like it such as Coffee & Power and Zaarly different is that their jobs vary widely and often involve face-to-face interactions in the real world. Skillshare, for instance, is a site based in New York City that enables people to teach or attend a class on just about anything. A recent search revealed classes ranging from how to eat healthy or how to crochet an Alpaca rug - not online, but in person.
"We are changing the way people think about doing business with the people around them," says Bo Fishback, formerly the vice president of entrepreneurship at the Kauffman Foundation, who founded Zaarly in March 2011. "We're making it possible to ask for and get anything, in real time, from the people around you.
Mechanically, most of these sites work in similar fashion. People can post jobs, or bid on them, while the site handles the payment process - usually taking a small percentage fee of the transaction for itself. Both parties involved in a transaction can then rate each other after the job has been completed. At Task Rabbit, which has some 3,000 registered bidders, some $4 million of activity is reported every month, which, while impressive, is still a sliver of the estimated $473 billion earned by freelancers in 2010.
Those kinds of numbers have given high-profile investors reasons to take notice. Zaarly, for instance, reeled in $1 million from a group of investors that included Ashton Kutcher (while also adding Meg Whitman as a board member). Similarly, Coffee & Power, which was founded by Philip Rosedale, the creator of the virtual online world game SecondLife, recently raised about $1 million from investors like Jeff Bezos.
"Our mission has been to find out how you get people who are interested in working for each other to cluster and find each other in the real world," says Rosedale, whose business plan combines an online market with currently three physical locations - upscale coffee shops in San Francisco, Santa Monica and, soon, Portland, Oregon - where people can meet and make a deal.
There are, of course, critics who point to the fact that it can be difficult if not impossible for someone to earn a living bidding on $100 jobs. But, if the number of people flocking to these sites to not just bid on jobs but also post them continues, we might just see a change in the concept of what a job is.
"We're still early in the game, but we think we're reinventing the concept of how we all go about working," says Rosedale." (http://www.huffingtonpost.com/2012/02/09/peer-to-peer-micro-entrepreneurs_n_1265533.html)
- Graphic design: 99designs, DesignCrowd, crowdSPRING
- Marketing concepts: Idea Bounty, BootB
- Music for commercial use: Minimum Noise
- Video production: Poptent, Brandfighters
- IT Projects: TopCoder
The material above is sourced from Ross Dawson's book, chapter 18, Getting Results from Crowds