Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business

People might be enthusiastic and capable of some level of self organization but they also require directions and guidance and someone to answer their questions. Most successful crowdsourcing efforts are products of a robust collaboration between the crowd and the individuals guiding them. These people focussed the collective and corrected for some ... See more

Attracting a crowd is much easier than keeping them. The most important component to a successful crowdsourcing effort is a vibrant, committed community and understanding what motivates people to contribute in the first place. People ned to feel rewarded for their efforts.

The 1:10:89 Rule - For every given 100 people, 1 will actually create something, 10 will vote on what he created and the remaining 89% will merely consume.

What makes the online community a more efficient workforce than one managed by a firm? The short answer is that communities are better at both identifying talented people and evaluating their output.

- Intrinsic - goals such as creative fulfillment, a belief in the project, the sense of community obligation, the opportunity to enhance one's reputation in the community.

- Extrinsic - The Carrot (Financial Reward) and The Stick (A scolding from your boss)

Motivation is of 2 types

Von Hippel (Head of the Innovation and Entrepreneurship Group at MIT's Sloan School of Management) demonstrated that in fields as wide ranging as scientific instruments and mountain bikes and computer chips, the task of innovation was passing from the manufacturer to the user, who has both a greater need and a greater ability to improve a product's... See more