Crowd Sourcing and Crowd Funding

Download Crowd Sourcing and Crowd Funding

Post on 15-Jul-2015




2 download


<p>Crowd Sourcing</p> <p>Crowd SourcingDoug Allen</p> <p>1</p> <p>Cousin of Charles Darwin (b. 1809)Created the statistical concept of correlationApplied statistical methods to the study of human differences and the study of inheritance of intelligenceMethods included using questionnaires and surveysA pioneer in eugenics, he coined the phrase nature vs. nurtureHe created classifications for intelligence and personalityIn meteorology, he invented the first weather map</p> <p>2</p> <p>1906 Livestock fair800 guesses</p> <p>1198 lbs</p> <p>Book published in 20044Diversity of opinionIndependence of members from one anotherDecentralizationA good method for aggregating opinions.Surowiecki SaysDiversity of opinion it doesnt matter what information this is based on, the important thing is that it should be private to the individual. Independence individuals opinions should be free from the taint of groupthink. Decentralisation in forming their opinion, individuals should draw on specific, local knowledge. Aggregation a mechanism exists that can take all these individual judgements and turn them into a collective decision.</p> <p>From Publishers Weekly review of the book: The diversity brings in different information; independence keeps people from being swayed by a single opinion leader; people's errors balance each other out; and including all opinions guarantees that the results are "smarter" than if a single expert had been in charge.5</p> <p>Anyone on the InternetYour town or schoolYour family and friendsYour customers or employeesIndustry SMEs</p> <p>Who Is the Crowd?9What Can the Crowd Do?Submit/Upload/Offer ideas/designs/plansAnswer questionsSolve problemsWORK for youFund your ideasSupport your causes</p> <p></p> <p>Ken Davenport producer of Godspell on Broadway decided to crowdfund the effortMost of the times , investors in a Broadway show have to be Accredited Investors, (definition set by the United States Securities and Exchange Commission )meaning they have to either make $100,000+/year or they have to have $1,000,000 in liquid funds. The minimum investment for most broadway shows is $10,000 and sometimes as much as $25,000 or more. The shows themselves cost $5 to $10 million (unless youre spiderman)</p> <p>For Godspell - $1,000 700 investors (55% coverage) participated in the $5 million show 50% paid the $1K, the other half bellied up to $25Kopened last November and ran for 9 months</p> <p>T-shirt, name on the poster outside the Theatre, ticket discounts, backstage tours and exclusive parties11</p> <p>;list=PLBDF2140149AB033F&amp;index=1&amp;feature=plcp</p> <p>12Crowd Creativity and Idea/Content Generation</p> <p>Added PIN-IT button to their siteIn 3 months: 50,000 recopies pinned139 million Pinterest impressionsReached out to the AllRecipies AllStarsTaught them about PinterestEncourage this influential group to pinMore traffic to the website</p> <p>Doritos asked for crowd ads for the first time in 2007 and in 2012, they had 6,100 submissions. This past year was the 6th time and they had 3,500 submissions</p> <p>Two ads will air one selected by Americas votes and one by the Doritos brand team. The finalist whose ad scores highest on the USA TODAY Ad Meter rankings will be awarded the career-changing opportunity to work with acclaimed film director Michael Bay on the next installment of the blockbuster Transformers movie franchise, along with a shot at a $1 million bonus. </p> <p>"Fashionista Daddy" and "Goat 4 Sale" both aired during the Super Bowl but neither ad was ranked the #1, #2 or #3 commercial of the game on the USA Today's public ad meter. Fashionista Daddy ranked the highest so the director Mark Freiburger was the winner of the Transformers 4 job.[17]</p> <p>Should announce 2014 contest sometime in early October24Crowd Work</p> <p>The product with the highest score is manufactured and sold through Quirky's network of retail partners, which includes Bed, Bath &amp; Beyond, ToysRUs, Amazon, HSN and many other big names.Quirky brings two new products to market each week. The inventors earn 35 percent of the royalties on the sales.26</p> <p>The product with the highest score is manufactured and sold through Quirky's network of retail partners, which includes Bed, Bath &amp; Beyond, ToysRUs, Amazon, HSN and many other big names.Quirky brings two new products to market each week. The inventors earn 35 percent of the royalties on the sales.27</p> <p>Video of manufacturing</p> <p>Starting at $300 on up. 33</p> <p>Put together a design briefReview submissions give feedbackPick the winning design</p> <p>Answer some questions about your company and the logo decide on the amount you want to pay.As the designers provide designs, you provide feedback. Everyone sees everything.After 7 days, you pick the winner and they pay the designer and get you high-quality designs. </p> <p>34</p> <p>Based in ChicagoWith backgrounds in both the creative industry and law, crowdSPRING is a labor of love for a team that believes strongly in the creative process and the protection of intellectual property.38</p> <p></p> <p>51</p> <p>A marketplace for work that requires human intelligenceJobs are called Human Intelligence Tasks or HITsRegister as a REQUESTER and create your HITsExcellent instructionsRate for each HIT and time estimated for completionRequire qualificationsReview and pay for the work10% fee</p> <p>Use Mechanical Turk for:</p> <p>HITs</p> <p>Find the largest possible image of the given real estate agent, then copy the IMAGE URL and paste it into the provided field.</p> <p>$.04 for this work. 9,771 Websites to work</p> <p>HITs</p> <p>Mechanical Turk MasterMasters are elite groups of Workers who have demonstrated accuracy on specific types of HITs on the Mechanical Turk marketplace. Workers achieve a Masters distinction by consistently completing HITs of a certain type with a high degree of accuracy across a variety of Requesters. Masters must continue to pass our statistical monitoring to remain Mechanical Turk Masters.</p> <p>Masters receive special perks including:Exclusive access to work that requires a Master QualificationAccess to a private forum available only to Masters</p> <p>Please note that Workers cannot apply for this status - it is a performance based distinction. The best thing a Worker can do to become a Master is to submit Assignments with accurate results across a wide variety of Requesters on the Mechanical Turk marketplace.</p> <p>Millions of cards have been transcribed using Amazon Mechanical Turk since the launch of the CardMunch app. With the Amazon Mechanical Turk marketplace, we manually transcribe tens of thousands of cards each day, while having the ability to burst up and scale down as needed, says Sid Viswanathan, the developer and product manager of CardMunch. Weve been able to drive down operational costs while not having to guess at our capacity needs.60</p> <p>Best HITs for making money TranscriptionsWritingSurveys64</p> <p>D. G. Rand in 2011 used IP address logging to verify subjects self-reported country of residence, and found that 97% of responses are accurate.</p> <p>65</p> <p>Good Use Cases for TurkManually collecting data from a large volume of images or pdfs.</p> <p>Scraping specific pieces of information (e.g. prices, contact information) from a long list of websites.</p> <p>Classifying images, videos, tweets, etc. into discrete categories e.g. indoors vs. outdoors, positive vs. negative.</p> <p>Researching information about a list of names or places (e.g. finding all of the LinkedIn pages or Twitter accounts for a list of individuals)</p> <p></p> <p>67Tips for TurkPrice it right not too low or highGroup the same tasks together in 1 HITCreate GREAT instructions - visualGive your HIT a good titleHave multiple workers do same projectPilot your HIT with a small setGive a bonus if they do well</p> <p> Ready for Crowd WorkIs anyone inside already doing this job?Do they help manage the crowd?Do they pick the finished product?Marketing and Project Dept. Head in chargeSome crowd work needs to be publicizedCrowd-sourcing may be part of your storyTalk to HRTell the employees (who may be freaking out)There are probably people in some of your organizations who do this already. You give THEM the project and they give it to the crowd. Would you ever know?69Crowd Wisdom, Problem-solving and Decision-making</p> <p>Caltech, Emory, Harvard, MIT, Ohio St., Stanford, Tufts, UC Berkeley, UCLA, Washington, CMU, Upenn, Indiana</p> <p>MindSumo was founded in 2011 in Palo Alto, California. The company participated in StartX, the Stanford Student Startup Accelerator, and is backed by some of the top investors in Silicon Valley.</p> <p>71</p> <p>Based in Andover, Mass. Started in 2001 with funding from pharmaceutical company Eli Lilly</p> <p>Companies, which InnoCentive calls seekers, post their challenges on the firm's website. Solvers, who number almost 180,000, compete to win cash prizes offered by the seekers.77</p> <p>Conceived in 1998 by three scientists working for Eli Lilly, a big drug company, InnoCentive was spun off as an independent start-up three years later. It is based on a simple idea: if a firm cannot solve a problem on its own, why not use the reach of the internet to see if someone else can come up with the answer?79</p> <p>InnoCentive@Work, this replicates the solver network inside a firm, so that challenges are first offered to seeker companies' own employees. 80</p> <p>You get your customers (or employees) to comment on your products:Bugs, features, ideas, feedback without trolling twitter and facebook</p> <p>Kind of a replacement for your suggestion box, but everything goes to the crowd for voting</p> <p>81</p> <p>Free$99$208</p> <p>Activate ContributorsPersonalized MindMixer Engagement PlatformSite HostingSite AdministrationSite ModerationAccess to the MindMixer Data and Metrics DashboardAccess to the MindMixer Content Management DashboardIntegration of text (SMS) and call-in (voice) functionality</p> <p></p> <p>CrowdFundingBecause the SEC hasnt figured out the ground rules for online crowdfunding, these sites take pledges and offer rewards and affinity. No other promises. 92Wheres the $$?Self-fundedFriends and FamilyThe BankAngelsVenture Capital</p> <p>Wheres the $$?Self-fundedFriends and FamilyThe BankAngelsVenture Capital</p> <p>Non-Equity CrowdFundingEquity CrowdFundingCrowdFundingCant offer investors ROIPledges for rewardsOffer affinity and involvement</p> <p>IndiegogoKickstarter</p> <p>Indiegogo started in 2007Kickstarter in 2009</p> <p>95</p> <p>When our founders joined forces in 2007, they had diverse backgrounds and varied interests. However, they had one important thing in common: Danae, Eric and Slava each tried to raise money for something they were passionate about, but they came up short. They had great ideas, the passion to work hard, and good networks, yet access to funding through traditional channels proved limited. The trio was determined to find a solution to the problem. Indiegogo was born; the crowdfunding solution that empowers ideas and enables people to donate funds easily.97Flexible funding option Keep what you earned (but you pay 9% if you dont reach your goal)Better International exposuregogofactor promotion to front page by meritsocial media tools to promote your campaignNo approval process</p> <p>Vs. 4% if you do reach your goal</p> <p>LESS CLUTTER!Have to raise at least $10 in 4 days to stay in the browse pages$100 after 7 days keeps you in the search engine98</p> <p>$1.6 million $850K match $850K ask</p> <p>Matthew Inman saw that the land went on sale for 1.6 million. NY State would match if he could raise $850,000TheOatmeal's fundraiser saved Tesla's lab, located on a 16-acre plot in Wardenclyffe, Long Island, N.Y100</p> <p>50% of their funding in just 24 hours. </p> <p>101</p> <p>On average, the campaign raised $100 per minute, $6,000 per hour and $145,000 per day.102</p> <p>Project closed with $891 raised108</p> <p>Backers in 2011 pledged more than $99 million toward 27,000 projects, the company says, of which 46 percent were funded (the unfunded projects dont get a penny). Pledges are deducted from backers credit or debit cards only if a set goal is reached within a deadline of no more than 60 days.</p> <p>The service is on pace this year to double the dollars invested, funneling more money to creative projects than the National Endowment for the Arts (from the KC Star article April 9th)The company gets a 5 percent cut of pledges to successful projects, while gets 3 to 5 percent for credit-card processing.</p> <p>113</p> <p>Project GuidelinesFunding is for PROJECTS onlyPROJECTS must fit KSs categoriesProhibited UsesNo charity or cause fundingNo fund my life projectsNo prohibited content</p> <p>Kickstarter allows projects only in visual art, dance, design, fashion, food, games, music, publishing, technology and theater. No open-ended proposals are allowed. For instance, its OK to request backing so you can record an album or make a movie. But simply asking for money to further your interest in the arts or to travel the world isnt allowed.Nor is it a vehicle for raising money for charity. The Kickstarter staff passes judgment on each project before allowing it on the site.Pitches typically include a video appeal, written project description and a list of rewards at various funding levels.</p> <p>116</p> <p>Projects OnlyHas a clear goalMaking an album or cook-book orCreating a productGenerating a work of artWill eventually be completedNo open-ended goalsSo starting a business doesnt count </p> <p>Project Categoriesvisual artdancedesignfashionfoodgamesmusicpublishingtechnologytheater</p> <p></p> <p>Launched projects, successful dollars and Success rate119</p> <p>$100,000</p> <p>Holds 3 Kickstarter Records:Fastest to reach $2 millionHighest $$ in the film categoryMost pledges in KickStarter history at over 90,000129</p> <p>CrowdFunding90% of the projects that get to 30% make their goalThe average donation is $60Most funding occurs at the beginning and at the endA few people enjoy Funding25% of backers back a 2nd project13% back a 3rd6% back a 4th You get an Amazon Payment account and they will report to the IRS131</p> <p>CrowdFunding TipsBe AuthenticRespect the campaignDont just upload and let it sit you have to promote!Come back and update Plan all 30 days activities in advanceTarget people who have similar interests and can empathizeDepending upon perk costs (fulfillment?), fees and taxes, you may only get 50-60% of your ask</p> <p>People join projects are passionate about and only if they trust you133CrowdFunding TipsConsider stretch goals YOU have to manageEncourages visits from existing donorsCampaigns can go 60...</p>