CrowdSourcing or Crowd Sourcing?

by Tellman on November 7, 2009

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According to Wikipedia at the time of first publication of this post:

CrowdSourcing is a neologism for the act of taking tasks traditionally performed by an employee or contractor, and outsourcing it to a group (crowd) of people or community in the form of an open call. For example, the public may be invited to develop a new technology, carry out a design task (also known as community-based design[1] and distributed participatory design), refine or carry out the steps of an algorithm (see Human-based computation), or help capture, systematize or analyze large amounts of data (see also citizen science).

The term has become popular with business authors and journalists as shorthand for the trend of leveraging the mass collaboration enabled by Web 2.0 technologies to achieve business goals. However, both the term and its underlying business models have attracted controversy and criticisms.

=======End Jargon, Enter Tellman=========

As you have probably figured out, I am running across the USA barefoot right now – and usually have my Iphone strapped to my arm…

And I kinda got tired of just listening to Eminem all the time, so I decided to plug into some audio-books and learn some stuff.

So far on the trip I have listened to:

  • Half of Think and Grow Rich by Napolian Hill
  • The Art of Money Getting by P.T. Barnum
  • GroundSwell by Charlene Li and Josh Bernoff
  • Born To Run by Christopher McDougall
  • and all of CrowdSourcing -

Right now I am a little over half-way through my second listening of Groundswell… but what I’d like your opinion on today is CrowdSourcing…

The author of the book coined the term “Crowdsourcing” and I first heard about it about a year an a half ago from a good friend Tim Brady – who runs http://www.HereForTheBeer.com

Tim and his wife Amy are both super-awesome and extremely sharp individuals, and marketers (in disguise).

They run the highest-rated bed and breakfast in Vermont, (and that is according to Trip Advisor) and the brand-spankin-new-rage-of-a-success-website http://www.hereforthebeer.com – yes, it’s so good that i needed to link to it twice.

At any rate, Tim was in my local mastermind for a long time (sorry, it has been disbanded, you can’t join) and he told me about this Crowdsourcing concept.

You’ve already read the official definition, but I am thinking about it in different terms.

See, I think that crowdsourcing is the next level. The next level of ListBuilding.

Most folks in the marketing world know of me as the ListBuilding guy – I mean, I built a multi-million dollar company around that singulair topic…

So, here is the question.

If you build a small list, or a large one – your primary objective as a business person is to find things that the people in your “tribe” want to buy, and make it available to them.

If you do a good job of this, they will come back time and time again and take your advice… And if you do a good job of bonding with your followers, they will do almost anything you say – so you better be sure that you mean what you say when you send them email.

But, what would happen if your subscribers, your tribe… your Crowd were to start telling you what they want…

What if you made it possible for them to help create the products and services you produce?

What would happen if you held a contest for them to write the best sales copy to sell the products your company creates?

Enter Threadless. (http://www.ThreadLess.com)

I am amazed when I talk with my marketing buddies that so few of the are familiar with Threadless. If you have been studying Crowdsourcing for any amount of time, then you have probably heard the story of Threadless a thousand times…

But if you haven’t then there is something that you’re gonna love.

See, Threadless sells T-shirts.

But not just any T-Shirts. For one, they are all limited runs – they have a limited quanity of every product they sell.

However… They produce new runs of t-shirts all the time… and guess where they get their designs?

Their Crowd – their subscribers, their customers, their list!

Threadless has a company where the folks on their list actually compete just to get their designs put on the T-shirts!!!

But it doesn’t end there.

The Crowd then votes on the designs they like the best, click a little box that says “i’d buy it” and then Threadless knows how many to print.

They turn around and print the shirts, sell them back to the same community that submitted them and they are off and running.

How cool is that?

Check out their site at http://www.Threadless.com to find out more about how the system works – and if you have an ounce of creativity in your brain, submit a design just to see how the process works.

What kind of ideas does CrowdSourcing give you?

How could you use it in your business?

How could another business you know of use it?

Let us know below -

SHABAMBO!
-Tellman

P.S.
If CrowdSourcing is too “heady” for you and you want something that you can use to grow your business in the next couple of days then check this out.

  • davecrane
    You might use it by just Twittering the right questions about any product you have or want to produce. Or ask if they would take a survey to help you out.
    Hey do you know any way out remedies for a tooth ache? share?
  • wow! that,s multy tasking your exersizing your BRAIN AND YOUR FEET
  • Byron
    CrowdSourcing; It has to be a way forward and an exciting one to see it unfurl. What with angel funding for films and Quirky.com for the hands on ideas man and inventor.
    I also enjoyed Ian's take on the above and his sorcerer's concept from the tipping point which I read a few years ago now and thoroughly enjoyed, could be intriguing to explore a little deeper there.
    Maybe were standing at the very start of a new way forward yet again for e-commerce to open the minds of business men and entrepreneurs around the world to list building and product development that is actually designed wanted and asked for by the men and women on the streets.
  • Tellman you one crazy guy! It's why I follow and listen to you. I admire your work ethics and as a former marathoner I know the dedication and strength of vision required to accomplish your goals.
    As a former Manager at Digital and Nortel Networks i always used a form of crowd sourcing to accomplish goals because to form an effective team you need to listen and implement where you can the ideas and strengths of others. The old school I'm the boss and what I say goes doesn't work anymore. You need the ideas and strengths of others to accomplish unlimited gains.
    As i work my different ideas on the internet I now see i was really working as a team of one, trying to change the world but not anymore.
    Crowd sourcing will help me achieve my vision and for reminding me about the strength of many I thank you.
    Randy
    http://www.integrityvision.com
  • i have studied crowd sourcing for some time now and i am incorporating it into my next business model. but it seems to be similar to a double edge sword While crowd is the people who will buy your product they may not always know what they want from you.

    which is why i do like Enter Threadless. (http://www.ThreadLess.com) approach in your article they do that which makes it eazy to know? (The Crowd then votes on the designs they like the best, click a little box that says “i’d buy it” and then Threadless knows how many to print.)

    of course if you get the wrong crowd you may not get anything
  • Hi Tellman

    I live in East London, South Africa. I am also a long-time subscriber to your various newsletters and services. Like you I am a runner, ADD 'sufferer' and committed devotee of crowdsourcing. I'm sure we share countless other interests.

    I''ve been aware of crowdsourcing for quite a while ... in fact I'm a moderator of the Crowdsourcing group on the Xing social/business networking platform (which is the website link I have provided, above)

    You may need to subscribe to Xing to access the group. If so please use the following link which should connect you to me at the same time.

    http://www.xing.com/go/invite/...

    By way of introduction, I'm a visionary and concept originator who has long recognised the potential of crowdsourcing as a means of assisting me to implement my countless (ADD-inspired) ideas. However, over the past few months I have refined my ideas to bring on board other concepts and techniques, ending up with a concept I call Sorcerers.

    Its potential to assist ADD people (as well as other creative mavericks) to fulfill their dreams by translating smart ideas into actual products and services is huge.

    From that perspective alone we ought to be talking ... but it goes a LOT further.

    And believe me ... this WILL make magic!

    Sorcerers is a fairly complex concept, and the challenge of condensing it into a few short paragraphs is a very taxing proposition.

    Even the task of reducing it to three pages is far from easy - so this is real 'condensed version!

    I originated the original Sorcerers concept ... but because my 'ADD mind' doesn't enjoy the prospect of refining every detail of the businbess plan, I've transformed the development of the concept into an open-innovation (read crowdsorcing) initiative ... to allow the many expert volunteers on my team to develop their own seperate sections, in line with their respective areas of experise.

    Your Internet marketing skills would be very useful in that regard, and I’ve long planned to invite you on board. In fact, I was only waiting for an appropriate 'gap' to present itself, never guessing that one quite THIS appropriate would appear

    (Joss? ...Fate? ... The Law of Attraction?).

    Anyway, I'd like to present you with a very short 'elevator pitch'. Check it out below.


    SORCERER'S OVERVIEW:
    Sorcerers will offer the potential to unlock DISRUPTIVE INNOVATION that has proved logistically impossible for so many inventors and concept originators to implement ... at least up till now!

    Sorcerers provides a foolproof FORMULA to solve this problem.

    It combines social networking, open-innovation and crowdsourcing methodologies ... and in the process also confirms the validity of various of the theories that Malcolm Gladwell brilliantly expounds in his tour de force - "The Tipping Point" … which is a major source of inspiration for Sorcerers.

    What Sorcerers provides is a system that unerringly connects:

    - those seeking unique and groundbreaking solutions … to the precise individuals who can supply the best ‘outside-the-box’ answers, and
    - those with true creative genius … to those best able to implement their inspired ideas.

    Sorcerers FACILITATES the entire process. As the ‘middle-man’, it will have the company the power to decide on the fate of each initiative that comes through the process. In partnership with the originator, we at Sorcerers can choose to either (a) develop each concept into a fully fledged independent business venture, or (b) sell the concept to the highest bidder.

    Either way, the resultant profitability is likely to be huge.

    The process is systematic but hugely flexible. (I can imagine seeing it portrayed as one of Mark Joiner's legendary Cash Maps).

    If this gets the lights flashing and bells ringing in your head - then PLEASE get back to me ASAP.

    I await your response with keen anticipation!

    Kind regards

    Ian
  • Ego is such a big issue when we start talking about crowdsourcing. A lot of people became entrepreneurs because they saw the value in their own ideas. It's not always so easy to step aside and accept the idea that some strangers you might never have met might have better ideas for what your business should do.
  • Hi Tellman,

    Thank you for turning me on the the concept of "CrowdSourcing". I think it's a great concept. In business I think it can be used to fnd out what your clients will want and will buy. This is valuable information to know, especially in the market niche that your're serving. I will have to start integrating this practice into my coaching business.

    Your Friend,

    John Curran
    "Inspiring The Greatness In You"
    www.coachcurran.com
    blog.coachcurran.com

    P. S. Listening to audio books while you run across America is a great idea. You're always thinking Tellman!
  • Hey T-man & everyone else...

    I'm the marketing guy over at http://IndieFilms.com and we're currently developing a CrowdFUNDING side of our site. This is similiar to CrowdSourcing in that 'it comes from the crowd' but instead of just attention & ideas - it's *money*. In this case - money for filmmakers to create films. This has already been done successfully for a film called "Age of Stupid" to the tune of over a million dollars as well as some other success stories, too.

    There's a couple successful sites that do this for the music industry as well. The most successful is http://sellaband.com - where a $10 or more commitment gets the audience member a cd or music download in return. The higher the amount of money given, the more stuff they get - on up to a piece of the action.

    Here's a couple more CrowdFunding sites for businesses and individuals that are geared towards a variety of 'reasons to fund'... nothing helps

    http://kickstarter.com
    http://fundable.org
    http://thepoint.com
    http://gobignetwork.com (specifically for business ideas)

    Oh, and since you gave Threadless as an example already...

    Another CrowdSourcing site that your tribe is sure to love is called Quirky at http://quirky.com where you can participate in actual product creation *and* get a piece of the action if they use your ideas/input. Lotsa fun for entrepreneurs.

    Shabamawhamba,
    Harris Fellman

    PS Follow me on Twitter
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