Quick Guide to Crowdsourcing Business Ideas

Crowdsourcing, in the traditional sense of the term, means businesses allowing the crowd to handle some tasks rather than recruiting professionals or using the services of in-house staffs to deal with the same. It was in 2006 when Jeff Howe — a journalist — coined the term. Today, the term has become widespread in usage. Even big brands such as Toyota and PepsiCo have opted for this method. However, crowdsourcing without proper planning and control can be disastrous. Below are some of the rules for crowdsourcing;

Choose the right approach for your business

It is possible to apply Crowdsourcing in diverse ways. First, you have to determine what is most sensible for your project. Jeff Howe has laid down 4 simple approaches in his book “Crowdsourcing: Why the Power of the Crowd is Driving the Future of Business”:

• Collective intelligence — This involves using the crowd for intricate problem-solving.
• Creation — It includes connecting companies that have creative talent.
• Voting — It involves allowing users to vote on new products and services.
• Funding — It includes fundraising through the crowd, as done via websites like Kickstarter.

Taking power away from negative influencers

When allowing the crowd to take decisions about businesses, it is important to prevent small groups from having a major influence. In short, the influence of a small percentage of the crowd should be eliminated rather than allowing it to have the power to control your campaign. While operating a crowdsourced project, it is obviously the most vital point to consider.

Ask for solutions from outsiders

It is important that you ask for solutions from people who are outside your business domain. Strange as it may seem, those with experience outside your specific domain can really come up with some of the best solutions to some problems that you might be facing in your business. Often, the most practical solutions come from people without any formal expertise.

Choose appropriate incentives

It is essential that you know what motivates crowd participation. You have to remember that the crowd comprises very much of actual people with real fears and motivations. If you want to attain proper participation, you have to understand the needs of your community. Determine whether it is looking for a chance to impress others on their social group, or wants recognition or money. When you understand what drives the crowd that you are targeting, you can get better participation.