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Can crowdsourcing work to save SMEs cash?

Wednesday, December 29, 2010

Author: Robin Bowman, Senior Business Editor 

Crowdsourcing is yet another example of how the Internet is great for bringing together those vital visitors to any business - the willing seller and the willing buyer. 

What Crowdsourcing can do for a small business is to strip away a lot of the hype and packaging that often goes along with outsourcing a service. 

Not only that, it can also allow a business of limited resources to become one with a huge amount of resource able to tap into a vast network of experts for minimal extra cost. Crowd

So, how does this magic work? 

Like most great ideas, the concept is so simple it's child's play. 

In its simplest terms, Crowdsourcing involves taking a task, usually a single task, normally performed by a supplier or someone in-house, and throwing it out to a vast community of people. 

Often this community will be willing to undertake the work in the hope they win a set prize - usually cash - and/or the chance of future work. 

You fix a price or a prize and publish your brief on a Crowdsourcing site. People around the globe can then pitch for the work, often by actually completing a task, and you select the one you want - or none.  Usually there's a charge for posting your challenge and the prize money must be lodged with the host site. 

The key attribute of the platform is that it allows people to bid for work from anywhere in the world, so giving you access to talent in otherwise isolated places you would never normally be able to tap into.  

Controversy lies in the fact that, because of the way Crowdsourcing often works, most people doing the work will be paid nothing for their time and effort. Critics argue that only lesser-skilled people would carry out work in this way; but for many simple business needs, the format seems to work. Many businesses say they actually find they get new and exciting work that wouldn't happen if it was done in house. 

So, what are some of the ways an SME could use Crowdsourcing? 

Here are some ideas. There are Crowdsourcing sites out there for many, many services, just do a search and start using the power of the crowd. 

  • Market research - several Crowdsourcing sites will conduct customer surveys. 
  • Designing and building websites. 
  • Website maintenance. 
  • Copy writing 
  • Logo designs and artwork. 
  • Develop a product - even large corporations do this, Dell is one example - asking customers to contribute to product development with their suggestions. 
  • Offer sales leads with a commission or a referral fee as an incentive. 
  • Recruit off-site workers for specific tasks, usually small one offs. 
  • Naming of products or services. 
  • Testing a product's usability.

If you're new to the whole concept for Crowdsourcing and aren't sure how it may help your business, search for 'Crowdsourcing examples' on Google. There's a lot out there. 

Just remember - it's great to save money by using Crowdsourcing, but having access to a huge amount of creativity is probably just as important - you get what you pay for, in other words.  Also, make sure you are specific about your needs - be clear and you'll have much more chance of getting appropriate results.

Robin has been a journalist for more than 20 years, during which time he has held several senior media management positions in both Fleet Street and Hong Kong. Robin recently returned to the UK after being based in Italy for six years. He has a passion for business innovation.

The content of this article reflects the views of the author and may not necessarily reflect the views of Premierline Direct

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