Intro: Definition of Crowdsourcing
Since the phrase “crowdsourcing” was coined by Jeff Howe in 2006, there have been plenty of open-ended discussions on crowdsourcing sites and various definitions of crowdsourcing.
Some propose that the definition of crowdsourcing applies to substituting paid labor with free labor from the collective public, undercutting the outsourcing process.
Others use a definition of crowdsourcing universally, including crowdfunding, crowdinvesting, and everything that comes along with it.
Finding an exact definition of crowdsourcing can be challenging—but if you’re considering crowdsourcing for businesses, you’ll want to make sure you have a good grasp on the definition of crowdsourcing.
If you’re among those asking, “What is crowdsourcing,” stay tuned. This article was created specifically with you in mind.
In the following sections, we’ll cover the basics of how crowdsourcing helps companies work more efficiently. We’ll also expand on the definition of crowdsourcing to help you understand a few different answers to the question of “What is crowdsourcing?”
Finally, we’ll show you some crowdsourcing examples of popular crowdsourcing sites to help you gain a clearer definition of crowdsourcing and how it works.
See Also: What Is a Podcast? | Guide | Starting a Podcast, Definition, Tips on Creating a Podcast
What is Crowdsourcing? | Detailed Definition of Crowdsourcing
The basic definition of crowdsourcing is this:
Crowdsourcing occurs any time a company reaches out to the public for either a cheaper or more skilled alternative to using internal employees or hiring a third party.
Many times, outsourcing for businesses generates better quality content and a wider depth of ideas, particularly when sourcing from a large group of people.
For example, instead of hiring a web design firm to create a new logo, a company might hold a contest to generate free or low-cost submissions from their customer base.
Another way to add to the definition of crowdsourcing is to look at the popularity of freelance websites like Upwork.
Rather than hire internally, many companies seek out groups of freelancers to fill gaps in their workload at a much lower cost for operations, human resources, and payroll.
In some cases, crowdsourcing sites operate entirely through crowdsourcing methods.
One of the most popular crowdsourcing examples is iStockPhoto, whose marketplace of amateur stock photo contributors provided images for as low as $1, severely undercutting costs of private photographers.
As you can see, the exact definition of crowdsourcing will vary greatly from one business to the next depending on your unique needs and goals.
Individual definitions of crowdsourcing could be anything between soliciting marketing surveys from a customer base to hiring a team of freelance programmers. As long as you’re soliciting help from a collection of people from outside of your company, you’re participating in crowdsourcing.
No matter what method you use, there’s no doubt that the Internet and web-based applications is making crowdsourcing for businesses quicker and more accessible than ever.
As Jennifer Alserver of CBS News puts it,
The difference is that today’s technology makes it possible to enlist ever-larger numbers of non-technical people to do ever-more complex and creative tasks, at significantly reduced cost.
Don’t Miss: Best Resume Templates | Ranking | Professional Resume Template
What is Crowdsourcing? | Advantages & Disadvantages
Just as with any new endeavor, even the best crowdsourcing sites can expect to have various ups and downs when it comes to using crowdsourcing for businesses.
Some potential advantages to include:
- Increased productivity
- Wider pool of creativity
- Decreased operational costs
- Reduced staffing costs
Conversely, a few disadvantages may include:
- Managing crowdsourcing “employees” is difficult
- Negotiating payment can be challenging
- Risk of receiving lower quality work than expected
Generally, the advantages of crowdsourcing tend to outweigh the disadvantages, which is perhaps why crowdsourcing for businesses is becoming so popular.
In fact, Fast Company predicted that the rise and evolution of crowdsourcing would continue to reshape the world after 2016—and with ever-increasing crowdsourcing sites, they may be right.
Related: Best Self-Publishing Companies | Ranking | Top Self-Publishing Companies
All-in-One Change Management Tools
Top Rated Toolkit for Change Managers.
Get Your Change Management Tool Today...
Crowdsourcing Examples | Crowdsourcing Sites & Crowdsourcing Companies
After establishing a basic definition of crowdsourcing, it’s time to look at a few crowdsourcing examples to further explain how crowdsourcing sites and crowdsourcing companies work.
Wikipedia
One of the best crowdsourcing examples comes from Wikipedia, the free encyclopedia based on openly editable content.
Rather than hiring a team of researchers and writers, Wikipedia gives users the authority to create, edit, and amend each page. As a result, Wikipedia is one of the largest reference websites in the world, representing a shared community of knowledge.
Creating millions of articles would have taken countless payroll hours on its own—but as one of the top crowdsourcing sites, Wikipedia created an incredibly comprehensive resource without the hassle of hiring and payroll.
Uber
There’s an argument to be made that Uber is one of the more modern crowdsourcing companies. After all, their drivers come from a massive, nearly limitless pool, and they operate more like freelancers than traditional employees.
Additionally, Uber drivers use their own supplies, including their vehicle, a smartphone for GPS navigation, and gasoline.
Even if you don’t include Uber among crowdsourcing sites, it’s worth mentioning that they have reached out to crowdsourcing websites in the past.
In 2016, Uber reached out to designers on DesignCrowd to create a new logo for their rebranding process, providing a great example of how to utilize crowdsourcing sites.
Upwork
One of the most popular crowdsourcing websites for writers and web developers, Upwork plays directly on crowdsourcing methods to help companies find valuable, creative work from outside sources.
Employers can post job descriptions and sort through applicants to choose the best fit, creating short-term and long-term working relationships.
Similar to other crowdsourcing sites, the benefits of Upwork come from accessing a wider pool of talent at a lower cost.
Upwork has thousands of freelancers with over 3,500 skills, making it one of the best modern crowdsourcing websites to access a large population of skilled workers.
Popular Article: Best Book Publishing Companies | Ranking | List of Top Book Publishing Companies
Conclusion: Creating Your Definition of Crowdsourcing
If you’re considering using crowdsourcing sites—or adopting your own version of crowdsourcing—keep in mind that crowdsourcing can take many different forms.
In fact, perhaps the most important takeaway from this article is that there is no one-size-fits-all definition of crowdsourcing.
Depending on your unique goals and needs, your own crowdsourcing definition may look much different than other crowdsourcing sites or companies—but with any luck, the advantages will remain just as beneficial.
Read More: Best Cover Letter Tips | Guide | Writing the Perfect Cover Letter
Image Sources:
- https://www.pexels.com/photo/crowd-in-front-of-people-playing-musical-instrument-during-nighttime-196652/
- https://pixabay.com/en/bar-code-wikipedia-information-data-40816/
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.