So, hey everyone, my name is Navdeep, and in this video, we will understand about the Crowdsourcing
business Model. So in Crowdsourcing business model.
You will take help from people around the world without actually hiring those people,
as a full time employee. So crowdsourcing means you will take help from other people in case if you're
solving some social problem. Let's understand crowdsourcing with the help of two example.
So there is a Waze app, which will allow different user to report traffic jam.
That means other people will be helping out to make this app much more better by reporting the traffic
jam in their own specific city or country or police that they are living.
Next example is McDonald's and Lays. Now
McDonald's and Lays have launched their own crowdsourcing campaign, so people can build their own McDonald's
burger and their own Lays chip, and they can have that unique flavor in that, and then they can post that
on their specific crowdsourcing platform.
And the one that will get highest vote,
These companies will consider that specific flavor in their specific restaurant or product.
Now let's understand the different types of benefit that crowdsourcing provide.
Now the first one is Speed.
Then you have engagement, cost, scalability and knowledge transfer.
Let's understand that one by one.
First one is accelerated process.
Let's say you wanted to build a social app to solve any problem that is there around you.
And if you take the help of other people with these crowdsourcing platform, it will make your task
process quicker and faster.
Because now you have more number of people contributing to the same work.
Next one is your Consumer Engagement.
Now, all of these crowdsourcing platform will allow you to interact with different people, so that you
can share your ideas and opinion with them, and they can also contribute to that specific discussion.
Third, one is Reduced cost, because a lot of people are working in solving the problem for you or for
any social cause.
And these people are not your full time employees, so you will always end up saving cost in building
that specific type of product because you do not have any full time employee in solving that problem
or building that product.
Then you have Scalability, and you can scale the operation by dividing that big project into micro-tasks.
And then these people can complete those micro-tasks within a very short period of time.
So crowdsourcing platform will allow you to scale your operation process and end result. Then you have knowledge
gaps because so many people are working on a very specific part of the problem at the same time, and
they can also discuss that on that specific crowdsourcing platform.
It will allow them to transfer the knowledge very, very fast.
Imagine a problem required expertise from 7-8 different domain.
If you look at the first cryptocurrency, which is bitcoin.
Bitcoin required a domain expertise of five different domains like your cryptography, distributed ledger
technology, computer science and economics. Now it's super difficult for one person to have these
many domain expertise.
That's why these crowdsourcing platforms are super useful.
Now, when we talk about crowdsourcing platform, people normally have couple of assumptions in mind.
They think that crowdsourcing means you will raise capital from other people if you wanted to launch a
product.
Now, when we talk about crowdsourcing platform, people usually think that you wanted to build some product
or you wanted to sell something, and that's why you will raise capital from different people.
Well, that's one use case, but you also have so many other use case.
Number one is your Open-Source Software.
All of these Open-Source software that we use in our day-to-day life.
Let's say if you're using a Linux operating system or a Firefox browser, all of these are open source.
And that's the best example of crowdsourcing where crowd is
maintaining the core of these open source software. Then you also have your Crowdfunding, which is
the major part of crowdsourcing.
When we talk about crowdsourcing, the first idea people have in their mind is that people will accept
some money from random people just because they wanted to build some product.
I agree on that.
People do that.
In fact, the first Oculus headset was created just because of crowdsourcing.
Somebody wanted to create a VR headset, and then he list down all of his requirement on Kickstarter
and then people started funding that specific project.
All of that is possible because of crowdsourcing platform. Now enough theory
for now. Let's understand how exactly these crowdsourcing platform makes money, because obviously
the main purpose of this course is to help you understand how different companies actually make money.
So this is the business model of all these different crowdsourcing platform, so-called crowdfunding
platform.
If you look at platforms like Kickstarter or Indiegogo, Patreon, all of these platform will allow
independent people or creators or followers to fund a specific project or influencer so that he can
accelerate these things faster.
And then you also have crowdfunding platform for those who need some help.
So you have platforms like Ketto or Milaap. These platform will allow other users to help someone who needs
some medical assistant.
So let's say, if I'm having a disease or something, and if I need some medical assistant or help from
other people, let's say I'm not financially strong or something, in that situation
I can post that I'm having this disease or this problem.
Can you help me reach toward this specific goal or amount or whatever.
If you look at these crowdsourcing platform.
Let me take this laser pointer, so you have all of your support over here and then you have a creator
who wanted to create something a new piece of technology, a new smartphone cover or a new water
water bottle or whatever idea he have in mind.
So this creator will list down all of its requirement or ambition or project on a specific website that
can be Indiegogo or Kickstarter or Patreon or anything.
He will project a goal.
So let's say I want wanted to raise $1,00,000 within maybe next one month.
Can you help me do that?
And he can also provide you some benefit or some early access to the product as well.
But that's optional.
Then he will also assign a project a timeline, that I want $1,00,000 within one month
so that I can build this product within next six months, and I can give you a 20 percent discount
or early access to the product.
It all depends on terms and condition.
And then that person will collect all of that amount, give some commission to that specific platform.
So you have your Kickstarter and Indiegogo.
They will also take a commission from this specific creator because obviously these are platform business
and they have to generate money, and then they will pass on the remaining amount to this specific creator.
So all of these people will pay money, and some part of this money will go to the website owner.
When I'm saying don't Crowdsourcing, Crowdfunding is just one part of crowdsourcing.
Crowdfunding have so many different moving elements and so many different types that you need to understand.
But for this video,
I think crowdfunding will help you explain all of the concept.
So that's all for now.
Let's go to the next video.