The definition of crowdsourcing is not really that hard to understand. Just as the word itself implies, crowdsourcing means to outsource a specific task or work to a crowd or group of people. The type of task that is outsourced depends on the objectives and aims of the person who started the project. This is also usually used to categorise crowdsourcing into at least one of the following types:
• Crowdfunding – Despite what you may have been lead to think up to this point, crowdfunding and crowdsourcing aren’t exactly the same thing. Instead, crowdfunding is actually a type of crowdsourcing, which specifically means outsourcing the task of collection of capital to outsiders. What a crowdfunding website does is to attract a lot of investors from outside, people whom the owner of a business or company wouldn’t have been able to get in touch by him or herself. Crowdfunding is becoming a viable way to get small businesses started, since it can help overcome the lack of capital and funding options at the beginning. When a crowdfund is started, the person will need to be able to collect the amount of capital that he intended as the goal before a certain deadline, after which most crowdfunding platforms return the capital to the investors. A Singapore crowdfunding platform might be the best option for a person who wants to start their business in that country, although some platforms tend to offer their services in many different countries.
• Design Crowdsourcing – As an alternative to hiring an online freelancer to do some design work, a firm can instead opt to crowdsource a specific task, such as the designing of a new company logo or a product label. In this way, a company can get a lot more designs in the same period of time that would be taken by a single freelancer to come up with one or a few designs. A lot of variations can also be expected, especially if a large pool of people applies for the job.
• Data Collection – Collecting data usually involved sending a lot of people specifically for this job. On the other hand, crowdsourced data collection basically allows almost anyone to do the same job, no matter their social status, job or even geographical location. In this way, a company may even be able to get necessary data at a faster rate than they would have been able to if they resorted to more conventional methods.
• Micro-tasking – A best fast approval loan in Singapore is not the only way crowdsourcing benefits businesses. A firm can make their work much easier by splitting it into smaller parts and getting a crowd of people to do it. This is what micro-tasking is about: a very convenient way to get even the most tedious of work done in a matter of hours or even minutes.
As you can see, the uses of crowdfunding are pretty vast. There are even more types of crowdfunding projects available, with new ones being created with every single passing day.