I have written on a few occaisons about crowdsourcing, how it works, and the benefits of it. On a tip from a commenter, I checked out a recently launched company called Local Motors. Local Motors has started their business using crowdsourcing as their main means of automobile design, in their own words, a “Web 2.0 Business Model”. They allow users to submit designs for cars based on “Competitions”. A past competition was to design “A Californian Off-Road Machine” and $1,500 (plus merchandise) went to the winner (see all entries here). The next competition is a presentation competition with a grand prize of $10,000.
It never ceases to amaze me how great an idea crowdsourcing is. 1) Come up with something that you need designing for. 2) Turn it into a competition between amateur and professional designers. 3) Decide on a winner, either by vote or executive decision. This is all at little to no cost for the person looking for the design. For example, the average salary of a car designer is between $50K-60K per year. Local Motors just had a concept designed for $1,500. Could it be any easier?
It makes me think about the future of the graphic design idustry in general. What will be the fate of large design firms that are competing for the business of high profile clients when the clients are now paying tiny, one-time fees to amateur designers? They must be starting to feel the pressure.
So what do you think? Is basing your business on crowdsourcing a viable model? Let me know.