« Watch out Craigslist, Sister Site Kijiji Is Taking Off. | Main | Chinese Government May Be Concerned About Microsoft’s Takeover of Yahoo »
First Look: Kluster’s Market Approach to Crowdsourcing
By xaby | February 19, 2008
Crowdsourcing may work for Wikipedia, but few commercial companies have figured out how to make it work for them. The basic concept is to get outsiders, preferably customers, to swarm together to design a product or complete some other project. Crowdsourcing is quickly becoming a crowded field—there’s Innocentive, Cambrian House, the soon-to-launch CrowdSpirit, and Ideablob, to name a few sites. But Ben Kaufman, the CEO of a startup from Burlington, Vermont called Kluster, thinks that what is missing are market-like incentives to motivate contributors and push the best ideas forward.
Kluster, which is supposed to launch later today in a public beta and will be used by attendees at next week’s TED conference, is designed so that companies can offer cash rewards for each phase of a project. Participants who back the winning idea get to share the reward. Projects can range from creating logos and marketing campaigns to designing a product.
Participants start off with points, or “Watts,” that they can invest in different projects. Explains Kaufman:
Our Watt system is like a currency. You get a certain amount of Watts. As you do more things you get more Watts. Instead of voting on ideas, you invest your Watts in concepts you like.
So if a company decided to offer $5,000 for the best new logo to come out of Kluster, some graphically-inclined members might upload a few sketches. Other members could then invest Watts in the design they think is best suited for the company’s product, make suggestions for improvements, or upload their own variation of the logo. Whichever logo gets picked by the company at the end wins the $5,000, which is distributed to all the members who backed that particular logo based on how much they contributed to the idea, how early they got behind it, and what percentage of their total Watts they put at risk. Kluster computes what your stake is in any given project.
Watts are never directly convertible into dollars, but they do influence how much of a cash reward each member is entitled to. At the end of each phase, all the Watts invested in the losing ideas are redistributed proportionately to the investors in the winning idea. As people collect more Watts, they gain standing in the community and have more to invest in subsequent projects.
Sphere: Related ContentComments are closed.