Crowdsourcing vs Crowdfunding
Wow, âCrowdsourcingâ and âCrowdfundingâ? What a BIG word to me! Letâs explore more on what does these two big words mean and is there any difference between them?
What does crowdsourcing and crowdfunding mean?
Crowdsourcing is the process that involves obtaining opinions or information from a huge group of people in an online setting, such as social media, the internet and via mobile apps (Hargrave 2019). According to Goodrich (2013), crowdsourcing required a big group of people with diverse skills, ideas and participation to generate content or assist in the product or campaignâs creation. In other words, crowdsourcing is the distribution of problem solving. As an illustration, a company that needs funds for a marketing advertisement, upcoming campaign, project, or research for an innovated product, it can acquire high amount of money, content and information from the crowd (Goodrich 2013).
Crowdfunding involves crowd to donate or contribute small amounts of capital to finance and support a new business project (Smith 2019). Based on Smith (2019), crowdfunding website or social media page helps connect huge networks of people such as investors and entrepreneurs together to bring a new project to life. Crowdfunding occurs when it comprises voluntary donation-based effort (Neiss et al. 2016).
What is the difference between crowdsourcing and crowdfunding?
So, crowdsourcing is basically the process where crowd search information together, whereas, crowdfunding involves crowd to contribute money on a voluntary basis to support start-up corporations, charities or even individuals (Harvard 2019).
Letâs discover the example of crowdsourcing and crowdfunding!
McDonaldsâs! Yes, who doesnât like McDonaldâs? One of the example of crowdsourcing is âMcDonaldâs Burger Builderâ.
This crowdsourcing campaign gave McDonaldâs customers the sovereignty to submit ideas for the desired types of burgers they would like to see in store and even purchase it (Kearns 2018). Once the perfect burger is created online, the voters from all over the world can vote for the best ones and the winners along with their photo and brief bio will be listed as McDonaldâs released the burgers weekly (Kearns 2018).
(Source:Â https://tweakyourbiz.com/marketing/9-great-examples-crowdsourcing-age-empowered-consumers)
Everyone has their own dreams, isnât it? And these dreams canât be fulfilled when thereâs lack of capital. No worries, weâve got crowdfunding! Kickstarter is one of the example of crowdfunding.
Kickstarter is a crowdfunding website that allows inventors, entrepreneurs or even individuals to raise millions of dollars to fund development and production of an idea or a project (Thrope 2018). Thrope (2018) asserted that the successful projects include the âPebble Watchâ, âCoolest Coolerâ and âPotato Saladâ. For the idea on making âPotato Saladâ, the inventor, Zach Danger Brown had notoriously raised $55,492 where it has exceed the initial goal of $10 only.
(Source: https://www.kickstarter.com/)
Conclusion
Can crowdsourcing be beneficial to the communities?
In my opinion, yes, because crowdsourcing allows individual to source for big group of people from different field with different talent in a shorter period of time and it works more efficiently compared to traditional advertisement. Additionally, with the digital platform nowadays, users can utilize hashtags to find relevant source as well.
Can crowdfunding actually replace traditional funding mechanisms for the creative productions?
I think it can, because with the social networking website nowadays, it is easier for designers, content creators or musicians to seek help from people, provided the people like their contents and ideas, they will definitely achieve the targeted funding.
References
Goodrich, R 2013, âWhat is crowdsourcing?â, Business News Daily, 26 February, viewed 16 November 2019, <https://www.businessnewsdaily.com/4025-what-is-crowdsourcing.html>.
Hargrave, M 2019, Crowdsourcing, Investopedia, 8 July, viewed 16 November 2019, <https://www.investopedia.com/terms/c/crowdsourcing.asp>.
Kearns, K 2018, 9 great examples of crowdsourcing in the age of empowered consumers, Tweak Your Biz, viewed 17 November 2019, <https://tweakyourbiz.com/marketing/9-great-examples-crowdsourcing-age-empowered-consumers>.
Smith, T 2019, Crowdfunding, Investopedia, 26 June, viewed 17 November 2019, <https://www.investopedia.com/terms/c/crowdfunding.asp>.
Thrope, D 2018, âWhat is crowdfunding?â, Forbes, 26 June, viewed 17 November 2019, <https://www.forbes.com/sites/devinthorpe/2018/06/25/what-is-crowdfunding/#19ad30e965c5>.















