When Paid Crowdsourcing Hits the Mainstream: A Report and Online Panel

Sometimes the only way to flush out the truth on something is to state an opinion and spark a discussion. Using on-demand workers has been around for over 10 years, but there are precious few resources available for someone to get educated. Hopefully my report will stimulate discussion and bring a greater level of awareness to the paid crowdsourcing market.

Let’s look at crowdsourcing’s evolution this decade:

* Wikipedia started the revolution

* Jeff Howe coined the term crowdsourcing

* Elance and Guru made it into sophisticated electronic marketplaces

* Amazon’s Mechanical Turk turned it into a computing platform

* Kermit Pattison writes prolifically about it

* John Winsor’s company does creative things with it

* 50+ companies provide products and services designed to bring it to the everyday business person

So after 10 years and more than two million workers getting paid half a billion dollars for work online, where is the Gartner Magic Quadrant, or the Forrester Wave Diagram, or the TechCrunch Top 50 list?

The novelty of free crowdsourcing (getting something useful done by the masses for nothing) has been the romantic aspect most often studied and written about. “Free” differs from paid crowdsourcing in that free work gets accomplished only if it’s entertaining, emotionally fulfilling, or leads to recognition. The less sexy and decidedly more complex “paid” cousin, which uses money as leverage to generate results, has been more of a mystery. Ask 10 business managers whether they’ve used on-demand workers through an online service, and nine will cock their head like a lab that just heard a dog whistle.

Paid crowdsourcing can find a useful metaphor in e-commerce’s 15-year rise from cutting edge to preferred shopping mechanism. Want a book today? We don’t send our intern to the store to buy it. We go to Amazon, search on the book title, add it to our cart, insert our credit card information, and submit. One or two days later, we receive our book. Why is online commerce so mainstream

Author: Brent Frei

Brent Frei is chief marketing officer and co-founder of Smartsheet.com, an online work management software company. As a trusted provider to Cisco, Google, Groupon, Bayer, HomeAway, DHL, Colliers, and more than 60,000 other organizations in 175 countries, Smartsheet is making significant strides towards becoming the global standard for how people collaborate and manage work. Notably, Brent was the CEO of Onyx Software Corp., a Bellevue-based customer relationship management (CRM) software company he co-founded in 1994. In his 10 years as Onyx CEO, Brent oversaw the generation of $600 million in direct revenue. During his tenure, Onyx received a consistent top 5 ranking amongst CRM vendors worldwide, and the number one ranking for customer service by independent customer satisfaction surveys. He was recognized and credited for his pioneering work in the field of CRM software and services, including in 2001, at the age of 33, the Smithsonian Institute recognized Brent as a "Pioneer in Technology." Ernst and Young named him a 1997 “Entrepreneur of the Year.” In 2001, he was the sole recipient of Dartmouth College's Thayer School of Engineering Fletcher Award for lifetime achievement---the youngest recipient ever selected for this award. Brent’s past roles include: executive vice president of Intellectual Ventures, programmer analyst with Microsoft Corporation, and a mechanical engineer at Motorola Corporation. Brent received his bachelor's degree in engineering from Dartmouth's Thayer School of Engineering, and his BA in engineering sciences from Dartmouth College.