Crowd Sourcing

Doug Allen

• Cousin of Charles Darwin (b. 1809)

• Created the statistical concept of correlation

• Applied statistical methods to the study of human differences and the study of inheritance of intelligence

• Methods included using questionnaires and surveys

• A pioneer in eugenics, he coined the phrase “nature vs. nurture”

• He created classifications for intelligence and personality

• In meteorology, he invented the first weather map

800 guesses 1198 lbs

(1)Diversity of opinion

(2)Independence of members from one another

(3)Decentralization

(4)A good method for aggregating opinions.

Anyone on the Internet

Your town or school

Your family and friends

Your customers or employees

Industry SME’s

WHO IS THE CROWD?

What Can the Crowd Do?

Submit/Upload/Offer ideas/designs/plans

Answer questions

Solve problems

WORK for you

Fund your ideas

Support your causes

Crowd Creativity

and

Idea/Content

Generation

• Added PIN-IT button to their site

• In 3 months: 50,000 recopies “pinned”

• 139 million Pinterest “impressions”

• Reached out to the AllRecipies AllStars

– Taught them about Pinterest

– Encourage this influential group to pin

• More traffic to the website

Crowd Work

Video of manufacturing

Put together a “design brief”

Review submissions – give feedback

Pick the winning design

• A marketplace for work that requires human intelligence

• Jobs are called Human Intelligence Tasks or HITs

• Register as a REQUESTER and create your HITs

– Excellent instructions

– Rate for each HIT and time estimated for completion

• Require qualifications

• Review and pay for the work 10% fee

Use Mechanical Turk for:

HITs

Find the largest possible image of the given real estate agent, then copy the IMAGE URL and paste it into the provided field.

$.04 for this work. 9,771 Websites to work

HITs

Mechanical Turk Master

Masters are elite groups of Workers who have demonstrated accuracy on specific types of HITs on the Mechanical Turk marketplace. Workers achieve a Masters distinction by consistently completing HITs of a certain type with a high degree of accuracy across a variety of Requesters. Masters must continue to pass our statistical monitoring to remain Mechanical Turk Masters.

Masters receive special perks including:•Exclusive access to work that requires a Master Qualification•Access to a private forum available only to Masters

Please note that Workers cannot apply for this status - it is a performance based distinction. The best thing a Worker can do to become a Master is to submit Assignments with accurate results across a wide variety of Requesters on the Mechanical Turk marketplace.

Good Use Cases for Turk

Manually collecting data from a large volume of images or pdfs.

Scraping specific pieces of information (e.g. prices, contact information) from a long list of websites.

Classifying images, videos, tweets, etc. into discrete categories – e.g. indoors vs. outdoors, positive vs. negative.

Researching information about a list of names or places (e.g. finding all of the LinkedIn pages or Twitter accounts for a list of individuals)

Tips for Turk

Price it right – not too low or high

Group the same tasks together in 1 HIT

Create GREAT instructions - visual

Give your HIT a good title

Have multiple workers do same project

Pilot your HIT with a small set

Give a bonus if they do well

Getting Ready for Crowd Work

• Is anyone inside already doing this job?

– Do they help manage the crowd?

– Do they pick the finished product?

• Marketing and Project Dept. Head in charge

– Some crowd work needs to be publicized

– Crowd-sourcing may be part of your story

• Talk to HR

• Tell the employees (who may be freaking out…)

Crowd Wisdom, Problem-solving and Decision-making

Activate Contributors

• Personalized MindMixer Engagement Platform• Site Hosting• Site Administration• Site Moderation• Access to the MindMixer Data and Metrics

Dashboard• Access to the MindMixer Content Management

Dashboard• Integration of text (SMS) and call-in (voice)

functionality

www.kcmomentum.com

CrowdFunding

Where’s the $$?

O Self-funded

O Friends and Family

O The Bank

O Angels

O Venture Capital

Where’s the $$?

O Self-funded

O Friends and Family

O The Bank

O Angels

O Venture Capital

Non-Equity CrowdFunding

Equity CrowdFunding

CrowdFunding

O Can’t offer “investors” ROI

O Pledges for rewards

O Offer affinity and involvement

O Indiegogo

O Kickstarter

Flexible funding option ◦ Keep what you earned (but you pay 9% if you don’t

reach your goal)

Better International exposure

gogofactor◦ promotion to front page by merit

◦ social media tools to promote your campaign

No approval process

$1.6 million $850K match $850K ask

PROJECT GUIDELINES

Funding is for PROJECTS only

PROJECTS must fit KS’s categories

Prohibited Uses

No charity or cause funding

No “fund my life” projects

No “prohibited” content

PROJECTS ONLY

Has a clear goal

Making an album or cook-book or…

Creating a product

Generating a work of art

Will eventually be completed

No “open-ended” goals

So starting a business doesn’t count

PROJECT CATEGORIES

visual art

dance

design

fashion

food

games

music

publishing

technology

theater

KICKSTARTER.COM/HELP/STATS

CrowdFunding

• 90% of the projects that get to 30% make their goal

• The average donation is $60

• Most funding occurs at the beginning and at the end

• A few people enjoy Funding

• 25% of backers back a 2nd project

• 13% back a 3rd

• 6% back a 4th

CROWDFUNDING TIPS

• Be Authentic

• Respect the campaign

• Don’t just upload and let it sit – you have to promote!

• Come back and update

• Plan all 30 days activities in advance

• Target people who have similar interests and can empathize

• Depending upon perk costs (fulfillment?), fees and taxes, you may

only get 50-60% of your ask

CROWDFUNDING TIPS• Consider stretch goals

• YOU have to manage

• Encourages visits from existing donors

• Campaigns can go 60 days, but 20-30 is best

• KickOff Party!!

• Get help from “ring one”

• Key employees, friends, partners, suppliers

• Engage their social networks – ask them to promote

• Share future plans

Perk Ideas for Biz Projects

High % of affinity with the Project

Extra options or parts

Free upgrades to future versions

Offer discounts or coupons

For perks 2 through 10, add “all of the above

plus”

Pre-sell your goods

Offer your space for events

Throw a party for your patrons

Give out merchandise with your logo on it

Perk ideas for Artist Projects Give people producer credits

Offer advanced-copy DVD downloads

Create art prints from your film stills

Sell limited edition copies of your artwork

Give away signed editions of your work

Offer invitations to the premier or gallery showing

Sell downloadable copies of your album or EP

Offer your album in vinyl. Give away a limited number of signed editions.

Give away a role in your music video

Write, record or dedicate a song

• Know your audience

• The PURPOSE and “What they’re getting” in the first 30 seconds (then talk about you and the company)

• If possible, show prototypes or completed products

• Invite “involved” others to speak on camera

Video Tips

• Strong visuals – not just a talking head

• Explain why you need the money and what happens when you meet your goal

• Talk about stretch goals if you have them

• Project your over-all ethos (humor, cause, caring, etc.)

• YouTube too!

Video Tips

People will Comment Don’t take it personally

Answer immediately

Providing the required information

Messages Answer immediately

Respond on the comment board (others have the same questions)

Social Media Listen as well as talk

Engage the audience

It’s not all about “YOU”

Don’t expect Social Media to do all the work

After the Pitch…

Common CrowdFunding Mistakes

1. Not nailing the presentation

2. Not doing enough research

3. Lack of a solid plan

4. Asking for the wrong amount

5. Failure to promote

6. Ignoring the audience

From blog.rockthepost.com

I Know…

Team fatigue

Friends and Fans fatigue

Time wasted while you wait for fatigue to abate

How to Choose

More traffic

It fits the category

More people have heard of it in my circles

I’m OK with all or nothing

Attractive to more of the planet

Easier to get approved

I’m OK raising something

I appreciate not having to work as hard

Will allow exposure to a broader set of investors for startups wanting $$

All of the rules are not done (and they’re way late).

Title II went into effect Sept of 2013,

Title III is proposed, but not yet approved

Regulation D -- Rules Governing the Limited Offer and Sale of Securities Without Registration Under the Securities Act of 1933

Rule 501 – Definition of an Accredited Investor

•a bank, insurance company, registered investment company, business development company, or small business investment company;

•an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;

•a charitable organization, corporation, or partnership with assets exceeding $5 million;

•a director, executive officer, or general partner of the company selling the securities;•a business in which all the equity owners are accredited investors;

•a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;

•a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or

•a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.

•a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person

•a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year

than employees, executives or directors; gg. Number of Shareholders who are employees, directors or accredited investors; hh. If the Form of Equity in the offering and the rights thereunder are different in any way from those of other equity owners, then a discussion of if and how the rights of the shares in this offering may be materially limited, diluted or qualified by the rights of any other class of ownership, or if the rights of investors participating in this offering could in any way be negatively impacted by the rights held by insiders or other principal shareholders (including future contractual rights associated with any option agreements, warrants or employment agreements); ii. Amount of Existing Debt in the business, and a discussion thereof; jj. Risk Disclosures associated with the offering and the business. These should include items specific to the business being funded, and general items such as inexperience of management, under capitalization, market risk, conflicts

A properly formed offering memorandum include, at a minimum: