What is Crowdsourcing, the New Concept of Funding in the Digital Age

What is Crowdsourcing, the New Concept of Funding in the Digital Age?

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What is Crowdsourcing – The growing economy of the nation and also the energies of governments in various countries to develop various forms of business in the community make a lot of ways that can be obtained to be able to obtain funds for the sake of business development more advanced and good.

There is even one easy way that is now being developed in the community that is crowdsourcing, a new concept of funding in the digital age. What is it and how does it work?

What is Crowdsourcing? Understanding Crowdsourcing and Explanations

what is crowdsourcing in business

Crowdsourcing is a term often used to describe a process for obtaining the work or funding of a large group of people through online facilities. The concept used to run this technique is with the availability of people in large groups to participate in producing content/funding.

Here the expertise and also the ideas of a group of people that are used as assistance in producing the content as well as facilitate the manufacture of products. If looking from the basic concept, then it can be concluded if crowdsourcing it is a distribution to solve a problem.

If a company is in need of funds to run the project, the marketing process for product marketing as well as researching for new products to be launched, then crowdsourcing can be the right idea and choice as the most effective form of a solution.

In terms of its name, the crowd is a collection of human resources that are reliable enough in creating a product as well as the best information. This idea is not new but it has been there since 2006 ago and the first originator named Jeff Howe who imagine if people outside the company contribute greatly to the project.

This means the people have nothing to do with the company before but are now the biggest source of funding that can not be left behind by the company. Of course, these people also take part and give the idea for the desired achievement.

Existing companies not only take advantage of crowdsourcing as a form of development and research but also ask for any help from anyone in many ways whether the promotion is done continuously through word of mouth, provide feedback or help in building a content.

The benefit of crowdsourcing itself is for highly reliable business marketing where it enables companies to enhance their creativity as well as resources from their audiences to market products or services that are produced for free.

This can start by doing marketing to solve a problem and the barriers that occur in a business. The productivity of the company will increasingly increase as well as reduce the labor cost to be spent.

Due to the use of the online system, the use of the Internet is very important as a strategy to obtain an active consumer feedback as well as very concerned with the company you build.

Fundamentally, the consumer is really determining the way a company and they would want to indirectly involved with various things in the company whether the provision of criticism and advice and crowdsourcing in control of the marketing side.

But that does not mean if the crowdsourcing method has no weakness considering that all systems will also have an obstacle in running it.

Perhaps the consumer is the controller of the company but at the same time, they are not employees so the company will not be able to control them.

By utilizing the interaction and also the resources of the audience is believed to give a bad influence or risk to the company if the company is not able to handle it well.

Perhaps this crowd of so-called crowds will not ask for products or money for free only they ask is satisfaction in other forms such as the existence of transparency, freedom and also recognition.

There are so many types of crowdsourcing that you can find around you where a company stands with the help of funds from the crowd and one of them is Kickstarter.

The site is a crowdfunding who is willing to pledge his money to fund a project from the company in the pre-production period.

Although the project is not necessarily successful, Kickstarter entrust this to investors or donors by providing transparency in a certain period.

After knowing the whole notion of crowdsourcing, the new concept of funding in the digital age, it is hoped that the owners of the company get enlightenment on how to get the best funds easily for the sake of the company’s development.

So so far, the explanation of what the crowdsourcing is expected to have been answered.

Differences Crowdsourcing with Peer to Peer Lending

If crowdsourcing is more voluntary, Peer to Peer Lending or now known as Fintech Lending brings the same concept, but the scheme is different because Peer to Peer Lending is borrowed.

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