Customer contribution and money incentives 20:56 on Tuesday
Collaborating with customers has been on my mind lately, much because of discussions around the social media book I’m working on, the CREF model proposed by the book’s co-author Sami Salmenkivi and the FLIRT model for crowd sourcing introduced by Sami Viitamäki.
Everybody seems to be asking for how long will people contribute without money incentives? My take is that money will never play a major role in incentivizing people to collaborate. This is purely an intuitive guess. Other people, like aforementioned Sami Viitamäki who is currently doing research on the subject, will probably have more grounded arguments on this.
Here are two kinds of money incentives:
- “The $1 million challenge” — The real incentive here is not direct monetary reward, but the opportunity of winning a significant reward. What kind of people take part in such lottery? Are these the people whose contribution you really want? How much effort are people willing to put into the slim chances of winning?
- Paid content production — Paying people by contribution. It will get very expensive to pay any significant reward to content producers. If the reward is not significant, money is not the real incentive to contribute. One way to make the rewards bigger is to reward only the best. But how do you rank the content and decide who should be paid more? Squidoo and Mechanical Turk come to mind, both of which have not been that great successes.