When you combine the concept of outsourcing with the power of Internet-connected individuals, you have Crowd Sourcing. Companies are using crowd sourcing to raise funds for a start-ups, get product ideas for the next line of merchandise, and to solve problems that seem too big for the organization. How can your company utilize crowd sourcing? In this workshop we will explore the following “crowd” topics and discuss how you can take advantage of this new technology-enabled workforce: • Crowd Funding and Capital Raising • Crowd Creativity and Idea/Content Generation • Crowd Wisdom, Problem-solving and Decision-making • Crowd Work We’ll also discuss how to get your organization “crowd sourcing ready” so that when you find the right problem for this solution, you can jump right in with confidence. Learning Objectives What is CrowdSourcing and how can it apply to your business How to use the “crowd” to get new ideas and designs for your organization How CrowdFunding can be used to raise capital for research and development

1. Crowd Sourcing
Doug Allen

2. • 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

3. 800 guesses 1198 lbs

5. (1)Diversity of opinion
(2)Independence of members from one another
(3)Decentralization
(4)A good method for aggregating opinions.

9. Anyone on the Internet
Your town or school
Your family and friends
Your customers or employees
Industry SME’s
WHO IS THE CROWD?

10. What Can the Crowd Do?
 Submit/Upload/Offer
ideas/designs/plans
 Answer questions
 Solve problems
 WORK for you
 Fund your ideas
 Support your causes

13. Crowd Creativity
and
Idea/Content
Generation

20. • 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

25. Crowd Work

31. Video of manufacturing

34. Put together a “design brief”
Review submissions – give feedback
Pick the winning design

53. • 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

54. Use Mechanical Turk for:

55. HITs

57. 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

58. HITs

59. 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.

67. 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)

68. 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

69. 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…)

70. Crowd Wisdom, Problem-solving and Decision-making

87. 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

89. www.kcmomentum.com

92. CrowdFunding

93. Where’s the $$?
O Self-funded
O Friends and Family
O The Bank
O Angels
O Venture Capital

94. Where’s the $$?
O Self-funded
O Friends and Family
O The Bank
O Angels
O Venture Capital
Non-Equity CrowdFunding
Equity CrowdFunding

95. CrowdFunding
O Can’t offer “investors” ROI
O Pledges for rewards
O Offer affinity and involvement
O Indiegogo
O Kickstarter

98.  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

100. $1.6 million $850K match $850K ask

116. 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

117. 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

118. PROJECT CATEGORIES
 visual art
 dance
 design
 fashion
 food
 games
 music
 publishing
 technology
 theater

119. KICKSTARTER.COM/HELP/STATS

131. 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

133. 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

134. 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

135. 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

136. 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

137. • 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
VideoTips

138. • 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!
VideoTips

142.  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…

143. 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

144. I Know…
 Team fatigue
 Friends and Fans fatigue
 Time wasted while you wait for fatigue to abate

145. 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

158.  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

159. 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

167. 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: