Crowdsourcing Model 2: Product design:

This type of Crowdsourcing is intended to design new products which are completely based on the inputs of the crowd. Unlike the previous type, the company does not re-design an existing product or collate designs, submitted by the users; rather the crowd not only designs the product but also creates it. This type of Crowdsourcing is often adopted by start-ups whose business completely depends on the product made by the crowd (Kleemann, Günter and Rieder, 2008). is a website which sells T-shirts printed with designs which are created and chosen by the users, who eventually buy the t-shirts. The process is kept simple. Anyone can submit a design and get it printed on a t-shirt for him/herself. This design is also open for other members on the site to view and vote. The votes are calculated on the 7th day and the designs with highest votes are available for the users to buy. The owner of the design is paid for the effort. Though selling T-shirt is the primary business of, it doesn‟t have a team of designers and all the designs are 100% crowdsourced (Threadless – support).

iStockphoto is an online marketplace that offers vector illustrations, videos, music and sound effects, Flash and is ready to introduce logos. All traded files here are royalty-free, which means it demands payment only once and the file can be used multiple times. Since 2000 iStockphoto have sold millions of files and have an inventory of millions more. However, none of these files are owned by iStockphoto but are owned by its members who sell them, which means all the files here are crowdsourced (Istockphoto – about).

From the above examples it can be seen that this model demands more than a single computer click from the crowd, hence the campaign that uses this model are said to be ‘high involvement’ campaigns.

What are the crowdsourcers motives to adopt this form of Crowdsourcing: To create products based on input from crowd only.

What do they offer to the crowd to encourage participation? : Financial rewards, recognition.

Continue on page 3 for Model 3: Competitive bids on specifically defined task or problem.