[Crowd Leader: Neil Perry] Uncertain Economic Times: Good or Bad for Crowdsourcing?

Over the past few weeks we have seen major lurches on stock market indices, and that has given us pause to reflect on the future of our industry, if not about the future of any business. Is today’s uncertain economic climate good or bad for crowdsourcing? There are legit arguments on all sides, but I remain very optimistic about the future of crowdsourcing and it’s not just because I work in the field.
But first, let’s look at the bad:

Uncertain times tend to produce knee-jerk reactions to reign-in spending or not do anything involving ‘new’ or speculative approaches. As many of us can recall, the economic tumult of 2008 brought venture-related spending to a brutally slow crawl and it seemed that nobody was in the mood to try anything new: In short, people were scared. Fear can become contagious; stifling innovation and creating a snowball effect that can wipe out new industries before they really have a chance to flourish. Is crowdsourcing in danger? I don’t think so and here’s why:

As unsettling as it is, this round of uncertainty feels different. Yes, decision-makers are again wary, but I’ve seen this wariness actually translate into good news for crowdsourcing. Companies are indeed looking to reign-in spending, but crowdsourcing has gained a considerable degree of credibility since the economic crisis of 2008. So now some decision-makers are seeing crowdsourcing as a credible and cost-effective way to get great work done. There remains some convincing to do, however, so our focus as an industry needs to be on quality, or as Ford used to say, Quality is Job 1! We need to continually create great finished products, maintain and grow our creative communities with the best talent available; and of course, deliver world-class client service.

Now, more about the good: Crowdsourcing at its best brings clients new levels of affordability to address their core needs. As an in-house marketing executive for many years, I routinely approved budgets of more than $350,000 to produce a 30-second video spot. Crowdsourcing enables today’s decision-makers to get a similar 30-second video produced for roughly one-TENTH of that amount. And the same holds true for other creative endeavors such as graphic design, print, and more. No, it shouldn’t all be about price. But a challenging economic environment provides a suitable and timely backdrop to remind prospective clients and partners about crowdsourcing’s economic value proposition. Saving money is important in these crucial times, but maintaining a quality image for a brand is equally as important, and crowdsourcing has proven that it can do both effectively.

It’s also worth noting that even in today’s down economic cycle, more people, creative professionals, and businesses are using the Internet and online technologies than ever. This adds to an already fertile ground for crowdsourcing.

Like anyone, I’d prefer to see the world’s economy in better shape. That said, all indicators point to things being bumpy for quite a while, so the challenge and opportunity for all of us is clear: If we as an industry do a good job of showcasing that crowdsourcing provides a bonafide convergence of price and quality, crowdsourcing can continue to flourish.