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Business Models

Crowdsourcing

Collaborative and Crowd-Based Models

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Crowdsourcing is a business model in which a company obtains ideas, content, services or funding by inviting contributions from a large, dispersed group of people, typically over the internet, rather than from its own employees or established suppliers. The term is a portmanteau of crowd and outsourcing, coined in 2006 by Wired magazine editors Jeff Howe and Mark Robinson to describe businesses using the internet to farm work out to the public. Contributions are usually gathered through a digital platform that distributes small tasks, ideas or funding requests to many participants and aggregates the results, and contributors may be paid, compete for prizes, or take part purely for recognition or interest.

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