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GROW2012 - Building a Marketplace by Crowdsourcing - Matt Mickiewicz 99designs
- 1. Disrupting Industries Matt Mickiewicz 99designs
- 2. What is it? • “Disruptive innovation displaces existing businesses, in a way that the market does not expect - typically by designing for a different set of consumers and later by lowering prices in an existing market” - Wikipedia
- 5. Over 5 million nights booked
- 9. 99designs
- 10. Hiring a Designer - Old Process • Ask around for designer recommendations • Spend hours reviewing portfolios • Spend days trying to get a reply to your email • Negotiate price & contract terms (rinse & repeat above steps if too expensive) • Be told the designer is going away on holiday during the middle of your project and there will be a delay • Possibly end up with designs you don’t like, get charged $75/hour for further revisions or be stuck paying an invoice for work that you’re only so-so happy with
- 11. Hiring a Designer - Crowsdourcing • You set the budget upfront • No portfolios to review • No contract negotiations • Guaranteed results in 7 days • Get dozens of designers / hundreds of original designs to choose from • Don’t like any of them? Refund!
- 12. Birth of 99designs • The Unexpected: “Design Contests” Forum Becomes Popular on SitePoint • Creates lots of headaches, so we start charging $10 via PayPal to start a Forum Thread • Starts making 4-figures/month, we invest 6-weeks with 1 designer & 1 developer building an MVP and giving it more visibility • Mainstream SMBs start using us, despite no marketing, little documentation, and bad UX • We decide to create a spin-off in 2007, launch Feb 2008
- 13. Disruption Creates Backlash
- 19. 99designs - The Stats • $39 million in payouts to designers • 158,000 design contests • New design uploaded every 5 seconds! • Dozens of designer meetups worldwide
- 21. • What services or processes are fundamentally broken, overpriced, or terribly frustrating?
- 22. • What types of assets have no liquidity, and need a marketplace that connects buyers and sellers?
- 23. • How can you create an offering that’s 10X or 100X better than the alternatives?
- 24. • What services could be provided 90% cheaper, and provided to a much wider market?
- 25. FREE
- 26. The Best Disrupters Are Outsiders
- 27. Questions? matt@99designs.com New startup: DeveloperAuction.com
Notas do Editor
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- Let’s take a look at some examples... Square allows anyone to accept credit cards with a cell phone and a $10 dongle\n
- Barry, from SecondMarket, allowed private individuals to buy Facebook shares years before the IPO\n
- AirBnB allowed tens of thousands of people to rent out spare rooms in their apartments and houses, while disrupting the hotel industry\n
- iStockPhoto allowed designers and small businesses to buy stock photos for a buck\n
- ... and uber, eliminated the need to hail a cab, by providing an on-demand car service accessible from any smart phone\n
- and Plenty of Fish challenged Match.com by starting the first 100% free dating website\n
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- Let’s dive into one particular example that I’m very familiar with - crowdsourcing graphic design. The old process, for the vast majority of people was fundamentally broken... \n
- the new model, created by 99designs, radically shifted the rules and eliminated a TON of problems with the old model\n
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- However, wherever there is a disruptor, there are people on the opposite side of the fence\n
- Uber-cab, which disrupted the taxi industry starting in San Francisco with its on-demand car service, was also not without its opponents, being issued a cease & desist order and forced to drop the word “cab” from its name.\n
- Even AirBnB got a lot of backlash, not only from the city where it’s founded, but hoteliers and legislators in NYC, where it’s technically illegal to have rentals for less than a month.\n
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- In the case of 99designs, the AIGA and a handful of designers, objected to the entire model of working on spec -- that is, submitting work without guarantee of payment. Yet the crowdsourcing design model works for tens of thousands of designers in our community who use us to supplement their income, find new clients, or earn a full-time living.\n
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- what could be provided for FREE?\n
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