Programming contests used to be fun. Now they're a commercial software business—and still fun
ddj.com
ddj.com
The dev/design competitions were, for me, quite painful. It was an incredible chore to force my self into using their process, and as I was banking on it for some income, the discovery that solutions were rejected because I was missing absurd amounts of documentation/unit tests meant I don't see myself going back to it any time soon.
The design & dev competitions began to overwhelm the community as well. I haven't played there for a while.
I'm not complaining I didn't win: the judges clearly thought the other competitors did a better job, and they were probably right. But it's anything but easy money.
TopCoder seems to be overrun with developers from developing (largely Asian, as far as I can tell) countries where salaries (and cost of living) is much, MUCH lower, which is also keeping the prize money low. $500 (before tax) for a week's worth of work is just not attractive to me, I can make (and have made) 3-5x that doing normal consulting. (where the probability of being paid in the first place is a lot higher)
There is, of course, nothing actually wrong with this. This may well be the best way to outsource development to cheap labour: if it's not good enough, don't pay them anything!
There's probably a certain amount of practice to this, over time you figure out what the judges want, and what not to spend time on, but to make a competitive amount of money, you'd still have to have a very high success rate. The article is somewhat misleading in this respect.
That said, if you're in it for the fun, it's great!
Besides, it's what you call a (sustainable) business model.
I've participated in TopCoder a couple times a while back, but didn't see much benefit in practicing up to become competitive. This article indicates that it may be different now. Is that true?
Specifically, the prizes awarded were not sufficient to compensate for the time investment required. Even bidding $10/hr for rent-a-coder gigs typically have a higher return on investment.