-1 karma · joined February 20, 2012
I build Crowdsourcing applications.
I mainly use PostgreSQL and GWT
Contact me at umarnawazconsultant@gmail.com
google+ profile https://plus.google.com/u/0/105542958297723319145/posts
The solution to that is open-data peer-to-peer. Sematntic web technologies solved that problem. Use an ontology editor like Protege to create your profile and publish the data as rdf. Other people would download the data and queries on it.
This solves the chicken and egg problem.
People can make money on this by offering hosting services. It can be a hassle for the average user to run and update the software on their computer so many might opt to pay for a cloud service.
This model can also be used for business discovery. Google and ebay can only do so much, you might want complex querying and reporting.
edit: The software solution can be as simple as publishing rdf data. The Protege ontology editor (open source) is already available. Users could simply start publishing their data profile right away, and conventions would form around what you should be putting in it. Protege also has querying facilities built in already. This was actually the semantic web vision.
As regards ebay, their network effect hasn't worked out - amazon has taken their business. In the future Amazon or Google might come in take out all the crowdfunding sites by offering a reverse bounty api. At that point, the crowdfunding sites should move in to the function of providing marketing services for creators seeking funding.
If you were creating a startup, and it would have cost you 1 million dollars of software development cost, 1 million dollars of hosting costs for 10 years, and you expected to earn 1 million dollars profit over 10 years, why not do this instead - ask for 1.5 million dollars on kickstarter - 1 million cost and 500,000 dollar profit. Say that you will be releasing as open source - this is the value you provide to funders. Then sysadmins come in and compete on hosting the software and divide up the other 500,000 dollar profit among themselves. You can move on to other software development projects instead of supporting your startup for 10 years.
This is a great opporunity for startups - both getting funded on crowdfunded sites and launching crowdfunded sites, because unlike the usual ad-supported business model or saas offering, serious money changes hands and every sector of the economy can be flowing through this.
Eric Ries talks about "pre-testing" - put up a landing page and seeing if you get signups. However, this sounds scammy. A better way is to simply launch a kickstarter/indiegogo campaign. You release the software as open source, which is better for the world as well. But you also get paid as well. You want to launch as startup that does project management as a saas. Instead put a kickstarter campaign up for 1 million dollars, or however much you were expecting to earn from the lifetime of your startup. If enough people want it, it will get funded. The next step you build and release as open source. Afterwards you can host it, or a bunch of other people who are expert at sysadmin host it and get customers paying for saas. You move on to the next project you want to build. The point is, you can have many crowdfunding campaigns going. Think of 20 apps, list them for 60 days. The ones that get funded, you build.
It also solves sopa/pipa. Someone has ideas for movies, launches campaigns in parallel. The ones that get funded, he creates releases for free on youtube.
Same for science. Scientists would no longer need to be attached to a university or do the politics that is involved in getting funding in science. They go directly to the public.
In the above scenarios everyone wins. Customers and creators. The only people who lose are people who were good at politicking their way up the coroorate ladder. Although, they don't really lose. They can switch to being marketers who launch campaigns, however they'll now need to have competence in marketing and brainstorming ideas.
Firms only exist to solve the communication problem. Now that we have the internet, there really is no need for organizations to exist. As more database-based information systems are created for crowdsourcing (kickstarter, fiverr, mechanical turk) , the more efficient this process becomes - which is good news for startups because this is what they are creating.