Comments on: Customer contribution and money incentives http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/ Niko Nyman's blog on shifting topics. Sat, 19 Jun 2010 05:56:59 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: /personal » Blog Archive » Crowd-sourced evangelism http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-23311 /personal » Blog Archive » Crowd-sourced evangelism Tue, 27 Feb 2007 10:20:20 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-23311 <p>[...] Add this to the discussion about crowd-sourcing incentives: [...]</p> [...] Add this to the discussion about crowd-sourcing incentives: [...]

]]> By: /personal » Blog Archive » How not to involve customers http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-23209 /personal » Blog Archive » How not to involve customers Mon, 26 Feb 2007 20:30:16 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-23209 <p>[...] The big incentive to take part in this competition is that the winner gets two backstage passes to a Eurovision song contest semifinal, and gets to perform their song on the big stage. Not bad, huh? [...]</p> [...] The big incentive to take part in this competition is that the winner gets two backstage passes to a Eurovision song contest semifinal, and gets to perform their song on the big stage. Not bad, huh? [...]

]]> By: Niko http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-22703 Niko Fri, 23 Feb 2007 19:43:17 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-22703 <p>Sami, you have two important points that haven't occurred to me:</p> <ul> <li>Monetary incentives may even stifle creativity</li> <li>Monetary incentives are not that much incentives, but a way for the company to justify exploiting the ideas for their own good</li> </ul> Sami, you have two important points that haven’t occurred to me:

  • Monetary incentives may even stifle creativity
  • Monetary incentives are not that much incentives, but a way for the company to justify exploiting the ideas for their own good
]]> By: Sami Viitamäki http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-22575 Sami Viitamäki Fri, 23 Feb 2007 00:39:12 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-22575 <p>According to my studies with the subject, you're intuition is largely right in that money is hardly a major motivator in customer collaboration. Instead the collaboration efforts are often driven by immaterial benefits, such as:</p> <ul> <li>possibility to receive improvements to own ideas (hobbyist in niche sports) </li> <li>building common 'we' spirit</li> <li>gaining social capital (through sharing information and making connections)</li> <li>gaining reputation</li> <li>the expectation of returned favors when in need</li> <li>community recognition</li> <li>company recognition (especially in demanding & technical areas) and last but certainly not least:</li> <li>fun and enjoyment of participating and helping the community flourish</li> </ul> <p>Intrinsic motivation (fun, challenge, mental stimulation, curiosity) plays a major role among most customer-collaborators and introducing monetary incentives may even stifle creativity and harm interpersonal interaction.</p> <p>Another question altogether is how appropriate the community sees the fact that the company is making money off their ideas if they themselves are not getting paid. This question sheds a whole new light on the subject. Even if money wasn't important to the community members, some meaningful material (not necessarily monetary) benefit usually needs to be offered to at least the generators of 'winning ideas': this is to justify the company's right to use the ideas.</p> According to my studies with the subject, you’re intuition is largely right in that money is hardly a major motivator in customer collaboration. Instead the collaboration efforts are often driven by immaterial benefits, such as:

  • possibility to receive improvements to own ideas (hobbyist in niche sports)
  • building common ‘we’ spirit
  • gaining social capital (through sharing information and making connections)
  • gaining reputation
  • the expectation of returned favors when in need
  • community recognition
  • company recognition (especially in demanding & technical areas) and last but certainly not least:
  • fun and enjoyment of participating and helping the community flourish

Intrinsic motivation (fun, challenge, mental stimulation, curiosity) plays a major role among most customer-collaborators and introducing monetary incentives may even stifle creativity and harm interpersonal interaction.

Another question altogether is how appropriate the community sees the fact that the company is making money off their ideas if they themselves are not getting paid. This question sheds a whole new light on the subject. Even if money wasn’t important to the community members, some meaningful material (not necessarily monetary) benefit usually needs to be offered to at least the generators of ‘winning ideas’: this is to justify the company’s right to use the ideas.

]]> By: Niko http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-22338 Niko Wed, 21 Feb 2007 11:51:20 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-22338 <p>The day I come up with that I'll write a book and spend the rest of my life cruising around Pacific islands with my royalty yacht and getting all wrinkly in the sun. But I promise to send you a free copy of the book! :P</p> The day I come up with that I’ll write a book and spend the rest of my life cruising around Pacific islands with my royalty yacht and getting all wrinkly in the sun. But I promise to send you a free copy of the book! :P

]]> By: Tommi Vilkamo http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-22334 Tommi Vilkamo Wed, 21 Feb 2007 11:19:09 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-22334 <blockquote> <p>Do contributors even know or realize when they’re no more contributing but depriving the system?</p> </blockquote> <p>Most probably not. I have seen a number of great initiatives that have eventually failed - not just because of spamming or hijacking, but also because of explosion of bozos with good intentions. I believe that you have too. I'd already count Digg as the most recent high-profile example.</p> <p>Please send me an email when you have figured out how to create the perfect and sustainable system :)</p>

Do contributors even know or realize when they’re no more contributing but depriving the system?

Most probably not. I have seen a number of great initiatives that have eventually failed – not just because of spamming or hijacking, but also because of explosion of bozos with good intentions. I believe that you have too. I’d already count Digg as the most recent high-profile example.

Please send me an email when you have figured out how to create the perfect and sustainable system :)

]]> By: Niko http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-22326 Niko Wed, 21 Feb 2007 10:39:57 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-22326 <p>Digg also shows that contributors incentivized by recognition or affiliation might not be the best collaborators either. I don't know if there's any form of incentive that couldn't and wouldn't be gamed for the benefit of the contributor and deprivation of the company looking for contribution.</p> <ul> <li>Then again, what kind of a contribution is such that does not benefit the cause contributed in? </li> <li>Do contributors even know or realize when they're no more contributing but depriving the system?</li> <li>If they did, wouldn't their efforts be called spamming or hijacking the system instead of contributing?</li> </ul> Digg also shows that contributors incentivized by recognition or affiliation might not be the best collaborators either. I don’t know if there’s any form of incentive that couldn’t and wouldn’t be gamed for the benefit of the contributor and deprivation of the company looking for contribution.

  • Then again, what kind of a contribution is such that does not benefit the cause contributed in?
  • Do contributors even know or realize when they’re no more contributing but depriving the system?
  • If they did, wouldn’t their efforts be called spamming or hijacking the system instead of contributing?
]]> By: Tommi Vilkamo http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/comment-page-1/#comment-22306 Tommi Vilkamo Wed, 21 Feb 2007 07:34:39 +0000 http://www.nnyman.com/personal/2007/02/20/customer-contribution-and-money-incentives/#comment-22306 <p>On similar topic, Jason Calcanis wrote about <a href="http://www.calacanis.com/2007/02/02/kevins-bold-move/">the decision to take down the top-digger list from Digg.com</a>:</p> <blockquote> <p>The driving forces in these system are (in order):</p> <ol> <li>recognition</li> <li>affiliation</li> <li>compensation</li> </ol> </blockquote> <p>I believe that too.</p> <p>The people who contribute for getting (a small amount of) money, are probably not the kind of people you want to contribute. I believe that you get better results from cooperating with customers with other motivations/incentives.</p> On similar topic, Jason Calcanis wrote about the decision to take down the top-digger list from Digg.com:

The driving forces in these system are (in order):

  1. recognition
  2. affiliation
  3. compensation

I believe that too.

The people who contribute for getting (a small amount of) money, are probably not the kind of people you want to contribute. I believe that you get better results from cooperating with customers with other motivations/incentives.

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