Getting Results From Crowds: Chapter 8 - Specifying on Service Marketplaces

8/3/2019 Getting Results From Crowds: Chapter 8 - Specifying on Service Marketplaces

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Getting ResultsFrom Crowds

Ross Dawson Steve Bynghall

The definitive guide to using crowdsourcing

to grow your business


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Build your business by tapping

one of the most powerful trends in

business today: CrowdsourcingGetting Results From Crowds provides practical, pragmatic, clear guidance on how you

can draw on the power of crowds to grow your business. Filled with real-life case studies

and useful examples, it gives you everything you need to know to create success in a world

where talent can be anywhere.

For free chapters, additional resources, and latest insights go to the book website:

214 pages$25.00

www.resultsfromcrowds.com

Ross Dawson and Steve Bynghall have masterfully delivered a comprehensive and

strategically pragmatic guide to crowdsourcing. Each chapter elegantly lays out a key concept

and then provides practical advice. This is the must read bible for ef fective crowdsourcing.

R Ray Wang, Principal Analyst & CEO, Constellation Research

Rosss latest book is a fantastic guide for businesses looking to access skills and drive

innovation through crowdsourcing. I highly recommend it.

Peter Williams, CEO, Deloitte Digital

Ross Dawson, the crowd king, provides with Getting Results from Crowds a comprehensive

and up to date review of how to make crowds work for you!

Matt Barrie, CEO, Freelancer.com

This is the smartest, most practical overview of crowdsourcing Ive seen (and I think Ive

seen them all).

Lukas Biewald, CEO, CrowdFlower

To make the most of the different crowdsourcing options available for your business grab a

copy of Getting Results from Crowds it will pay for itself many times over!

Mark Harbottle, Founder, 99designs.com

What business leaders are saying:


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i Introduction

FUNDAMENTALS OF CROWDS

1 Crowds and crowdsourcing

2 The rise o crowdsourcing

3 Crowds and business value

4 When to use crowds

BUILDING RELATIONSHIPS

5 Relationship value

6 Changing organizations

USING SERVICE MARKETPLACES

7 Fundamentals o service marketplaces

8 Speciying

9 Finding talent

10 Setting rameworks

11 Rewarding

12 Closing out

13 Service marketplace overview

MANAGING PROJECTS

14 Project management

15 Structures and roles

CROWDFUNDING

16 Using crowdunding platorms

17 Equity crowdunding

USING OTHER PLATFORMS

18 Using competition platorms

19 Using distributed innovation platorms

20 Using microtask platorms

21 Other ways crowds create value

CROWD BUSINESS MODELS

22 Crowd business models

23 Getting results as a service provider

Table o contents

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VII

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137

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A undamental skill in using service marketplaces is the ability toscope and describe your projects accurately so you can attract the

best people. There is some eort involved in creating real clarity on

what you want rom your projects, but it is well worthwhile as it will

drive your success, and avoid wasted time, money, and eort.

Chapter overview

Scope projects by ocusing on overall objectives and then

defning outcomes, timetables, measures, and major milestones.

Explore the service marketplaces and fnd one that suits your

requirements.

Develop and write a clear job specifcation to place on the

marketplace.

Defne a target cost or the job and consider whether it should be

charged as fxed ee or on a per hour basis.

Speciying

Be anal about the details. It pays to put in time and eort upront in project

defnition and wherever possible, solid examples o what youre seeking.

Rand Fishkin, CEO, SEOmoz

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Using service marketplacesPart III

CASE

STUDY

Mike OHagans methodology for writing job descriptions forsimple tasksMike OHagan is the founder of successful moving company MiniMovers.

Hes used marketplaces for global talent extensively to grow his business.

Some people are absolutely hopeless at transerring a task through the

internet to another person. They write it up and i ts written in such a way

that is dicult to understand. The number o times you get stu back and

you think hang on, yes that is what was asked or but its not really what I

thought I was going to get!

I have a set process or describing a single task. When I need to get

something done, such as a piece o graphic design or nding a list o

businesses to nd, I write it out in simple English so that a nine year old

could understand exactly what I want.

For example it might be what I want is somebody to go into this and that

website, I then want you to go and nd these set o things here and then

take this bit o inormation and put them in an Excel spreadsheet under

these columns.

So I write out the whole job in a fowing pattern. I dont use boxes and I

dont use diagrams, I write it out as a story.

When I nish that story and it makes sense and its easy to understand I then

edit it down to a shortened version which takes all the identiers out o it.

So now Ill say I need someone to go into various websites and take

certain inormation and put it into some columns which I will nominate in a

spreadsheet. So I generalize it and I shorten it.

I then take that short generalized description and thats what I put up on

oDesk as the job.

Mike OHagan, Owner, MiniMovers


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SpeciyingChapter 8

Deining tasks and outcomesDeining outcomes and tasks rom the outset is critical or the success o any crowd-based

project. The clearer you are rom the beginning, the easier it is to identiy the role required,

write an accurate job description, hire a great provider, and ultimately develop a crowd

capability that can help grow your business.

Identiy overall objectivesWhen initiating a project the starting point should be to identiy your overall objectives. Some

o these will be the higher-order business outcomes, or example increasing revenue by

increasing website trac and improving brand awareness.

You should also think about your objectives around potential long-term relationships with

providers. Your needs may be purely short term, or example getting a logo designed, but

you may also soon need to get a new website created. This suggests an additional objective

could be to identiy an outstanding graphic designer you can build a relationship with and

use as required or your business.

I you are relatively new to crowdsourcing it would also be worth setting an objective

o learning rom your experience and developing your capability in using service

marketplaces.

Focus on project outcomesIt is critical to be as clear as possible on the outcomes you want rom the project. From

deining the overall objectives the link to the business impact should be clear. Wherever

possible make these measurable or otherwise able to be assessed objectively.

Defne output

You need to know what the outputs rom the project will be and more speciically what

they will look like. In some cases you will have a clear understanding rom the outset as to

what they will be. However you may need input or guidance in deining outputs in detail.

For example i you are a non-technical business owner you may start by knowing you want

a new website, which ater research becomes a wordpress site with a custom theme,

and thereater a clearly speciied project with a set number o pages, deined content, and

established eatures.

Deine timetable

Having a timeline upront or the delivery o your project is critical. Even i you are relatively

relaxed about it, resist the temptation to be vague on delivery dates. Deadlines keep the

project ocused and also allow providers to co-ordinate your project with work or other clients.


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Deine measures

Dene measures o the success o the project that relate to your overall objectives. Some o

these may be obvious, or example the percentage rise in trac to your website. You may also

want to try to calculate the time and cost saved by doing the job on service marketplaces

compared to working internally or with existing suppliers.

Deine major milestones

Breaking down larger projects into manageable chunks is an important issue that is covered

in more detail in Chapter 10 on Setting Frameworks. However there may be obvious major

milestones that you can put into your job description. For example you may identiy a rst step

in the project o dening and agreeing on a wirerame and mockup o the website, ollowed by

working with a third party designer, creating a website or review, and nally launching the site.

Selecting the marketplaceThere are a variety o major service marketplaces available, each with distinct characteristics,

and to a certain degree dierent providers. All o them are rapidly growing in the talent pool they

give access to, and are continually introducing new eatures to improve the user experience.

You are more than likely to have good providers applying or roles you advertise on any o the

major marketplaces. We have included a brie overview o the marketplaces in Chapter 13 to

provide a starting point to assess the platorms, and below are some criteria in which they may

dier. I you are expecting to be a signicant user o the platorms then the best approach is

to try several to see which ones have the best providers or your kind o work and the most

intuitive user interaces or you. I you will be using them less requently, then post a job on one

and you can always try another one.

Criteria or choosing dierent platorms

Specialist or

general

Most marketplaces are general in nature and cover all kinds o jobs such

as programming, marketing, administration, and design. There are some

that are particularly strong in areas such as web development, or may be

dedicated to one type o work. Usually it is worth starting o on a general

marketplace.

Reach Some marketplaces have a strong geographical bias, or example

eaturing more US-based providers or being ocused on a speciic

country. Some o the marketplaces provide an analysis o the location o

their registered providers so you can make comparisons.

Continued on the next page >


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SpeciyingChapter 8

Writing the job speciicationThe job specication is critical. Its your chance to attract the best people so you want to make

sure that you get the right messages across. The best providers will only apply or what seem

like the most attractive opportunities.

Full specifcations versus public specifcationsIn some cases you may be happy to share ull project details with the public. More oten you

will preer not to provide every aspect o the job on the service marketplace i it is publicly

advertised. This is not an issue i you are only inviting existing trusted providers to bid,

however by deault your job post will be openly visible to all, including your competitors i

they care to have a look.

The best approach is to write a ull speciication, which provides all necessary details

to get the job done. Ater having created that, you create a summary speciication or

public posting. I you are asking or a ixed price bid, then the summary needs to provide

suicient inormation on the work scope or the provider to quote accurately. Since you

will oten not share any raw iles in the public posting, you may need to describe their

content in detail.

I it is dicult to give an accurate idea o the project scope without the ull specication, you

can ask or preliminary bids, and then select a ew providers to which you provide the ull

specication, possibly with a Non-Disclosure Agreement, or them to nalize their bid.

Criteria or choosing dierent platorms (continued)

Features There are a variety o useul eatures on each platorm which can help

you operationally. These include a variety o collaboration and monitoring

tools, team rooms, and easy payment o providers. All o the platorms are

consistently adding more useul eatures so check the latest.

Charging model The ees rom the marketplaces are generally similar between 7 and 10%

on each transaction but some provide dierent models or requent users.

Hourly or fxed ee

model

Marketplaces usually handle both types o jobs, but some have more

developed eatures or hourly payments.

Recommendations Speak to other users i you can. Personal recommendations and

experiences will give you direct insights.


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Issues in writing job specifcations

Clearly defne

project outcomes

A clear description o the outcomes o the project will make sure youre not

misunderstood. In particular xed ee jobs require sucient inormation or

providers to propose a ee, and or it to be unambiguous when the job is

complete.

Distinguish

ull and public

specifcations

As described above, where appropriate write a ull specication which is

then summarized into a specication or public posting.

Use simple

language

Your provider might not be using their native language to communicate with

you, so use clear language and a limited vocabulary.

Ask or specifc

responses

Asking or very specic responses in applications (e.g. relevant experience

or suggested technology platorms) helps to assess the relevance o their

capabilities and understanding. It also means you can immediately discard

applications rom providers who havent read and responded to the job post.

Describe the hiring

processes

Let providers know i there are going to be trial tasks and interviews and the

ormat at each step, so this is clear rom the outset.

Strike a positive

tone

Make sure you rame the job description in positive language, which will

suggest you are good to work with and the project will be enjoyable.

Make value clear Ensure that you mention any attractive non-nancial rewards that could be

valuable to bidders. These include oering fexibility, providing ongoing

regular work, and public attribution o their work.

Inspire Make your organization and the work sound inspiring and exciting. What

are the possibilities, where is it going in the uture, and why is this a

worthwhile project?

Choose the correct

categories

Marketplaces use standard keywords to describe the type o job. Make sure

you select the right description to make it visible to the relevant providers.

Mention

practicalities

Mention any issues important to you such as preerred time zones, sotware

platorms, or methods o communicating.

Time rames Make sure you mention the time rames o the project so that providers know

what you expect o their availability.


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SpeciyingChapter 8

Developing specifcationsThere are a variety o sources o guidance or inspiration you can draw on in developing useul

and relevant specications.

Research other job specifcations

The best starting point is to research other job speciications across the marketplaces,

especially rom experienced employers who have posted many successul jobs. However

do not copy these unless you ully understand their intent. Only draw out what is directly

applicable to your situation.

Some o the marketplaces have a clarication board on which providers have asked questions

about specications. These give useul clues on the common gaps in specications where

providers need more details in order to bid.

Use or edit templates

Some o the service marketplaces have very good help sections that include templates and

model job descriptions. These are rarely what you will want to use or your job unless it is

very generic, but they provide a good starting point or you to edit and make relevant to your

situation. These usually cover the major issues you are likely to want to address.

Engage a specialist

I it the job description is technical and you do not have the in-house expertise required to

create a specication then you can engage a specialist to help you shape the specication.

This can be done by engaging someone or an hour to discuss your situation and provide

suggestions, or asking them to write the ull specication. Language skills will be important

in both situations. Talented providers will oten be happy to help create specications in the

hope o getting the ensuing work, and in act this can be a great way to nd someone good

who you have directly experienced you can work well with.

Your planning and organization are key to getting what you want out o it.

Tracey Corcoran, Co-Founder, iPilates

I get tired o having to know what I want. Oten I dont. So I posted asking or

someone who was a WordPress expert and social media advisor and asked

applicants to suggest what I needed done to my site beore we started.

Sarah Wilson, Australian TV presenter


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Setting ee levelsSome o the marketplaces, especially or ixed ees, require you to give an idea o the

budget or the project. You should have an idea o this in any case beore you hire

somebody. The primary reerence points or ee levels should be the value to you and

usual pricing on service marketplaces rather than the costs o traditional outsourcing or

service providers.

Select hourly or ixed eesJobs can be done on a ixed ee basis, in which an agreed ee is paid or deined outcomes,

or on an hourly rate. In the case o hourly pay, marketplaces provide mechanisms or logging

hours worked, sometimes supported by monitoring the providers computer so their work

activities can be viewed by the client. Fixed ee and hourly rates are each relevant in dierent

situations, so consider your situation and which approach is going to be most appropriate

or the project.

Setting the target cost

Assess project

value to you

Make a realistic assessment o the value o the project to you based on

the overall impact on your business. This is not always easy or projects

with intangible benets, however it helps to keep expected ee levels in

perspective.

Research ees or

similar work

Get an idea or what the market is paying by looking at ee levels or similar

work on the service marketplaces.

Set a range you

can aord

Based on the value to you and market rates you should set an overall

budget range or the project. This will probably be as a xed ee, however

based on the estimated hours or the project you can also calculate a

range or hourly rates. Be prepared to adjust your range i the bids you get

suggest your range is unrealistic.

Account or

transaction costs

Account or your own time that you might need to spend running the

project, as well as any assistance you might require, which may be higher

than using other channels. This gives you a view o the total costs o

getting the work done.

Set contingency Things can go wrong so set aside some money in your budget in case the

project runs over or you have to hire help to sort out any problems.



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Hourly ees versus fxed ees

HOURLY FEES FIXED FEES

Defned scope I the task is clearly dened. I the task is dicult to dene or the

cost o doing so is high relative to

the value o the task.

Ongoing work I you are looking or a worker or

ongoing activities.

I you are looking or only a single

dened task.

Defned value I the value o the work is less clearly

dened.

I the value o the work is clearly

dened, enabling a xed priced oer

and selection o the best bids.

Ongoing

relationship

Easier to develop an ongoing

relationship.

Specic eort is required to extend

the relationship.

Monitoring Need to check what is billed. Harder to see project progress.

Concerns Provider could spend more time than

is necessary.

Provider could take shortcuts or

not ocus on quality in creating the

deliverable.

Control

mechanism

Maximum hours in any given period

can be capped, and work diary can

be monitored.

Release o ees can be staggered

based on reaching various

milestones.

Disengaging early Easy to disengage. Harder to disengage beore project

completion, though setting clear

milestones helps.

SpeciyingChapter 8

Getting Results From Crowds: Chapter 8 - Specifying on Service Marketplaces

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