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The trend of crowd-sourcing has been on the rise in the recent years. But it is still considered to be in its nascent stages at this moment in time. While all crowd-sourcing companies have tried their best to remove flaws and defects in the process of crowd-sourcing, there are still loopholes left. Our job is to provide you with reviews of logo design contests on all the top sites on the internet. 99designs being one of the largest crowd-sourcing sites in the logo design industry, is expected to be an ideal resource for designers. But the reality is otherwise as it has several faults and ambiguities that are harmful for both clients and designers. Founded in 2007 by Matt Mickiewicz, they intend to build a bridge between clients and designers. But there are some 99design review that suggest that this crowd-sourcing site has some drawbacks. We all are familiar with the good points about 99designs, but today let’s analyze the 7 bad things about 99designs: |
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7 Bad Things about 99designs!! |
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The thing which i dislike is that high minimum logo bid, otherwise i can bear other things.
About the high prize handling fees. The fees aren’t quite 20%.
The three contest categories are Bronze, Silver and Gold, each costing $295, $495 and $695 respectively.
However, the prize a winning designer will receive is $200, $300 and $400.
So 99designs receive, for each of these packages, $95, $195 and $295, meaning 32%, 39% and 42% of the money a contest holder pays.
The strategy was adopted about two years ago or less and it is very profitable. Before adopting this strategy, the fees were $39 + 15%. This meant that e.g. for the above mentioned types of contests, a designer would have received: $295 – 15% – $39 = $211.75 (Bronze), $495 – 15% – $39 = $381.75 (Silver) and $695 – 15% – $39 = $551.75 (Gold). With these said, one would notice that the new strategy brought them an extra $11.75 for the Bronze contests, $81.75 for the Silver contests and $151.75 for the Gold contests.
This strategy also led to many more unsuccessful contests, where the contest holders received their money back. Fees are too high for them and prizes are too low for the designers.
Please correct me if I am wrong. You may think again before participating in a contest or starting one for your business.
Please remember that there are always more than just one ‘customer’ in any transaction. The client is the ‘real’ customer in this case, as the market would not exist without their demand. The ‘market’ has a funny way of ‘correcting’ to more often than not… filtering the value brought to it by others. The review above is incomplete without factoring in the value derived from the ‘real’ customer.