Crowdshopping is an innovative tool to use in the real estate sector. If you take a look at a few key indicators, you will see that it should have been invented a long time ago. First, let’s define crowdshopping.
It is a multitude of buyers interested in the same product and willing to compete for that product. Although this definition could apply to people who like to participate in auctions, it appropriately applies to people who want a product but want to buy it at the lowest possible price.
Auctions usually offer a minimal discount. Crowdshopping offers a monster discount to those smart enough to take advantage of it.
Key indicator no. # 1: the lottery
According to the United States Census Bureau, in 2008, $ 82 billion was spent on lottery tickets and other entertainment activities. 82 trillion dollars. That’s a lot of money. People like to try to win something big for a small price.
Key indicator no. 2: the stock market
Day traders and stock investors are risk takers. In general, they are people who like to multiply their finances using information that tells them if their chances of success are high or low.
Key indicator no. 3: game shows
Oh yeah, game shows. You can poop on game shows if you want, but they’ve been around forever. Look at Wheel of Fortune. This show has been on for 30 years and it still gets at least 10,000,000 viewers to watch other people make money.
Key indicator no. # 4: credit card debt
The total amount of credit card debt in the United States is reported to be $ 793 billion. Second after most consumer debt student loans, which is $ 956 billion. Auto loans are worth $ 768 billion. If you look at home loans, these three would be easily lost.
Conclusion? People want what they want. They are willing to pay more than 8% or even 22% in interest payments to get what they want when they want it.
Key indicator no. 5: The housing bubble
People want to own their own home. We already know it’s the “American Dream”, but it’s really about stability. They want to know that they have a safe place to come home to and they want to know that it can never be taken away.
Key indicator no. # 6: coupons
People want to save money. They want a deal. They want a sale. Even if manufacturers artificially increased the MSRP in order to put an item up for “sale” at the desired price, consumers would not care. As long as there was an observable way of seeing that they “saved” money.
Key indicator no. 7: Gambling
Games of chance: they have been around forever. Although there is a downward trend in the game right now, it won’t last long if the economy improves. Some people will always want to get something for nothing. They will always want to feel like they beat the system and made money that they never would have done by following the traditional route.
How is crowdshopping going to make a difference?
Crowdshopping uses the conventional testing system to offer consumers another way to consume. To do a good crowdshop, you must be well informed on the subject and be able to perform on tight deadlines. It almost sounds like a job description.
It is comparable to the SAT, LSAT, GRE, MCAT, and others because it brings a group of people together and gives them the same test, and then compares their scores against each other.
We’ve been testing since we were six years old. Test taking is a skill that shouldn’t end after we graduate from school.
How can testing change the consumer market? You can change it by providing another option for consumers instead of traditional methods.
If you bring together people who have the same needs, such as the need for shelter, and put them in a situation where the cost of the product far exceeds the cost of the opportunity, you have now leveled the playing field. Now anyone can achieve the “American Dream” by using their intellect, rather than just using their money.
The Internet
There are two billion people on the Internet. The Internet is the only place that can bring millions of consumers together at the same time. There is no better use of Internet technology than bringing people together to contribute to the needs of all.
What is the risk of crowdshopping? Risk is the possibility of losing money. You can compete 1000 times and never have anything to show for it. In that scenario, you may not have gotten the item you wanted, but it made it possible for 1,000 people to get your needs met.
The fee you pay to the crowdshop becomes a donation.
Charity at its finest
For thousands of years, humans have donated their money to help those in need. Charity is a beautiful thing. The only setback is that the few people who run the charities decide where all the funds go.
With crowdshopping, the provider may be accepting small fees from a large group of people, but is allowing those same people, through competition, to determine who gets the funds. It is not a perfect solution, but it will help solve real problems.
The key to crowdshopping
It has to have realistic odds. It cannot be a sweepstakes or a lottery. It has to be more like a tournament. Each consumer must know that they have a real chance of obtaining the product.