The psychology of prizing is incredible, and it’s something we think about a lot at Yinzit. Prizes have been used by philanthropies and private businesses for a long time to tackle the toughest challenges known to mankind. Back in the 18th century, the inability to measure a ship’s position made oceanic voyages a high-risk venture. The solution? In 1714, the British government offered a £20,000 prize to anyone who could develop a way to measure a ship’s position at sea. Although most people thought the answer would come from a prominent astronomer, the prize inspired John Harrison, a British clockmaker, to develop the marine chronometer which enhanced the safety of sailors embarking on transoceanic voyages. This early crowdsourcing example is testament that the right prizes can attract desired results, not failures. Prizes are an old idea that remains surprisingly powerful today.
We have found that three conditions must exist for prizes to be as effective as possible.
1. A clear objective
2. A large pool of solvers
3. The willingness for solvers to take on some of the costs and risks.
Most people don’t think they’ll win a contest so they’re less likely to participate. We mitigated this risk by having lots of prizes! In addition to a “best idea” prize, Yinzit awards “randy” prizes to random individuals that participate. Solvers get the sense they have a good chance of winning at least something.