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8. CROWD MINING

CROWD MINING is simply a moniker for how we see crowd-based business concepts evolving in 2008.

Remember SellaBand, which lets fans sponsor unknown bands and artists by buying the band's shares or parts? (Once a band has raised USD 50,000 by selling 5,000 parts, SellaBand sets up a professional recording session. The recorded songs are sold to new fans, and both the artists and owners of their parts (Believers) receive a share of the income generated through music sales and advertising revenues.) They're certainly having fun: a few weeks ago, Believers who own parts in Cubworld, Nemesea, Second Person and Maitreya received their first payout, which was transferred to their Believer Balance. While the first payout wasn't massive (in SellaBand's words: "Enough to buy a beer at the pub, or maybe even a round or two"), it's a sign that SellaBand's crowdfunding and crowdrewarding model is working as planned. Ad revenues are expected to grow over the next few months, as SellaBand is working on deals with media agencies for countries outside their main three markets—the Netherlands, United States and United Kingdom. One to watch in 2008.

MyFootballClub, which launched in May 2007, recently announced that they've agreed to buy a controlling stake in Ebbsfleet United FC, with the option to buy the remaining share in the future. To refresh your memory: in less than three months, MyFootballClub signed up 50,000 people willing to pay a £35 membership fee to buy and manage a soccer team with a crowd of other dedicated fans. MyFootballClub members will vote on player selection, transfers and all other major decisions. When it got down to picking a team to buy, MyFootballClub was approached by nine football club owners and also sought contact with several others. Some of the crowd's favourite clubs didn't make the cut, because they had too much debt. One of the reasons for picking Ebbsfleet United is that it stands a good chance of reaching the national Football League. We'll definitely keep score of this one in 2008

P2P banking pioneers Zopa and Prosper are still doing well, in fact, P2P banking is an excellent example of how fast a new concept can spread, and also how much opportunity remains in turning consumers into mini-banks. Quick recap: peer-to-peer lending marketplaces allow people to lend money directly to others, cutting out banks and other middlemen. This means better interest rates for borrowers and higher returns for lenders. Described as eBay for loans, the P2P money exchanges work as follows: borrowers list loan details and a personal profile, and lenders bid on the loan. Lowest interest rates win. Lenders bid in increments and minimise their risk by bidding on numerous loans. A study by Online Banking Report predicts that by 2011 person-to-person lending in the US could surpass 100,000 loans a year, worth more than USD 1 billion. Unlike eBay, which can connect buyers and sellers from around the world, peer-to-peer lending is generally bound by local financial regulations. This means there’s ample room for national or regional versions. Besides Zopa and Prosper.

Another example, from Google and setting the standards for CROWD MINING in 2008:

The Open Handset Alliance's most prominent member, Google, is developing Android: the first complete, open, and free mobile platform. To support the quest for apps that surprise and delight mobile users, to be created by developers around the world, Google has launched the Android Developer Challenge, which will provide USD 10 million in awards for innovative applications. The first part of the challenge (submissions are accepted from January 2 through March 3, 2008), will reward 50 entries with USD 25,000 to fund further development. Those selected will then be eligible for even greater recognition via ten USD 275,000 awards and ten USD 100,000 awards.

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