How Facebook contests could reduce full-time jobs

Companies are increasingly using online resources to get work done, a trend that could reduce full-time opportunities, according to Forbes.

Whether it’s a logo redesign or marketing ideas, more companies are putting contests up on Facebook, relying on their “fans” to get the job done at a fraction of the price — sometimes free.

“It’s evident that the old process is not working with the way start-ups and today’s smaller companies operate,” Ilana Grossman of Gust, told Forbes. “They need fast and nimble, but (creative) agencies have large (overhead costs) and processes that are non-negotiable.”

Since most crowdsourced material generates a similar quality of design as ad agencies for a fraction of the cost, companies use the cheaper option, which in turn could eliminate jobs.

However, crowdsourcing does have its limitations.

“When you rely on users for everything, it can spiral out of control,” Larry Lac, of 72AndSunny, an advertising agency, told Forbes. “Good brands invite conversation, but with perimeters, that hopefully stays on strategy and on message.”

EMAIL: sparker@desnews.com

TWITTER: @SeanRParker