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CrowdSpring Review 2020 – Stay Away From This Scam Platform!

by | Mar 20, 2021 | Design Stuff, Reviews | 0 comments

Since December 2019, I started trying CrowdSpring platform as a designer, it’s one of those “design contest” platform startup that connects client with freelancer, or to put it bluntly: it’s another design contest platform where designers either work for free or for the lowest bidder while the platform does jack shit but get the most out of designer’s work.

We’re long gone from crowdsourcing startups connecting clients & freelancer and monetize it fairly – to the point where it’s just trying to rake as much % as possible from someone in shittier economy, either from being greedy or in desperate attempt from going under.

This review is mainly written from designer perspective, but might also be useful for clients who are interested with using CrowdSpring to connect with the designer there.

About CrowdSpring

CrowdSpring started in 2007 founded by Ross Kimbarovsky (who also still the current CEO of the platform) and Mike Samson. The platform offer two type of service: a contest & a 1-on-1 project, with each project ranging from your usual logo project, to UI design, and even product design.

Crowdspring currently have around 14 employees. They already running for around 13 years now and receive $3M funding in 2008, which I find concerning. I mean It’s not a problem for some business to remains small, however this is a startup with large market size, and when a startup didn’t scale up properly post funding especially after a decade, you gotta wonder what their management is like.

The Platform

It’s the standard designer outsourcing platform. For designer, you either win a contest or finish a 1-on-1 project with client and get money. For clients, you pay to start a contest or hire a designer and direct your creative project until completion.

Unlike some other freelancing platforms out there that have forums or collaboration feature where members can talk with each other, Crowdspring have no communities whatsoever in the platform. You don’t get to talk to everyone else except the customer support and the client (whom also rarely respond anyway).

Crowdspring have no unique features that separates it with other platforms. The base business model is pretty much the same with other crowdsourcing platform; you rake in fools that willingly work for the lowest bidder, and even for free if it’s the contest model; while try to get clients that willing to pay as high as possible without them knowing that only small amount goes to the hard working fools.

Product & Pricing

Like most freelancing, CrowdSpring offer 2 main product/service:

  • Contest Model (Crowdsourcing)

Where any client project need to be done is pitched to everyone within the platform. Only the winning designer get paid (after the platform took comission), and everyone else end up working for free.

  • 1-on-1 Project Model

Standard model where selected designer work directly with the client, the platform is acting as middleman as well so they took comission from the designer’s cut.

CrowdSpring have multiple project tiers with different pricing. Theoretically, the more clients paid for a project, the better design they should get because higher awards attract better designer (and restrict lower quality ones) and incentivize more effort.

crowdspring pricing

They took a hefty 40% commission from every transaction, whether it’s a contest or 1-on-1 project. Yes you read that right, they treat 1-on-1 project fees the same way they treat a contest fees.

Competing platforms that offer 1-on-1 model (like 99Designs, Fiverr, etc) introduce 5-20% commission for 1-on-1 project and even some offer perks like reduced comission % for a higher rated/loyal freelancer, unlike Crowdspring.

The people that held the most risk on these platforms are the participating designers who could spent hundreds of total combined working hours to pitch on each contest without the assurance that they will get paid a single cent; whereas the platform get paid from every single transaction.

Because of that, I would say contest-model or “crowdsourcing” is one of the most disgusting business model since it’s not only exploit people to work for free, but also eventually demotivate people to create lower quality work.

Designer Qualities

Like every other design contest platform, there’s a good & bad designer working there. With Crowdspring, you will notice that there’s not lot of designer active compared to other platform. Best guess it that lots of them left (Read until the end so you understand why).

For designers, this can be a good thing since there’s less competition here. But for clients, this is a bad thing because you might see less potential designs that you could get had you use other platform.

CrowdSpring have this ‘level’ system for the designer that is automatically based on average rating given by the clients. This level system supposed to filter a more talented designer for a more rewarding contest. Platinum & Elite level designers can participate in Platinum & Elite level contests, which also are more expensive than the regular contest (see image on the Pricing section).

designer level

However the way this system works is practically a joke because you only need like 2-4 reviews and you’re on the highest level. Some other platform manually handpick which designer deserve to be one of the best designer reserved for the top paid clients and evaluate these designer and even demote their level if necessary.

Automation is cool and all, but with service industry where the end product is highly subjective like design service, a human touch is necessary to filter out the professional & the amateurs.

This is especially true for design industry since designer can  design like what they’re supposed to do, or just slap some stock images and call it their own design. Nobody will know if the design is original or not unless designer declares it, clients are often none the wiser, and CrowdSpring who supposedly act as quality control doesn’t care as long they get their cut.

I guess it doesn’t really matter especially as long as it looks good, but could be problematic later when clients discovered their comissioned design looks alike with competing product.

what people say about crowdspring

If you look around for reviews of CrowdSpring from a review website, you will see one of the most popular negative complaints from clients are about design qualities. 

Awards for Contest

Since Crowdspring offer contest model, client need to deposit some funds as awards/payment for the winning designer.

Unfortunately there’s no such thing as “Guaranteed” awards in Crowdspring. Clients can literally bail out of running contest or 1-on-1 project even if people are already working on it.

lol whats awards

CrowdSpring will always prioritize clients before designers. This means that even if you have worked on a contest or project for weeks even months, the client can STILL ask for refunds.

CrowdSpring also states that they offer guaranteed refunds for unsatisfied clients, but this is very vague as well since if you look around, some clients reviewer mentioned that they didn’t get refund as promised. Where did the money go then?

Designer Payout

Now this is the part where shit hits the fan.

If you are new on the platform and it’s your first time winning a project, your money will be held on the platform for 30 days after your first winning project is finished before you can request for your payment.

Each payment request will take up to 10 business days or 2 weeks. CrowdSpring offers two payment option, through Paypal or Payoneer.

Compared to most similar platforms that send payment within 3 days, this sounds too much delay I know, and boy there’ll be even more delays waiting for you. It’s almost like they have liquidity problem to pay people on time.

crowdspring delay 1

The first time you request your payment (after waiting for a month to make requesting payment available), you will see the schedule payment window and see something bizzare:

Why is there a “I will not ask crowdspring about my payment after 10 business days have passed” checkmark you need to tick?

I have a bad feeling when I see that text so I took a screenshot of it.

Delay, delay, and even more delay

My personal impression of this platform payout system has been a shitshow. Even after waiting that 30 days payment hold + 10 business days payment request, I still haven’t receive money that I requested since February. They’ve been delaying my payment request for 4 times now. As of May 4th 2020, I still haven’t receive my payment request.

They will come up with many excuse for delaying payment. In my case at first they delayed my payment because apparently my Payoneer account is not connected, which isn’t true. It is connected properly with green checkmark on my profile and they still have the audacity to said that. The second delay they don’t have any particular excuse and simply said “there’s problem with your payment, wait another 2 weeks and don’t try to contact us before that date”.

The third time they try to be reasonable by blaming COVID-19 pandemic for the delay. I understand that the pandemic cause havoc on all business, but this more like an excuse opportunity for CrowdSpring to further avoid paying designers. Note that other freelancing platforms handle this crisis much much better. Even their CEO, Ross, emailed me back and politely told me to back off until April 13th. The fourth delay pretty much the same with the 2nd delay.

Crowdspring delay 2
CrowdSpring don't pay their designer

CrowdSpring is apparently notorious with delaying designers payout. If you look around for reviews, you will see ALL of negative reviews from designers are regarding their payment that they never receive.

Mind you, my payment request is only $550, however these few hundreds bucks add up to huge sum of money considering too many designers didn’t receive their money yet.

This is even worse when you realize that many designers working on these freelancing platforms comes from developing countries and are financially struggling during this pandemic time.

I finally received my payment from CrowdSpring around middle of May 2020, almost 3 months after first request. Had I not complain directly I may not see my money ever deposited.

Clients Went Missing

I have notice some bizarre things on this platform that I need to point out.

Almost half of the contest I have participated in, have their client went missing / abandon the project but the contest marked as “complete”. Often this happen because client is busy, and sometimes it could because of a more unfortunate events like their company went bankrupt or the client themselves passed away.

This wouldn’t be a problem if CrowdSpring have policy for sharing contest awards to participating designers equally if the clients is inactive for a long period of time.

Unfortunately they don’t. The platform intend to contact the client literally until the end of time if a project is abandoned, which means that the money will be held indefinitely when that happens.

What I found interesting is that some of these abandoned contests are marked as ‘Completed’.

Usually when a contest is abandoned, they are marked as ‘Overdue’, which means CrowdSpring is waiting for the client to finish the project. But if a project is makred as Completed without the client awarding the designer, then where did the money go?

This seems to be a trend in many CrowdSpring “contest”. Almost feels like these are fake contest to make it look like the platform have active projects & clients.

Even More Redflag

I’m not active on CrowdSpring especially after the payment fiasco, however I find it interesting that 6 months later, or around November 2020, CrowdSpring support contacted me telling that there’s “quality issue” of my work there and I need to work more on the platform or else my account will be freezed.

shady policy

A week later my CrowdSpring profile is frozen and they said I had to wait 6 months before I could re-apply to work again.

lol i got removed

Either they find out about this review and want me to fuck off from CrowdSpring, or they get desperate that nobody won’t work for free there, or perhaps it’s another scheme to further delay or even cancel the payment of other unfortunate designer that unfairly get their account frozen.

Conclusion

CrowdSpring is a scummy company that treat designer like shit; so if you are a client, expect to get lower quality design that’s not worth the money, because the better designer moved elsewhere.

If you are a designer, expect to be treated way worse than other freelancing platform.

I would suspect that CrowdSpring have serious cash flow issue which makes them constantly delaying designers payout and clients refunds.

Their CEO, Ross, have tweeted that Crowdspring have been a customer for PPP (loan for small businesses to keep their workers on the payroll) for nearly a decade. Why would a 10+ year old business with a very lucrative business model use this kind of loan? Did they always operating at loss?

Ross tweets

Regardless if this company actually makes money or not, one thing is obvious that they pay review company very well to only highlight fake good reviews and hide the negative ones.

fake reviews

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