I've been assigned to read "Drive" by Daniel Pink as homework for work. I've made it through Chapter 1 so far (go me). But, it has reminded me of a couple problems with incentives that I have encountered recently.
I backed my first project on Kickstarter,
Lex Laser Saves the Galaxy, Again. I think Kickstarter is a cool way to use the internet
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Some people really like limited-availability cookies like creating or naming a minor character in a book. It's not where I'd spend my money, but I'm not going to argue with people who find it worth their while.
In some cases, throwing a lot of money at a project is about making something the buyer really really wants to happen actually happen. That widgets exist at all may be worth a whole lot more to them than the retail value of a widget, or ten, or a hundred. Maybe they're a huge fan of the author/artist/series/whatever. Maybe it's exactly what they've been looking for but didn't have the skills to design. Maybe it has sentimental value. I wouldn't expect there to be many such projects, certainly not for any given person, but again, not mine to argue about.
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Do Kiva. It's not perfect, but it's a damn sight better than anything that money would be doing otherwise.
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