Please explain fully to me the ethics (or lack thereof) of spec work. I got into a
bit of a long argument on Twitter with the creator of crowdSPRING - a website where people put up projects (logos, websites, etc), designers contribute, and then a winner is chosen. Less than 25 entries and the buyer gets their money back.
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I've heard all the arguments and discussions about spec work and have seen how different websites like Pixish have come under fire for the same thing.
Feedback like this certainly doesn't help. However, I want to make sure that the points I'm making are sound.
* crowdSPRING keeps bringing up the argument that they want to be the "Threadless of everything else". From what I can tell, Threadless doesn't set briefs, and even the Love Threadless contests are meant to be inspirational, not branded. Do the Threadless designers own the rights to their designs? Do they get any royalties?
* Are there actually any websites like CS or Pixish which is more organic and collaborative - instead of choosing one, you develop it together? (Kluster could be close, I suppose) Also are there websites where people put up projects that need to be done, and designers give proposals? Are those ethically OK?
* A month or so ago there was a discussion about another similar site and when I mentioned how such sites were not a good idea, my friend said that it would be great for someone in India because the prize money would be more than their average salary. Now, coming from a Third-World country, I found this a strange and ironic statement. I argued that this is not an excuse to exploit designers (especially those from poorer countries that deserved to be paid better for their time!) - indeed, it came off too much like approving sweatshop labour. Does my argument hold water?
Basically, are there any holes in my argument, and is there something in CS's argument that I'm missing? I want to be more educated about the issue and have more solid arguments for the pros and cons.