TopCoder

I agree with this business model for a number of reasons. In the article it stated that from 2001 to 2009 there were, on average, 25,000 new programmers per year. This was the time in which TopCoder decided to dedicate their entire business around the idea of competition. Something that is interesting about the idea of competition is that TopCoder had roughly 200,000 programmers, but only 35,000 had competed in contests. The chief technological officer, Mike Lydon states that the remaing 82.5% of the computer programmers are interested in the idea but have no decided to enter any contests, therefore, making them the “latent pool.” This pool is obviously determined because their registration to TopCoder, but has not yet made the decision to enter any contests. But, TopCoder is also home to .5% of the most elite programmers in the world, thus making it an admirable service to young programmers. It is said in the article that the majority of computer programmers that are recruited are in their twenties, are highly competitive, and are single. This is because their main focus is usually the contests that they have entered to obtain a stable yearly salary. In the article it also states that a few of the average contestants in TopCoder contests, are making anywhere from $100-300 thousand, yearly. This is because TopCoder is paying out over $20 million in prizes to contest winners and finalists. Many of the programmers talk about how the contest is fun to win, but the financials are what are most intriguing. Overall, TopCoder gives out millions of dollars a year because they believe in their core assumption of competition resulting in the best quality product. Although these programmers say the financials are the main drive in their desire to code, it is clear that TopCoder has found a reliable way to receive the best programs they can possibly find.