It’s a simple idea: you let people create contests to help them figure out a problem, and the best idea gets a nice cash prize. That’s basically what social prize network Prizes.org is in a nutshell. It allows people to let the crowd solve their problem, for a minimal fee. For example, you need a new logo or a name for your new company, you can get feedback from the crowd in exchange for a cash prize of your choosing. Prizes.org requires will require you to log-in via your Facebook connect or Twitter. Right now there’s no option to put up your own contest yet, as it’s currently invitation only (though you can apply for one) so it’s unclear how you deposit funds for funding the contests you put up. But if we were to speculate, it’ll probably involve credit cards and PayPal, with the same options for getting paid once you win a contest.
Source: Prizes.org