I’m a big fan of the data, metrics, and social analytics. What you are about to read is a discussion regarding Klout and its service of providing influence scores. The conversation took place via Twitter on 12/8/2010. The conversation is respectfully critical.

Before we jump to the conversation, I would like to make it known that I applaud Klout for taking on the challenge of attempting to develop a standard for what “influence” is within social media (and possibly elsewhere). Klout’s tagline is “the standard for influence,” which is a smart move on their part, but I am on the fence as to if this is something that is needed in the industry.

The task at hand for Klout is daunting.

Objectives and goals determine which metrics are the success metrics for any initiative we undertake, but analyzing data is a task that many do not have the resources for and/or do not have the willingness to do. With that said, many businesses do find Klout to be quite valuable, and I completely understand integration of Klout for various purposes.

Hence, the idea exists that we can have a tool do the work for us in a manner that outputs a single score so that we can see instantaneously how influential a person/brand really is. The idea is a great idea, but here’s the bad news: It doesn’t work like that.

The idea of combining qualitative and quantitative data from various sources (social networks) that serve different purposes for the individuals who are active on the networks in order to achieve one “influence score” is a task that I believe cannot be achieved. As you can see, the idea of combining unlike data with unlike sources (social networks, for this case) is flawed in itself.

At the same time, Klout is making a statement that their proprietary algorithm is the be-all-end-all for gauging influence. If this were not the case, the algorithm would be made public so that others could learn from and build upon the Klout methodology.

You’ll note in the conversation below that I did make an argument regarding “what” can be influential. After thinking further, I am not so sure that an inanimate object cannot be influential (you’ll see what I mean in the conversation). I mean, this is what traditional marketing is all about, right (billboards, flyers, TV commercials, ads, etc.)?

I would like to make it known that Klout did reach out to me via DM after the conversation to see if there was anything I would like to email them about. I did not contact Klout at that time. However, if Klout does indeed happen upon this article, I do appreciate the opportunity for Klout representatives to enlighten us.

Also, for the past few weeks, I have checked my Klout score about three times per week. My Klout score increased dramatically (about 20 points) when I added my Facebook account. Even though I have undoubtedly conversed with many more individuals during these weeks, my Klout score has remained somewhat consistent (within about 1 point of itself).

Klout has noted that the influence scores are updated at least once per day although changes to my score each day are minimal. Also, many of the metrics within my Klout score page remain unchanged, although it is inaccurate. This includes all data within the Influence Matrix and the Content Analysis. See my Klout score page at http://klout.com/prebynski.

Thank you to the following Tweeters for being involved in the conversation:

• #UsGuys
• bitstrategist
• carrie_kane
• delwilliams
• IronShirtMedia
• JenKaneCo
• jlisak
• johnpwooton
• missdestructo
• MitchNeff
• moondustwriter
• mooshinindy
• prebynski
• REALChaseAdams
• SeanMcGinnis
• SEOcopy
• socialfresh
• SoFloWalter
• VincentAmmirato

If I missed you, please let me know, and I will amend.

Sources noted within the conversation:

• Klout

  http://www.klout.com

• Can Klout Really Measure Influence?

  http://socialfresh.com/can-klout-really-measure-influence/

• Klout is broken

  http://www.wewillraakyou.com/2010/12/klout-is-broken/

• Can you become influential on Twitter merely by Tweeting a lot?

  http://wallblog.co.uk/2010/12/06/can-you-become-influential-on-twitter-merely-by-tweeting-a-lot/

• ThinkUp

  http://thinkupapp.com/

Onto the conversation:

prebynski: RT @jaybaer: Best examination of how @klout works I’ve yet read. Nice job by @socialfresh http://cot.ag/gyfen5

prebynski: Post by @socialfresh details metrics @Klout uses. Now all needed is the algorithm. Will any service ever be standard for influence? #usguys

prebynski: Algorithm for @klout updated monthly. How standard can it be? It doesn’t have standard 4 itself http://bit.ly/fMMM83 (expand) #usguys (cc @mitchneff)

delwilliams: @prebynski I thought they said they updated daily now #usguys cc @MitchNeff

prebynski: @delwilliams They update user data daily. Algorithm used to calculate data is separate (cc @mitchneff) #usguys

MitchNeff: @prebynski @klout “Industry standard” and “static methodology”are not synonymous. #Klout #UsGuys

prebynski: @MitchNeff But “standard” infers consistency, of which the algorithm is not. #Klout #UsGuys

SeanMcGinnis: RT @MitchNeff: @prebynski @klout “Industry standard” and “static methodology”are not synonymous. #Klout #UsGuys

prebynski: Is it possible to game a @klout score? #usguys

MitchNeff: @prebynski OR “standard” infers the rule against which others are measured. #Usguys #klout #DamnYouEnglish

mooshinindy: @prebynski Considering my Klout is higher than yours and I really just talk about my uterus? I’m going with yes, game played.

prebynski: @MitchNeff Of which is how I think they want you, us, to interpret. #Usguys #klout #DamnYouEnglish

IronShirtMedia: @prebynski since @klout score is so network driven I think it would be difficult to game

socialfresh: @prebynski here’s the link http://cot.ag/gyfen5 ; )

bitstrategist: .@prebynski Re: Klout gaming: Possibly. Check out http://bit.ly/guBCKo (expand) #usguys

MitchNeff: @prebynski I would argue that to remain the “standard” requires constant improvement in a nascent space. #Usguys #Klout

prebynski: @socialfresh Thank you, Sir. Your post spurred my most recent Twitter ramblings. [Everyone, read @socialfresh's post http://bit.ly/fMMM83 (expand) ]

johnpwooton: @prebynski yes, it is possible. Especially if there are a lot of spammers retweeting.

JenKaneCo: @prebynski Yes, you can game a Klout score. Still perfecting the art on this end, but having fun trying.

SEOcopy: RT @mooshinindy: @prebynski Considering my Klout is higher than urs & I really just talk about my uterus? I’m going w/yes, game played. LOL

prebynski: @bitstrategist Thank you for sending the link. So many more data plays come to mind, but the findings are epic, but unheard of online (so far)…

prebynski: @MitchNeff I disagree. Klout is broken. http://bit.ly/guBCKo (expand) #usguys #klout. QED. #nuffsaid

bitstrategist: .@prebynski No worries…I thought it was an interesting article. I’ve been frustrated with weak social media metrics tools for awhile.

prebynski: @johnpwooton Awesome. Saw the “Klout Is Broken” article compliments of @bitstrategist. http://bit.ly/guBCKo (expand)

REALChaseAdams: @prebynski @MitchNeff Tell me this though: Why can’t a bot have Klout? They can have just as much influence. #usguys #klout #nuffsaid

prebynski: @bitstrategist Do you get stares when you talk blasphemy about everyone’s data that doesn’t mean anything? (I do.)

carrie_kane: Great read @socialfresh RT @prebynski: @socialfresh Thank you, Sir. Your post spurred my most recent Twitter ramblings. http://bit.ly/fMMM83 (expand)

bitstrategist: @prebynski It’s funny, but when I wrote a blog post critical of Klout, they actually responded positively in the comments. They are trying.

prebynski: @REALChaseAdams @mitchneff A bot does not make a conscious decision to influence, and a random equation takes human out of control. #usguys

REALChaseAdams: @prebynski @mitchneff Conciousness is not a prerequisite for influence. I see a wall when I’m walking, it influences me to turn. #UsGuys

prebynski: @bitstrategist Oh, indeed they are, and I wish I were in their shoes. Opportunity for management of expectations with its data though?

SoFloWalter: That’s blasphemous! RT @prebynski: @MitchNeff I disagree. Klout is broken. http://bit.ly/guBCKo (expand) #usguys #klout. QED. #nuffsaid

prebynski: @REALChaseAdams I disagree. You influence yourself to turn. You could walk into the wall if you wanted to. #usguys

REALChaseAdams: @prebynski But the wall, in being there, influenced me to consider whether to turn or not, didn’t it? [I'm exploring here] #usguys

bitstrategist: .@prebynski Hmm. In my mind, it’s Caveat Emptor wrt any arbitrary metrics. The problem is usually laziness on the Emptor side.

VincentAmmirato: @prebynski re: is it possible to game a @klout score. These guys did it, with bots – http://ow.ly/3ltlB #USGuys

prebynski: @REALChaseAdams Influence comes after ability to process thought. [exploration is good] #agreetodisagree?

prebynski: @bitstrategist Laziness, or lack of budget, but I generally agree.

prebynski: @bitstrategist Budget and/or resources, for that matter.

REALChaseAdams: @prebynski We’ve gone from klout for bots to philosophical. Agree. You are a master of your domain. #IConcede

prebynski: @REALChaseAdams Any day, my friend. Good stuff!

prebynski: @VincentAmmirato Any more? Or never did? What if they changed algorithm, and said I had 0 influence tomorrow…. #usguys

prebynski: @VincentAmmirato Would that make me any less influential? No. #usguys

VincentAmmirato: @prebynski let me correct, they say how *often* you tweet doesn’t affect the score. Don’t know about the past #USGuys

prebynski: @VincentAmmirato I remain skeptical until algorithm is public. #usguys

VincentAmmirato: @prebynski I would agree. If there is gas in your tank but the fuel gage isn’t reading correctly…you still got gas. #UsGuys

missdestructo: @prebynski @MitchNeff I love it when you two start Klout fighting. #usguys #klout

MitchNeff: @prebynski If it is broken then why not improve it daily? #FailToUnderstand #UsGuys

prebynski: @missdestructo @mitchneff Just another day at the office. #usguys [Guys, put down your Klouts, it's time for dinner!]

VincentAmmirato: @prebynski does that skepticism extend to google’s algorithm, too? #UsGuys

MitchNeff: @prebynski The issue is that you are looking at bot-on-bot engagement. No humans follow them, their Klout is inconsequential. #Usguys

prebynski: Dear @Klout, I’d love to work with you. Holla at ya boy. [RT @MitchNeff: @prebynski If it is broken then why not improve it daily? #UsGuys]

prebynski: @MitchNeff I disagree, again, in all due respect. [Article noted minimal humans. What if one of them was @chrisbrogan?]

missdestructo: @prebynski @MitchNeff @klout needs both of you two to work for them. Seriously, put this knowledge to work. *so I don’t have to hear it.

prebynski: @missdestructo You’re not coming with? (cc @mitchneff #usguys)

missdestructo: @prebynski Yeah yeah yeah. I guess so

prebynski: @VincentAmmirato Oh this could be #epic. And they let me install it on my own server. Hopefully db’s can handle data (@thinkupapp). #usguys

REALChaseAdams: @MitchNeff @prebynski I don’t agree, there are a lot of people who follow bots. ie You following me. #Usguys

MitchNeff: @prebynski Klout is essentially measuring emotion with algorithms. That takes a minute to get your arms around. #RocketScience #UsGuys

VincentAmmirato: @prebynski it is light, and easy, like a Word Press install. I’ll help if you stumble. I’d love to get other opinions on it. #UsGuys

prebynski: @REALChaseAdams Woah, 4th dimension! I am still trying to figure out the 3rd dimension. (cc @mitchneff) #usguys

prebynski: @MitchNeff I’m disagreeing with you all day today. I don’t think they are. They use quantitative data to calculate. #RocketScience #UsGuys

prebynski: @thebrandbuilder What are your thoughts of @Klout service, in 140 characters or less?

jlisak: Would love to know, too! RT @prebynski: @thebrandbuilder What are your thoughts of @klout service, in 140 characters or less?

MitchNeff: @prebynski What is that dat intended to measure? Engagement is connection which is based on how you feel toward a user, good or bad. #UsGuys

MitchNeff: @prebynski The numbers are meant as a heuristic for popularity, how can u argue that? #UsGuys

prebynski: @MitchNeff what’s the over/under my @klout score increases from this conversation? #usguys

prebynski: @MitchNeff engagement means nothing until I define my objective

MitchNeff: @prebynski just b/c you are half robot doesn’t mean it is easy to turn emotion into quantitative data. #JustSaying #UsGuys

moondustwriter: RT @MitchNeff: @prebynski just b/c you are half robot doesn’t mean it is easy to turn emotion into quantitative data. #JustSaying #UsGuys

MitchNeff: @prebynski lol… where’s the community spirit and social good? #GodISoundLikeAHippie #Klout

MitchNeff: @prebynski We ARE SOOOO doing a point/counterpoint Klout article on my blog. #DoneDeal #Klout #UsGuys

prebynski: @moondustwriter @MitchNeff I feel like you’re a glass-is-half-full type of guy. Which is good. Positive-ness breeds success. #usguys

prebynski: @MitchNeff is it creepy if I thought that too? #usguys #tossconfetti

moondustwriter: ya know @prebynski I think @Mitchneff is so good his glass is full (what a guy) #USGuys

prebynski: @moondustwriter @Mitchneff Leslie, I couldn’t agree more. #usguys

Thank you for reading the article and conversation. Your thoughts and additional insights are appreciated.

• #UsGuys
• bitstrategist
• carrie_kane
• delwilliams
• IronShirtMedia
• JenKaneCo
• jlisak
• johnpwooton
• missdestructo
• MitchNeff
• moondustwriter
• mooshinindy
• prebynski
• REALChaseAdams
• SeanMcGinnis
• SEOcopy
• socialfresh
• SoFloWalter
• VincentAmmirato

• Klout http://www.klout.com
• Can Klout Really Measure Influence? http://socialfresh.com/can-klout-really-measure-influence/
• Klout is broken http://www.wewillraakyou.com/2010/12/klout-is-broken/
• Can you become influential on Twitter merely by Tweeting a lot? http://wallblog.co.uk/2010/12/06/can-you-become-influential-on-twitter-merely-by-tweeting-a-lot/
• ThinkUp http://thinkupapp.com/

Enharmonic New Logo

Enharmonic, a private music label, hire Luke Trout Business Communications to create a new logo.

1. Search broad key terms and attempt to filter by location
2. Search specific key terms that are only relevant to a specific location

The landscape of ecommerce is evolving, especially for transaction processes involving software or digital goods.

With the advent of alternative online currencies (possibly most notably known by Facebook credits or Farmville credits, etc.), people are inclined to relinquish real dollars for digital currencies that can be used to purchase software or digital goods.

Industry Stats

Let’s take a closer look at (both your and my favorite) Farmville. “In Zynga’s FarmVille game on Facebook … you can buy a hot rod tractor that can help you grow your crops faster. While FarmVille is free, you pay for the tractor using real money via credit cards or other payment systems.” (Source: VentureBeat/GamesBeat)

“… things have been slower to take off in the U.S. Last year, however, games on Facebook, MySpace and other social platforms finally started generating a lot of revenue. Inside Network estimates virtual goods revenues in 2009 were $1 billion.”

“Virtual goods are expected to hit $1.6 billion in revenue in the U.S. in 2010, according to a report from Inside Network. The most interesting part of that number is that social gaming startups — which didn’t exist three years ago — will account for about $835 million of that total, said Justin Smith, founder of Inside Network and co-author with Charles Hudson of the Inside Virtual Goods report.”

Evolving Pay Methods

Within the industry, lead generation (acquiring contact information of potential customers) is also showing to be of value in exchange for real dollars. Commonly, when executing lead generation campaigns, the cost-per-lead and the cost-per-click are basic metrics that always come into play (as well as derivative metrics thereof).

With some businesses working in tandem to sell software and digital goods with companies that have an objective of acquiring leads, a new process of payment is evolving. This is an alternative for Jane and John consumer to pay real dollars for something they need. Instead, they provide contact information to a 3rd-party in order to receive software or digital goods. The 3rd-party then pays real dollars to the software or digital goods company.

Taking a look at this process:

• Company A needs to sell software or digital goods
• Company B needs to acquire leads
• Consumer X wants Company A’s software or digital goods
• Company A requires Consumer X to provide contact (lead) information to Company B
• Consumer X receives software or digital goods
• Company B pays dollars to Company A

In a nutshell, here’s what I mean…

(This graphic was made by yours truly, using wicked PowerPoint and Paint skills — circa 1995)

TrialPay is one company providing an alternative consumer payment service. “TrialPay works with thousands of software, social games and digital goods providers and has served 60 million users across 100 countries. TrialPay invented this ad-funded payment model back in 2006, giving rise to the next wave of online payments and advertising.”

The TrialPay process is similar to that noted above.

What Would You Do?

Knowing that non-dollar options could continue to become more prevalently available for you (as a consumer) to acquire software or digital goods, would you be willing to exchange your contact (lead) information instead of paying for the software or digital goods with dollars?

If so, what is the minimum or maximum you would be willing to offer your contact information for (it is assumed you would also be placed on the email list to receive regular emails from Company B), as opposed to traditionally paying for the software or digital goods with dollars?

• Company A needs to sell software or digital goods
• Company B needs to acquire leads
• Consumer X wants Company A’s software or digital goods
• Company A requires Consumer X to provide contact (lead) information to Company B
• Consumer X receives software or digital goods
• Company B pays dollars to Company A

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