What you need to know about how Klout works ...

What you need to know about how Klout works ... 10/12/2011 In This Issue Do me a favor ... How Klout works Klout Kompetitors Klout Tasks @L2_ThinkTank Digital IQ Index: Fashion [VIDEO] Share the @L2_ThinkTank Fashion video using the @BuzzFeed platform. Here it is: http://www.buzzfeed.com/linzshelton/l2-digital-iq-index-fashion-the-video-47an Not only is the video fantastic (I didn't help with it, so I'm entitled to say that with no bias!) I'm also doing an experiment with @Buzzfeed and I need your help. In return, I will retweet you, from my handle and L2's (using my discretion there of course!) Thanks! Kloutsters, I'm two Klout Tips behind (again). That's casing's fault. Sorry again. However @MrMichaelMorgan is the only one who has been encouraging me through the slump with the necessary motivation, so I encourage you all to learn from him :-) Many of you have asked great questions about how Klout works (what it measures, how it weights different elements of influence ... all kinds of juicy stuff about how the scores are generated.) Here's my attempt at an explanation. We can go into more depth as specific questions arise, but here's the highlight reel of my understanding of the platform. What you need to know about how Klout works: @JoeFernandez says it very well in @Forbes "It really boils down to what the likelihood of the content you create on social networks is being acted upon; people commenting, clicking links, liking, retweeting, whatever it might be. And then we look at how influential the people are who do that. Ultimately, when we think about influence, it's really about the ability to drive others to action." Klout measures your influence on thee factors: True Reach: How many people you affect and drive to action with your content (and not just how many follow you, it's how many actually engage with your stuff.) Amplification: What is the likelihood your content will spread throughout your network? Think of it as throwing a stone into a pond: how many ripples out will it travel? Network Impact: If somebody really influential is influenced by you, that helps your Klout score LOTS. So if CNN, or Lady Gaga, is inspired to retweet something you've tweeted, that's a lot more valuable than Captain Mischief retweeting you. Key Points: It doesn't matter how many followers or friends you have. You must engage your community, regardless of its size, to achieve a high Klout score. This means putting out good content people care about. No way to game the system there. Adding networks on which you are a total loser does not negatively affect your Klout score. Don't use Instagram? No problem. (You're missing out, because it's awesome, and you should get on that, but it won't affect your Klout score.) Klout looks at where you're strongest & everything else is 'extra credit.' Klout updates daily for now. It may move to updating in real time eventually. But ask Joe about that, don't quote me. Klout has competitors, but for now they really own this space. There are other tools out there to measure social influence: PeerIndex Twitter Grader Kred <-- the only one you should care about. KRED's value prop is twofold: transparency, and contextualizing "reach" on various topics sorted by communities. You can read more about that yourself, but to me it's irrelevant. Klout accomplishes the contextualizes your influence just fine (better, in my opinion) through their recently launched Topics Pages. Read more about that too. So for the time being, Klout is the dominant force here. 3,000+ companies use their data, they have a massive team of data boffins (word I learned today!) churning out constant improvements, tweaks, upgrades, etc. And if that's not enough to strike a chord with you bschoolers, they just secured B round of funding from Social Leverage, Kleiner Perkins, Thomas McIerney, and some other heavy hitters in my hometown. So recognize! All that reading should keep you busy for a while, enjoy! -- Linz Shelton Mobile 310.402.3240 | Twitter @Linz_Shelton MBA 2012 | NYU Leonard N. Stern School of Business Co-President, NYU Stern Luxury & Retail Club Founder | CUFFZ Inc. *Watch the latest CUFFZ by Linz video: http://www.youtube.com/watch?v=UWCVHa8xE0I *