Archive for May, 2011

Higher Yielding Stocks Are A Better Value On Empire Ave

May 31, 2011

If you increase your div/share score (dividends per share) on Empire Avenue (EA), the number of people who will invest in you will also most likely increase. One of the main objects of the game is to earn eaves. The higher the ROI (return on investment) you receive from those you invest in, the more money or eaves you will have to spend and invest. When considering buying shares in another individual, be sure to look at their div/share score. If the user’s share price is $20 and their div/share score is $.20 they basically have a 1:1 ratio. The general rule of thumb on EA is to invest in shares that pay at lease a par value compared to price.

You don’t need to invest in the high priced shares like Chris Pirillo or Chris Latko to feel you are earning a high ROI per dollar you invest. Pirillo’s stock is currently only paying a 1.13% return so it costs you a lot of eaves to max him at 200 shares only to earn $452/day. It is unlikely that Pirillo’s stock will continue to climb at a significant rate, so generating a high ROI on the actual price of the shares is not that high either.

A better value might be a stock such as Balazs Rosta (SOCI) who currently has a 1.45% return. Share price is $65.43 but her div/share is $.95. So for each share of stock you own you will earn $.95 but that ROI costs you a lot less eaves to buy 200 shares and the yield is better than the big name stocks. Balazs probably has a better chance of increasing her share price to say $100/share as well so as you hold her stock, the increase in share price can provide a nice ROI as well.

Key point to note, the div/share that you personally earn each day from shares you are invested in do not count towards your daily eaves that you in turn pay out to your shareholders. You may be a wizard at buying high yield stocks and quickly pass the $1mil in net-worth on EA, but unless you are active on the social networks you have connected to EA your personal div/share score will not increase much. You need to be active on social media to earn a high div/share personally.  A high div/share is one of the most appealing ways to get others to invest in you so you might as well get active, it can make the game way more interesting when everyone is buying up your stock!


David Gosse’s initial thoughts on Empire Avenue

May 24, 2011

Empire Avenue is a new social media authority ranking website. Like Klout, Empire Ave assigns a score to each user, in this case a stock price, and that score rises based on the user’s total social media participation on the major social networks like Facebook and Twitter. The more active/engaged the user is, the more fellow users feel your stock price will rise. As stock prices rise, wealth is created by users who hold the shares. My profile is GOSSE.

Although the system is gamey and games tend to fade in interest over time, I personally believe that EA will overcome the flaws of an ego-driven, who is popular who is not popular game and turn EA into a truly valuable authority reference system. A simple case-in-point, EA helps guide users to setup and be active on very specific social networks that are a strong signal on the social web. Many users might be active on Twitter and Facebook, but not on photo sharing mobile apps as an example. As mobile photo and video apps grow in popularity, their activity/participation can greatly impact your social authority. I believe the simple element that EA helps guide users to know what social networks most impact your social authority will be invaluable over time as the matrix grows and is refined. There are simply too many social networks for each user to actively participate in, so channeling efforts into the most meaningful ones is important to know.

Policing users who try to “rig” the system and overly inflate their stock price (score) will be a big challenge. Sadly, many users spend huge amounts of time working on artificially inflating their score when they could channel that same effort into actually participating and engaging on the main social networks that influence your EA stock price. Ideally there needs to be a mental shift or understanding from users that in life, those who are really popular or authoritative, are the ones who focus on true participation instead of short-cuts. If EA can tune their algorithms to truly reward real participation vs. gamed participation, the share price valuation could be a very valuable authority signal.

Give Empire Ave a try. It is worth understanding how development logic is evolving in the web reputation management space. I personally find it fascinating to see what motivates users to spend time on a new social network. There is only so much engagement bandwidth that each user can allocate in their day, and anything that is gaining traction in the crowded social space is worth looking at. Although far from perfect, I think EA has definitely produced something that’s gaining the attention of some very authoritative socialites such as Chris Pirillo, Robert Scoble, Jeremiah Owyang and brands such as Xbox, Ford, Intel and many others.