Along with perhaps satisfying their intellectual curiosity, community members trade shares in the ideas because they want to gain additional units of points. With these points, they can acquire whatever rewards you offer them, either through IdeaPlace's Store capability or through some other means you manage outside the portal.
The Community Administrator should think carefully about the settings applied on the Administration page for points as well as Store functions, before launching the community. For example, IdeaPlace prices the shares based on the probability that the community will implement the idea in question. In doing so, IdeaPlace takes into account:
- Where the idea stands in the funnel (i.e., ideas in the first stage have a lower probability of being implemented).
- Momentum, or pulse rate, of the idea (i.e., ideas with lower pulse rates have a lower probability of being implemented).
How it Works
IdeaPlace assigns lower prices to ideas with lower probabilities of being implemented. IdeaPlace gives Outstanding Shares a weighting of 4 by default, which represents an overweighting relative to the metrics of Conversational Level and Popularity and equal weighting with the third metric: Rating.
You can adjust IdeaPlace's pricing model by setting various limits, which is described in the following examples. With each example:
- Enable the appropriate market model (described below).
- Enable trading to occur in the first stage.
- Contribute an idea.
- Attempt to buy shares.
Example 1: IdeaPlace assigns a price of $1-2 per share, pricing shares of ideas that close successfully at $100/share. Result: If the community implements the idea in question, then the payoff to the community member can approach 100:1.
Example 2: IdeaPlace assigns a share price of approximately $50 to a newly created idea with no established pulse rate. Result: The payout can approach 2:1.
Example 3: A community member can earn substantial units of points from trading and, in particular, from successfully predicting which ideas the organization chooses to adopt, especially if they invest early. Result: This outcome is perfectly acceptable and supports the risk-reward model that underpins all markets.
These payouts reduce the probability of large payouts by limiting how the system assigns the initial share price, and restricting community members to invest only what they have earned (i.e., no buying on margin).
It is important to ensure that any newly-minted “tycoons” within your community do not overwhelm your community store or rewards system.
How to use the Aggregating Points Feature
There are multiple uses for aggregating points.
- For reporting, use the Ad Hoc > CrossTab settings. Community for the column. User for the row. Networth for the cross section.
- For store purchases, use Admin > Store > Aggregate Currency for Store Purchases setting.
- For leaderboard, use Admin > Turn on/off Features > Show Leaderboard Content from All Sites setting.
- For idea trading, use Use aggregate points to buy idea investments setting. This setting is configured by IdeaPlace support.
If your site is an aggregate and shared currency is turned on then the points from the main community are used first, followed by points from other communities in descending order of point totals per community. For example, a user is a member for four aggregate communities and has a total of 250 points distributed as:
- Community1-75 point (main community)
- Community2-100 points
- Community3-50 points
- Community4-25 points
If this member uses 150 points, the points will be deducted first from the main community. The remaining balance will be deducted in descending order of point totals per community. In this case, the remaining 75 points will be deducted from Community 2 as this community has the highest point total, leaving a balance of 25 points. No further point deductions are required as the 250 point total has been met. If this member uses more points, the points will be deducted first from Community 3 (the community with the highest point total, as the main community now has a 0 point balance).
New Account Currency is a community-specific setting. The points can be awarded through multiple Communities/Challenges, but only once per Community/Challenge. It's recommended that New Account should be the same for each Community/Challenge. In order for the points to be awarded, the user must access the Community/Challenge directly. The currency will not be awarded until the user logs in for the first time.