We are Excited to Announce a New Feature:  The Kickfurther Score

Posted by Melissa Pillion on Monday 01 Aug 16

The Kickfurther Score is a methodology we have developed to help Buyers review and evaluate Co-Ops on Kickfurther. It is a consistent scoring measurement that takes into account the most highly correlated parameters related to Co-Op performance, and summarizes this information into a single, consistent, alpha-numeric score that can be compared to other Co-Ops. Similar to how credit scores are used to determine the creditworthiness of a business, the Kickfurther score is intended to provide a similar standardization for Co-Op evaluation.  In order to provide Buyers with the most possible transparency, we calculate and show this score for each Co-Op on Kickfurther, and show the individual values for each parameter that make up the final score.

To create the Kickfurther Score, we first created a methodology for determining how well a Co-Op was performing. To do this, we measured the ratio of the actual amount of capital paid out to buyers versus the expected amount of capital paid out to buyers for a Co-Op at any point during it’s duration. We call this variable Co-op Health. This ratio is greater than one for Co-Ops that are ahead of schedule, and less than one for co-ops that are behind schedule.

Using Co-Op Health as the basis for how well a Co-op is performing, we ran statistical analyses on all the parameters that we collect on each Co-Op, and determined ones that were most highly correlated with Co-Op Health. We then assigned a score to different values of each of these parameters based on how strongly they were correlated. These individual scores are then added up to arrive at a single score, which is presented in a simple alpha-numeric grade for each Co-Op.

View each Co-Op's Kickfurther Score moving forward from the Co-Op overview page next to the credibility metrics tab:

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An Explanation of Some of our Kickfurther Score Parameters:

Average Margin - Average gross margin is a vital Percentage Sold for Completion (PSC) component. A large margin indicates a higher PSR, and a higher PSR makes it easier for the business to complete the co-op on time.

Annual Revenue / Co-Op Size - The ratio of annual revenue to Co-Op size sheds some light on how large the Co-Op is compared to the businesses current size. A large revenue to Co-Op size ratio indicates the business has ample revenue, and therefore more resources to help complete the Co-Op on schedule.

Social Reach - A larger social following is indicative of an engaged customer base. In general, a business with a large social reach has a greater likelihood of generating sales from those followers, and therefore a greater ability to complete the co-op on schedule.

Alexa Global Rank - Web traffic is a prerequisite for eCommerce revenue. A high Alexa rank means more people are visiting the business’s site, and therefore there is a higher likelihood the business can turn those visits into sales and complete the co-op on schedule.

Percentage Covered by Purchase Orders - Although not all businesses have POs as part of their sales process, when a Co-Op is made up of existing purchase orders, the variability of estimated sales decreases, and therefore the ability of the business to complete the co-op on schedule increases.

Third Party Reviews - Third party reviews indicate the level of customer satisfaction, and are used by future customers when evaluating purchases, therefore the high third party reviews are a good indication the business can complete the co-op on schedule.

We are constantly evaluating Co-Op performance, and will continue to improve this score for better insight for our users like you. If you have any further questions, or would like to suggest ways we can improve the Kickfurther score, please let us know!

**Kickfurther, by providing the Kickfurther Score, is not making any assurances, guarantees, or warranties as to the safeness or riskiness of any Co-Op. Although businesses on-boarded to the Kickfurther Platform undergo a screening process, users should not only rely on a Co-Op's Kickfurther Score and our screening process. A Co-Op's Kickfurther Score may not be an accurate representation of whether or not a Co-Op is a good fit for you, and does not provide any guarantee or assurance of  whether it will succeed or fail.**

Posted by Melissa Pillion on Monday 01 Aug 16
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