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What you need to know about #EAv’s new dividend structure

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Empire Avenue felt their dividend algorithm was to easy for spammers to exploit and recently changed it up. I used to be the #1 earning influencer in the US., now it’s Chris Pirillo. To me it makes sense that he should be there over me (I know you probably disagree but it’s ok, he’s a cool dude). This suggests to me the changes are having the proper effect. Remember: We are all affected by these changes. Even if we don’t like them we are still on the same playing field and all under the same system. If everyones divs go down together has anything really “changed?” 

Here’s what you need to know about Empire Avenue dividends:

Reactions are more important

Across the board comments, likes, shares, and other responses to your activity have increased in earnings potential. Meanwhile posting has activity has remained constant or declined based on the network.

How it affects your dividends: If you send out a massive stream of garbage no one likes your divs are going to go down a lot.

Dividends are more heavily affected by network scores

Lets say an individual with a Twitter score of 25 produces 50 in earnings from Twitter. The same day someone with a Twitter score of 50 produces 50 in earnings from Twitter. Theoretically the second guy will produce twice as much in dividend payouts from Twitter as the first guy.

How it affects your dividends: If you have a low score then you are probably producing a lot less dividends from that network than you used to. Focus on growing the size of your network if you want to increase it’s score and dividends.

Only 5 networks produce dividends

Previously dividends were paid from every network active that day. The more networks you had hooked up the more you could produce. This wasn’t fair as someone that had a huge community on 1 or two networks couldn’t produce as much earnings as those that spammed every single network. Now dividends are based only on the 5 highest earning networks that day (not the networks with the highest network scores).

This reduces stress as well as spam exploitation. You only have to focus on 5 networks rather than trying to keep up with every single one.

How it affects your dividends: Previously I maintained high activity on FB, pages, EAv, Twitter, Flickr, Blogs, 4sq, and Instagram. That means I was creating earnings from 7 networks. These earnings were all used to calculate my dividends. With recent changes 3 of them got cut off. Of course cutting out 3 networks had a huge impact in my dividend payout. If you were active on over 5 networks then you most likely saw a pretty large hit to your dividends.

Blog posts got nerfed (effectiveness reduced)

You used to be able to crank out 100 posts through various ways and really crank up your dividends. Now there is a very minimal flat amount associated with it. If you are active on 5 networks it probably won’t even come into play (LinkedIn pays the same way). It’s really just a backup in case you are active on fewer than 5 other networks.

How it affects your dividends: If your blog posts produced a lot of earnings, or are in your top 5 for activity, then you get a big hit to dividends.

Flickr and YouTube uploads got nerfed

Uploading 200 pics to Flickr and 5 videos a day to YouTube produced a lot of earnings. Now the actual uploads produce much less and comments and favorites produce much more.

How it affects your dividends: If you don’t get any comments on what you upload you are wasting your time. Rather than upload 200 pics try and get comments/faves on a few.

Twitter calculations updated

Previously earnings were more or less based on how many tweets you could broadcast and ignored RT and replies. The new system gives credit to people engaging with you rather than just being based on how loud you are.

How it affects your dividends: If you tweet 100 times per day and get little to no replies or RT you are probably getting hit here. If you tweet 10 times per day but get a ton of replies and RT then you might be seeing an increase in dividends.

There are essentially 2 formulas that calculate your dividends.

  1. Earnings calculation – The first formula looks at all your network activity and adds up the “earnings.” Earnings are based on posts as well as responses to those posts (likes/RT/comments/etc.)
  2. Dividend Calculation – Only the top 5 earning networks for the day are taken from the earnings. Then the network scores are applied to the 5 top earning networks to determine the weighted dividend.

I’ve determined these items from my experience, discussing things with other influencers, and the blog post from Empire Avenue developers about the dividend changes. After a little more analyzing I will report on efficient ways to produce quality dividends under the new earnings system. In the meantime please let me know if I missed anything or have any incorrect statements. Until then I leave you with a dividend tip: Instagram.

 

Revisions

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  • http://www.facebook.com/anne.thomas1 Anne Thomas

    Thanks Scott :) You may be the only one on the planet to understand the new rules so well :)

    • http://penguinspark.com Scott Wendling

      I don’t know about that. But thanks for the kind words.

  • http://successhowto.com Hezi

    Hi Scott. Thanks for the clarifications. I have suffered a huge dividend cut in the last algorythm change (0.9->0.57). Will check Instagram, and looking forward to hear your report on ways to produce dividend in the new system.

    • http://penguinspark.com Scott Wendling

      Ouch. Definitely check Instagram. Unfortunately it’s only on iPhone. I use it on my wife’s phone. I take pics with my Galaxy S2 with 8mp camera, send them to her, then use Instagram with her iPhone. I really like Instagram though so I don’t mind the hassle.

  • http://about.me/GrahamGudgin Graham

    So, we’re dinged for not being Apple fanboys? That doesn’t seem fair at all?

    • http://penguinspark.com Scott Wendling

      I don’t like it either. I have to use my wife’s phone. Fortunately I really like Instagram.

  • http://autismspectrumdisorders.bellaonline.com Bonnie Sayers (e)AUTISMFAMILY

    I agree on Instagram. My score is moving up last few days and tied with flickr and my fan page so almost daily my 5th score is one of them.

  • http://www.brandcottage.com Patricia Wilson

    Excellent. Thank you!

  • http://ArtJonak.com Art Jonak

    Great, great summary Scott! Have a great weekend!

  • http://twitter.com/dwaynekilbourne dwaynekilbourne

    Well, if only Instagram would build for Android… until then, I will take my chances with my number 2 spot on the foursquare leaderboard and some solid RTs! #EmpireAve

  • http://www.facebook.com/inspiringleader Gabriel Flores

    Thanks Scott! Great post, my friend :-)

  • http://www.facebook.com/inspiringleader Gabriel Flores

    One more thing buddy – I don’t have an iPhone – so can’t use Instagram, I don’t think… so does that mean bummer for me – or is there a way to access it on the Blackberry?

    • http://penguinspark.com Scott Wendling

      Bummer for you. Right now Instagram is iPhone only (posting is at least). A couple months ago they announced they were hiring people to make an Android version. Who knows when we get that.

  • http://www.facebook.com/amandahilluk Amanda Hill

    lol… yep mine dived but I don’t go bonkers on all platforms anyway… however… instagram is fine if you use an iphone… I love my blackberry…
    Thanks for this x

  • http://www.facebook.com/purgly Jorge Purgly

    Hello Scott. I found your article very interesting. I am kindly asking for your previous permission to translate it and publish it on my blog in portuguese of course with all credits and links to your page. Please send me your response to jorgepurgly@gmail.com Have a nice weekend, Jorge Purgly

  • http://www.facebook.com/inger.verheul Inger Verheul

    Thank you Scott! I think My div’s will stay about the same in the new system… I wasn’t able to “spam” all networks in the past anyway ;-)
    I would be nice if they would have something in stead of Instagram… I don’t have an iphone and it would be nice if they would think of the rest of the world too… like Picplz (works great!)

  • http://twitter.com/tropigal tropigal

    Wow, things have really changes since I left EA. I’d be lost if I went back.

  • http://www.martingysler.com Martin Gysler

    Hi Scott! Thanks for this great post. With all your information is easier to understand.

  • http://www.facebook.com/techie.minx Michelle D Harris

    Wow, thanks Scott, now I understand (mostly) – I’ve been hoping someone would do a post such as this, everything else I read didn’t really make much sense. I actually like the bit about twitter :) And flickr …

  • http://www.facebook.com/profile.php?id=609913480 Peter Radzio

    Thanks for the explanation. It certainly helps.

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  • http://empireav.wordpress.com @PaulSteinbrueck

    Scott, thanks for this post. You did a great job explaining the impact of EAv’s recent changes. I also appreciate the fact that you seem to be generally supportive of the changes EAv has made in their attempts to devalue social media spamming and reward engagement.

    I’m giving you props & helping to spread the word about this post on my blog: http://ow.ly/6YOcD

    • http://penguinspark.com Scott Wendling

      thanks for the luv

  • Liz

    Scott, before this current change, Dups said that EA only counted your top 5 social media platform. I remember him mentioning this in early September. And, according to the EA FAQs, they always had a blog cap that devalued posting 100s of posts (see the section on “Excessive Blog Activity”). That’s why I could never understand why some people had dozens of RSS feeds on their Connections page because they weren’t counted towards the user’s dividend rate at all.

    • http://penguinspark.com Scott Wendling

      They used your top 5 networks to determine your price. Here’s what they said in the recent blog post, “So high dividends would frequently come from accounts posting large volumes of content to every network they have.”

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  • Mefance

    Great post Scott! It’s very useful to me :) )

  • http://twitter.com/FixedOpsGenius FixedOpsGenius

    Scott, a possible flaw is if your top “earnings” for the day came from a low score network, that could create a low div for that network vs a lower earning network getting multiplied by a higher network score for a higher div.

    It might be better to start loosing some networks that are lower scored so you don’t have that happen?

  • http://twitter.com/RayBeckerman RayBeckerman

    Excellent article, Scott; you described it a lot better than EA’s own blog post.

    I guess this new algorithm is a step up, but it sounds like it’s still fairly easy to game it, because it’s still based principally on artificial things.

  • http://www.facebook.com/profile.php?id=552723852 Randy Gage

    Thanks for putting this together!

    -RG

  • http://reflectionspn.wordpress.com Pratyush Nalam

    Amazing Scott! Would you like to guest blog on Empire Avenue for me?

  • http://www.orglearn.org/ Richard Townsend

    Very informative. Do people really tweet 100 times a day. I think even ten is too many, I reckon 2 to 5 is best and maybe a couple of repeat tweets to cover time zone differences. Ric

    • http://www.facebook.com/people/Jason-Venter/673925809 Jason Venter

      It depends for me, but on a busy day, I might tweet close to 100 times and not because of any effort. I see Twitter almost as a chat stream with other people in the industries that interest me (video games and social media), so it’s not too much tweeting if I’m posting interesting things or taking part in some great discussions. If you view Twitter as a place where people comment about what they’re eating or that they’re on their way home from work, yeah, 10 posts is too many. It all comes down to the engagement that you’re getting out of Twitter. Side note: Twitter is one of my best networks, and probably the one I use least with Empire Avenue specifically in mind. Natural engagement still yields the best rewards, and that’s a positive change.

  • http://twitter.com/TheaBredie TheaBredie

    I’m with Anne on this one, thanks for the expert analysis Scott, and for the eaves:)