Quantified Value Add (“QVA”)

Details about QVA, and the Calculation Methodology

Please refer to Figure 1. Consumption Analytics below for details on QVA metrics.

Key Definitions

  • QVA = 75% * Engagement Points + 25% * Collaboration Points.
  • QVA Share (%) = Your QVA / Total QVA.
  • QVA 3M Share (%)(or QVA 3M) = 3-month rolling average of your QVA Share.
  • Your Monthly Payment = At least 70% * Smartkarma Subscription Revenues * Your QVA 3M Share for every month where you publish at least one Insight.

Methodology

  • The Smartkarma Platform captures all on-platform interactions and groups them into Engagement and Collaboration metrics (Figure 1. Consumption Analytics). As you can see, we have incorporated new metrics to take into account use of a broader feature set.
  • The metrics are weighted to adjust for relative frequency to get an even-balance between low- and high-frequency activities. These are then aggregated into Engagement and Collaboration Points for each Insight Provider.
  • Engagement and Collaboration Points are then compiled into a single metric, your QVA.
  • Adding up the monthly QVA for every Insight Provider gives us the Total QVA and thus, every Insight Provider’s pro-rata QVA Share.
  • We then compute the three (3)-month rolling average of QVA Share. This smooths out periods of lower activity (vacations, for example) and provides consistency. It also means ratings can be more reliable.
  • This method means new providers’ shares will gradually roll in over three months, and you need to expect this. It also means that when you have a particularly busy or popular period this will roll your share up over three months.

Note: the number of Insights published is not in itself a good guide to the value added to clients. QVA is designed to be a much broader and wholesome measure. It is reflective of a consistent improvement in quality and usefulness. For instance, your QVA can go up while you keep the number of Insights published constant, so long as those Insights are driving more discussions, questions, viewership, etc. 

Note: We do not count public views at all. It This is about not causing controversy or click-bait among the “public” (we work hard to market the platform and do deals to increase subscriber numbers for you!).

Figure 1. Consumption Analytics

Key Engagement & Collaboration Metrics (not exhaustive)

E = Engagement Metrics, C = Collaboration Metrics. ** Adjustments w.e.f. Nov 2017.

QVA for Teams (BETA)

Due to the rising participation of teams of analysts on Smartkarma, we have expanded the My Analytics Tool (now called QVA Analytics) to enable Team Leaders to monitor Analyst metrics across the firm as well as on a per-analyst level. Please contact your Smartkarma Account Lead to assign your Team Leader.

How does Smartkarma assess payment?

We believe in creating a simple meritocracy. Those adding the most value at any one point in time, get paid the most at that point in time.

This chart shows cumulative QVA (and hence, the amount paid out) on the left-hand axis versus all contributing external Insight Providers. The top 20% in any one month generate over 60% of the QVA and hence collect nearly two-thirds of the total payout pot. We do not expect this aggregate dispersion to change. This analysis also helps us ensure our QVA measures are fair to all.

A Final Point

The total amount of revenue to be distributed each month is purely based on the total amount of subscription revenue paid by clients. Everything we do at Smartkarma is designed to facilitate the highest quality, most valuable and addictive experience for our collective clients.

Ultimately, it is this that has by far the biggest impact on our individual pay-outs. QVA is simply a mechanism to fairly and meritocratically distribute this revenue.