Zidisha tips

Discussion in 'Zidisha | Fostering Peer2Peer Entrepreneurship' started by KyRoamer, Jan 22, 2013.  |  Print Topic

  1. KyRoamer
    Original Member

    KyRoamer Gold Member

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    You can generate an "invited by" link by sending an invite email from your own lender account to yourself. Then, just open the link to the Zidisha website that is included in that email, and copy the URL that displays in your browser. That URL is your "invited by" link. It will work in emails, blogs, twitter, etc.
     
  2. fcjapan

    fcjapan Gold Member

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    You can increase the already impressively high 97.77% repayment rate to 98.82% by selecting Kenyan loans.
    Additionally, I recall Julia mentioning somewhere that 2nd time borrowers had less risk than first-timers (Julia, if you read this, do you have any stats on this?)
    So Kenyan loans of $1000 or greater (borrowers asking for MORE THAN $500 dollars seems to indicate they have paid off a previous Zidisha loan) would probably put it over 99% repayment rate.

    However, I am still new to Zidisha and this is my perhaps, faulty understanding/assumption. Please correct/improve or otherwise chime in.

    Other considerations:
    -diversifying out of Kenya probably reduces overall portfolio risk, but for newbies that only want to try things out with a loan or two, Kenya might be the best choice
    -I only really looked at Kenya and Senegal as only they have enough completed loan data to be more reliable.
    -I did not take FX risks into consideration at all. Not sure which currency is most stable/least risky.
     
  3. fcjapan

    fcjapan Gold Member

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    Overlooked it, but plopping your wad on a single loan carries more risk than spreading that same amount over multiple loans (i.e. better to do 5 loans for $5 each rather than one loan @ $25).

    Also, it is possible to further reduce your risk by finding any loans with jbcarioca already on it and lend there, as my NSA sources have informed me that he had a lucky horseshoe surgically implanted up his butt.

    If you lend with me and that borrower somehow defaults, I will just point and laugh at you. Like this ==> :p
    Therefore I recommend lending with KyRoamer as he will properly commiserate, and may even be up for an actual cuddle.
     
  4. KyRoamer
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    KyRoamer Gold Member

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    Use invites to double your impact and the team's impact.

    fcjapan noted that

    If I understand correctly, your account would get " impacted" from anyone that joined using that link. I think this means that if someone loaned $100 after using the link, the Milepoint team would then be credited with $200 ($100 from that loan and then another 100 from you for having invited them).​

    Julia confirmed that this is true. So I am going to start an invite thread and post my link, https://www.zidisha.org/index.php?refid=3284. The goal is to get everyone who is not a Zidisha member and joins to use a link.

    I urge each of you to get your own links and post then there so we can all share in referrals.
     
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  5. zphelj

    zphelj Gold Member

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  6. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Is this just an accounting gimmick, or does this actually increase the amount that is loaned out to someone? (if so, where does the extra $100 come from).
     
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  7. KyRoamer
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    KyRoamer Gold Member

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    Programming budget issue I suspect. Team impact equals sum of individual team member's impact. So if I invite you, my impact is my loans plus yours. When you join the team, that does not reduce my impact. So 1 and 1 equals 3 ((1+1) + 1). Zidisha tracks impact not total loans, still there is no reason for double counting.

    BUT AS LONG AS ZIDISHA DOUBLE COUNTS, MP'ers will find ways to use that to the team's benefit. So encourage people to join via referral links.
     
  8. fcjapan

    fcjapan Gold Member

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    I think of it as a permanent "double your impact" but it does NOT increase the money lent to the borrower. It increases the money to the team(s) and inviter only.

    So if someone joins using your link, and loans $100, then I guess the logic is that you are personally responsible for having increased overall Zidisha lending by $100 for having invited that person, and they give you credit for it (not cash credit, I mean to say acknowledgement of your good deed), which I think is well-intentioned.

    I prefer not to post my invite link as it will skew my stats and end up confusing me, which is easily done these days :)
    But please do use any other member invite link and double Milepoint's impact.
     
  9. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I'd like to know my true impact. If I lend $100, that's my impact. If I bring someone onto the site and they lend $100, i think that's their impact. Perhaps my definition of impact is just different. Because otherwise, If I got impact credit for bringing them on board, why don't get I (partial?) credit for anyone they then bring on board? Is that beginning to sound like a pyramid scheme? ;)
     
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  10. fcjapan

    fcjapan Gold Member

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    Maybe you would get credit, maybe we should try. Make a chain, and get Milepoint into the billions of dollars of impact :p
     
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  11. KyRoamer
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    KyRoamer Gold Member

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    Like I said, I think it is a programming (budget) issue. I think impact is an OK concept but would prefer to see dollars loaned determine team ranking. On your own page you will see your loans outstanding, open bids and past loans as well as loans by invitees. So fcj, linking wil up your impact but still show you what you have done.
     
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  12. fcjapan

    fcjapan Gold Member

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    I would rather it show stats for dollars loaned rather than "impact." Maybe just needs getting used to.
    But I also like the idea of somehow acknowledging members that bring many new members.

    The team pages might become misleading to some though, if they grow. In the future, perhaps adding all team loan amounts together might be a larger amount than overall loans on Zidisha (seeing as every loan credits every team you join).
    But I do like being able to credit all of my teams for each loan rather than having to choose between them.
     
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  13. fcjapan

    fcjapan Gold Member

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    Zidisha tips -- I guess this incorporates "Adjusting to Zidisha"

    Things to remember (funny that some (myself included) have been conditioned so that the following isn't common sense):

    -loans that expire unfunded actually mean the borrower does not get the money
    -the person in the photo is the actual borrower of your money
    -the interest rate is the actual rate of interest (flat) that the person in the photo should pay

    Feels kind of weird at first, but you get used to it.
     
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  14. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Really? All the teams get credited? (clearly I haven't spent enough time with Zidisha, and I joined just one team).

    I fully realize that this isn't the core functionality of Zidisha and just "gamification" , but I definitely don't like this inflation of amounts. I don't see any benefit in creating the impression that more was loaned than really was. i guess this thinking might come from spending years working on financial accounting software ;)

    Again, not core functionality and unlike many here I personally am not very focused on team stats to begin with. I do like the sharing of knowledge aspect, but I don't personally am motivated by team goals. That's just how I roll. The MP kiva team numbers are impressive; would I consider them impressive under the Zidisha model?
     
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  15. fcjapan

    fcjapan Gold Member

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    I agreed with you at first, but have changed my mind.

    Strict accounting rules are obviously an absolute necessity for actual payments from both ends.

    But for teams stats, I would guess whatever does the most amount of good takes priority over strict accounting (Next important, is fun:) ).
    So the marketer inside of me just won the armwrestle with my inner accountant.

    Much like Kiva, which also has inflated numbers.
    Expired loans are still credited and added to the totals.
    The $25 free loans for new members, and the $25 for inviting when those people or teams members did not actually pay. etc.
    Strict accounting is important.
    Doing greater good by bringing in more money and lenders should be more important.
    As on the insights vid there, each of those free loans ended up bringing in an additional $40 each. This is worthy enough (a huge success, in fact) to allow a funner accounting style on the team stats and calculations, which don't really matter so much anyway as you say.
     
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  16. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Another reason I don't like the double-counting of funds:

    Zidisha seems to use the term "Impact" to describe different things. E.g., if the group's "impact" is not the actual loan amount, how do I interpret the Impact in these stats:

    zidisha_impact.png


    I *assume* the USD 735,605 doesn't double-count anything... right?
     
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  17. fcjapan

    fcjapan Gold Member

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    I had assumed so, but when you lay it out like that, or rather, point out how they have it laid out, maybe it is a wrong assumption.

    Julia?
     
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  18. Julia Kurnia

    Julia Kurnia Silver Member

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    Hi fcjapan, HaveMiles and KyRoamer,

    Thank you for highlighting this. I see now that the fact that we are counting both loans made by invitees and gift card recipients in an individual lender's "Total Impact" can lead to confusion regarding how our organization's statistics are measured.

    I can confirm that the "Loans Raised" statistic under "Our Impact" does not include any double counting. It is the cumulative value of loans that have been funded via our website since our founding. So as of today, our members together have lent a total of $735,605 via our website.

    Best,

    Julia
     
  19. fcjapan

    fcjapan Gold Member

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    Julia, we really need a better way to keep track of loans and our portfolios.
    I would say a toss up between attracting new lenders vs. existing lenders digging deeper to lend. These would be priorities IMO for allocating existing resources.

    For me, I put some money in. Not used to breaking out the abacus myself.
    So at this point, from my perspective (keeping in mind I am a bonehead):
    -I have no idea how much I have deposited with Zidisha.
    -I have no idea when money comes back
    -I have no idea how much is coming back
    -I have no idea if money should have come back but did not

    It is laid out on the lender "my impact" page, I am aware of this.
    I can manually verify, so I am not particularly concerned. If I only made one or two loans it would not really be a problem, but your system dissuades people from the digging themselves too deeply into the Accounting Hole of No Return and Painful Computations.
    I only really got involved so that KyRoamer would not publish the naked photos of my goldfish, and I succumbed to contributing, but I have those negatives now so he no longer has leverage over me.

    At the moment, my account balance has actually become negative, and all numbers are not adding up. I don't really care personally, it might even be right, no idea, but you should really sort this out.
     
  20. Julia Kurnia

    Julia Kurnia Silver Member

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    Hi fcjapan,

    Thanks for taking the time to share this feedback. If I understand correctly, it's important to be able to track the value of your Zidisha loan "portfolio" - not only credit currently available and the amount you have paid into it historically, but also the value of loans that are still being repaid. Having a way to track the value of loans that are not yet paid back, interest earnings and losses to default or to currency fluctuations on the aggregate level would make it easier to ensure that the value of your loan fund is being preserved over time. Is this what you meant?

    I'm sorry for the confusion about the negative balance in your lending account. This was due to an unusual circumstance: the reversal of several loan repayments that were entered erroneously in our website by a new staff member. When the erroneous repayment credits were reversed, the corresponding credits to lenders were also reversed. This resulted in negative balances for lenders who had used the erroneous repayment credits to fund other loans.

    Best regards,

    Julia
     
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  21. investor

    investor Member

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    I do participate to an other micro lending platform and I think Zidisha could take inspiration from then (not copying them, just get inspiration) They have nice stats and they make it clear for lenders about the portfolio.

    Here is some print screen I made to let you see what they do :
    pic1.JPG pic1.JPG

    On a personal perspective, I like that kind of information and that help me to follow the money I lend, the repayment, etc.
     

    Attached Files:

  22. Julia Kurnia

    Julia Kurnia Silver Member

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    Dear investor,

    I like the design in the image you shared. It is nice and clear, and manages to convey a comprehensive summary of the status of funds and transactions without information overload. I did notice it does not include information on losses and gains in portfolio value from default, interest, and currency fluctuations, or information on whether outstanding principal is repaying on time or in arrears. I'd be interested to know whether this information provided elsewhere in the lender's account.

    Thanks very much,

    Julia
     
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  23. fcjapan

    fcjapan Gold Member

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    I am guessing the information is already available, but would take a heckuva lot of clicking, typing or writing, and calculating. Which I am not going to trouble myself with, realizing that even if I spent a few hours to do, it would need constant updating. It is just me being lazy. There is a great deal of data, it would be nice to have a summary page or pages with more numbers. Delinquency rates were brought up on the Zidisha forum, but I realized I have no easy way to check my own without clicking on every loan.
    I also understand that we have some SEC concerns here with laying it out too investment-like. Maybe the earlier suggestion of providing an API for 3rd party developers to play with. Though not sure how many are on board at the moment, if any. Although it seems a very worthwhile spend to provide an API, I would hate to see Zidisha going to the trouble and expense and then no one picks it up and does anything with it.

    Not a problem, thank you for the explanation.
     
  24. fcjapan

    fcjapan Gold Member

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    Hi Investor, welcome to milepoint forums!
    +1

    investor, have you been on Zidisha long?
    I am new there, so appreciate any insight/advice from more seasoned lenders.
     
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  25. investor

    investor Member

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    I send only 2 print screen on this forums, but yes, there is a section for "Profits & loss", another section for "Defaulted". I can send more detail to you at your zidisha.org email address if you like.
     
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