As you work to identify potential clients or customers, you want to make sure that you are focusing your efforts on those who have the greatest potential! After all, if you intend to get the most out of your resources and expenditures, it’s important that you are targeting your outreach to the right people and doing so in the most effective way.
WealthEngine's scores and ratings are crucial predictive indicators that will help you identify who those people are - which means you need to know how to read them!
This article will cover:
- Wealth Ratings
- Accredited Investor Flag
- Board Member
With WE9, we have created a brand-new, foundational score! The Wealth Score provides a comprehensive rating of a person’s overall financial health, taking into account all forms of modeled assets and liabilities. Utilizing predictive analytics and modeling, it combines the strengths of our other key scores to help you differentiate and prioritize profiles with a greater level of granularity than ever before.
Each profile is assigned a number between 1 and 100; the higher the number, the better.
You can toggle back and forth between the WealthScore and the P2G to determine which will appear at the center of the Wealth Signal.
- For more information, make sure to check out our new WealthScore Guide!
When interpreting the Net Worth, Total Assets, and Investible Assets scores on your person’s profile, always remember that they are based on sophisticated statistical models. While most of our other scores and ratings are reporting directly on the actual assets data we have on them, the Wealth Ratings do something quite different. After all, data has its limits and WE can’t legally or ethically access the contents of someone’s bank account. So instead, these scores act as statistically derived, predictive representations for information that is private. In other words, if one of your people is listed as having a Net Worth of $1-5M, that isn’t literal. It tells you that their profile resembles other people that actually do fall into that range!
WealthEngine accomplishes this by using an enormous truth file, which contains actual household data (over 1,000 data elements per household) that’s representative of the US population, covering the full spectrum of wealth from individuals of very modest means to ultra-high net worth. Our data scientists used this truth file to develop algorithms that would accurately predict the Wealth Ratings. Ultimately, one of these algorithms is chosen and applied to each profile, depending on that profile’s individual details.
A modeled score predicting the difference between their total assets and total debt.
A modeled score predicting the total value of all their financial and non-financial assets.
A modeled score predicting the difference between their total assets and real estate.
Keep in mind that the Wealth Ratings don’t utilize any data that you submitted to us.
- Note: For more, check out our Ratings and Scores video guide.
Accredited Investor Flag
This yes/no flag is designed to be a quick way to identify highly qualified leads. If an individual falls into any of the following categories, they will receive a “yes” flag as an accredited investor.
- Income greater than $200,000 (individual) for two consecutive years
- Income greater than $300,000 (household) for two consecutive years
- A modeled household net worth of over $1 million dollars
This is the flagship score for our non-profit clients - but don’t disregard it! WE recommend using the P2G as a safety net and/or a way to segment your screening results when you are trying to figure out who you want to focus on first. It’s great for both these purposes because, unlike our other scores, it will incorporate all the data in the profile, not just the more traditional wealth and assets information. In other words, it will also consider the strength and predictive value of specific data source matches (e.g. a tie to a family foundation) as a way of identifying exciting leads. This is especially valuable because some wealthy people have managed their finances and estates so as to make it look like they don’t own anything. The P2G is uniquely designed to catch those people!
The P2G Score is a two-digit number. The first digit represents the category within which that particular individual falls, on a scale of 1-5. While this is the flagship score for our non-profit clients, it can also be a useful wealth indicator, as that propensity for major philanthropic giving might also be interpreted as a rough estimation of more general high-level spending. Top commercial leads should have the first digit of 1 or 2.
The second digit of each score is used to rank individuals within each primary category. Remember, when it comes to the P2G, the lower the number, the better the score!
- Note: For more detailed information see the comprehensive P2G Score Guide.
Income is either directly drawn from data or imputed based on other data sources. The sources that are involved with income calculation include but are not limited to the following:
- Market Guide
- Household Profile
- Census Data
- Real Estate
Income derived from real estate is calculated using a formula based on the property market value and age, if available. The real estate value used to calculate income must be current and have a High QOM to be included. The score is then shown in a range format.