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To be clear, I also support aspects of what Klout is trying to do. I've been overwhelmed by the number of tweets and retweets about this post (I just joined socialmediatoday.com last night). A couple of those tweets have lumped this article into a "Klout bashing" genre and that's not at all my purpose.
As a business owner myself, I have a deep respect for Klout building something that didn't exist before. I just think they should take more caution to only score accounts if they can do so consistently and accurately because it can be dangerous to their credibility and trustworthiness. If the score is measuring their system performance more than my social interaction online... that's not good.
Again, I wish them the best and I do believe they willl continue to work hard at their stated goal.
I just posted tonight about why Klout can't be trusted: http://bestoked.blogspot.com/2011/12/dont-trust-klout.html
My score was doing the same thing, dropping for no apparent reason. One thing I will say for Klout is that it helped me learn about Twitter because the people with higher scores generally correlated with people I enjoyed following. It helped me quickly understand some etiquette and helped me get a feel for the neighborhood. Also, there's a lot to be said for gamification. If everyone cared a little more about what they put online, I see that as a good thing.
That being said, Klout definitely has a lot of work to do to regain trust and I'm not sure they will succeed.