Actually, that's just what it says. It's how much you can affect someone else's reputation (again, from what I'm understanding). Your actual reputation can be viewed in your UserCP. If you hover your mouse over the greenish block(s), a statement will come up - each one is different for each specified amount of reputation. 10 or more will say *User* is on a distinguished road; 50 or more will say *User* has growing potential. It just goes up with increasing increments.
If you don't have that great of a reputation now, don't worry, as we just have started using the reputation system and it will take a while for some to get use to it.