Here is a break down of TheBusinessReporter’s rating system.
The
first rating is in the “Product or Service Category”. Basically, we
rate each company by the quality of the product, the uniqueness of the
product, the demand for the product, and is the product consumable on a
weekly, monthly, quarterly, or yearly basics. We do exactly the same thing
for a “service”. Each Category is rated with a 1-5 rating.
With the
“Quality Category”,
a 1 means it is of the lowest quality, and a 5 would mean it is of the
highest quality.
With the
“Uniqueness Category”,
a 1 means that it is not very unique and a 5 would indicate that it is
extremely unique.
With the
“Demand Category”,
a 1 means the lowest demand and a 5 means the highest demand.
With the
“Consumable Category”,
a 1 means that it takes a long time to be consumed, and a 5 means that is it
consumed very quickly.
The
second rating is in the “Company Strength Category”. This is where
we rate the company based on how long they have been in business, how much
sales volume they have, how much the compensation plan pays out (30-40% is
normal), and what kind of reputation do they have in the industry.
In the
“Years in Business Category”,
the ideal time to get involved with a company is when they are between 5-10
years old. That is worth 5 points. 11-14 years is worth 4 points. 14-18
years is worth 3 points. 18-21 is worth 2 points, and 21 and over is worth
1 point. Also, 4-5 years is worth 4 points. 3-4 years is worth 3 points.
2-3 years is worth 2 points and less than 2 years old is worth only 1 point.
The
reason for the point system being the highest between 5 and 10 years old is
because there is 90% chance of failure in the first 2 years, and another 80%
fail between 2 and 5 years old. After 5 years old there is only a 3% chance
of failure. There are exceptions, but that is the norm for most network
marketing businesses. These figures are for the old traditional product
driven network-marketing companies. The newer Internet based only
companies, haven’t been around long enough to predict their success rate.
Of
course the reason we subtracted points, as a company gets older, is because
it starts to reach a point that everyone that wants to get involved, has
already heard of the company, and are already a member or chose not to
join. Therefore, a company that is too large has already passed its
momentum stage (the period of the largest growth).
Next, in
the
“Sales Volume Category”,
we give higher points for higher sales. 5 point’s is for a company over
$250 million in total sales. 4 is for $100-$250 million. 3 is for $50-$100
million. 2 is for $20-$50 million. And 1 point is for under $20 million in
total sales.
In the
“Compensation Plan Category”,
we rate the pay plan by how easy it is to make, both “short term” money,
(through sign up and fast start bonuses), and also “long term” money. It is
important to be able to get people in the business, especially in the
beginning. That’s when most people fail. Companies that have a good sign
up bonus have a better chance of keeping people in the business for the long
term. If someone can make enough money to pay their expense, they will
usually keep working the business, slowing building that long term residual
income. Again, 5 points were given to the best compensation plan, and 1
point for the worst.
In the
last category,
“Reputation”,
we simply assigned 5 points for the best reputation, and 1 for the worst.
|
Quality Category = Qty |
Years in Business Category = Ybs |
|
Uniqueness Category = Unq |
Sales Volume Category = Svl |
|
Demand Category = Dem |
Compensation Plan Category = Cmp |
|
Consumable Category = Csm |
Reputation = Rep |
