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Analysis and Current (May 1, 2007) Rankings for Paid to Shop and Similar Programs Here is the list of comparisons. Please read the explanation of the different factors used, in the "Explanation of Classifying Factors" and the "Commentary", below: Current Ranking and Analysis:
Explanation of classifying factors: ** Cost to Join - Generally speaking, this is a one-time fee. Shopping Jobs has 4 options, one-year, $24.95, two year $27.95 and life membership $29.95 plus Video Tutorials & Wholesale Resources $11.95. ** Gravity - This is a ClickBank number which is an expression of the level of activity, number of affiliates involved, volume of business, number of transactions and so forth. Generally, the bigger the number the more business that is being done by that company. This number changes daily and summaries are reported weekly. ** Refund % - The percentage of members who ask for a refund after they join. This number is calculated based on data published by Clickbank, and, while it is a very good indicator it can be deceptive. The problem is that the refund is calculated by taking the gross income figures less the refunds. The gross income figures and the refunds are actual for the last two weeks. This is mathematically correct and will be exact over time. However, the reality is that income is from current sales and refunds are for clients who began sometime over the last two months. So that means that if the company has, say, declining sales for the last six weeks or so, so that their sales today are half of what they were six weeks ago, and their "real" refund rate is 5.0%, then that amount being claimed by clients who came in six weeks ago will look like 10% against today's lower sales. Similarly, if there is an increase in sales, the refund rate of today will look smaller. It's what is called a "lagging indicator" and can give a somewhat distorted reading when the weekly sales rate trends up or down. In the long run, a moving average will be correct. We have started recording the info needed to calculate that moving average. For now you can check the old list on the "Past Rankings" page here on this site, to see what the refund rates were a month ago, on December 5, 2006.
Commentary: Why the rankings we made? Note that none of our picks had refund rates higher than 6.0% (1 client in 17). All things being equal we felt that the refund rate was the single most important measure of client satisfaction and determiner of quality of their service. We tended to favor larger companies over smaller ones, based on the market's choice and greater stability. This month we have printed the refund rates of those companies that appear to be troubled, in Red above, to highlight their problems and urge caution with these. Note that we have added a red "X" to the left of each of these this month, to point out that these are above our "red flag" refund rate of 10%, and at this time we would NOT recommend them. The choices in some cases were very close. During the next few weeks we will investigate the close contestants more carefully and watch them. When we have more info we will update our table and revise our picks. Paid to Shop companies change and market conditions change. Our selection of recommended companies will be dynamic and will change as new information about current conditions warrant such changes. In general, you probably won't go wrong with any of the companies listed, especially those with refund rates below the average. For the 10 companies listed above the current refund average is 7.19% (a little less than 1 in 14).
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