Risk Scoring Methodology

Scoring Factors

Compensation Structure (0-30 points)

• Unpaid training periods: -10 points
• Commission-only positions: -15 points
• Below-market base salary: -5 points
• No benefits provided: -5 points

Hiring Patterns (0-25 points)

• High turnover indicators: -10 points
• Aggressive recruitment: -8 points
• Vague job descriptions: -7 points

Business Model (0-25 points)

• MLM/pyramid structure indicators: -15 points
• Door-to-door sales: -10 points
• Questionable business practices: -10 points

Reported Patterns (0-20 points)

• Consistent negative themes: -10 points
• Legal action history: -10 points
• Regulatory warnings: -10 points

Calculation

Total risk score = Sum of all factor deductions from 100

Example:

• Compensation: -20
• Hiring: -15
• Business Model: -10
• Reported Patterns: -5
• Final Score: 50 (Medium Risk)

Updates

Scores are recalculated when:

• New data becomes available
• Patterns change significantly
• Structural changes occur