The criteria used here to assess a tipster address four key questions:
- How much profit am I hoping to make?
- How much will it cost me?
- How risky is it?
- How much effort will I need to put in?
Ideally, the answer is “making lots of profit starting with very little money at low risk and very little effort on my part”.
BUT, just like everything else in life there are compromises to make.
Profit might be high but typically high reward comes with high risk.
It may not cost much to follow a tipster but you might have to put a lot of effort into it.
The Key Performance Indicators (KPIs) in assessing a tipster are, therefore: PROFIT, COST, RISK and EFFORT
The PROFIT Key Performance Indicator is a combination of ROI and consistency.
The assessment ranges from:Consistently high ROI every month with very few exceptions Modest ROI every month with very few losing months Modest overall ROI with some losing months Low overall ROI with some losing months Low overall ROI with more losing months than winning months
The COST Key Performance Indicator considers the start-up and running costs of following a tipster. It also evaluates the Return on Capital (ROC) and whether the subscription cost represents Value for Money (VfM) compared with other tipsters.
Start-up costs include the subscription fees for joining the tipster service and the estimated betting bank needed to follow the tips.
Value for Money represents how much each one percent of ROI is costing.
Return on Capital is the profit being made compared with the initial investment betting bank.
The assessment ranges from:Small betting bank needed, low monthly subscription cost and the cost of 1 percent of ROI is low
toLarge betting bank needed, high monthly subscription cost and the cost of 1 percent of ROI is high
The aspects of risk considered in this Key Performance Indicator include:
- How likely is it that the ROI achieved by the tipster has been the result of chance as opposed to the tipster’s skill or anything else
- How volatile is the performance of the tipster e.g. is it a roller-coaster ride of big highs and lows or steady unspectacular profit-building
- The scale and impact of long losing runs
The assessment ranges from:Strong evidence against the tipster’s ROI being due to chance alone, the monthly performance is relatively stable and losing runs are estimated to be short
toThe tipster’s ROI could just be due to chance, the monthly performance is erratic and losing runs could be long
The EFFORT KPI looks at the impact on you the bettor following a tipster.
How much of your time and effort will you have to dedicate to following the tips; placing the bets and probably maintaining multiple bookmaker accounts?
Could there be losing streaks that might create difficulties for you and perhaps make you want to quit?
The assessment ranges from:Small numbers of bets to place at the start of each day taking a few minutes to place and losing streaks are short
toMany bets to place each day taking a significant amount of time and losing streaks are long