Your Questions About Business Online Services Group

George asks…

How big is ChoicePoint? How big you have to be to become a monopoly?

ChoicePoint is an Alpharetta, Georgia-based company that sells information in three markets–insurance, business and government, and marketing. According to a recent quarterly statement filed at the Security and Exchange Commission, ChoicePoint sells: “claims history data, motor vehicle records, police records, credit information and modeling services…employment background screenings and drug testing administration services, public record searches, vital record services, credential verification, due diligence information, Uniform Commercial Code searches and filings, DNA identification services, authentication services and people and shareholder locator information searches…print fulfillment, teleservices, database and campaign management services…”

ChoicePoint has managed to attain a large share of the commercial data broker (CDB) market with strategic purchases of other businesses. Since its spinoff from Equifax in 1997, ChoicePoint has acquired a number of information collection and processing companies. These include:

National Data Retrieval, Inc., a provider of public records information; List Source, Inc., d/b/a Kramer Lead Marketing Group, a marketing company in the life and health insurance and financial services markets; Mortgage Asset Research Institute, Inc., a mortgage fraud monitoring company; Identico Systems, LLC, a customer identity verification company; Templar Corporation; insuranceDecisions, Inc., an insurance industry claims administration company; Bridger Systems, Inc., a USA PATRIOT Act compliance company; CITI NETWORK, Inc. d/b/a Applicant Screening and Processing, a tenant screening company; TML Information Services, Inc., a provider of motor vehicle reports; Drug Free, Inc., a drug testing company; National Drug Testing, Inc., a drug testing company; Application Profiles, Inc., a background check company; Informus Corporation; a company enabling ChoicePoint to offer products online; Tyler-McLennon, Inc., a background screening company; ChoicePoint Direct Inc., formerly known as Customer Development Corporation, a database marketing company; EquiSearch Services, Inc.; DATEQ Information Network, Inc., an insurance underwriting services company; Washington Document Service, Inc., a court record retrieval service; DataTracks Technology, Inc., a public record information company; DataMart, Inc., a database software company; Statewide Data Services, Inc; NSA Resources, Inc., a drug testing company; DBT Online, Inc., a public record services provider; RRS Police Records Management, Inc., a provider of police reports and related services; VIS’N Service Corporation; Cat Data Group, LLC; Drug Free Consortium, a drug testing company; BTi Employee Screening Services, Inc., an employee pre-screening services company; ABI Consulting Inc., a drug screening company; Insurity Solutions, Inc., an insurance rating company; National Medical Review Offices, Inc.; Bode Technology Group, Inc., a DNA identification company; Marketing Information & Technology, Inc., a direct marketing company; Pinkerton’s, Inc., a preemployment screening company; Total eData Corporation, an e-mail database company; L&S Report Service, Inc., a provider of police records; Resident Data, Inc., a residential screening services provider; Vital Chek Network, Inc., a provider of vital records; Accident Report Services, Inc., a provider of police records; Programming Resources Company, insurance software company; Professional Test Administrators, Inc., a drug testing company; CDB Infotek, a seller of public records; Medical Information Network, LLC, an online physician verification service; and Rapsheets.com, an online provider of criminal records data.

Jere answers:

Its obvious that they own most of the companies in the Data mining bussiness. Now All insurance companies consult Choicepoint C.L.U.E. Report before they aprove you for home or even car insurance. They know things about anyone like how many accidents you have, if you were at fault, and how many traffic tickets you have. Thats the new way for this companies to detrmine how much are they going to charge you for insurance. All you need to have is a couple of mistakes and boom you get stock with higher rates, awesome bussiness dont you think?. They have one of the biggest databases in the nation that now even FBI uses them or buy their information instead of doing their own investigations. How comfortable Aint it? There is no doubt that Choice point is one poses one of the most dangerous databases in america. And there is no way to put controls to their marketing of a citizen own and personal information. A monopoly ! We can agree they are the biggest in the market right now.

Chris asks…

Suggestions for structuring compensation plans for a start-up company?

Hi – I’m starting up a B2B service business that essentially will offer externally-based focus group facilitation to companies’ new product development teams. I’d appreciate any advice or online resources I should check out in regards to structuring compensation for two key employees.

The first employee will be a sales manager, who will do initial sales, and then build and manage a sales team. Should his comp. be commission, and if so, what’s an appropriate rate? (focus group sessions will have a price of approx. $80k per session, and we can expect to sell 3-5 every month).

Secondly, I have a co-founder who, after May, will only spend 5 or so hours per week on the business. I’m investing all the capital up front, and will be running the business the business full time, but he has a major role in getting the business started. Should he be paid as a consultant, or some other way?

I think it will be best for me to keep 100% ownership… any suggestions or resources to help?

Jere answers:

Pay the co-founder as a consultant, unless you have agreed to do something like have him part of your group insurance, then he must be an employee.

I’d back into the salary you want him to make. Give him a draw of 50% of what you think his base pay should and a percent of sales.

I determine the % using my budgeted net income as a % of sales.

Example: If $100K in sales nets you $10,000 and you want to give the manager $2,000. You could give him either 2% of gross sales or 20% of net sales. I tend to use gross, most sales people work with that.

Carol asks…

What are your thoughts on the Anti counterfeiting trade agreement?

U.S. President Barack Obama’s administration will seek to aggressively enforce its intellectual property laws by putting pressure on countries that don’t shut down piracy Web sites and by requiring all government contractors to check for illegal software, the White House announced.

The White House Office of the U.S. Intellectual Property Enforcement Coordinator, in a 65-page report released Tuesday, said the U.S. government will also step up its efforts to identify foreign Web sites trafficking in pirated goods and will create a database of intellectual property investigations to be shared among law enforcement agencies. The U.S. government will also seek to protect U.S. intellectual property (IP) through trade agreements, including the controversial Anti-Counterfeiting Trade Agreement, the report said. Several digital rights groups have complained that officials from the U.S. and other countries have drafted ACTA in secret.

“I say to those that are suffering from infringement, ‘Help is on the way,'” said Victoria Espinel, the White House intellectual property enforcement coordinator. “We understand the problems that you face, and we will work to make things better.”

Copyright pirates and counterfeiters should beware, Espinel added during a news conference. “To those who have, for too long, abused the rights of American creators, I have a warning for you,” she said. “We are committed to putting you out of business.”

Vice President Joe Biden compared IP infringement to a theft where a burglar breaks the window of a store and steals the products inside. “Piracy is theft, clean and simple,” he said. “It’s smash and grab.”
Counterfeit medications and vehicle parts are dangerous and need to be kept out of the U.S., Biden added. “We just want to make it real clear,” he said. “We’re going after people, we’re going after the Web sites, we’re going to go after those folks … who sell us things that in fact have the effect of putting the lives of Americans in jeopardy.”

If other governments fail to shut down Web sites that U.S. officials have identified as dealing in pirated goods, the White House will be vocal, Biden said. “We’re going to be as public as we possibly can” about other governments that do not cooperate, he said.

The U.S. government will also provide training to local and state law enforcement officials on IP enforcement, and it will provide seminars and training programs for foreign governments,
according to the new report. The report recommends new requirements that medical products contain electronic tags to make it more difficult for counterfeit products to be sold.

The report, called the Joint Strategic Plan on Intellectual Property Enforcement, also encouraged Web content owners, Internet service providers, advertisers and other online businesses to work together to reduce copyright violations.

Earlier this year, the U.S. Department of Justice launched an IP enforcement task force, and in April, the agency announced 15 new assistant U.S. attorney positions and 20 new Federal Bureau of Investigation agents to be focused on domestic and international IP crimes.

http://www.networkworld.com/news/2010/062210-us-government-to-crack-down.html

Jere answers:

I think he is being Hollywood’s bitch.

Mary asks…

Great, clean and reputable serviced apartments (or accommodation) in Thailand from $200-$500/month?

I’m looking to travel to Thailand and perhaps stay for a bit (minimum 1 month). I would be able to make about $2000-$3000 online with my job easy, plus have a starting budget of about $10,000 as a safety cushion. Not looking to spend much though, just relax, soak in the culture and live modestly. Probably A/C, an internet connection, clean accommodations and hospital would be most important.

Can anyone recommend a REPUTABLE (key word) serviced apartment business or group I could use to help with my living situation? Doesn’t really matter where in Thailand. Just trying to get my research done early. Thanks in advance!!!! (monthly accommodations preferably)
Thanks KarazyAl! I see you answer a lot on Thailand which is cool. I will definitely “visit” before I decide on a place to live. If you have any specific locations in Pattaya or Bangkok in that price range please let me know!
Also thanks for all the links I found them extremely HELPFUL!

Jere answers:

If it doesn’t matter where then choose Bangkok, Chiang Mai or Pattaya. These cities will have decent accommodation (Pattaya probably the cheapest is closest to Bangkok,) good hospitals, modern malls, good local transportation, good supermarkets, etc. Thailand is a lot bigger than you may think, to say “stay anywhere” may be too broad a reach. Since transportation is pretty reasonable in Thailand you can live one place and for just a little bit of money visit another area.

If you have never been to Thailand before then visit first and choose an area to live in. This way you will not have a place over a karaoke bar or near noisy and dirty construction. You can also get a cheap hotel where maid service, electricity and security is provided. Pattaya is cheaper than Bangkok for hotels and transportation. In an apartment you may have to pay the electricity in a hotel the hotel pays for it. You can do a deal on a hotel for longer stays.

There is a high season and a low season for hotel pricing. Some service apartments get snapped up closer to Christmas – New Years holidays.

Http://www.thaivisa.com/forum/index.php?cx=partner-pub-8062882927723374%3Ayme0y5mls18&cof=FORID%3A10&ie=ISO-8859-1&q=service+apartment+&sa=Search&autocom=search&siteurl=www.thaivisa.com%2Fforum%2FReal-Estate-housing-house-land-o-f59.html

http://www.thaivisa.com/forum/Real-Estate-housing-house-land-o-f59.html

http://www.thaivisa.com/forum/index.php?cx=partner-pub-8062882927723374%3Ayme0y5mls18&cof=FORID%3A10&ie=ISO-8859-1&q=serviced+apartments+Bangkok&sa=Search&autocom=search&siteurl=www.thaivisa.com%252Fforum%252FReal-Estate-housing-house-land-o-f59.html&siteurl=www.thaivisa.com%252Fforum%252FReal-Estate-housing-house-land-o-f59.html&siteurl=www.thaivisa.com%252Fforum%252FReal-Estate-housing-house-land-o-f59.html

http://www.thaivisa.com/forum/index.php?cx=partner-pub-8062882927723374%3Ayme0y5mls18&cof=FORID%3A10&ie=ISO-8859-1&q=serviced+apartments+Pattaya&sa=Search&autocom=search&siteurl=www.thaivisa.com%252Fforum%252FReal-Estate-housing-house-land-o-f59.html&siteurl=www.thaivisa.com%252Fforum%252FReal-Estate-housing-house-land-o-f59.html&siteurl=www.thaivisa.com%252Fforum%252FReal-Estate-housing-house-land-o-f59.html

http://www.tripadvisor.com/SearchForums?scope=2&ff=3686&geo=293915&q=serviced+apartments&sub-search.x=0&sub-search.y=0&sub-search=Click+to+search+forums&returnTo=__2F__

Visit first and don’t sign a contract sight unseen! Sort your visa requirements out too!

Mark asks…

How to identify a business model of an existing company?

Ryland group specifically. They build homes and provide financial services. 97% of revenew is from the homebuilding. They generate revnew through sales of homes, with sales of land and lot, as well as through their special services they provide, like an interactive online tool that allows homebuyers to customize their homes. they also stay on top of trends and opportunities in the market.
what do i call this business model? Is there a list of business models that a company falls under? or does each company have their own specific one? and if so, what am I supposed to call it for a class presentation?
thank you for your time!

Jere answers:

No there isn’t a formal list of business model. No one has ever created one. There’s an open source project to create one:

http://www.businessmodelproject.com/

or for some comic relief

http://www.whatthefuckismybusinessmodel.com/

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