Web influence describes a company's ability to build brand-name recognition on the Web.
Web influence data can be determined by a number of criteria, including the number of
hyperlinks to the companys Web site from external domains.
have shown that the most common way that Internet users find Web pages is through external
hyperlinks. Companies with a strong base of external hyperlinks on the Internet are more
likely to see strong traffic from Internet-savvy customers than those who do not.
It is a wide-spread illusion that it is an easy task to evaluate a companys Web
influence through the use of external hyperlinks, but analysts who attempt to duplicate
the Web influence evaluations run by Net Valley are less able to distinguish
between legitimate links and those that are noise, generated by companies
affiliates, artificial computer programs and other misleading methods.
Net Valley technology utilizing hyperlink mechanics can differentiate between these
different forms of hyperlinks through a multi-level link measurement procedure. The mere
tabulation of hyperlinks is a simple and widely known procedure, but nobody except
Net Valley has yet provided a selective type of measurement separating the
significant links from the noise-inducing references.
The iFactor is a quotient comparing a companys current level of Web influence to
its current level of sales. As E-commerce becomes a greater portion of a companys
overall sales, the companys Web influence level will command a greater effect on the
companys bottom line.
As the company e-commerce relative marketplace (industry e-commerce rank) becomes more
close to the Web Influence one
An iFactor of 1.0 would show that the company has the identical ranking in both Web
influence and in industry e-commerce sales. An iFactor of greater than 1.0 shows a company
with a stronger Web influence level than that of sales, recognizing the companys
strong conditions for e-commerce growth. An iFactor of less than 1.0 would express a
deficiency in Web influence that would impede further e-commerce growth.
To determine a companys iFactor, the companys ranking by sales is compared
with that of the company that shares the same position in sales as the first company holds
in Web influence.
For instance, in 1997, IBM sold more than $78 billion, ranking it first among its
peers. But the companys Web influence ranked only sixth in the same study. In this
case, the sales data for the sixth-largest company, Compaq (with $24 billion in sales),
would be divided by IBMs data, resulting in an iFactor of .313 for the industry
The Net Valley Benchmark is a tool that relates companies Web influence levels
against one another, showing not only that one is higher than another, but by how much, to
allow comparisons within and across industries.
The benchmark for the IVB is the Web influence level of Net Valley itself.
Created in 1995, Net Valley has accumulated a strong and stable level of Web
An IVB of 1.0 shows that a companys Web influence level is equal to that of
Net Valley Inc, while scores higher than 1.0 will show a greater level of Web
influence, and an IVB of less than 1.0 will show a companys Web influence level of
less than Net Valley .
An IVB level of 1.0 will demonstrate a strong web influence level, as a score of 1.0
can place a company in the middle range when compared to the top members of different
industries, including the Top 100 Information Technology Companies, Top 100 Banks, Top 100
Magazines, which Net Valley has studied since 1995 . For all of them the goal to
reach the IVB level equal means to become a member of the Top 100 in their industry. So
the IVB is now the most convenient standard for an industry benchmark.
Companies in different industries can compare their relative level of
the Web influence by using the IVB, as the benchmark remains steady, whether compared to
the online banking industry or Internet-based companies.