I rate submissions (on all Portals) as follows:
0: This is an insult to the respective Portal.
0.5: I want my time back.
1: A modicum of effort went into this at some stage. ...it just looks, sounds, or plays so horrible that I cannot be bothered.
1.5: This is not good enough to stay on NG in my opinion, but I wouldn't be surprised if a Movie or game strayed regardless. In all honesty, I rate Movie or Game Portal submissions that are "under judgement" and that I would have rated 1.5 stars with a 2 star-rating, set a bookmark and re-rate them later after I got the points. I know that most people have no standards and I can pretty accurately predict what rating-range something is going to turn out by now... ("2 stars higher than I wold have rated it", usually. ;p )
2: Good enough to stay, but I don't see that anybody would actively seek this particular content out. One of the millions of forgettable submissions that nobody would miss if the servers got purged of them.
2.5: "Average" for the standards of the time of publishing. If somebody felt the need to publish something that would have been more impressive to see then years ago: Too bad. They shouldn't have waited that long to share it with the world.
3: Above average. These stand out from the crowd in some minor ways.
3.5: Really good. These stand out in multiple ways.
A good example would be Art Portal submissions with really polished drawn characters with no visible flaws, proper hands, shading, shadow, anatomy in order within the confines of their respective universe... But nothing else. No background to speak of. No importance. No story. They just hold a pose and "are". A really polished sample, if you will.
4: As above, but accompanied by a detailed background, a story, an interesting action that you haven't seen a million times, a funny line, a character design that is so original you would want to ask if they do commissions - if you had the money... These stand out more than just technically well-executed works. This is entering "Art"-territory.
4.5: As above, but with a story or joke you would love, even if they were drawing stick figures. The only reason not to follow this artist right then and there would be if you already followed them or forgot because you were linking the piece to a friend.
5: "Perfection." There is nothing that the artist could feasibly improve about this piece, even if they had the time and emotional energy to put in the time to re-work it from the ground up.
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I do know that most people do not put that much thought into what they do, though. And I think less of them for it!
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As an aside, and this is just my personal view: You cannot discourage an artist from doing what they do just with one or two stray pieces of negative feedback - be it a review, a rating, a PM, or whatever. If somebody has an ego that is so fragile that they get discouraged by "people on the internet not liking their stuff", this whole "showing their creations to others"-business is not for them in the first place.
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P.S.: Don't feel pressured to do as I do. I use ratings for personal purposes as well, so it makes sense for me to put the 2 seconds extra in, but I just wanted to share this with you (and potentially other readers) for demonstration-purposes. The "0, 2, 5"-rating schema is what most users seem to be using - and then they wonder why sorting a search by scoring isn't much use to them or why their "actual favorite" didn't get into the daily top 5 submissions after they rated everything with a 5...