WO2001015005A9 - Systems, methods and computer program products for a usage awards program and related points based auction - Google Patents

Abstract

This invention relates to an online reward point redemption and reimbursement system. These reward points are part of an online transaction system based on bonuses, which allows customers to collect points related to activities already performed online, including web search, email, navigation, live conversations, etc. Reward points are redeemed during an auction based on property points.

Description

SYSTEMS, METHODS AND COMPUTER PROGRAM PRODUCTS

FOR A USAGE AWARDS PROGRAM AND

RELATED POINTS BASED AUCTION

Background of the Invention

The following discussion relate to various segments of the Internet industry, such as search engines, online communities, online auctions, online discounters, and online incentive programs.

I. Search Engines

The Internet offers web surfers multiple options for search capabilities. Most search engines are incorporated into portal sites offering web surfers "one-stop shopping" for all of their primary needs online. Sites such as Yahoo, Excite, Lycos, Looksmart, Go2Net, Snap, and others offer users and members alike with various different components, including a search engine. Separate^from portal sites, several other search engines have emerged on the scene to provide users with more unique search capabilities such as GoTo.com, Ask Jeeves, and Google. Many web surfers will use multiple engines; however, several companies have positioned themselves to support the activities of others. Two examples of this positioning are Inktomi and Alta Vista. Both companies position their products as support databases to be used by other companies' search engines. These two companies power most of the online search engines. With all of these choices, the consumer is presented with many sites that offer comparable functionality, and often times, the same information being fed from identical databases. Thus, the major challenge for a company is market differentiation. No portal site presently known to the applicants offers an incentive program to increase page views, searches, etc. Therefore, each of these sites is continuously broadening their scope of services in the hope generating loyalty, rather than increasing loyalty through providing an incentive to use existing services.

II. Online Communities

Many online communities on the web offer similar functionality such as personal web space, web-based email, chat rooms, message boards, and content. In fact, many sites are attempting to establish a sense of "community" for their visitors by offering many of the same features. Sites like GeoCities, theglobe.com, and XOOM offer many of the same features. Like search engines that have become portals, online communities have gone into the same direction trying to provide their members and users with a "one stop shopping" experience on the web. Also similar to search engines, essentially no online communities, with a few exceptions such as CBS Sportsline, have offered their members an incentive for taking advantages of features offered on their site. Thus, these sites are constantly looking for new services to add, rather than focusing on growing the incremental productivity of each existing member. Due to the nature of the services provided on these sites, a greater degree of loyalty may exist because members house their personal web spaces on these sites. However, these pages can be easily moved and uploaded to another online community, if the incentive were great enough.

It is worth noting that XOOM.com has taken the online community to the next step, converting their demographic data into a direct marketing campaign to offer their members discounts, products, and services that fit into the demographic profile entered by each individual member. They deliver these offers via email. A major weakness of this model is that it is group marketing rather than individual, one-to-one market. Secondly, it considers survey information rather actual activity. And third, it apparently supposes that targeted emails are the most effective form of delivery. Thus, due to the impersonal nature of the offer, these emails are often construed as spam. III. Online Auctions

Online auctions are the most popular form of e-commerce on the web. There are traditional auction formats like Onsale, Ubid, or Egghead.com where items are posted on web sites for members to bid upon. Additionally, there are more creative auction formats like eBay or Boxlot that offers web surfers the opportunity to sell and buy goods between each other like a giant flea market. Additionally, there are sites also that employ an auction type format like Priceline.com, Accompany, and others that again place the buyer in control of naming their own price. All of these models point to an Auction Economy emerging on the web. Auctions appeal to the psychology of the online consumer: they allow the buyer to control the price, determine value, compete, and hunt for bargains.

Presently, no auctions known to the applicants are part of an incentive program. Further, the applicants know of no auctions that use any form of currency for bidding other than real currency (i.e. dollars). Essentially, all auctions demand that a check, money order, or credit card be used adding to security risks.

IV. Online Discounters

The online discount market has emerged over the last 24 months as a force on e-commerce, driving prices down, and making margins even smaller. The virtue of the internet for the buyer is instantaneous comparison between vendors. Thus, the "spiders" employed by online discounters have allowed these web sites to instantaneously measure pricing and offer the lowest price on the web. A major difficulty presented by these models, despite phenomenal revenues, is the overall business model. These business models are designed to lose money. The "race" to provide the consumer with the cheapest price is cannibalizing the market. Thus, there may be no winners in the online discounter business.

V. Online Incentive Programs

There are many online incentive programs that have emerged in the last 12 months. The major players in the market are MyPoints, Netcentives, CyberGold, FreeRide, and Beenz. The following are a few of the inherent weaknesses shared by many of the online incentive programs on the market: (1) obstacles of changing consumer behavior, (2) commerce driven rewards, (3) value of rewards set by incentive company, and (4) redemption.

The first inherent weakness is the nature of the incentive - changing online consumer behavior by offering an incentive. The major obstacle for an incentive program, or any company for that matter, is changing consumer behavior. Many of these sites require web surfers to do things that they would not ordinarily do. Thus, similar to banner advertising, there may not be the return on investment to justify the costs of these programs. However, they are growing in popularity because they are able to generate a marginally higher return than traditional online advertising.

The second inherent weakness is that web surfers must usually engage in some form of commerce to earn the rewards. In other words, consumers must spend money to earn rewards. With the prevalent concern about credit card transactions on the web, these sentiments are definitely a barrier to consumer's participation in these programs. Again, this weakness relates to a lower return on investment for advertisers and more inconvenience for web surfers.

The third inherent weakness is that incentive companies set the value of rewards (i.e., 1500 points and you earn a free CD, 25,000 frequent flier miles and you earn a free ticket, etc.). These benchmarks contradict the "Auction Economy" mindset of the online consumer who chooses to set their own prices based upon their own demand.

The fourth inherent weakness for online incentive programs are poor forms of redemption. Many online incentive programs offer gift certificates, coupons, or items of nominal value to consumers in exchange for points. It is evident that demand for redemption will drive participation. Thus, the weakness of redemption will correspond to less participation.

The following are some examples of online incentive programs.

MyPoints, formerly Intellipost, is a provider of online direct marketing and loyalty solutions. Consumers earn points by subscribing to their email service that holds a product offer. MyPoints charges its advertisers 25 cents per email. Secondly, MyPoints offers an online incentive program where individuals are rewarded, for following the instructions given by the company, whether it is to visit sites, or make purchases. This model is very innovative, but has some inherent weaknesses. It asks consumers to change their online behavior. It rewards e-commerce transactions, rather than usage. It provides frequent flier miles and gift certificates, similar to other sites. Thus, only their Bonus Mail function is truly a differentiating factor.

A major drawback for MyPoints is redemption. Their redemption is not exciting for consumers, thus there has been a high attrition rate for their members.

Netcentives is a developer of online rewards, incentive and loyalty marketing programs to drive electronic commerce. Netcentives is an online frequent flier program chosen by the Internet's leading brands. Their technology allows companies to target customers and create loyalty through offering frequent flier miles. The major program for Netcentives is the ClickRewards program.

Cybergold, Inc.'s Earn & Spend™ Online Community is a place on the Web where consumers can earn cash online and use it to purchase digital MP3 music, articles, maps, software and other digital content and creative works, priced as low as 25 cents. The Earn & Spend site is the a place where money earned online can be spent online, creating an Internet-based economy and a completely unique shopping and community experience. The Earn & Spend Community brings together advertisers who recognize the value of incentives-based marketing, a sizable and rapidly expanding community of demographically desirable consumers, and authors and distributors of creative works. To enable this community, Cybergold has developed a comprehensive micropayments system and a set of Internet portal capabilities.

The Earn & Spend Community also offers Cybergold members a wide set of popular Internet features such as search, chat, email, games and other content such as news, stocks, weather and horoscopes. These capabilities make it easy for consumers to make Cybergold their portal to the Net - the only portal where consumers actually are paid when they visit.

A weakness of the model is the amount of time and effort it takes to earn enough money to buy something of value.

FreeRide, LLC is a recent entry into the online incentive market that is dedicated to providing its members with offers to earn points and then redeem them, similar to MyPoints, for items such as gift certificates. FreeRide, in a little over four months, has amassed over 1 million members. Free Ride offers many of the same offers on MyPoints and Cybergold. The only difference is that Free Ride makes it very clear that their points are redeemed for gift certificates at brand-name retailers, such as Eddie Bauer.

A weakness with FreeRide is that it is just another site offering points for nominal redemption value. It is a site dedicated to its advertisers, with no other functionality.

Beenz.com, Inc. (privately-held) is a private company registered in the UK and the United States with backing from personal investors on both sides of the Atlantic. With offices in London, New York and San Francisco, Beenz.com Inc. is a compilation of over 190 sites that will pay "beenz" instead of "points". Despite the very creative name, Beenz.com provides the same offers to its members to earn rewards, and not surprisingly, Beenz offers similar redemption options to other online incentive programs.

Summary of the Invention

The present invention (surfbuzz.com) is an incentive-based online transaction (I.B.O.T.) system and method that can make any product and service online free. Surfbuzz.com's business model architects the new Equity Economy. This economy may be defined where: (1) the buyer determines value, (2) currency is demand-driven, (3) the most important asset is information and data, (4) advertising and media are one-to-one, and (5) business dealings are characterized as "win-win" and mutually beneficial.

Surfbuzz.com™ is establishing the Internet Incentive Standard (I.I.S.). The Company is very different from incentives that reward people for doing something out of the ordinary. Surfbuzz.com offers a proprietary usage rewards program that pays members points for what they are already doing online, where they are doing it. During the initial phase, Surfbuzz.com will offer web surfers a comprehensive portal with a search engine, directory, web-based email, personal web space, news, chat, and more. Thus, there is no change of behavior.

Points are redeemed in a proprietary points-based auction offering items ranging from cars, computers, electronics, travel, and more. Compared to the redemption of most online incentives, Surfbuzz.com's Race the Clock Auctions™ offer goods whose value is determined by consumer demand with bidding that starts at 1 point. Therefore, redemption drives more accrual in an impulse marketing cycle generating more data, more advertising revenue, and consequently, more items in the auctions.

Surfbuzz.com answers the inadequacies of many other business models. Surfbuzz.com will prove that the I.B.O.T. model will successfully attract and retain members and users of its portal functionality and online communities. Additionally, Surfbuzz.com will collect valuable information, constructing Online Behavior Models to effectively respond to consumers' needs and desires, in addition to that of the advertisers.

Further, Surfbuzz.com will license its product across the Internet as the Internet Incentive Standard. Surfbuzz.com will be able to market this licensed product to other sites to increase their usage, loyalty, and advertiser's return on investment. These benefits will result in increases in marginal revenues. Through the adoption of this program across the Internet, Surfbuzz.com will facilitate a standard by which all sites can provide incentives for their users and members to increase usage and activity on their sites.

Through this process, Surfbuzz.com™ is able to construct an online behavior model (O.B.M.) for individuals and demographic segments. This model is able to compare internet usage, demographics, and auction behavior to determine predictive modeling for consumer buying interests. This business model facilitates unparalleled levels of customer responsiveness and one-to-one permission marketing.

Surfbuzz.com's Race the Clock Auctions will emerge as not only the most exciting form of incentive redemption on the web, but the industry standard for redemption. All sites that participate in this licensing will customize their particular part of the Race the Clock Auctions for their members to return to in order to redeem their points at Surfbuzz.com.

Surfbuzz.com will provide a similar email service, sponsored by a vendor. However, the service will provide people with updates on items in the auction, developments of the site, information on special auction programs, special points programs and company information. Additionally, Surfbuzz.com will award points for purchases. Surfbuzz.com, however, will uniquely offer points for usage. Brief Description of the Drawings

FIGs. 1 A, IB and 1C are high level diagram of the operation of an incentive-based online transaction system according to one embodiment of the present invention.

FIGs. 2-13 are flow diagrams of the operation of an incentive-based online transaction system according to one embodiment of the present invention.

FIGs. 14-16 are system and device level diagrams of an incentive-based online transaction system according to one embodiment of the present invention.

Detailed Description of Preferred Embodiments

I. Introduction

The present invention now will be described more fully hereinafter with reference to the accompanying drawings, in which preferred embodiments of the invention are shown. This invention may, however, be embodied in many different forms and should not be construed as limited to the embodiments set forth herein; rather, these embodiments are provided so that this disclosure will be thorough and complete, and will fully convey the scope of the invention to those skilled in the art. Like numbers refer to like elements throughout.

As will be appreciated by one of ordinary skill in the art, the present invention may be embodied as a method, a data processing system, or a computer program product. Accordingly, the present invention may take the form of an entirely hardware embodiment, an entirely software embodiment or an embodiment combining software and hardware aspects. Furthermore, the present invention may take the form of a computer program product on a computer- readable storage medium having computer-readable program code means embodied in the storage medium. Any suitable computer readable storage medium may be utilized including hard disks, CD-ROMs, optical storage devices, or magnetic storage devices.

The present invention is described below with reference to flowchart illustrations of methods, apparatus (i.e., systems) and computer program products according to an embodiment of the invention. It will be understood that each block of the flowchart illustrations, and combinations of blocks in the flowchart illustrations, can be implemented by computer program instructions. These computer program instructions may be loaded onto a general purpose computer, special purpose computer, or other programmable data processing apparatus to produce a machine, such that the instructions which execute on the computer or other programmable data processing apparatus create means for implementing the functions specified in the flowchart block or blocks.

These computer program instructions may also be stored in a computer- readable memory that can direct a computer or other programmable data processing apparatus to function in a particular manner, such that the instructions stored in the computer-readable memory produce an article of manufacture including instruction means which implement the function specified in the flowchart block or blocks. The computer program instructions may also be loaded onto a computer or other programmable data processing apparatus to cause a series of operational steps to be performed on the computer or other programmable apparatus to produce a computer implemented process such that the instructions which execute on the computer or other programmable apparatus provide steps for implementing the functions specified in the flowchart block or blocks.

Accordingly, blocks of the flowchart illustrations support combinations of means for performing the specified functions, combinations of steps for performing the specified functions and program instruction means for performing the specified functions. It will also be understood that each block of the flowchart illustrations, and combinations of blocks in the flowchart illustrations, can be implemented by special purpose hardware-based computer systems which perform the specified functions or steps, or combinations of special purpose hardware and computer instructions.

I. System Architecture

With reference to FIG. A, a system 10 for providing an on-line usage awards program and related points based auction in accordance with the present invention is illustrated. A web site 12 implementing an embodiment of the present invention can be accessed by a plurality of members 14 via a communications network 16, such as the Internet. The web site 12 comprises a firewall 18 which protects the web site from unauthorized access and usage. A load balancer 20 distributes the traffic on the web site 12 between one or more web servers 22. Each of the web servers 22 is connected to an application server 24 where application specific programs operate to collect data and generate information, and to pass the collected data and information to a database server 26 in a predetermined format. The database server 26 stores the data and information from the application servers 24 and maintains a copy of said data and information for a predetermined period of time. The data collected and stored on the database server 26 is also delivered to a data warehouse 28 where data mining tools process and manipulate the data and information to generate on-line demographic models, on-line behavior models for an accrual process, and on-line behavior models for an auction process, and therefrom, generates reports. These reports may be predefined for generation on a regular basis, or generated on demand in a customized manner. It is also noted that the web service 22 may be interconnected with other associated servers for providing additional functionality, as discussed below.

With specific reference to firewall 18, a suitable firewall is CHECKPOINT by Sun Microsystems, Inc. As recognized by those skilled in the art, firewall application such as CHECKPOINT are effective in ensuring that only authorized activity takes place on the web site 12, and for excluding hackers or other web surfers that may cause damage to the web site 12.

With specific reference to the load balancer 20, a suitable application is the BIG IP load balancer, as is well known to those skilled in the art. The load balancer 20 distributes the load between the various web servers 22 so as to achieve desired performance levels, particularly with regard to response time. It should be noted that while the web site 12 illustrated in FIG. A comprises four web servers 22 associated with the load balancer 20, more or less than four web servers 22 may be appropriate for purposes of implementing the present invention, typically depending upon the number of members 14 accessing the web site 12.

With specific reference to the web servers 22, a suitable web server application for implementing the present invention is the APACHE web server, as is well known to those skilled in the art.

With reference to FIG. B, an illustration of a suitable implementation for the web server 22 is illustrated. The web server 22 comprises a web server application 40, such as the APACHE web server application mentioned above. The web server 22 also comprises various functional modules such as the referral module 42, the web page generator and counter module 44, the offer module 46, the e-mail module 48, and the search module 50. In addition, the web server 22 includes a connection to a content aggregator server via content fee module 52, and a Surfbuzz content module 54. Lastly, a database 56 comprises the Surfbuzz.com web site and the individual web pages accessible at web site 12.

In accordance with the present invention, the functional modules 42-56 of the web server collect data and information in records that are forwarded to an application server for further processing. For purposes of the present disclosure, a record is essentially a data structure containing information gleaned from the member, that is, from demographic information directly supplied by the member to information gathered by tracking the Internet activity of the user.

The web page generator and counter 44 receives requests for web pages or other information from a member 14, and response thereto, dynamically generates web pages which are then sent to the member 14 for presentation, most likely via a browser application running on the member's computing device (e.g., a laptop computer, a desktop computer, a personal digital assistant, a cellular phone, etc.). The web page generator and counter 44 also collects data and information regarding the page views of the members 14 for generating records which are sent to an application server 24. The content for the web pages generated by the web page generator and counter 44 may come from the content feed module 52 which temporarily stores the content received from the content aggregator server, and/or content provided by Surfbuzz retrieved from the Surfbuzz content module 54.

The referral module 42 tracks the referral activity of members 14 for awarding points based thereon. The referral module 42 may operate in association with the web page generator and counter module 44 and the e-mail module 48. The information collected by the referral module 42 is collected into records that are sent to an application server 24 for further processing.

The offer module 46 provides for direct and non-direct offers to members 14, and the processing of the acceptance of said offers by the members 14. The offer module may provide the offers to the members through postings on a web page via the web page generator and counter 44, or alternatively, through an e-mail via the e-mail module 48. Information regarding the activity of the members in response to the offers is recorded and collected into records by the offer module 46, and are sent on to an application server 24 for further processing.

The e-mail module 48, in the present embodiment, provides an interface to an e-mail service provider server, such as that provided by Critical Path, Inc., a well-known e-mail service provider, for enabling access by the members 14 to a web-based e-mail application. The activity of the user using the e-mail services provided by the e-mail service provider are recorded and passed back to the e-mail module 48 from the e-mail service provider server. Such uses may include the viewing a folder, generating of an e-mail, reading an e-mail, etc. Again, information regarding activity of the member using the e-mail service is returned to the e-mail module 48 where it is collected into records and sent to an application server 24 for further processing. It should be noted, however, that e-mail service may be provided by an application residing directly on a web server 22, if so desired, as well known to those skilled in the art.

A search engine module 50 provides access to a search engine service provider, such as Inktomi, Inc., as well known in the industry. For instance, a member wishing to conduct a search can submit the search query at a Surfbuzz web page, wherein the search query is delivered to an Inktomi server where it is processed and the results return to the search engine module 50. The search engine module 50 then passes the results to the web page generator and counter 44 where the results pages are generated and provided to the member 14. The activity of the member 14 with regard to viewing the results pages, selecting recommended sites, clicks through, etc., are recorded and collected by the web page generator counter 44, and sent to an application server 24 for further processing.

With reference to FIG. C, an illustrative embodiment of an application server 24 in accordance with an embodiment of the present invention is illustrated. The application server 24 generally comprises an application server operating system 60, a Buzzbank account manager 62, and an auction module 64. A suitable server application for operation on the application servers 24 is the ATG Dynamo application server, as is well known in the industry. Generally, the Buzzbank account manager 62 receives the records collected by the web server 22 regarding on-line behavior of the members and demographic information of the members, and prepares those records for use by the database server 26. Associated with the collection of the records from the web server 22 is the awarding of points into the individual bank accounts of each of the members 14, which are administered and maintained by the Buzzbank account manager 62.

The auction module 64 controls and drives the point-based auction of the present invention. As discussed herein, members 14 are able to bid on items through the auction process utilizing the points accrued through their normal activity on the Internet, as recorded by the present invention via the accrual process. The auction module 64 can (1) notifies members 14 in a direct and/or a non-direct manner of upcoming auctions, (2) conducts the auctions, (3) monitors and tracks the auction activity (e.g., bidding), (4) performs credit checks on each bid to determine if the member has sufficient points to cover the bid, and (4) sends targeted e-mails during the auction process notifying members of various auction related information, such as the current highest bid, the time remaining in the auction, their point balance, etc. Functionality suitable for providing the auction module 64 may be provided by OpenSite, Inc., wherein software provided by OpenSite can be modified relatively easily by one skilled in the art upon reading the present disclosure so as to operate as indicated herein.

With reference back to FIG. A, the information and data received by the data server 26 is both stored locally and delivered to the data warehouse 28. The database server 26 may comprise any suitable database management application, such as Oracle 8 SBP.

At the data warehouse 28, which comprises a decision support system database server, the information and data is processed and manipulated to generating on-line behavioral models and on-line demographic models in accordance with the present invention. These models are then utilized to generate reports which may be used by Surfbuzz or other entities in various directed marketing activities. The reports may be generated on an automatic and regular basis, or may be custom generated on demand based on a unique set of predetermined parameters, as may be desired.

III. Method of Operation

Surfbuzz.com is an incentive-based online transaction model that includes two major competencies that are outlined in FIG. 1 A. First is on the accrual side, second is on the redemption side. The accrual step 100 explains the Usage Awards Program component that provides the online user with incentive points based on the user's normal Internet usage. A key to this concept is that the users are rewarded for what they are already doing online, where they are already doing it, rather than changing online behavior which is indicative of many online incentive programs and brick-and-mortar incentive programs. In FIG. 2, a more detailed explanation as to the actual functionality of the usage rewards program is provided. The second major component, the incentive-based online transaction model is the points-based auction, as denoted by step 102. The points-based auction is similar to other on-line auctions, however, the currency is points, and therefore, the value in the bidding is done through points. Thus, the users determine the value of the auctioned valuable based on their bidding (/. e. , the consumer determines the cost). These points are accrued through the accrual process of step 100, also referred to as the Usage Awards Program, and then redeemed in this points-based auction step 102. The functionality of the points-based auction is explained in greater detail in FIG. 12.

The overall business model of the accrual process, which offers users the opportunity to be rewarded with points for activities they are already engaging in on line, wherein the accrued points may then be redeemed in the auction so that the redemption model is driving the accrual process and the redemption process is providing data to then focus advertising as part of the accrual process. Two keys elements of focus to a responsiveness model are the consumer (i.e., the member/user) and the customer (i.e., the advertiser). In FIG. 1-B, there is a schematic illustration of how Surfbuzz.com responds to the needs of the consumer. Through this model, which is an impulse marketing cycle between the accrual process and the redemption process, there is an ability to generate three distinct forms of data. As acquired through the membership signup and log-in process, there is an online demographic model (ODM) 104 that is achieved. That data is acquired through the membership signup form, through questionnaires and additional surveys that are sent out to members. That demographic information basically explains who are the members. That information is then not necessarily unique to Surfbuzz.com, but the ability to manipulate that data through the present invention via database and data mining technology gives Surfbuzz a unique competitive advantage over other incentive programs. A first on-line behavior model (OBM) 106 that is achieved in the accrual process. In the accrual process, Internet usage is passively monitored and tracked. Through that process, data such as what pages users are on, from what pages they came, to what pages they are going (distinctly, what things they are clicking on), those particular things they are searching for, etc, can be collected. This information and data can then be utilized to determine an on-line behavior trend(s). The consumer's likes and dislikes can be determined, and thereby enable responsiveness in an unparalleled way to customer service concerns. Further, based upon the collected data, incentives that continuously generates more accrual process are provided to the users, because Surfbuzz is able to adjust its interaction with the consumer on a one to one basis to address the consumers' needs. So not only are users being rewarded for what they are already doing online, but information presented to the users is manipulate against who they are based upon the online demographic model.

In addition, the on the redemption side, an OBM 108 is generated for predicting buying interests for a particular consumer. Based upon what they are bidding on, how much they are bidding, what their threshold of pain is, a relative level of interest in what particular goods and services a consumer is interested in can be determined. Through the online behavior model 108, the consumer is passively watched to determine what they are bidding on through the auction format. Therefore, it is known who they are through the online demographic model 104, then it is determined what they are doing online through the online behavior model 106 generated from the accrual process, and then a predictive model of the consumer's buying interest can be determined. By comparing all of this data, it can be determined why consumers do things the way they do them. That provides the ability to respond to the consumer's needs.

In FIG. 1C, the same information as discussed in reference to FIG. IB is utilized to address the needs of the customers of Surfbuzz, that is, the advertiser. Through the online demographic model 104, targeted advertising is possible, whether that is targeted emails through the Surfbuzz email program, whether that is targeted banners or other forms of targeted advertising to members based upon who they are. Because of the relative degree of accuracy of that information being in question, and the fact that that information can be possessed by multiple individuals or entities on the Web, there is generally nothing proprietary about that information. However, the other two online behavior models 106, 108 provide a competitive advantage against other forms of information collection on the Web. With the online behavior model 106 that is generated through the Usage Awards Program (i.e., accrual), it can be determine from the online demographic information who is doing what online, when they are doing it, and how they are doing it. Again, that same behavioral trend of where they are, from what pages they came, to what pages they are going, certain trends of behavior online can be determined. Through algorithms based upon who they are, as collected from the demographic information assimilated through the sign-up process, it can then be determine why they are doing things online, what pages they are on, what real estate on the Web is more valuable than the next, and then providing that information to the customer, i.e., the advertiser, for more targeted and effective advertising. Additionally, through the online behavior model 108 that is generated through the points-based auction, it can be determined who is bidding on what, their level of interest, again, what particular items they are interested in, and in that sense we are able to also respond to the customers' needs, i.e., the advertiser. With this information, Surfbuzz can develop an unparalleled level of consumer interaction on the Web, unlike other forms of advertising. Where other forms of advertising are based upon the principle of generating awareness. With the present business model, a consumer trial is generated.

Surfbuzz is able to generate consumer interaction with goods online based upon the effort that an individual puts into earning those points and then using those points in a bidding fashion through our points-based auction. That model provides the opportunity to not only generate information with regards to who these people are, what they are doing, how they are doing it, what is their level of interest in these particular goods, but then take that information to the customer, i.e., the advertiser, to generate very targeted one-to-one permission marketing geared towards those individuals who have bid in our auctions.

Through the FIGs. 1 A, IB and 1C, the relationship between the accrual process, i.e., the Usage Awards Program, and the redemption process of the points- based auction is defined, as well as the relationship of the models generated therefrom. As a point of differentiation to those who are able to assimilate information dealing with online demographics, what Surfbuzz is able to afford to the advertiser is a passive observation of online activity. Unlike those other forms of collection that are dependant upon the accuracy of a member or Internet user's response to questions or forms, etc. , Surfbuzz is able to generate information in a passive sense, in that Surfbuzz is able to watch what people are doing online and is not dependent upon the accuracy of their responses. Therefore, Surfbuzz is able to take the online demographic information and measure the accuracy of that against an individual or members or segment of a population's Internet usage and their predictive consumer buying behavior. The value of that is that the accuracy or inaccuracy of that demographic information is substantiated, and instead of being completely dependent upon that demographic information for the purposes of targeting similar to other online incentive programs or similar programs that manipulate this information, Surfbuzz is able to be dependent upon what is observe passively, both from an Internet usage standpoint and from a predictive modeling of a consumer's buying interest, which will provide the advertiser with an unparalleled, unmatched ability to address the needs of the consumer and therefore target their message.

With reference to FIG. 2, a more detail description of the accrual process of FIG. 1A is explained. In FIG. 2, the unique user experience, which includes logging into the site or the potential signing-up as a new member on the site or any other site that is licensed as a Surfbuzz.com product, is explained at step 110. Through that unique user experience, a record is generated and a session commences in which Surfbuzz.com begins collecting information on that individual. At step 112, the activity of the user on-line is tracked and monitored, and the simultaneous awarding of points to that user based on the activity that occurs on the Web is provided. A record is created that not only records the activity and what occurs during that particular session, but also awards points that are then deposited in the Buzzbank account of that user. Utilizing the records, step 114 comprises the creation of online behavior model for the users. The behavioral model are then utilized to generate reports detailing the Internet user's experience and explaining why that particular Internet user does the certain things that they are doing on the Web. That online behavior model is then utilized as explained in FIGs. IB and lC.

With reference to FIG.3, the unique user access to the Surfbuzz.com program of FIG.2 is described in greater detail. Initially, a decision 120 is made whether the individual is logging into the program for the first time or not. It is noted that the individual may be logging on to the Surfbuzz.com program from any of the client (i.e., licensee) sites. If the person is not a first-time user, and has previously registered as a member, that member will be identified based upon a user name and password that is entered in through the login process, as indicated in step 122. Next, at step 124, the user is granted access and the user's Buzzbank is activated. Preferable, a separate window which is part of the browser program pops up and provides the individual member with their points total as of that moment, deposited in the Buzzbank, and continuously updates the amount based upon the member's activity. The member's activity is then tracked and monitored at step 126, where the points are automatically deposited into the user's Buzzbank account based upon that activity. Continuously throughout the process or in response to specific action by the user, the user's point total is displayed to their viewing, as indicated in step 128.

If the individual is a first-time user, then they will be provided a sign-up form where they will have the opportunity, as explained in greater detail with reference to FIG. 4, to sign-up to activate and access the Buzzbank, and to will continue directly into the accrual process previously explained, as indicated at step 130.

With reference to FIG. 4, the sign up of new members begins with the creation of a record with user-specific information that is generated through the membership sign-up form and accompanying questionnaire, which is described in greater detail in FIG. 5. The record is created at step 140, and at substantially the same time, a Buzzbank account is created with the deposit of a certain number of points into the Buzzbank account based upon the sign-up at step 142. Once the individual record is created and the Buzzbank account is created, the individual is then prompted at step 144 to complete the member questionnaire that is explained in greater detail in FIG. 5. From that point forward, the creation of a online demographic model occurs for the member at step 146, that is, at the data warehouse and in the database where it is manipulated against the online behavior models that are generated through both the accrual and redemption process.

With reference to FIG. 5, the membership questionnaire functionality is described. A decision is initially made at step 150 as the user is presented with the opportunity and choice to choose to complete the questionnaire. The user is given the choice whether to choose the question or "remind me later." If they chose "remind me later" and choose not to fill out the questionnaire at that point in time, the member is automatically sent an email message at step 152 requesting them to fill out the questionnaire at a later time and reminding them of the value of doing so, which relates to the awarding of points. If they choose to fill out the questionnaire at step 150, then at step 154 they are provided with a questionnaire which is filled out with the necessary information completing the fields of the questionnaire. The responses are accrued into the online demographic model (ODM) that is maintained by Surfbuzz. Once that questionnaire is completed, points are awarded to that member and deposited within their Buzzbank account at step 156, and an accompanying message is sent out by email at step 158 to the new member thanking them for their response and confirming the points that were deposited into their Buzzbank account.

An advantage of the questionnaire process of the present invention is that it provides the user with the opportunity to choose whether to fill out the questionnaire at the point of sign-up or to wait until a later time. Obviously, the demographic information that is generated from the overall sign-up process has some questionable issues of accuracy and doesn't really present a whole lot of value to the company or to our ability to respond to the consumer themselves. However, the present invention provides the user with the a message reminding them to fill out the questionnaire at a later time. Surfbuzz recognizes the time constraints that face members, and is able to provide them with the opportunity to fill out the questionnaire at their own pace, which provides a significant benefit and gives them a reminder of the value which is significantly larger when filling out the survey of actually signing up. The actual formula for awarding point for completing the questionnaire is about five times the value of points from filling out the questionnaire versus just signing up. The value of the information in the questionnaire is that it gives us additional demographic information based upon income potential, disposable income, age, career, family demographics, etc. , that are extremely valuable in the manipulation of data when developing the online behavior models dealing with accrual and redemption.

With reference to FIG. 6, the tracking and monitoring of activity and the simultaneous awarding of points to users based on activity are described, and in particular, the activities for which points are granted are discussed. Those activities include but are not limited to the functionality of the search engine 170, which is explained in greater detail in FIG. 7, page views 172 and e-mail 172 which include any activity in which a member or user is viewing context, such as stock portfolios, news, horoscopes, weather, maps, TV listings, movie listings, e- mail, etc. which is explained in greater detail in FIG. 8 and FIG. 9. In addition, an explanation of the offers 174 that will be presented on the web site and delivered through the Surfbuzz email account is described in greater detail in FIG. 10. Additionally, a process of referrals 176 or "viral marketing," is explained in greater detail in FIG. 11, wherein a member is rewarded points for referring individuals to the web site which successfully sign up as members.

The forms of accrual outlined in FIG. 6 are the initial forms of accrual that will be provided at the onset for use within the site and at licensee websites, but these forms should not be construed as limiting the forms of accrual can be offered as part of the Surfbuzz.com program. A major point of differentiation that should be noted is that every single form of accrual of points that is explained in the Surfbuzz.com program is based upon the principle of rewarding people (a) for what they are already doing online, and (b) where they are already doing it, so that there is no significant change of online behavior. A second major point of differentiation is the accrual of those points and the earning of those points, which is based upon the principle that people should not have to spend money to receive those points. They are not based upon a traditional incentive concept that rewards people for spending money or making a purchase that they would ordinarily not make. These are just two points of differentiation that prove the concept of the Usage Rewards Program model that is rewarding people for what they are already doing, maintaining the integrity of the data model. The present invention comprises passive online behavior model watching of what people are already doing online almost in an invisible sense to generate the most accurate information that then can be manipulated against the online demographic model and the online behavior model of the points-based auction.

With reference to FIG. 7, the search engine functionality is explained in greater detail. At step 180, the search engine initially receives the search criteria from the user that is entered into the web site. That information is then sent to a database in which a search occurs based upon those criteria, as indicated by step 182. When the results are presented at step 184 through different results pages to the end user, the consumer, points are awarded to that user for each and every single page that is viewed creating a record and sequence of pages and information based upon those page views. At the same time that that information is created, it is worth mentioning once again that points are awarded based upon page views, that is, every single page that is viewed as part of those search results generated from the database. It is also worth noting that as part of the results that are received from the search criteria entered by the member or user, the user will be presented with the option at step 186 to choose from selected recommended sites. If they choose not to select a recommended site, they will still earn points from the page views. However, if they choose to select any of the recommended sites, they will be awarded additional points at step 188. From Surfbuzz' s perspective, the recommended sites are basically pay-per-click advertisers. Based upon the activity of the user, records are generated based upon what particular advertisers' banner that the user clicked on. From an operation standpoint, those recommended sites are preferable listed in a manner from those that provide the most revenue to those that provide the least, and further, there is preferable a direct relationship between the advertising revenue to points awarded so that the end user sees those sites that offer the most points first. As part of the Internet incentive standard licensing product, this same functionality based upon search criteria entered or any particular forms field entered in any form on the Web, it is possible to offer this service as part of the licensing product to other sites on the Web, whether that is through partnerships with Surfbuzz. This provides the opportunity to issue reward points for those page views based upon advertising that is positioned on those pages.

With reference to FIG.8, the accrual of points through page views is described. In Figure 8, the user is initially presented with content at step 200. That content can be presented in various different forms, including but not limited to the directory engine that will be on the Surfbuzz.com site or any other content feed that exists on the Web, such as news, stocks, weather, maps, TV listings, movie listings, horoscopes, feature content and any other content that presents the user with a new page view or from an advertising standpoint, offers an ad impression that is calculated based upon clicks per thousand. Once that user is presented with the content, the user selects at step 202 the content through a hyperlink or image link that changes the page view for the user and offers a different ad impression. From that point forward, because of the revenue generation that occurs based upon that activity, the Surfbuzz.com Usage Rewards Program awards incentive points to the user at step 204. Once that event occurs, the user selecting the content, the page view changing and ad impression being generated and the points thereby being awarded, a record is generated based upon the event. That record is then recorded into the database and data mined as part of the online behavior model that is generated by the company, as discussed hereinbefore. That data is then used to analyze the online behavior of the individual member, the segment of population that that member may belong to, and is thereby used to generate targeted advertising that then relates back to the ad impressions and page views in particular real estate that that user frequently views. It is worth noting that this particular functionality of rewarding page views is very similar to the delivery of ad impressions offered by ad aggregators on the Web and thereby gives us the opportunity through the licensing product to offer this usage rewards component to licensed clients. The revenue model for that particular functionality would be based upon a percent or back-end commission of the ad impression or CPM (click per thousand) advertising revenues, similar to a revenue-sharing model, so that Surfbuzz can contract with client sites and offer them the opportunity to reward points to their particular members, or our members on their site. The client site would then provide Surfbuzz with a back-end commission based upon the incremental revenue increases generated from the ad impressions.

With reference to FIG. 9, the awarding of points in the context of the user performing their normal e-mail tasks is described. When the user accesses their e- mail account at step 210, from that point forward, points are awarded to the user based on all functionality of the email at step 212. For example, the user may receive points for the any of the following, which is by no means a comprehensive list: composing email, receiving email, viewing emails in their folders, sending emails, and looking in their in-box. Essentially all of these activities are based upon page views, in that within each page a banner ad or sponsorship ad or button ad will be included on those pages offering a new ad impression for every new page viewed. The simultaneous ad impression will then offer the user with points that are deposited into their Buzzbank account, again, for doing what they are already doing online. Based upon the delivery of those ads, Surfbuzz is able to generate a record of what ads were delivered how many pages were viewed, etc. The information in the record is then returned back to the data warehouse and data mined as part of the online behavior model, thereby generating additional information as part of the Usage Rewards Program.

With reference to FIG. 10, the delivery of offers to users is described. An offer may be delivered through traditional online advertising mechanisms, such as a banner or an affiliate or a button advertising that is calculated based upon ad impression. Alternatively, an offers may be posted on the web site as part of the earned point section of the web site where individual members and users can go to that page to view posted offers. Yet further, Surfbuzz mail that will be delivered to members based upon the data modeling that Surfbuzz is able to create through the online demographic model and the online behavior models dealing with both our Usage Rewards Program and points-based auction. Through either of three means of delivery, the user is presented at step 220 with an offer and the opportunity to accept or not to accept the offer. If the user chooses not to accept the offer, as determined at step 222, a report is generated at step 224 and delivered to the database. If the user chooses to accept the offer, the user is provided with the opportunity to click through that offer to the advertiser's page, where again they are presented with the opportunity to fill out the necessary information, as indicated by step 226. Again, the user is presented with the opportunity to choose to accept or not to accept at step 228. If the user rejects the offer at that point in time, again, a report is generated and sent back to the database at step 224. If the user chooses to accept to offer, the offering company notifies Surfbuzz.com that there is revenue that is generated' to the company and, based upon that revenue that is generated, points are awarded to the user that are deposited into the Buzzbank and a record is created of that activity, as indicated at step 230. Based upon that record of information that is created on that activity, Surfbuzz is able to determine what offers, when and how they are accepted, or if they aren't accepted, and take that information and manipulate that based upon the online demographic model and the online behavior models of the company's data mining processes.

It is important to note that the delivery of offers that are outlined in FIG. 10 are keyed to the company's overall advertising or sponsorship model. The various different forms of delivery, such as the banner advertising affiliate, that are calculated upon paper clicks, CPM, paper lead, click-through, etc. , are delivered in various different fashions to offer the sponsor with the opportunity to take advantage of the information that is generated from our data mining processes, and to target information specifically in a one-to-one permission marketing format to our members and users. The actual delivery of offers affords Surfbuzz the opportunity to measure return on investment, to measure relative levels of interest and to generate significant revenues for the company because of the relative value of the targeted advertising. Based upon the online behavior models, Surfbuzz is able to assess not only on-line Internet usage but predictive modeling of buying interests, and to then measure that information against demographic information that is collected through the sign-up process. Through these data collection processes, Surfbuzz is able to clearly identify the likes and dislikes, levels of interests and areas of interest of the members and users, which gives Surfbuzz the opportunity to offer to the advertiser higher forms of return on their advertising.

With reference to FIG. 11 , the referral functionality is explained. The user is presented at numerous opportunities throughout the Surfbuzz.com wed site with a tell-a-friend icon. By selecting the tell-a-friend icon and clicking on it at step 234, the user is presented with an e-mail screen that will pop-up as a separate window, and will offer them a pre-conceived, pre-determined message at step 236. That user will have the opportunity to complete the forwarding address field at step 238. The addressee receives the e-mail, and will have the opportunity to reply, as determined at step 240. If the addressee chooses not to respond, the functionality is over. If the addressee chooses to respond, the addressee will then sign up through this e-mail and register with Surfbuzz.com as that process is outlined in FIG. 3, as indicated in step 242. Once that process occurs for the referral registering on the Surfbuzz.com site or through the Surfbuzz.com program on other client sites, the referrer will be awarded with incentive points that will be deposited into their buzz bank account, as indicated in step 244.

With reference to FIG. 12, the points-based auction is explained. The overall auction is a points based auction where the forms of bidding and the value of goods are determined by a currency of points, thereby no credit card transaction occurs, shipping is completely free and the individual user is using points ~ funny money if you will ~ to bid on those particular items. There is no predetermined value of the items that is communicated to the consumer. When the consumer enters the auction, they are presented with auction items to bid upon, as indicated at step 250. At step 252, it is determined whether the user bids on an auction item. If the user chooses not to bid on an auction item, then a record is generated on that activity at step 254. If the user chooses to bid on the item, there is a record of that bid that is recorded at step 256. As multiple bids are submitted by various different users, all bids are processed and the winner is determined based upon the person who bids the most points within the restricted period of time that the auction occurs, as indicated at step 258. At step 260, it is determined if the user is the winner. If not, then a record is generated at step 254. If the user is the winner, then the user's Buzzbank account is adjusted and a record is created, as discussed below. The record is of all individuals that bid on the auction so as to be able to determine the relative level of interest and willingness to bid on particular items, again to determine the predictive model of buying interest.

For the user who does not win, information is collected and generated in the record to determine their level of interest which is extremely valuable from the on-line behavior model standpoint. For the user that does win, the functionality that then proceeds is that the points are then redeemed and deducted from their Buzzbank account at step 262, the balance within the Buzzbank account is adjusted based upon the winning bid and from that point forward, a record is generated and communications are sent to that user informing them of their win. Through this points based auction model, Surfbuzz is able to develop an on-line behavior model of the consumer's buying interest. The interaction that occurs within the auction allows the company, Surfbuzz.com, and the customer, the advertiser, to present the end user consumer with an opportunity to interact with the consumer product whereby the advertiser, the customer, is able to deliver to the consumer targeted advertising during the auction and after the auction through the delivery of offers that was outlined in FIG. 10. Through the auction, all items regardless of acquisition costs of the company or retail value are valued initially at one point with all bids commencing at that point forward. The key to the model is that with all bids starting at one point, the redemptive value of the points is established by the consumer. Unlike other on-line incentive programs that attach a value to their points, i.e., 25,000 frequent flyer miles equivalent to one Continental U.S. domestic ticket, with the points based auction model offered by Surfbuzz.com and all bids starting at one point, the value of the points is demand driven such that the consumer, based upon demand for the particular item, is able to determine the redemptive value of the currency.

With reference to FIG. 13, the creation and accumulation of records that is outlined beginning in FIG. 2 and continuing throughout the aforementioned figures is detailed more clearly. Initially, records are accumulated from the activity that is a part of the usage rewards program and the points based auction and the sign-up process and related questionnaires, as indicated at step 270. All of that information is then accumulated and placed into its respective model through the data warehouse. The on-line demographic model 272 houses information relating to the demographics and questionnaire responses. The on-line behavior model 274 for the usage rewards program accumulates and collects records based upon user activity that is generated through the website and related websites, and the on-line behavior model 276 for the points based auction develops a predictive buying behavior related to the activity of bidding that occurs within the auction. All of that information is then generated, stored within the data warehouse, collected through the data base and analyzed through the data mining processes of the company to generate reports and ad hoc reports to address the needs of the customer, i.e., the advertiser, for the purposes of the delivery of offers through advertising, offers on the page and the Surfbuzz mail. Additionally, through that information Surfbuzz is able to respond to the consumer needs through both customer service, adjusting those items within the auction to fit the needs of our consumer, and to adjust the functionality of our website and our client's website that participate in the Surfbuzz.com program.

An aspect of the invention is a secondary part of the browser. The browser, whether its Netscape navigator, Neo Planet, Microsoft Internet Explorer, that will be offered by Surfbuzz.com to offer continuous functionality of the Surfbuzz.com usage rewards program throughout the Internet. This particular window will offer the consumer the opportunity to have constant access to their instant messenger, their e-mail, access through one click away to the auctions and to the Surfbuzz.com site. As part of this window, the Surfbuzz will deliver targeted advertising that fits within the incentive-based on-line transaction model in the sense that each offer will be tied to a particular incentive points value that can be acquired through clicking on that advertising and taking advantage of the offer. As part of this window, Surfbuzz.com will offer to the member the opportunity to continuously view their points total so that they are able to track those points as these offers are continuously delivered to the consumer. As part of the delivery of these ads, just the sheer delivery will offer the consumers the opportunity by visually observing the advertisements, the accrual of points as a benefit to having this window continuously as part of their browser. As part of the instant messaging product, Surfbuzz.com will be able to offer users alerts on particular items that are posted in the auction that are related to their interests from which Surfbuzz is able to determine from the on-line behavior predictive modeling.

Another aspect of Surfbuzz.com is the licensing of the accrual process to other sites across the worldwide web with the intention of developing the Internet incentive standard. Surfbuzz.com will offer any website on the Web the opportunity to integrate Surfbuzz software platform into their website whereby we will be able to offer them the opportunity to reward their members and their users for signing up through their website as Surfbuzz.com members. These sites will be to award their members in the exact same fashion that Surfbuzz.com is able to reward our members within our site so that these particular sites are rewarding people for staying on their site and increasing their relative usage so that each of these individual sites will have their own particular usage rewards program that will not only reward their members on their site but will transcend to other sites that participate in this program so that members of their particular site will be not only rewarded for activity on their respective site, but will be rewarded as they engage in activities on other sites that participate with the Surfbuzz.com program.

In addition to the usage rewards component of the license, Surfbuzz.com will offer client site the opportunity to privately license their own respective points based auctions as part of the Surfbuzz.com site. These sites will be able to post and present items that are geared towards the interest areas or levels of members on their particular sites. For example, a website like iVillage that's geared towards a largely female audience would be able to establish in a points based auction privately labeled as part of Surfbuzz.com with items geared to the interest of women on their site. As part of the usage rewards program and the points based auction license to these sites, Surfbuzz.com would employ the data mining technologies that we use within our site to generate on-line behavior models for these particular sites not only based upon the demographics of their members, but based upon the usage component and the predictive modeling of the activity within the auction to generate targeted advertising to their members and their users. Surfbuzz.com is able to generate revenue through the licensing model through being paid back-end commissions based upon the activity that is occurring on these sites. For example, a site may reward members for page views and search capabilities and e-mail. All of those matrixes are measured through advertising, such as through advertising CPM's or through ad impressions of page views. Surfbuzz.com would pursue an arrangement with a client site whereby that client site would pay a percent, similar to revenue sharing, but a percent of those matrixes on the back-end to Surfbuzz.com for incentivising that activity increasing the incremental usage and thereby increasing the incremental advertising revenue of that site. Through this revenue sharing model, Surfbuzz.com is able to share in the increases in the incremental advertising revenue of these sites generating a back-end commission to Surfbuzz.com. Through this activity that is generated through the usage rewards program and the points based auctions within the Surfbuzz.com site and on other client sites, Surfbuzz.com is able to generate a significant and unparalleled on-line behavior information concerning members and users across the worldwide web to target specific advertising and offers to them within the points based auction and through Surfbuzz mail.

In the drawings and specification, there have been disclosed typical preferred embodiments of the invention and, although specific terms are employed, they are used in a generic and descriptive sense only and not for purposes of limitation.

Claims

CLAIMSWherefore, the following is claimed:

1. A method for incentive-based on-line transactions, comprising: tracking on-line activity of a user; creating records of said activity, wherein said records comprise a historical sequence of said activity; awarding points to said user based on said activity; and conducting an on-line points-based auction for valuables, wherein said user can bid on said valuables using said points.

2. The method of Claim 1 , further comprising signing up new users, wherein said new users are requested to complete a questionnaire with demographic information.

3. The method of Claim 2, further comprising creating an on-line demographic model with said demographic information.

4. The method of Claim 1, further comprising creating a first on-line behavior model utilizing said records.

5. The method of Claim 1 , wherein said step of conducting an auction comprises receiving bids based on points from a plurality of users, terminating the auction after a predetermined period of time, and determining a winner.

6. The method of Claim 5, further comprising creating auction records of said bids and said winner.

7. The method of Claim 6, further comprising creating a second online behavior model utilizing said auction records.

8. The method of Claim 1, further comprising creation of on-line demographic models of users based on user provided data, first on-line behavior models of users based on users on-line activity, and second on-line behavior models of users based on auction activity.

9. The method of Claim 8, further comprising processing said on-line demographic models, and said first and second on-line behavior models to direct marketing activity.

10. The method of Claim 1 , wherein said step of awarding points comprising depositing points into a unique account associated with said user.

11. The method of Claim 1, wherein said on-line activity comprises an activity selected from the group consisting of viewing web pages, web searching, transacting e-mail, transacting offers, and producing referrals.

12. A computer-based system for providing incentive-based on-line transactions, comprising: a web server application that tracks on-line activity of members, and generates records of said activity; an account manager that receives said records from said web server application and deposits points into individual member accounts based on said records; and an auction mechanism that conducts a points-based auction, wherein said members bid on valuables using accumulated points in respective said accounts.

13. The computer-based system of Claim 12, wherein said web server application generates offers to specific members.

14. The computer-based system of Claim 12, further comprising a model mechanism that generates an on-line demographic model based on member inputted data, a first on-line behavior model based on said on-line activity, and a second on-line behavior model based on auction activity.

15. The computer-based system of Claim 12, wherein said auction mechanism generates records of auction activity.

16. The computer-based system of Claim 15, further comprising a data mining mechanism that processes said records to generate a first on-line behavior model based on on-line activity and a second on-line behavior model based on auction activity.