WO2012011981A1

WO2012011981A1 - Marketing system and method for monetizing networks

Info

Publication number: WO2012011981A1
Application number: PCT/US2011/031007
Authority: WO
Inventors: Darren J. Davis; Konstantin Glasmacher; Suma Gowda; Brett Markinson; Scott Roback
Original assignee: Treatfeed, Llc
Priority date: 2010-07-22
Filing date: 2011-04-01
Publication date: 2012-01-26

Abstract

A multilevel marketing system for publishing or offering discounts on goods or services from a business to users including a server in communication with a network for running the multilevel marketing system. The server allows a first user to refer a second user to the multilevel marketing system and the server associates the second user to a social network of the first user. By referring other users to the multilevel marketing system, the first user earns credits or money based on purchases made by the users in the social network of the first user.

Description

MARKETING SYSTEM AND METHOD FOR MONETIZING NETWORKS

CROSS-REFERENCES TO RELATED APPLICATIONS

[0001] This application claims the benefit of Provisional Application Serial No. 61/366,858, filed July 22, 2010, and this application claims the benefit of Provisional Application Serial No. 61/385,885, filed September 23, 2010, the contents of both applications are incorporated by reference.

COPYRIGHT NOTICE

[0002] A portion of the disclosure of this patent document contains material that is subject to copyright protection. The copyright owner has no objection to the facsimile reproduction by anyone of the patent document or the patent disclosure, as it appears in the Patent and Trademark Office patent files or records, but otherwise reserves all copyright rights whatsoever.

BACKGROUND

[0003] Group purchasing organizations are entities that gather a group of consumers together to obtain discounts from vendors or businesses based on the collective buying power of the consumers grouped together by the group purchasing organization. Group purchasing has been used in many industries, including health care, electronics, industrial manufacturing and agricultural industries. More recently, group purchasing organizations have started grouping consumers together through the use of websites on the Internet. Some of these web-based group purchasing organizations offer a single deal-a-day to consumers that are localized to major markets in the United States, such as large cities.

[0004] Using the collective buying power of its consumers or members, these web-based group purchasing organizations offer products at discounts in a local market. Normally, these discounted products only become active when a certain number of consumers sign up for the offer, then the deal becomes available to all. Also, if the agreed upon minimum number of consumers do not sign up for the offer, none of the consumers can purchase the special offer.

[0005] What is needed is a purchasing system and method that offers a variety of products to its consumers every day and allows its users to monetize their social networks. Also, a purchasing system and method is needed that provides no risk of losing money on a purchase that is not used or expires. Furthermore, a system and method is needed that offers vendors a way to authenticate users and avoid counterfeit redemptions.

SUMMARY

[0006] Briefly, and in general terms, various embodiments are directed to a method for operating a referral marketing system from a server connected to a network. The referral marketing system can include any purchasing system, such as a group purchasing system. Discounts on goods or services are offered from a business through the group purchasing system and the discounts on the goods or services become active when a minimum number of users purchase the discounted goods or services through the group purchasing system. The method includes accepting a first user as a member of the group purchasing system on a group purchasing server. The method also includes accepting a second user as a member of the group purchasing system on the group purchasing server as a user referred by the first user.

[0007] Also, the method includes storing information relating to the first and second users in memory associated with the group purchasing server. The

information stored in memory includes data associating the second user as being referred to the group purchasing system by the first user. In this embodiment, all referrals by its members can be tracked by the group purchasing system.

Furthermore, the method includes calculating credits earned by the first user based on purchases made by the second user through the group purchasing system on the group purchasing server. In one embodiment the system may issue credits earned by the first user in the form of money. In other embodiments the credits earned by the first user may be used to purchase goods or services through the group purchasing system.

[0008] In this method, the second user, who was referred to the group purchasing system by the first user, becomes a part of a social network of the first user. The social network is used herein to mean a network of individual accounts linked to the user. In this social network for the first user, the second user and any other members that are referred to the group purchasing system by the first user are considered to be in the first generation of the first user's social network. The social network for both the first and second users can continue to grow as both users refer additional users to join the group purchasing system. For example, the method includes accepting a third user as a member of the group purchasing system on the group purchasing server as a user referred by the second user. In this example, the third user is considered to be in the first generation of the second user's social network and the third user is also considered to be in the second generation of the first user's social network. The group purchasing system may store information relating to a user's social network for multiple generations. Furthermore, the system may calculate earnings for the user based on purchases made by multiple generations of users in the user's social network.

[0009] The method may further include calculating credits earned by the first user based on purchases made by the third user through the group purchasing system on the group purchasing server. Also, the method includes calculating credits earned by the second user based on purchases made by the third user through the group purchasing system on the group purchasing server.

[0010] Another embodiment is directed to a method for operating a referral marketing system. In this embodiment, the method includes accepting a first user as a member of a purchasing system located on a server, wherein members can purchase goods or services through the purchasing system. The method also includes accepting a second user as a member of the purchasing system as a user being referred by the first user. Furthermore, the method stores information in memory associated with the server relating to the first and second users that includes data associating the second user as being referred to the purchasing system by the first user. Credits earned by the first user are calculated based on purchases made by the second user through the purchasing system.

[0011] In this method, the second user, who was referred to the purchasing system by the first user, becomes a part of a social network of the first user. In this social network for the first user, the second user and any other members that are referred to the purchasing system by the first user are considered to be in the first generation of the first user's social network. The social network for both the first and second users can continue to grow as both users refer additional users to join the purchasing system.

[0012] In another embodiment, a method includes accepting users to become members of a group purchasing system on a group purchasing server. Through the group purchasing system, discounts on goods or services are offered by a business, and the discounts on the goods or services become active when a minimum number of members purchase the discounted goods or services through the group purchasing system. This method also includes calculating credits earned by the members for completing tasks set by the group purchasing system and then ranking the members on a leader board based on the number of credits earned.

[0013] In this method calculating credits earned by members for completing experienced-based tasks are non-redeemable credits and are used only to rank players. However, credits earned by members for completing tasks, such as referring other members to the group purchasing system, for purchasing goods and services, or for purchases made by a group of members in the group purchasing system, are redeemable credits. These redeemable credits may be used by members for making future purchases on the group purchasing system.

[0014] The method also rewards members based on their ranking on the leader board. Members who rank high on the leader board may be rewarded with prizes, redeemable credits, or non-redeemable credits.

[0015] Another embodiment is directed to a method for operating a multilevel marketing system. This method includes accepting a first user as a member of a marketing system on a server, wherein the marketing system publishes deals on goods or services to members. The marketing system may be associated with an affiliate marketing network. The method also includes accepting a second user as a member of the marketing system. Furthermore, information relating to the first and second users can be stored in memory associated with the server and an association is created between the first and second users that identifies the second user as being referred to the marketing system by the first user. Credits earned by the first user are calculated by the server based on purchases made by the second user through the marketing system. In one embodiment, the method further includes calculating credits earned by the first user based on purchases made by the first user through the marketing system.

[0016] Other features and advantages will become apparent from the following detailed description, taken in conjunction with the accompanying drawings, which illustrate by way of example, the features of the various embodiments.

BRIEF DESCRIPTION OF THE DRAWING

[0017] FIG. 1 depicts a diagram illustrating components of an embodiment of a marketing network;

[0018] FIG. 2 depicts an example of a screen in accordance with one or more embodiments including multiple categories;

[0019] FIG. 3 depicts an example of a screen in accordance with one or more embodiments including tabs associated with a deal being offered by the group purchasing network;

[0020] FIGS. 4A and 4B depicts examples of a screen in accordance with one or more embodiments including a list of master service areas and local market areas;

[0021] FIG. 5 depicts a diagram of on example of a social network for member A including multiple generations;

[0022] FIG. 6 depicts an example of a member page that include user preferences of a group purchasing system;

[0023] FIGS. 7A-7D depict examples of member pages that include member's account history;

[0024] FIG. 8 depicts an example of a business page that includes a report summary for a deal offered by the business through the group purchasing system;

[0025] FIG. 9 depicts an example of a screen in accordance with one embodiment of a multilevel marketing system offering deals or coupons to its members;

[0026] FIG. 10 depicts an example of a member page associated with a multilevel marketing system;

[0027] FIG. 11 depicts an example of a virtual world of a member of the multilevel marketing system. DETAILED DESCRIPTION

[0028] In one embodiment, a multilevel marketing system benefits and can be used with a purchasing or marketing system that may be Internet based. The multilevel marketing system allows users or members of a purchasing system to be rewarded or compensated for referring or inviting others to join the purchasing system. Methods for compensating members of a purchasing system are discussed in detail below. The purchasing systems may include a group purchasing system that is time driven (flash sale) or price modulated (reverse auction or Dutch auction), or the purchasing system may include an individual purchasing system. The multilevel marketing system can be used with any type of purchasing system, including a group purchasing system, individual purchasing system, or affiliate marketing system.

[0029] One embodiment of the multilevel marketing system involving a group purchasing system offers users or customers a variety of goods and services at discounted rates every day, as well as allows users to earn money and/or credit for the social equity they bring to this platform. The system allows any business to create an offer or deal and introduce it to a local consumer marketplace. The group purchasing system allows its users to access discounts on goods and services at discounted rates by joining forces with a group of people looking for the same good or service. To minimize spending traditional marketing dollars, businesses can use the present system to generate awareness and new customers.

[0030] The group purchasing system provides a way for businesses to create an offer or deal for consumers provided a minimum number of people agree to purchase the deal. Deals do not become active, meaning that deals cannot be redeemed by the consumer, until the minimum threshold of purchasers is reached. Given this requirement, the group purchasing system is driven by the customers' desire and motivation to share the offers of the group purchasing system with their social network, which is used herein to mean a network of people linked to the user. [0031] Furthermore, the group purchasing system and method offers a variety of products to its consumers every day that can be searched through different categories. The group purchasing system also allows members to monetize their social networks by allowing the members to earn credits or money based on the purchases made by others who were referred to the group purchasing system by an existing member. Members referred to the system by existing members become a part of the existing member's social network on the system and may continue to earn credits or money based on their referral' s purchases. Also, the group purchasing system may provide no risk to the member of losing money on a purchase that is not used or expires. Any purchase that is not redeemed or expired based on the terms of the deal may be refunded to the member. Furthermore, the system offers businesses or vendors a way to authenticate users and avoid counterfeit redemptions.

[0032] Referring now to the drawings, wherein like reference numerals denote like or corresponding parts throughout the drawings and, more particularly to FIGS. 1-5, there are shown various embodiments of a multilevel marketing system. More specifically, as shown in FIG. 1, the multilevel marketing system may be accessible via a website over the Internet that offers deals or discounts on goods and services. Pages of the website can be stored on a server 10. Data obtained from customers and businesses relating to customer information and details of the offers or deals can be stored on the server or on a database 12 that is in communication with the server.

[0033] A back-end computer 14 may also be in communication with the server to access and edit information stored on the server and/or database. The server or the back-end computer may be used to edit the pages of the website by placing new deals on the website. Furthermore, the server or the back-end computer may analyze and send current deals to users based on a variety of factors, potentially including but not limited to user preferences, previous user behavior or location. The server can also be used to calculate the money or credits earned by members from their social network as will be described in detail below. [0034] As shown in FIG. 1, the server is connected to the Internet 16. In this way, client computers 18 or business computers 20 can access the website on the server. Mobile devices 22, such as cell phones, smart phones, and other computer devices, can access and receive information from the server 12 through the Internet as well.

[0035] Also, the pages of the multilevel marketing system may be developed using a Rich Internet Application ("RIA"), such as Flex, which compiles down to a Flash application. The use of such a framework could make self-contained widgets for placement on websites, blogs, and social network sites, easier to create and operate, among other advantages. In another embodiment, the pages of a website for the multilevel marketing system may be created using standard web development languages, such as HTML or PHP. Also, other web development languages, template engines, or code management frameworks may be used to develop the multilevel marketing system. It has also been contemplated that some or all of the services offered by the multilevel marketing system may be available via application programming interface ("API"), which is typically a defined set of Hypertext

Transfer Protocol (HTTP) request messages, along with a definition of the structure of response messages.

[0036] The website for one embodiment of a group purchasing system may include a homepage 30 as shown in FIG. 2. Multiple category links 32 are listed on the homepage. As shown, there are five category links; however, any number of categories can be used. The category links help users search for the type of goods or services they are interested in purchasing. In the embodiment shown, the multiple categories include Adventure, Health & Beauty, Events, Food & Dining, and Retail & Services. Other categories may include Entertainment and Wild Card or

Miscellaneous. Any number of offers can be listed under each of the categories. Providing multiple offers to the users increases the chances that the users will find an offer that interests them. New offers or deals may be added to each of the categories as often as desired. It has also been contemplated that new offers or deals may be added at other time intervals, such as every hour, every week, or every month.

[0037] In the preferred embodiment, offers or deals are available for purchase for a twenty-four hour period. As shown in FIG. 2, a time remaining feature 34 may be included on the homepage 30 to indicate the amount of time remaining to purchase an offer. After this set time period, the offer is no longer available to purchase. In other embodiments, the time period to purchase an offer on the group purchasing system may be any time period, such as minutes, hours, days, weeks, months or years. It is also possible that the purchasing time period will depend on the particular offer. Therefore, one offer or all offers in a category may be available for a day, while another offer or offers in another category may be available for a week. Offers may also depend on a maximum number of purchases and may not be time based.

[0038] As mentioned above, offers or deals available on the group purchasing system only become active when a minimum number are sold. Purchasing an offer can be initiated by a registered user clicking on a buy button 36 on the homepage 30. Once the minimum number of purchases has been reached, the group purchasing system will inform the users who purchased that particular offer. Users can be informed through the website, an email communication, telephone message, text message, or posting on a social network, such as Facebook or Twitter. A counter 38 can also be included on the homepage 30 to indicate to the users how many users have purchased the offer and how many purchases are needed to activate the offer. Offers can be purchased with a credit card or other types of payment. User's credit cards are only charged when the offer or deal activates. If the minimum number or purchasers is not reached for a specific offer, then the deal does not activate and the user is not charged any money.

[0039] As shown in FIG. 2, tabs 40 may be included on the homepage 30 and may be clicked to switch between different types of information that can be displayed to the user. The various tabs can display the overview of the offer, details of an offer, and any terms associated with the offer, such as an age restriction. Furthermore, these tabs 40 may allow a user to post comments about the specific offer or share the offer with other people in their network by sending a preformed email that includes a link to the specific offer. This share feature is shown in FIG. 3. In the share feature, it is possible to import email contacts from various email accounts, such as Yahoo mail or Hotmail. Tools are also provided in the share feature to post information and/or a link to a specific offer on the user's Facebook account or Twitter account. These tools may customize the information/links to allow the group purchasing system to recognize the association between referred users and their referral source. The user may also use similar tools to refer others to join the group purchasing system.

[0040] Other tools that a member can use to recruit or stay current with active deals from the group purchasing system include the use of widgets that may be placed on a member's personal web-page or computer desktop.

[0041] Once an offer or deal becomes active, the user will receive a redemption device. The redemption device can be a voucher, coupon code, affinity or

identification card, or the like. In one embodiment, the user can print out a voucher from the group purchasing system after a deal becomes active. The group purchasing system can automatically send a confirmation email to the members who have purchased the deal. Vouchers may be sent along with the confirmation email or members can return to the website, log into their account and print out their voucher. Deals offered by the group purchasing system typically will have specific conditions as to when, where and how the deals can be redeemed.

[0042] The voucher may then be taken to the business to redeem the offer. The voucher may be associated with a user's account on the group purchasing system that may be obtained on the website, or the voucher may be sent to the user through email or regular mail. It has also been contemplated that users can receive membership cards from the group purchasing system that contain information about offers purchased by the individual user. These membership cards, which may be smart cards, can be used by the user to redeem the offer at the business. The user's information may be stored on the group purchasing system's server 10 and this information can be associated with recent purchases made by the user. In yet another embodiment, data sent to a member's mobile phone or other mobile device may be used to redeem the deal from the business.

[0043] In one embodiment, once an offer or deal is purchased and becomes active, the group purchasing system will send the user's information to the business providing the deal. Such information may only include the user's name and user or member ID (or subsets thereof). This information can be used by the business to authenticate the voucher being presented to receive the offer. Sending user information to the business helps prevent the use of counterfeit vouchers.

[0044] In one embodiment, if the user who has purchased an offer that becomes active does not redeem the offer, the user's money can be refunded to the user in the form of credit or money. The credit issued to the user can be used by the user to purchase another offer through the system. If the certificates or vouchers issued to users include an expiration date, then the user may also be refunded any money used to purchase the offer if the user does not redeem the offer before the expiration date.

[0045] The offers or deals of the group purchase system may be retrievable through the Internet, for example, at an online store, or at specific geographic locations. In one embodiment, the deals associated with the group purchasing system are based on geographic location. Master Service Areas, such as cities and surrounding areas, can be established on the group purchasing system. Examples of these master service areas 50 are shown in FIG. 4A as "Your City." One

embodiment may include Local Market Areas 52, such as neighborhoods that are located within the Master Service Areas. Local Market Areas can make it easier on the user to find deals or offers that are located closer to their residence or current location. Deals are searchable by location and it is possible that deals are only available to users who are residing in or located near the Master Service Area. In another embodiment shown in FIG. 4B, the master service areas 50 may also be located by selecting the state 54 to more easily find the user's city.

[0046] Users can set preferences for what locations or Master Service Areas they belong to in order to focus the offers and deals that are shown to the user. It has been contemplated that offers may be available to users based on a radius centered on their location, such as their address. For example, users may be sent notification about offers or they can search for offers within a 20 mile radius surrounding the users' location provided during sign-up. Users may also be able to select a preference for receiving offers based on selected Master Service Areas and Local Market Areas. It has also been contemplated that members can use a search feature provided on website to search for deals using keyword terms, the type of category and the location.

[0047] Also, offers may become available to users based on their current location. If a user or member of the group purchasing system is using a mobile device with location finder or GPS locator enabled, then offers or deals can be pushed to the user's mobile device as they travel within a Master Service Area or Local Market Area that includes available deals or offers that may be purchased.

[0048] It has also been contemplated that some deals offered by the group purchasing system are not location based. Online businesses may want to offer deals to users of the group purchasing system that can be redeemed through the Internet at the website of the online business. These online businesses may not want to be geographically limited. Online offers or other offers that are not location based can be listed under an appropriate category and may be available to all users regardless of their geographic locations. Also, offers that are not location based can be listed in a separate category or can be searched by the users as online businesses.

[0049] Users of the group purchasing system are encouraged to share the offers or deals with their network of people or introduce them to the referral marketing system or group purchasing system. A user or member of the group purchasing system can recruit other people by using available social online networks, such as Twitter and Facebook, blogs, or send emails to contact lists. By following a link posted on the Internet or sent in an email message by the referring member, new members join the group purchasing system and may be added to the referring member's social network. The referring member's social network can be monitored on the member's account at the website of the group purchasing system. Members will be rewarded for referring new members to the group purchasing system. In one embodiment, members earn money, points, and/or credits for all transactions or purchases made by the members in their social network. Members can receive money, points, and/or credits for multiple generations of their social network.

[0050] For example, if member A refers members Bl, B2 and B3, who all join the group purchasing system, then members Bl, B2 and B3 become a part of member A's first generation in member A's social network. If member Bl then refers members CI and C2, who join the group purchasing system, then members CI and C2 become a part of member Bl 's first generation and Al 's second generation. This pattern of generation numbering continues as best shown in FIG. 5. In one embodiment, members are allowed to have up to four generations in their social network, however, any number of generations can be allowed.

[0051] Members accrue money or credit based on a percentage of the money others in the member's social network spend on deals offered by the group purchasing system. In one embodiment, a member will earn ten percent (10%) of the value of the eligible purchases made by purchasers that are part of the member's first generation. Members may earn three percent (3%) of the value from the eligible purchases made by the member's second generation, two percent (2%) of the value from eligible purchases made by the member's third generation, and one percent (1%) of the value from eligible purchases made by the member's fourth generation. Any other percentages may be used to determine the amount of money or credit that is earned by the members. Also, it is possible that members will earn a set amount of money or credit based on the amount or frequency of purchases made by other members in their social network.

[0052] In one embodiment, members earn credits based on purchases made by members in their social network using money and not credits that have been redeemed or earned through the system. However, it is also possible to allow users to earn credits based on purchases made by members in their social network using referral or earned credits or courtesy credits (credits given to users by the system for loyal service). Users may not be allowed to earn credits based on purchases made with refund credits, which are credits that were refunded to a user for expiration or non-use.

[0053] In yet another embodiment, members may earn credits or money based on the size or amount of total purchases made by all or a subset of members of the purchasing system. A certain percentage of the total purchases made by the members in the purchasing system can be added to a payout pool for a certain period of time. The percentage of the total purchases can vary as desired, but may be about two percent (2%). Furthermore, the period of time for collecting money or credits in the payout pool may be daily, weekly, monthly or yearly. The payout pool may then be divided equally amount the members or all participating members.

[0054] It has also been contemplated that the payout pool can be divided unequally among the members based on longevity in the purchasing system's community or the amount of purchases made by each member. As an example, the payout pool may be distributed among the members every month and users who have been members of the purchasing system for a longer amount of time will receive a larger share of the payout pool than users who have been members for a shorter amount of time. In another example, members who have spent more money over a period of time on the purchasing system will receive a larger percentage of the payout pool than members who have spent less money of the same period of time. [0055] The multilevel marketing system may also reward members with money or credit for service, loyalty or incentive reasons. For example, the system may reward members for joining the system, inviting others to join, visiting the website of the purchasing system, continuing to be a member for a period of time, or for any action or reason. These reward credits may be used by the members to purchase goods or services offered on the system or shared with other members on system. Members may or may not be allowed to earn credits based on purchases made with reward credits.

[0056] The group purchasing system can allow members to view the size of their social network and the amount of money or credits earned in real time on the website. The member's balance from the social network can be used to purchase deals offered on the purchasing system. In another embodiment, the members can redeem the credits for money.

[0057] Users or members of the multilevel marketing system can log onto the Internet and navigate to the website of the system to login or join the website. Upon joining the system, the member can be instructed to fill out a list of preferences that include payment method, location, and contact information. FIG. 6 shows a member page 60 that allows the member to select location preferences, which includes selecting one or multiple cities (master service areas 50) and one or more

neighborhoods (local market areas 52). The member page 60 may also allows the member to select certain category preferences. In one example, a sliding bar may be used to select the member's level of interest for a category, but in other

embodiments, the member may check a box or indicate in another way which categories the member is most interested in viewing. Also, the member may select privacy settings.

[0058] The user may select his preferred payment type on the member page 60. Members may choose which type of payment method they want to use to purchase the deals offered by the system including credit cards, electronic funds transfer ("EFT"), or establishing a pre-payment account on the system. Any type of payment instrument may be used with the group purchasing system. The member's credit card will be charged or other payment instrument will be used to pay the exact amount of the deal as listed when the deal or offer becomes active. Members may also set the master service area(s) and local market area(s) they wish to receive information concerning current deals offered by the system. As discussed above, members may be able to set up a mobile account.

[0059] Another preference for a member to select is the method of contact between the system and the member. A member may choose to receive email messages, text messages, and/or posts to social websites. Once the member's contact information is provided to the system and stored in its database, the system can use its server to send information to its members relating to new deals being offered or the activation of deals purchased by the member. The server of the system may track the purchasing history of a member and use this history to send future deals that are similar in nature to the member's past history.

[0060] Members of the multilevel marketing system drive Internet traffic to the website and receive money and/or credit from their social network. Members also will be able to review their account on the website. The member's account area on the website will show all of the member's information stored with the system, including credits, purchase information, account details, referrals, buddies and deals gifted to others and received from others. FIGS. 7A-7D show examples of a member account page 80 that includes a drop down menu 82 to chose between credit balance (FIG. 7A), earnings (FIG. 7B), orders (FIG. 7C), and social network (FIG. 7D).

[0061] Vouchers or other methods for redeeming a purchased deal can also be retrieved or viewed from the member's account area. Members using a mobile device may be able to use information from the member's account area to redeem a deal using the mobile device. [0062] In another embodiment, members can receive credits for referring new members to the multilevel marketing system as described above, and can also receive credits and/or money for referring new businesses that use the multilevel marketing system to offer deals to its users. In this system, the member may receive a percentage of the business' sales on the group purchasing system or may receive a flat fee for the referral.

[0063] Secondary publishers may also take advantage of the group purchasing system by introducing and referring its members or followers to the multilevel marketing system. A secondary publisher is any type of company, group or website, including social networks and philanthropic organizations that post or publish links to the multilevel marketing system. By referring its members to the multilevel marketing system, the secondary publisher can earn credit or money from its own social network in the same way members of the system earn credit or money. In one embodiment, the secondary publisher will receive money instead of credit. This provides the secondary publisher with a way to create income from its social network. It has also been contemplated that users may want to join or become a part of the secondary publisher's social network in order to contribute to secondary publisher's cause. In these situations the secondary publisher may be a charity organization.

[0064] Secondary publishers can join and set up a publisher's account on the website of the multilevel marketing system. Similar to members, secondary publishers are provided with a variety of tools to send referral links to its members or incorporate a widget on the publisher's website.

[0065] Secondary publisher partners will monetize all transactions made by their users over time and gain access to a data dashboard stored in the multilevel marketing systems database. This data will provide the secondary publisher with analytics, such as demographic and psychographic information about its users, and even technological data including the type of software or programs being used by its users.

[0066] After creating a Publisher account, the secondary publisher can set preferences, such as the method of payment (EFT, Check, and PayPal). The secondary publishers can also select what category of deals they prefer to feature, and the multilevel marketing system can send those specific deals to the users in the publisher's social network as the default category.

[0067] In one embodiment, widgets placed on the secondary publisher's website can drive traffic back to the website of the multilevel marketing system. In another embodiment, widgets placed on the secondary publisher's website that expand the multilevel marketing system application directly from the widget itself, allowing the publisher's traffic to stay on its site. Secondary publishers can also place a widget on a blog or social networking page, such as Facebook.

[0068] Widgets can display content that is local and interesting to the secondary publisher's users. Data collected from the users of the publisher can help determine which deals offered by the multilevel marketing system would be interesting and more likely to be purchased by the publisher's members. The widgets can be updated (either independently by pulling information from a server, or having the information pushed to them) with the latest deals automatically. In another embodiment, the widgets can be customizable to be tailored to the secondary publisher.

[0069] Businesses wishing to sell or market goods or services can use the multilevel marketing system to generate sales with predictable results. A business can create a Business Account to set the terms and details of its deal. In the group purchasing system embodiment, the system allows businesses to pay for guaranteed customers only by setting a minimum number of purchases required before a deal becomes active as described above. A maximum number of purchases may also be set by the business. If a deal does not become active, then the business is not required to honor that discount or deal. The business 's products or service can be shared virally across social media (Facebook, Twitter, and the like), providing brand exposure and additional customer acquisition.

[0070] Businesses may also view a business account page that lists the number of deals that have been purchased. Also, the account page can list the customer names and provide all or a portion of the member's account number. When the member goes to the business to redeem the deal, the business can cross check the member's name with the account number to determine if the voucher or other form of redemption is legitimate and not counterfeit. The system may only share a portion of the member's account number with the business (last 4 numbers) and require that the business enter in the full account number provided by the member. This will also help eliminate counterfeiting. A business report page 90 is shown in FIG. 8 that provides an example of a page that lists purchases of a specific deal offered by the business. As shown in this figure, only the last 4 numbers of a member's user ID 92. In use, once a member tries redeeming a deal at the local business, the business can check the business report page and enter in the full user ID provided by the member at the business location. The user ID entered by the business should match the user ID stored by the group purchasing system to authenticate the redemption device.

[0071] Another embodiment of the multilevel marketing system may include a marketing or commercial website that is not a group purchasing system, but is instead an individual purchasing system. It is noted that the structure and features of the group purchasing embodiment detailed above can also be used the following individual purchasing embodiments. In one embodiment, the marketing website publishes or offers deals on goods or services from merchants and businesses to its members. In another embodiment, the marketing website can offer goods or services that can be purchased directly through the marketing website. The multilevel marketing system of this embodiment allows users or members of a purchasing system to be rewarded or compensated for referring or inviting others to join the purchasing system. Members can also be rewarded or compensated for any purchase they make through the system.

[0072] In one embodiment, the marketing website of the multilevel marketing system may function as an affiliate or is associated with an affiliate network. As is known in the art, an affiliate network acts as an intermediary between affiliates and merchant affiliate programs. Affiliates are sometimes referred to as publishers. The marketing website may be associated with an affiliate service provider's network, such as Commission Junction or Link Share. Once the marketing website is approved through the affiliate network or directly by the merchant or business, the marketing website operates as an affiliate operating under the terms and conditions set by the merchant or the affiliate service provider. Typically, affiliates or publishers earn a share of any revenue that is generated by the merchant from members of the marketing website (affiliate or publisher).

[0073] The marketing website includes members that visit the website to review and search for deals or offers from other businesses or merchants. In this way, the marketing website consolidates offers or deals from various businesses into one website. In one embodiment, the marketing website may receive deals or offers to publish on the marketing website directly from businesses. However, in another embodiment, the marketing website receives deals or offers to publish on the marketing website through an affiliate service provider or an affiliate program aggregator.

[0074] As with the group purchasing system embodiment, the marketing website embodiment also allows members to monetize their social networks by allowing the members to earn credits, points or money based on the purchases made by themselves or others who were referred to the multilevel marketing system by an existing member. Members referred to the system by existing members become a part of the existing member's social network on the system and may continue to earn credits or money based on their referral's purchases. [0075] The marketing website embodiment of the multilevel marketing system may include a homepage 100 as shown in FIG. 9. Multiple categories 102 are listed on the homepage. As shown, there are eleven categories; however, any number of categories can be used. Members may check a category to help assist or narrow a search for the type of goods or services the member is interested in purchasing. Any number of links to deals or offers 104 can be listed for each of the categories as shown in FIG. 9. Providing multiple offers to the members increases the chances that the members will find an offer that interests them. New offers or deals may be added to each of the categories as often as desired.

[0076] In one embodiment, the homepage 100 provides links that direct members to a website of a business where the deal, such as a electronic coupon, can be redeemed. The homepage 100 may also provide coupon codes that can be copied and pasted by the members into the website of the business. It has also been contemplated that the homepage will offer deals on goods or services that can be purchased by the members directly through the marketing website.

[0077] The homepage 100 of the marketing website may include a share feature to allow members to post comments about specific offers or deals and share the offer or deal with other people in their network by sending a preformed email that includes a link to the specific offer. Tools are also provided in the share feature to post information and/or a link to a specific offer on the member's Facebook account or Twitter account. These tools may customize the information/links to allow the multilevel marketing system to recognize the association between referred members and their referral source. The member may also use similar tools to refer others to join the multilevel marketing system.

[0078] Other tools that a member can use to recruit members into their social network or stay current with active deals from the multilevel marketing system include the use of widgets that may be placed on a member's personal web-page or computer desktop. [0079] Members will be able to receive a redemption device from the marketing website. The redemption device can be a voucher, coupon code, electronic coupon code, affinity or identification card, or the like. In one embodiment, the member may simply click on a link for a deal that directs the member to a website of a business, and the deal offered on the homepage 100 of the marketing website is automatically applied upon check-out. In another embodiment, the member can print a voucher from the marketing website. Vouchers may also be sent via email or members can return to the website, log into their account and print out their voucher. Deals offered by the marketing website typically will have specific conditions as to when, where and how the deals can be redeemed.

[0080] The voucher may then be taken to a location of the business or a website of the business to redeem the offer. The voucher may be associated with a member's account on the multilevel marketing system that may be obtained on the website, or the voucher may be sent to the member through email or regular mail. It has also been contemplated that members can receive membership cards from the multilevel marketing system that contain information about offers purchased by the individual user. These membership cards, which may be smart cards, can be used by the user to redeem the offer at the business. The member's information may be stored on a server, and this information can be associated with recent purchases made by the user. In yet another embodiment, data sent to a member's mobile phone or other mobile device may be used to redeem the deal from the business.

[0081] Members of the multilevel marketing system are encouraged to share the offers or deals with their network of friends or colleagues and introduce them to the multilevel marketing system. As discussed above in other embodiments, members of the multilevel marketing system can recruit other people by using available social online networks, such as Twitter and Facebook, blogs, or send emails to contact lists. By following a link posted on the Internet or sent in an email message by the referring member, new members can join the multilevel marketing system and may be added to the referring member's social network. The referring member's social network can be monitored on the member's account at the website of the multilevel marketing system. Members will be rewarded for referring new members to the multilevel marketing system. In one embodiment, members earn money, points and/or credits for all transactions or purchases made by the member and all transactions or purchases made by members in their social network. Members can receive money, points, and/or credits for multiple generations of their social network.

[0082] As discussed above, if member A refers members Bl, B2 and B3, who all join the multilevel marketing system, then members Bl, B2 and B3 become a part of member A's first generation in member A's social network. If member Bl then refers members CI and C2, who join the group purchasing system, then members CI and C2 become a part of member Bl 's first generation and Al 's second generation. This pattern of generation numbering continues as best shown in FIG. 5. In one embodiment, members are allowed to have up to four generations in their social network, however, any number of generations can be allowed.

[0083] Members accrue money, credit, or points based on a percentage of the money they or others in the member's social network spend on deals offered by the group purchasing system. In one embodiment, a member will earn thirty- four (34%) of purchases he makes through the multilevel marketing system. The member will also earn ten percent (10%) of eligible purchases made by purchasers that are part of the member's first generation. Members may earn three percent (3%) from the eligible purchases made by the member's second generation, two percent (2%) from eligible purchases made by the member's third generation, and one percent (1%) from eligible purchases made by the member's fourth generation. Any other percentages may be used to determine the amount of money or credit that is earned by the members. Also, it is possible that members will earn a set amount of money or credit based on the amount or frequency of purchases made by other members in their social network. [0084] In one embodiment, the multilevel marketing system or marketing website may earn a fee from a business for each deal redeemed or offer purchased by a member of the marketing website. The multilevel marketing system may track all redemptions and purchase made by its members in order to receive payment from the business. In one example, the marketing website receives fifty percent (50%) of the fee from the business and distributes the remaining fifty percent (50%) of the fee to its members based on the above scale. In other embodiments, the fee taken by the marketing website and the amount distributed to the members of the system varies.

[0085] The multilevel marketing system may also reward members with money or credit for service, loyalty or incentive reasons. For example, the system may reward members for joining the system, inviting others to join, visiting the website of the purchasing system, continuing to be a member for a period of time, or for any action or reason. These reward credits may be used by the members to purchase goods or services offered on the system or shared with other members on system. Members may or may not be allowed to earn credits based on purchases made with reward credits.

[0086] In one embodiment, members are awarded points instead of money by the multilevel marketing system. For example, a member may receive one thousand points for joining the marketing website and receive a variable number of points based on the purchases by the member and those in the member's social network. In this embodiment, points may be exchanged for money, at any rate, such as one US dollar for every one thousand points. Restrictions may be placed on members who want to redeem points for money. For example, members may be required to have at least thirty people in their social network before redeeming points for money. Any other type of restriction can also be employed, such as restrictions based on longevity, number of members in their social network, minimum number of points accumulated, minimum number or deals purchased using the marketing website, and the like. [0087] Members of the multilevel marketing system drive Internet traffic to the website and receive money and/or credit from their social network. Members also will be able to review their account on the marketing website. The member's account area on the website will show all of the member's information stored with the system, including credits, purchase information, account details, amount of money or credit earned, referrals, friends and deals gifted to others and received from others. FIG. 10 shows an example of a member account page 120 that includes referral tools 122, an earnings section 124, an active feed 126, and a leader board 128.

[0088] The referral tool 122 allows members to easily invite contacts, friends, colleagues to the marketing website using available social online networks, such as Twitter and Facebook, blogs, or send emails to contact lists. By following a link posted on the Internet or sent in an email message by the referring member, new members can join the multilevel marketing system and may be added to the referring member's social network.

[0089] The earnings section 124 of the marketing website shows earnings from each generation in their social network and provides a total. In another embodiment, the earnings section 124 can also show the amount of money or points earned by the member through purchases made by the member himself. Still further, the earnings section may allow members to view a history of all deals purchased or redeemed on the marketing website by the member and those in the member's social network. Other details can also be shown to members on page 120, including percentages of money or credits earned from each generation of the social network, total amount of money or credits earned through the system, the total number of individuals in the member's social network, and the like.

[0090] The active feed 126 displays comments and activities of all members in the same social network. This feature may be disabled by the member or configured to display only certain activities from certain members. [0091] In one embodiment, the leader board 128 ranks those members in a member's first generation. This leader board allows members to see which of those in their social network are contributing the most points from purchases. In other embodiments, the leader board may include members from various or all generations of a member's social network, all members of entire system, members from specific geographic regions, or members based on other classifications.

[0092] In certain embodiments, the multilevel marketing system or any discount- based system may include a game component, such that the member's credits, points or game score are tracked by the system and members are ranked by the system on a leader board. Also, members may advance through stages or levels of the website by acquiring credits. Competition created by the leader board and advancing through various levels encourages members to be more active on the multilevel marketing system. It is also possible that member's may use acquired credits, points and/or game score to participate in other features offered by the multilevel marketing system. Such features may include acquiring virtual goods, rewards or more credits that may be used in a variety of ways.

[0093] As described above, credits can be acquired by members of the multilevel marketing system based on referrals of new members, purchases made by others in the member's network, based on a total amount of purchases made by a group of members in the system, based on service, loyalty or incentive reasons. Credits may also be acquired by purchases made by the member. Additional credits may also be purchased by the member. In one embodiment, these types of credits earned by members are redeemable for purchases made within the multilevel marketing system.

[0094] In one embodiment, members can also acquire more credits or points by completing certain goals or tasks. The system may award credits or points to members based on the length of time a user is a member of the website or system. For example, a member may be awarded 10 points for every month the member belongs to the website. A member may also be awarded credits or points based on the number of purchases made on the multilevel marketing system or based on the amount of purchases made on the system. For instance, a member may receive one credit or point for every two purchases or one credit or point for every ten dollars spent through the multilevel marketing system. In one embodiment, these types of credits or points based on experience are non-redeemable and may not be used to make purchases within the multilevel marketing system. These non-redeemable credits are a part of the game component and used only as a score for the member. However, it has also been contemplated that even the experience credits or points may also be redeemable for future purchases on the multilevel marketing system.

[0095] Furthermore, a member may be given credits or points based on general interactions with the website including the member's consistency and frequency of visits to the system's website or the number of deals offered by the website that are clicked on or viewed by the member. In this embodiment, a member may receive ten credits for visiting the multilevel marketing system website at least once a day for a certain period of time, such as, three days. Also, if a member clicks on at least three deals per visit to the website, the member may receive ten credits.

[0096] Other online tasks may include making a set number of purchases a month on the multilevel marketing system, inviting a certain number of new users in period of time (one week or month), clicking on a desired number of deals offered by the website, logging into the website at a certain time of day, purchasing a set number or amount of products or services offered, visiting other websites, donating a set amount of credits or money to a charitable website, or the like. This list is non- exhaustive and any task may be set by an administrator of the multilevel marketing system. Furthermore, in the examples given, the number of credits or length of time for certain tasks can vary and be set by the administrator.

[0097] The game component of the system may also include offline tasks, where members may be given credits or points based on completing tasks such as visiting a location of a business or merchant, or making a certain number of purchases at a business location. Offline tasks may be confirmed by the business with the multilevel marketing system in any fashion, and then the system will reward the member with credits or points. Credits or points earned from completing online or offline tasks will be non-redeemable points in one embodiment. However, the administrator of the multilevel marketing system can set any of the online or offline tasks to reward members with redeemable credits or points.

[0098] In one embodiment, administrators of the multilevel marketing system may place "Easter eggs" on pages of the website. If a member finds an Easter egg, the system may award the member a certain number of points or credits, which may be redeemable or non-redeemable. In another embodiment the member may receive a reward in addition to or in lieu of credits or points for finding Easter eggs. Special tasks may also be completed by members to receive credits or points. These special tasks may be distributed by the administrator of the website to all or a group of members via email, posts on the website or other forms of communication. An example of a special task would be for a member to visit the website during a period of time to view a new deal being offered. Completion of the special task would earn the member credits or points.

[0099] It has also been contemplated that additional games may be linked to or available on the system's website, which would allow members to earn redeemable or non-redeemable points or credits. Traditional games, such as, blackjack, poker, or other games of chance may be available on the website where members can gamble or risk their own credits or points in an effort to win additional credits or points.

[00100] In another embodiment, completing a certain task may trigger a multiplier, such that all credits or points earned during a certain period of time are multiplied by any factor. Bonus points may also be awarded to members for completing certain tasks.

[00101] All credits and points earned or awarded to members can be on the same level and have the same value. This means that all credits and points acquired by members as described above may be redeemable and used throughout the multilevel marketing system to purchase deals being offered, used to purchase virtual goods or used to play additional games being offered. It has also been contemplated that credits and points will have separate values and used for different purposes. For example, credits earned by members that are based on purchases of deals being made by those in the member's network will be redeemable for purchases, while points earned by members for completing certain tasks or playing games are non- redeemable and have no monetary value for purchasing deals on the multilevel marketing system. Points that are not on the same level as credits will be used for ranking and game purposes only. It is also possible that points could be used to purchase virtual goods on the system. The administrator of the system can determine which completed tasks earn credits and which earn points.

[00102] These credits and points, which are on the same level and have the same value, may be used by members to purchase other goods or services or virtual goods or products. Furthermore, credits and points may be donated to other members in the system. It may be desired to donate credits to another user in the member's network. Credits may also be donated to a charity.

[00103] In one embodiment, a virtual world may be created on the multilevel marketing system, where members can grow and customize their virtual world. FIG. 11 shows a screen shot of a virtual world 140 that may include virtual objects such as a tree with birds representing others in a member's social network. Members may use credits or points to purchase virtual goods from a virtual store (not shown) by clicking on a store button 142. In the virtual store, some objects are available for a dollar amount, which the member may purchase, and other objects are available for a certain amount of credits. A member may purchase virtual objects to decorate their virtual world using credits or points that they have earned from the multilevel marketing system. These virtual objects may be used to decorate the virtual tree with ornaments, squirrels, lights, fence, flowers, ponds, rocks, and any other type of virtual object as shown in FIG. 11.

[00104] As shown, a level indicator 144 indicates what member's level, a points indicator 146 indicates the number of points earned by the member, and a credits indicator 148 indicates the number of credits the member has earned. In this embodiment, the points are used only for game purposes and the credits are redeemable credits that the member may use for future purchases or use to purchase virtual goods to decorate their virtual world. Also, in one embodiment, the points indicator 146 will only increase as the member decorates their virtual world.

[00105] FIG. 11 represents a virtual world of a member at an advanced level who has decorated their virtual world and received points for doing so. Also, as shown in FIG. 11, the members of a social network can be shown in the virtual world 140 in a member's area 150. There is also shown a friends button 152 which allows members to quickly add members to their virtual world.

[00106] In one embodiment, the system will store and rank all members credits and/or points on a leader board. Members will then be in competition with one another to advance on the leader board. This type of competition will create excitement and encourage members to purchase more deals being offered on the multilevel marketing system. The leader board can award top members daily, weekly, monthly, and/or yearly with rewards, with the higher ranked members receiving higher quality prizes and rewards. Members can also receive rewards for completing tasks or receiving rewards issued by the system through random drawings.

[00107] The prizes and rewards offered by the system may be awarded based on the number of credits or points earned by a member or for accomplishing certain goals or tasks. Prizes and rewards may include gift cards or other actual prizes, virtual goods to be used by members, additional credits to be used by members, additional discounts on deals offered by the system, specialty credits that may be exchanged on other websites or other stores.

[00108] In another embodiment, members may also compete for credits and points in order to reach different levels or thresholds on the system. For example, a member will move up to the next level every thousand credits or points that are earned. New levels can unlock new challenges or tasks for the member to accomplish. Also, new virtual goods may be unlocked for the members to purchase at each level. It has also been contemplated that the members may earn more credits based on purchases of those in the member's network at different levels. Having members advance to new levels on the system will also stimulate purchasing on the system, because members are encouraged to reach the next level.

[00109] One of ordinary skill in the art will appreciate that not all multilevel marketing systems have all these components and may have other components in addition to, or in lieu of, those components mentioned here. Furthermore, while these components are viewed and described separately, various components may be integrated into a single unit in some embodiments.

[00110] The various embodiments described above are provided by way of illustration only and should not be construed to limit the claimed invention. Those skilled in the art will readily recognize various modifications and changes that may be made to the claimed invention without following the example embodiments and applications illustrated and described herein, and without departing from the true spirit and scope of the claimed invention, which is set forth in the following claims.

Claims

WHAT IS CLAIMED:

1. A method for operating a referral marketing system from a server connected to a network, the method comprising: accepting a first user to become a member of a group purchasing system on a group purchasing server, wherein discounts on goods or services are offered by a business through the group purchasing system and the discounts on the goods or services become active when a minimum number of users purchase the discounted goods or services through the group purchasing system; accepting a second user to become a member of the group purchasing system on the group purchasing server as a user referred by the first user; storing information relating to the first and second users in memory associated with the group purchasing server, and the information stored in memory includes data associating the second user as being referred to the group purchasing system by the first user; and calculating credits earned by the first user based on purchases made by the second user through the group purchasing system on the group purchasing server.

2. The method of claim 1, further comprising issuing credits earned by the first user in the form of money.

3. The method of claim 1, further comprising accepting purchases of goods or services through the group purchasing system for credits.

4. The method of claim 1 , wherein considering the second user to be part of a social tree of the first user, and the second user is considered to be in the first generation of the social network.

5. The method of claim 1, further comprising accepting a third user as a member of the group purchasing system on the group purchasing server as a user referred by the second user.

6. The method of claim 5, further comprising calculating credits earned by the first user based on purchases made by the third user through the group purchasing system on the group purchasing server, and calculating credits earned by the second user based on purchases made by the third user through the group purchasing system on the group purchasing server.

7. The method of claim 6, wherein the third user is considered to be in the first generation of a social network of the second user.

8. The method of claim 7, wherein the third user is considered to be in the second generation of the social network of the first user.

9. The method of claim 1, further comprising ranking members on a leader board based on the number of credits earned.

10. The method of claim 9, further comprising rewarding members who rank high on the leader board.

11. The method of claim 10, wherein rewarding members who rank high on the leader board with prizes, redeemable credits, or non-redeemable credits.

12. A method for operating a referral marketing system, the method comprising: accepting a first user as a member of a purchasing system on a server, wherein members can purchase goods or services through the purchasing system; accepting a second user as a member of the purchasing system as a user being referred by the first user; storing information in memory associated with the server relating to the first and second users including data associating the second user as being referred to the purchasing system by the first user; and calculating credits earned by the first user based on purchases made by the second user through the purchasing system on the server.

13. The method of claim 12, wherein associating the second user as part of a social network of the first user, and the second user is considered to be in the first generation of the social network.

14. The method of claim 13, further comprising accepting a third user as a member of the purchasing system as a user referred by the second user.

15. The method of claim 14, further comprising calculating credits earned by the first user based on purchases made by the third user through the purchasing system, and calculating credits earned by the second user based on purchases made by the third user through the purchasing system.

16. The method of claim 14, wherein the third user is considered to be in the first generation of the social network of the second user.

17. The method of claim 16, wherein the third user is considered to be in the second generation of the social network of the first user.

18. A method for operating a multilevel marketing system, the method comprising: accepting a first user as a member of a marketing system on a server, wherein the marketing system publishes deals on goods or services to members; accepting a second user as a member of the marketing system; storing information in memory associated with the server relating to the first and second users and creating an association between the first and second users that identifies the second user as being referred to the marketing system by the first user; calculating credits earned by the first user based on purchases made by the second user through the marketing system on the server; and calculating credits earned by the first user based on purchases made by the first user through the marketing system.

19. The method of claim 18, wherein information relating to the first and second users includes information associating the second user as being part of a first generation of a social network of the first user.

20. The method of claim 19, further comprising accepting a third user as a member of the marketing system as a user referred by the second user.

21. The method of claim 20, further comprising calculating credits earned by the first user based on purchases made by the third user through the marketing system, and calculating credits earned by the second user based on purchases made by the third user through the marketing system.

22. The method of claim 20, wherein the third user is considered to be in the first generation of the social network of the second user.

23. The method of claim 22, wherein the third user is considered to be in the second generation of the social network of the first user.