Abstract:
Methods and systems facilitate electronic commerce by designating an initiator of a sale of an item that is advertised by a merchant at an offering price on an Internet web site. One embodiment comprises detecting performance of designated activities by associates of the initiator via the web site. Responsively to each performance an exclusive offer of the item for sale is made to the initiator at a progressively marked-down price. Another embodiment comprises progressively marking down the advertised price of items upon performance of designated activities by users of the web site and progressively marking up the price upon each purchase of one of the items by the users.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
       [0001]    This application claims the benefit of U.S. Provisional Application Nos. 61/423,225, filed 15 Dec. 2010, entitled “Methods and Devices for Allowing a User to Determine the Price of a Product”, and 61/429,222, filed 3 Jan. 2011, entitled “Methods and Devices for Applying a Social Network to the Price of a Product”, which are herein incorporated by reference. 
     
    
     BACKGROUND OF THE INVENTION 
       [0002]    1. Field of the Invention 
         [0003]    This invention relates to processing of financial data for price determination. More particularly, this invention relates to on-line activities directed to pricing of products and services. 
         [0004]    2. Description of the Related Art 
         [0005]    Social networks such as Facebook® and MySpace® have been extraordinary in their growth during the past several years. Facebook alone claims over 500 million unique users, each having tens or hundreds of contacts or “friends”. These arrangements offer unparalleled levels of communication and interaction between individuals and coworkers, friends and friends of friends. 
         [0006]    Online shopping has grown exponentially since the early days of internet. Millions of transactions are performed by the hour, with sellers and buyers linked by computer, cell phone or other devices that allow for internet connectivity. Such transactions are done quickly and with a high level of security. 
         [0007]    U.S. Patent Application Publication No. 20100088148A1 to Presswla, et al. proposes techniques for optimizing shopping. In one aspect, purchase items are recommended to a user based on the total purchasing costs of the recommended purchase items. In one embodiment, the total purchase cost includes not just the price of the purchase item but also includes weighted costs based on non-price purchasing cost factors. In another aspect, data is maintained that represents social relationships between members of a network of users and purchase recommendations are made to a user based on the relatedness between the user, the item and the other members of the network. In yet another aspect, purchase recommendations are made based on the best time to purchase a purchase item. In another aspect, item retailers can offer purchase item incentives to users based on the identity of and information about the shopper to whom the incentive is offered including bundling incentives in a unified redemption code. 
         [0008]    U.S. Pat. No. 7,720,722 to Ho, et al. describes a system that receives, at a network-based social platform, a request from a first user of the network-based social platform. The request is to add an item to a list associated with a second user of the network-based social platform. The list is for watching items offered for sale on a network-based marketplace. Next, the system determines whether the first user is authorized to add the item to the list associated with the second user based on relationship information that identifies a predetermined relationship between the first user and the second user on the network-based social platform. Finally, the system communicates the request to the network-based market-place to add the item to the list associated with the second user. 
         [0009]    U.S. Patent Application Publication No. 2009/010685 to Raimbeault describes a social networking interactive shopping system including a portable wireless user interface for use by a store customer when shopping. A merchant server is provided, the server having market survey, advertising, promotions, security, social networking services, web server capability, a quantitative prediction modeling system predicting behavior of the customer, a predictive response marketing/advertising system that targets advertising messages to the customer based on a predicted customer response to the advertising messages, and payment application software. The merchant server is capable of wired or wireless communication with the portable wireless user interface. A database is provided, and can be stored on site or off site. The database includes information associated with items for sale at the store, and is in operable communication with the merchant server. Using the portable wireless user interface, the store customer can purchase user selected store items thereby obviating necessity for travel through a store checkout line. 
         [0010]    U.S. Patent Application Publication No. 20100299266 to Catania, et al. describes a system and method for issuance, redemption, and reimbursement of digital incentives. A central database connected to the internet: enables customers to register unique customer registration information; is able to store this information and assign unique identifiers to it; and is accessible to incentives providers to make available digital incentives. Existing point-of-sale terminals: are authenticated to have access to the central database; have payment devices; are connected to the internet; and are provided with a message broker that facilitates communication with the central database. The customer redeems digital incentives at one of the existing point-of-sale terminals at the time of purchase by first presenting their unique identifier. The message broker routes the unique identifier to the central database, which authenticates and validates the existing point-of-sale terminal, the customer&#39;s unique identifier, and the payment device. The central database then returns validated applicable digital incentives to the message broker, which forwards the validated digital incentives for redemption. 
         [0011]    U.S. Patent Application Publication No. 20090198577 to Foreman et al. proposes an exclusive method, system and model of commerce created between a unique business entity that offers, publishes, and/or distributes any product and/or service through a subscription based membership program purchased by its consumers and the unique business entities&#39; consumers who receive the products and/or services electronically or via mail. The unique business entities&#39; consumers simultaneously operate their own home based business program utilizing a unique viral marketing campaign and cross promotion sales process created by the unique business entity. 
       SUMMARY OF THE INVENTION 
       [0012]    There is provided according to embodiments of the invention a method of electronic commerce, which is carried out by designating an initiator of a sale of an item that is advertised by a merchant at an offering price on an Internet web site, establishing a designation of a set of activities, wherein performance of said activities may lead to the reduction in price of said item, detecting a performance of one of the activities by at least one of the users of the web site, and identifying the at least one of the users as associates of the initiator in the sale. The method is further carried out responsively to the performance of the activities by making a private offer of the item for sale to the initiator at an adjusted price that is less than the offering price, wherein the offer is capable of acceptance only by the initiator, and wherein at least one of above steps is performed by a computing device. 
         [0013]    According to an aspect of the method, the web site is owned by said merchant. 
         [0014]    According to another aspect of the method, the set of activities includes a recruitment of new users to perform the set of activities. 
         [0015]    According to a further aspect of the method, the set of activities includes at least one of the group consisting of, watching specified advertisements, responding to questions, providing requested information, rating products, accessing the web site, accessing at least one other web site, downloading or uploading specified information, and completing a questionnaire. 
         [0016]    According to an additional aspect of the method, there is exactly one initiator. 
         [0017]    There is further provided according to embodiments of the invention a method of electronic commerce, which is carried out by advertising an offer for a sale of a plurality of items by a merchant at a current advertised price on an Internet web site, establishing a designation of a set of activities, wherein performance of said activities may lead to the reduction in price of said item, and detecting a performance of one of the activities by the users. The method is further carried out responsively to the performance by marking down the current advertised price and advertising a first revised version of the offer on the web site, and detecting a purchase of one of the items by the users. The method is further carried out responsively to the purchase by marking up the current advertised price and advertising a second revised version of the offer on the web site, wherein at least one of the above steps is performed by a computing device. 
         [0018]    According to an additional aspect of the method, the set of activities includes an opt-in activity that expresses an interest in the offer. 
         [0019]    According to still another aspect of the method, the set of activities includes a recruitment of new users to perform the set of activities. 
         [0020]    According to yet another aspect of the method, the set of activities includes at least one of the group consisting of purchasing at least one of the items, watching specified advertisements, responding to questions, providing requested information, rating products, accessing at least one other web site, downloading or uploading specified information, and completing a questionnaire. 
         [0021]    According to one aspect of the method, the set of activities also includes an opt-in activity that expresses an interest in the offer performed by an opt-in set of the users, respectively, and the purchase also includes respective purchases of the items by a purchasing set of the users, and wherein marking up and marking down the current advertised price are iteratively performed responsively to the purchases as a function of a number of members of the opt-in set and a number of members of the purchasing set. 
         [0022]    According to another aspect of the method, wherein a current price of said items is passed along to the users by SMS or email 
         [0023]    According to one aspect of the method, marking down the current advertised price is performed responsively to an addition of a new member to the opt-in set and marking up the current advertised price is performed responsively to an addition of a new member to the purchasing set. 
         [0024]    According to a further aspect of the method, establishing a designation of the set of activities includes providing a set of price-reducing activities to be performed by any of the users and advertising an offer includes providing a description of the set of price-reducing activities. 
         [0025]    Yet another aspect of the method includes detecting an occurrence of a termination condition, the termination condition including an adjustment of the current advertised price below a predetermined value, and withdrawing the offer responsively to detecting the occurrence of the termination condition. 
         [0026]    Other embodiments of the invention provide computer software products for carrying out the above-described methods. 
     
    
     
       BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWINGS 
         [0027]    For a better understanding of the present invention, reference is made to the detailed description of the invention, by way of example, which is to be read in conjunction with the following drawings, wherein like elements are given like reference numerals or reference numerals advanced by the appropriate multiple of  100 , and wherein: 
           [0028]      FIG. 1  is a schematic representation of an arrangement for executing a sale according to an embodiment of the present invention; 
           [0029]      FIG. 2  is a schematic representation of an example of a private sale executed in accordance with an embodiment of the invention; 
           [0030]      FIG. 3  is a schematic representation of an arrangement for executing a sale in accordance with an alternate embodiment of the present invention; 
           [0031]      FIG. 4  is a schematic representation of an example of a sale executed by the embodiment shown in  FIG. 3 ; 
           [0032]      FIG. 5  is a schematic representation of an arrangement for executing a sale in accordance with an alternate embodiment of the present invention; 
           [0033]      FIG. 6  is a flowchart of a method of executing a sale in accordance with an embodiment of the invention; 
           [0034]      FIG. 7  is a flowchart of method of executing a sale in accordance with an alternate embodiment of the invention; 
           [0035]      FIGS. 8-10  are examples in tabular format related to the method shown in  FIG. 7 ; 
           [0036]      FIG. 11  is a high level diagram of a sales management system, which is constructed and operative in accordance with an embodiment of the invention; and 
           [0037]      FIG. 12  is a block diagram showing aspects of a computing device which is programmed for operation in accordance with embodiments of the invention. 
       
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
       [0038]    In the following description, numerous specific details are set forth in order to provide a thorough understanding of the various principles of the present invention. It will be apparent to one skilled in the art, however, that not all these details are necessarily always needed for practicing the present invention. In this instance, well-known circuits, control logic, and the details of computer program instructions for conventional algorithms and processes have not been shown in detail in order not to obscure the general concepts unnecessarily. 
         [0039]    Aspects of the present invention may be embodied in software programming code, which is typically maintained in permanent storage, such as a computer readable medium. In a client/server environment, such software programming code may be stored on a client or a server. The software programming code may be embodied on any of a variety of known non-transitory storage media for use with a data processing system, such as a diskette, hard drive, electronic media or CD-ROM. The code may be distributed on such media, or may be distributed to users from the memory or storage of one computer system over a network of some type to storage devices on other computer systems for use by users of such other systems. 
       DEFINITIONS 
       [0040]    A product suitable for commerce according to the embodiments herein may be anything that can be sold or bartered, including but not limited to tangible and intangible property and services, e.g., food, cosmetics, cars, travel, tickets, consumer products, electronics, computer, music players, tablet computers, clothes, furnishings, shoes, music, books, appliances, homes, real estate, stocks, bonds, antiques, valuables, jewelry, vacations, transportation, perfume, animals, and personal items. 
       Embodiment 1 
       [0041]    Attention is turned to  FIG. 1 , which shows a schematic view of an embodiment of the present invention. This embodiment concerns a on-line marketing arrangement, referred to herein for convenience as a “private sale”. The arrangement involves the cooperation of a merchant, the initiator of the sale, and associates of the initiator. An initiator  100  of the private sale, who is typically an Internet user or a member of a social network, arranges with an Internet merchant to sell or purchase an item in a manner that is explained below. Initiator  100  identifies  103  a product  105  on a web site  110  controlled by a server  111  connected to the Internet, which is programmed with suitable software for carrying out the functions described hereinbelow. Events in the following discussion are sometimes referred to herein for convenience as being perceived or carried out by the web site  110 . It will be understood that actions and changes in the state of the web site  110  are actually mediated by the server  111 . 
         [0042]    The initiator  100  wishes to acquire the product  105 . The product  105  has an associated advertised price  130 , which is dictated by the web site  110 . The initiator  100  can notify the web site  110  that he wishes to initiate a private sale wherein the initiator  100  may be the only person who can purchase the product  105  at an exclusive less-than-advertised price. The web site  110  sets up a private sale of the product  105  or a group of products (not shown) for the initiator  100 . The web site  110  provides instructions to the initiator  100  as to how he can reduce the advertised price  130  of the product  105  by recruiting participants to engage in activities considered to benefit the merchant. Instructions may include a set of activities such as watching an advertisement  140 , the advertisement optionally being related to the product  105  or the company that manufactures the product  105 , filling out a questionnaire, performing an activity, following a link to another web site, or providing some information (not shown). Initiator  100  typically recruits participants by contacting friends, acquaintances, or others  150  either directly or through the web site  110  and request from the friends, acquaintances, or others  150  their help in reducing the price  130  to the initiator of the product  105 . Friends, acquaintances, or others  150  can, for example, watch  155  an advertisement  140 , with each view of the advertisement  140  directly lowering the price  130  of the product  105  to the initiator. 
         [0043]    Each qualified activity is detected by the web site  110 , which responds by reducing the price of the product  105  to the initiator  100  by a predetermined and optionally advertised amount. The web site  110  may verify that a real person has viewed the commercial and may limit the number of times a unique individual can view the commercial  140 . Any conventional security arrangement may be employed to assure the merchant that the activities are being performed by associates of the initiator  100  and not by others or by automatons. For example the associates may be sent codes, such as one-time or n-time passwords. These may be conveniently accomplished by Short Message Service (SMS) transmissions to cellular telephones or other mobile information devices of the associates. Many variants of such authentication schemes will occur to those skilled in the art. Friends, acquaintances, or others  150  may be provided a plurality of activities such as answering questions or watching  155  an online commercial  140 , and recruiting new participants to perform the activities, each performance of an activity causing the web site  110  to further reduce the price of the product  105 . After a predetermined period of time, or when product  105  dynamic price  135  reaches zero (or another predetermined floor) or when initiator  100  decides to buy, product  105  is purchased by initiator  100  from the web site  110  or a related site (not shown). The “dynamic price” is the actual price of the product, it being the advertised price  130  less any markdowns resulting from the activities of the initiator  100  and his friends, acquaintances or others  150  as described above. 
         [0044]    It may be noted that while no direct financial benefit accrues to the associates of the initiator  100  as a result of their participation in a particular private sale, the associates nevertheless may be induced to cooperate with the initiator  100  in the knowledge that they themselves could become initiators of such private sales in the future and expect cooperation in return from their own associates. 
         [0045]    Attention is now directed to  FIG. 2 , which is a diagram that offers an example of the first embodiment in practice. A music player  205  is for sale for an advertised price  230  of $500. An initiator  200 , operating a computer, cell phone or other communications device, informs  202  the web site  210  selling the music player  205  that she wishes to enter a private sale. Web site  210  sets the music player  205  into an optional private sale window  220  and instructs initiator  200  that for every viewing of a video advertisement  240  from the manufacturer of the music player  205 , the web site  210  will reduce the price of the music player  205  by 50 cents. Each unique visitor to the web site may watch the video up to a predetermined number of times, typically four times during the private sale; thus each unique visitor to the private sale (which may be advertised by the web site  210  but will most generally be advertised by the initiator  200 ) may reduce the price of the music player  205  by a maximum of $2. The web site  210  agrees to this arrangement as each viewing of the video advertisement  240  means that it is paid $1 by the manufacturer of the music player  205 , for example. The initiator  200  recruits associates by contacting friends, relatives, and coworkers via a social network web site, email, SMS, instant messaging and other means in order to encourage them watch  255  the video advertisement  240  at no cost to them but in the process reduce the advertised price  230  of the music player  205 . In total, 600 views of the video advertisement  240  are performed by friends, acquaintances or other associates  250  and the price of the music player  205  is reduced to a dynamic price  235  of $200. In some embodiments the associates may be limited to individuals known to the initiator or personally designated by the initiator. In other embodiments the associates may include members of an organization or class to which the initiator belongs, e.g., subscribers to the web site  210 , irrespective of the initiator&#39;s personal acquaintanceship. The initiator  200  purchases the music player  205  for $200. The web site  210  receives the $200 from initiator  200  as well as $600 from the manufacturer of the music player  205 , for a gross of $800 for the private sale. A regular online sale of music player  205  would have grossed $500, the advertised price  230  of the music player  205 . 
         [0046]    In the end, the web site  210  owners are better off as they made more money than they could have through a standard sale. Initiator  200  is better off as she purchased the music player  205  for less than half of its advertised price  230 . The manufacturer of the music player  205  is better off as it received 600 confirmed views of its commercial, all from friends and associates of initiator  200 , who expressed interest in products from the manufacturer. And finally, the friends and acquaintances  250  of initiator  200  are better off for having helped her acquire the product of her dreams at such a reduced dynamic price  235 . A window (not shown) on user&#39;s  200  computer display, cell phone or other device could give realtime information on the private sale such as the dynamic price  235  of product  205 . 
         [0047]    A private sale as herewith described may be performed on any platform that has connectivity to the internet: computers, cell phones, tablet computers, etc. A private sale could also be performed by a “brick and mortar” store or the like, wherein sale of a product or a group of products is limited to a single customer or a small group. 
         [0048]    In any of the embodiments herein, activities that could be asked of individuals in order to bring down the price of a product or service according to any of the embodiments herein may include but are no way limited to watching specified advertisements, responding to questions, providing requested information, rating products, going to one or a plurality of web sites, performing activities on one or a plurality of web sites, downloading or uploading information, filling out questionnaires, or doing a combination of different activities as specified by the web site. The web site may verify completion of one or a plurality of activities by any means, and the web site  110  can use appropriate security measures to guarantee that those who opt-in and those who perform activities related to reducing the cost of the product or service are real people and not just computers acting as users or members. Such measures might include password protection or entry of a code sent by SMS to a cell phone of user, for example. 
       Embodiment 2 
       [0049]    Attention is now directed to  FIG. 3 , which shows a second embodiment of the present invention. In this embodiment, game theory is used to determine the price of a product  305 . A webbased business offers the product  305  for sale. Users  360  who go to the web site  310  can “opt-in” for the sale of the product  305  by actuating an “Opt-in” button  365 . By “opting in”, a user identifies himself as a potential buyer of the product  305 . The users are generally registered users who may have previously provided some type of identifying information: possibly a password, cell phone number or other information that can be used to uniquely identify a user as well as allow for sending information to the user. A user&#39;s opting-in automatically drives down the price of product  305  by a predetermined and generally known amount (not shown). The more people who opt-in on a given product  305 , the more the price of the product  305  drops. Individuals interested in buying product  305  would obviously hope that as many people as possible opt-in to the purchase of product  305 , as each new user opting in, drives the price down further. The proponent of the sales arrangement may be the merchant. Alternatively, one of the users may initiate the arrangement under pre-approved terms and conditions. While in the previous embodiment, adjustments in price were private and exclusive to the initiator, in this embodiment, price adjustments are available to all participants. 
         [0050]    Throughout the sales period (which may be time limited or open ended), the product  305  maintains a dynamic price  335 , which reflects the advertised price  330  less an amount that reflects the number of people who have opted in to the purchase of the product  305 . The dynamic price  335  could go to zero if enough people opted in and possibly did additional acts (such as view an advertisement  340 ), an action that also brings down the price of the product  305 . Thus, the price of product  305  can vary between the advertised price  330  and zero. This is an important distinction between the present invention and sales as performed by group sales web sites like those of Groupon™. In the latter case, a certain number of people must express interest in buying a product; when that number is reached, the price typically drops in a binary fashion from an original price to a discounted price. In the present invention, each individual who opts into a sale of a product  305  individually reduces the price and may participate in activities that reduce the price  335  by more than the opt-in markdown. 
         [0051]    When one of the users  360  decides to purchase the product, he actuates  365  a “Buy” button  370  on the web site  310 , which then fixes the price for that purchase at the dynamic price  335  for that moment. Immediately after the purchase, the dynamic price  335  goes up by a fixed and optionally advertised amount, in order to reflect that the dynamic price  335  had reached a point where the product  305  was successfully sold to one of the opted in users. Only opted in users  360  can buy the product  305  at the dynamic price  335 . The web site  310  may contact all of those users  360  who opted into the purchase of product  305  so as to alert them that the dynamic price  335  of product  305  has risen. The web site  310  alternatively can alert those who have opted in at any time during the sale of product  305  as to the dynamic price  335  status of the product  305 . Such information can be provided by SMS, email, phone application, instant messaging, a dedicated computer window, social network account or by other means. 
         [0052]    After the dynamic price  335  of product has gone up due to a first purchase, the dynamic price  335  continues to change. With each purchase of product  305 , the price goes up, while new opt-in users and/or additional price-reducing activities such as filling in questionnaires, watching advertisements  340  or other activities causing the web site  310  to reduce the price. Individuals who have opted in can each decide when to purchase product  305 , if at all. There is no obligation to buy product and there is no prepayment and generally credit card information is not required to opt-in to a sale. 
         [0053]    The embodiment herewith described embodies in some ways game theory as applied to internet shopping. Users join a sale and watch the price of the product decrease as a function of a number of users expressing interest in the product and performing activities, each of which are known to reduce the price of product. At some price level a user or a group of users decide that a purchase is in order. Purchase of product begins to drive the dynamic price  335  back up towards the advertised price  330 . Each user may then decide whether to purchase, let the price to continue to rise, or wait for more opt-in users  360  or price-reducing activities to occur. The web site  310  attracts many users  360  through the ability to drive down advertised price  330  and makes up for any lost revenue in the dynamic price  335  of product through advertisements  340  or the like watched by users. 
         [0054]    Attention is directed to  FIG. 4 , which is a diagram illustrating the operation of the embodiment shown in  FIG. 3 . A web site  410  advertises a tablet computer  405  at unadvertised price  430  ($700). The web site  410  explains that anyone “opting in” to the sale of the tablet computer  405  will cause the price of the tablet computer  405  to drop by 25 cents. Opt-ing in may be performed by actuating an “Opt-in” button  465  on the web site  410 . There is no limit to the number of copies of the tablet computer  405  that the web site  410  is able to sell (though they will generally be sold one at a time). One thousand individuals  460 , identified by unique cell phone numbers to which a confirmation code is sent by SMS (not shown), opt-in to the sale of the tablet computer  405 . The advertised price  430  of the tablet computer is reduced 432 by $250 (1000×$0.25) to a dynamic price  435  of $450. Additionally, 100 of those one thousand individuals  460  who opted in perform an activity. Namely, each fills out a questionnaire  440  related to the quality of products from the manufacturer of the tablet computer  405  (or potentially any other tablet computer). Each filled out questionnaire additionally reduces the price  435  of the tablet computer  405  by 50 cents. Thus, the dynamic price  435  of the tablet computer  405  is further reduced 433 to $400. At this dynamic price, an opted in user  400  actuates the “Buy” button  470  on the web site  410 . That user  400  purchases the tablet computer  405  for $400, but the dynamic price  435  jumps  434  $10 to $410. The jump in dynamic price  435  reflects the fact that the tablet computer reached a level ($400) that is attractive for purchase by at least one user  400 . After a markup in dynamic price  435  of the tablet computer  405 , others may choose to buy the tablet computer  405  rather than risk additional increases in dynamic price  435 . They dynamic price when going up may be kept at a new, higher price for a given period of time or may increase with each purchase of the tablet computer  405 . With each additional purchase, the dynamic price  435  of the tablet computer rises, while with each additional opt-in or each view of the advertisement  440 , the dynamic price  435  of the product drops. This automatic process continues either until a predetermined time or quantity runs out on the product or users stop buying the tablet computer  405 . 
       Embodiment 3 
       [0055]    Attention is directed to  FIG. 5 , which shows a schematic representation of an embodiment of the present invention. A user  500  purchases a product  505  on a web site  510 . The web site  510  instructs the user  500  that he can pay for the product  505  after a predetermined period of time; during that time, user  500  can turn to friends, acquaintances, and others  550  that they should watch  555  an advertisement  540  or perform another predetermined activity (not shown), each such viewing or activity causing the web site  510  to reduce the price of the product  505  to be paid by user  500 . After the predetermined period of time has elapsed, the web site  510  charges the user  500  according to the advertised price  530  minus any markdowns garnered as a function of activities performed by the friends, acquaintances, and others  550  in support of a price reduction for user  500 . In this model, the dynamic price  535  could potentially reach zero if enough activities were performed during the predetermined time period. The web site  510  compensates for the lost payment on product  505  by advertising or other revenues related to the activities performed by user  500  and/or friends, acquaintances, or others  550 . 
         [0056]    This embodiment is ideal for those who have many “friends” on sites like Facebook and MySpace. After buying product  505 , user  500  can turn to his friends and ask for their help in reducing the dynamic price  535  to as low a value as is possible in the time given. Of course, such friends are by no means limited to social network applications. 
       Embodiment 4 
       [0057]    Attention is directed to  FIG. 6 , which is a flow chart of a method of the present invention. This method is associated with a “private sale” arrangement between a web site and a user or member of the web site. The method includes the following steps: allowing a user to choose a product at a web site, which he wishes to purchase; beginning a sale of the product to the user at a predetermined price for the product; providing instructions to the user as to how he can reduce the price of the product through his/her actions and/or the actions of others; allowing the user and the others to perform the actions, wherein the performance of the actions reduce the price of the product; and, selling the product to the user either at the end of a predetermined period of time or at a time when the user indicates that he wishes to purchase the product at a known current price. 
       Embodiment 5 
       [0058]    Attention is directed to  FIG. 7 , which shows a method associated with the instant invention. The method relates to an “opt-in” embodiment for reducing the price of a product. The method includes the following: providing a web site where a consumer may purchase the product; assigning an initial price to the product; reducing the price of the product by a predetermined and advertised amount for each consumer that expresses interest on the web site for purchasing the product; selling the product when a opted-in consumer performs a purchase of the product on the web site; raising the price of the product by a predetermined and advertised amount with the purchase of the product; modifying the price of the product, wherein each purchase of the product raises the price of the product, while expression of interest in the product by new consumers leads to a markdown of the price of the product; and, selling additional units of the product, each unit sold at a current price determined by initial price, number of people expressing interesting in the product, and number of people actually having bought the product. 
       Embodiment 6 
       [0059]    This embodiment is adapted to strategies directed at managing the risk of monetary loss that may be incurred by organization operating the web site. Specifically, the income derived from advertising and related activities that is brought in by reducing the price is greatest per unit with the first sale.  FIGS. 8-10  are tables showing examples from the present embodiment in which opt-in reduces the price of product by 10 cents (the web site making 20 cents for each banner advertisement presented when a person executes a “buying”: (a purchase of the product) and potentially $1 for viewing an advertisement (web site making $2/advertisement), while a purchase of the product raises the price $10. These figures are to be read from top to bottom, wherein a series of dots represents intermediate activities not shown for reasons of brevity. As shown in  FIG. 8 , the greatest profit         $550         occurs  836  with the sale of the first unit at a price of $200. The web site net is $600 in advertising revenue and $200 paid by buyer less $250, the cost of the product for a total of $550 of profit. With the sale of the second unit, net profit drops to $510, which comes to $255 profit per unit. One could stop the sale after a purchase of the first product in order to maximize profit or to establish a lowest allowable price, which may or may not be the purchase price. But then there is a risk that people will stop coming to the site if only one or a very few number of users can buy the product or if there is a defined limit to lower unit price. Instead, additional products are sold at higher prices, but with reduced overall profit. The example in  FIG. 8  has sales occurring below the product cost to the web site ($250). As shown in  FIG. 8 , the final profit for the sale of four units is $473 (shown in circle). 
         [0060]    In this embodiment, the server  511  ( FIG. 5 ) includes a monitor program that controls a sale of a product and monitors changes in price as opt-ins, purchases and other actions occur. The program may stop a sale when the net profit per unit reaches a predetermined lower level so as to prevent losses or unacceptable profit levels. Alternatively, the program can stop price reduction at a predetermined price level and/or stop a sale for other reasons that include but are not limited to exhaustion of product inventory. Alternatively, instead of stopping the sale completely, the program can raise the price by more than the $10 and even return the price to a significantly higher level, such as $250 or $350 (base price plus $100 of profit/unit). If the sale is stopped, it may be restarted later at the original price in order to begin the process again. 
         [0061]    Attention is directed to  FIG. 9 , where the variable prices ( 935 , shown in ellipse) for sold units are all higher than the $250 unit price paid by the web site for the product. The net profit (shown in circle) of $643 for four units sold yields more than $160 profit per unit, while buyers saved nearly $200 each on the advertised purchase price. In this example, the “Buy” button (not shown) was actuated well above the cost of the product ($250) and subsequent units of product were additionally purchased at profitable prices. 
         [0062]    Attention is directed to  FIG. 10 , which shows an example of the present embodiment of the invention in which the dynamic price  1035  twice reaches zero. Two units are sold at this price and the net profit for sale of four units is $60. While the profit is low, the ability to drive down prices to nothing will allow for a large user base, which means more overall sales as well as higher advertising rates. 
         [0063]    Reference is now made to  FIG. 11 , which schematically illustrates apparatus that is adapted to executing the methods described in the previous embodiments. A control device, typically a computer  1110 , is operated by an administrator  1112 . The computer  1110  typically comprises a general purpose or embedded computer processor, which is programmed with suitable software for carrying out the functions described hereinbelow. Thus, although the computer  1110  is described as comprising a number of separate functional blocks, these blocks are not necessarily separate physical entities, but rather may represent different computing tasks or data objects stored in a memory that is accessible to the processor. These tasks may be carried out in software running on a single processor, or on multiple processors. The software may be embodied on any of a variety of known media for use with a computer system, such as a diskette, or hard drive, or CD-ROM. The code may be distributed on such media. Alternatively or additionally, the computer  1110  may comprise a digital signal processor or hardwired logic. 
         [0064]    Data  1114  acquired from operation of the above-described sales schemes and a program suite  1116  for carrying out the schemes are stored in memory  1118 , which can be any conventional local or distributed memory device or plurality of devices. The computer  1110  is provided with conventional I/O facilities and is connected to a data network  1120 , which is typically the Internet. A server  1122 , which typically hosts a web site under control of the administrator  1112 , is connected to the network  1120 . Any number of customers  1124  can access the server  1122 . In a social networking context, the customers  1124  may be subscribers of the web site, or may be guest users. In other electronic commerce applications, the customers  1124  may be guest users, or have various privileges and priorities. 
         [0065]    The memory  1118  and its contents may be accessible to the computer  1110  or the server  1122  exclusively or nonexclusively. For example, in some embodiments the server  1122  may execute the program suite  1116 , autonomously or interactively with the administrator  1112 , while in other embodiments the program suite  1116  is controlled directly by the administrator  1112  via the computer  1110 , even when the network  1120  is unavailable or disconnected from the computer  1110 . 
         [0066]    Reference is now made to  FIG. 12 , which is a block diagram showing aspects of a computing device  1200 , which is specially programmed for carrying out the methods described above. An I/O section  1226  mediates communication with other computing devices via a data network  1228 . A publication manager  1230  provides sales information, pricing, and information regarding opt-in and related activities via the I/O section  1226 . An activity manager  1232  receives opt-in notifications, purchase requests, and other events as specified by the publication manager  1230 . A price manager  1234  establishes and dynamically varies pricing of products and services responsively to external administrative directives, i.e., from the administrator  1112  ( FIG. 11 ), or responsively to events recorded by the activity manager  1232 . The price manager  1234  may monitor changes in price as opt-ins, purchases and other actions occur. An inventory manager  1236  coordinates with the price manager  1234  and the publication manager  1230  according to inventories of the products and availability of services. Appropriate records of the activity of the various components of the computing device  1200  are maintained in a memory  1240 , e.g., in a database  1242 . 
         [0067]    Embodiments of The present invention may be incorporated in a social network web site or a commercial or retail web site. Users or customers may be ranked according to their activity in purchasing products and/or in participating in activities that reduce product prices. Higher ranked users may receive bigger discounts or may enter a higher category such as “gold”, “silver” or similar categories to rank the web activity of users as it relates to the instant invention. It is appreciated that certain features of the invention, which are, for clarity, described in the context of separate embodiments, may also be provided in combination in a single embodiment. Conversely, various features of the invention, which are, for brevity, described in the context of a single embodiment, may also be provided separately or in any suitable subcombination or as suitable in any other described embodiment of the invention. Certain features described in the context of various embodiments are not to be considered essential features of those embodiments, unless the embodiment is inoperative without those elements. 
         [0068]    Although the invention has been described in conjunction with specific embodiments thereof, it is evident that many alternatives, modifications and variations will be apparent to those skilled in the art. Accordingly, it is intended to embrace all such alternatives, modifications and variations that fall within the spirit and broad scope of the appended claims.