Abstract:
A system for distributing a loan lead generation fee, including: a computer including a processor in communication with a computer-readable medium and a network, the computer-readable medium having a database stored thereon, the database including a listing of the plurality of participants and hierarchical relationships therebetween; a participant input subsystem operably connected to the computer and to the network; a lead generation fee payment subsystem for receiving the lead generation fee that is generated upon closing of the loan; a calculation subsystem for calculating loan lead generation fee payments to be made to at least one participant, wherein the calculation subsystem calculates a fraction of the loan lead generation fee payment to pay the at least one participant based on the hierarchical relationship between the at least one participant and the plurality of participants; and a payment subsystem for distributing a payment to the at least one participant.

Description:
CROSS REFERENCE TO RELATED APPLICATIONS 
       [0001]    This application claims priority to U.S. Provisional Application No. 61/182,465, filed May 29, 2009, which is incorporated herein by reference in its entirety. 
     
    
     BACKGROUND 
       [0002]    1. Field of the Invention 
         [0003]    The present invention relates to a method and a system for distributing lead generation fee payments to individuals, businesses, and not-for-profit entities. 
         [0004]    2. Background of the Invention 
         [0005]    Upon closing of a loan (e.g. a mortgage), a lead generation fee is often paid to a lender or broker who provided the lead which resulted in the loan being issued. 
       SUMMARY 
       [0006]    In one embodiment, the invention provides a system for distributing a lead generation fee from a loan to at least one of a plurality of participants. The system includes a computer including a processor in communication with a computer-readable medium and a network, the computer-readable medium having a database stored thereon, the database including a listing of the plurality of participants and hierarchical relationships therebetween; a participant input subsystem operably connected to the computer and to the network; a lead generation fee payment subsystem for receiving the lead generation fee that is generated upon closing of the loan; a calculation subsystem for calculating loan lead generation fee payments to be made to at least one participant, wherein the calculation subsystem calculates a fraction of the loan lead generation fee payment to pay the at least one participant based on the hierarchical relationship between the at least one participant and the plurality of participants; and a payment subsystem for distributing a payment to the at least one participant. 
         [0007]    In another embodiment the invention provides a method of distributing a portion of a loan lead generation fee. The method includes registering a first participant comprising obtaining first participant contact information; registering a second participant comprising obtaining second participant contact information; recording a first referral relationship between the first participant and the second participant; receiving a request for a loan from the second participant; forwarding second participant information to a loan vendor; receiving from the loan vendor a lead generation fee and second participant loan information; calculating a first portion of the lead generation fee based on the first referral relationship; and distributing the first portion of the lead generation fee to the first participant. 
         [0008]    Other aspects of the invention will become apparent by consideration of the detailed description and accompanying drawings. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0009]      FIG. 1  shows a diagram of a computer system for carrying out aspects of the present invention; 
           [0010]      FIG. 2  shows a diagram of the system including the hierarchical relationships between first, second, and third participants; and 
           [0011]      FIG. 3  shows a diagram of the system including the hierarchical relationships between an entity and first and second participants. 
       
    
    
     DETAILED DESCRIPTION 
       [0012]    Before any embodiments of the invention are explained in detail, it is to be understood that the invention is not limited in its application to the details of construction and the arrangement of components set forth in the following description or illustrated in the following drawings. The invention is capable of other embodiments and of being practiced or of being carried out in various ways. 
         [0013]    The present invention discloses method and system for collecting referrals for loans, tracking relationships between the referral sources, collecting lead generation fees for loans that are funded, and distributing portions of the lead generation fees to the referral sources according to the relationship of the referral source to the party who obtained the loan. 
         [0014]    In embodiments of the invention, aspects of a referral system  10  are carried out by a computer system  12  which has an input device  14 , an output device  16 , a computer-readable storage medium  18 , and a processor  20  ( FIG. 1 ). Possible input devices  14  include a keyboard, a computer mouse, a touch screen, and the like. Output devices  16  include a cathode-ray tube (CRT) computer monitor, a liquid-crystal display (LCD) computer monitor, and the like. Storage media  18  include various types of memory such as a hard disk, RAM, flash memory, and other magnetic, optical, physical, or electronic memory devices. The processor  20  is any typical computer processor for performing calculations as well as for directing other functions related to performing input, output, calculation, and display of data associated with the referral system  10 . Those aspects of the referral system  10  that are implemented on the computer system  12  comprise instructions and data that are stored on the storage medium  18 . The data associated with the referral system  10  can include image, text, numerical, and other types of data. In one embodiment, the computer system  12  includes a server and in one particular embodiment the server is configured to operate as a web server. The computer system  12  can also include a network connection  22  which in turn can connect to a computer network  24 . The network connection  22  can serve as an additional source of input and output for the computer system  12 . 
         [0015]    In various embodiments, participants contact a service provider  100 , for example through a web site operated by or on behalf of the service provider  100 , and register with the service provider  100 . The service provider  100  operates one or more hardware components that effectuate embodiments of the referral system  10 . Generally, at least one of the participants is considering obtaining a loan, e.g. for a purchase of a property such as a home or for refinancing an existing loan. The loan can be for purchase or refinancing of a residential or commercial property or a construction loan, and can be obtained through any number of private or government-sponsored programs including a VA (Veterans Affairs) loan or an FHA (Federal Housing Administration) loan, to name a few possibilities. 
         [0016]    Other participants may not be actively seeking a loan but instead may register with the service provider  100  in order to recruit others to register with the system  10  and to thereby establish referral relationships with the others. 
         [0017]    In one embodiment of the referral system  10 , when a first participant  110  registers with the service provider  100 , a participant account is created for the first participant  110 , who is also issued a first identification number  115  ( FIG. 2 ). In some embodiments, a personal web site (e.g. having an address that is specified by a uniform resource locator, or URL) is generated for the first participant  110 ; the first participant  110  can then share the URL of the web site with potential contacts to assist them in registering with the service provider  100 . The first participant  110  can also use the web site to manage his or her account. When the first participant  110  subsequently refers a second participant  120  to the service provider  100 , the first participant  110  provides the second participant  120  with the first identification number  115 . When the second participant  120  registers with the service provider  100 , the second participant  120  enters the first identification number  115  into the referral system  10 , thereby establishing a referral relationship between the first participant  110  and the second participant  120 , with the first participant  110  being “above” the second participant  120  for referral purposes. A participant account is created for the second participant  120  and the second participant  120  is issued a second identification number  125 . 
         [0018]    When the second participant  120  refers others to the referral system  10  of the service provider  100 , the second participant  120  provides the others with the second identification number  125 , which the others enter when they register with the service provider  100 . When the others enter the second identification number  125 , the others establish referral relationships with the second participant  120  as well as with the first participant  110 . Thus, if one of the other participants, for example a third participant  130 , enters the second identification number  125  when registering with the service provider  100 , then this establishes a referral relationship between the third participant  130  and the second participant  120 . Given the preexisting referral relationship between the first participant  110  and the second participant  120 , then the third participant  130  establishes an indirect referral relationship with the first participant  110 . To the extent that participants may refer other participants to the service provider  100 , the participants in some embodiments are referred to as “representatives” of the service provider  100 . In various embodiments, the participants&#39; relationship to the service provider  100  is that of an independent contactor, with the relationship lasting for various time periods such as one month, one year, or any other time period agreed upon between the service provider  100  and the particular participant. 
         [0019]    In various embodiments, a participant who refers another participant to the service provider  100  is the sponsor of the other participant, and the identification number that is entered by the other participant is called the sponsor identification number. In the example above, the first participant  110  is the sponsor of the second participant  120  and the first identification number  115  serves as the sponsor identification number. 
         [0020]    The following is a description of how participants can work with the service provider  100  to use the referral system  10  to obtain a loan according to various embodiments of the invention, using the first participant  110  as an example. As part of the process of registering with the referral system  10 , the first participant  110  enters various contact and other information, including one or more of the participant&#39;s name; postal address (which can include house number, street name, city, state, zip code, and/or country); email address; home telephone number; work telephone number; mobile telephone number; employer name; the identification number of another participant who referred the first participant  110  to the service provider  100 , if applicable (i.e. the sponsor identification number); an indication that the first participant agrees to any terms and conditions set forth by the service provider  100 ; an indication of whether the first participant is an individual, a business entity, or a not-for-profit entity; an identifier such as the last four digits of the participant&#39;s taxpayer identification number (TIN) or Social Security number (SSN); and an indication of whether the participant is seeking a loan. In some embodiments, when the first participant  110  initially registers with the referral system  10 , she may not be seeking a loan but instead registers in order to refer other participants to the service provider  100 . The referred participants in turn may obtain loans or may simply refer more participants to the service provider  100 . Nevertheless, the first participant  110  may indicate to the referral system  10  at a later time that she is interested in obtaining a loan by making a request to the service provider  100 . In some embodiments, a participant can make the request in a number of ways, including electronically (e.g. via email or other computer-based communication), on paper, via telephone, or in person. Another mechanism that is available to an existing participant to indicate his or her interest in obtaining a loan is by selecting an option that is available in the participant&#39;s “back office,” which is a portion of the participant&#39;s web site used for managing the participant&#39;s account with the service provider  100 , to inform the service provider  100  that the participant is interested in obtaining a loan. 
         [0021]    In general, when the first participant  110  indicates that she would like to obtain a loan, her contact information is transmitted to one or more outside vendors  300  (in some embodiments using the network  24 ), where the vendors  300  can include mortgage brokers or other loan brokers as well as traditional lending institutions such as banks ( FIG. 2 ). The vendors  300  then work directly with the first participant  110  to arrange a loan. In certain embodiments, the vendor  300  is a loan originator. The contact information that is transmitted can include one or more of the participant&#39;s name, address, telephone number (one or more of home, work, or mobile number), email address, and the last four digits of the participant&#39;s SSN or TIN, the latter for identification purposes only. In addition, in certain embodiments the transmitted information can include the participant&#39;s identification number issued by the service provider  100 . The contact information can be transmitted in a number of ways, including by telephone, paper, or electronically (e.g. by email or other computer network-based communication). In one particular embodiment, a participant indicates her interest in obtaining a loan by entering contact information on a web page at the service provider&#39;s  100  web site. When the participant submits the information (e.g. by selecting a button on the web page), the participant&#39;s web browser is redirected to a secure web site operated by a vendor  300 , where the participant then enters additional loan-related or other information. 
         [0022]    In various embodiments, the first participant  110  provides the vendor  300  with loan-related information which is needed for setting up a loan. For example, the information provided by the first participant  110  can include, without limitation, the type of property (e.g. residential, commercial), the location of the property, the purchase price of the property, the down payment amount, the loan amount, the first participant&#39;s  110  financial profile (e.g. income, savings, debts, etc.), the desired loan term (e.g. fifteen-, twenty-, thirty-year), and whether a fixed or adjustable-rate loan is preferred. In addition to obtaining loan-related information, the vendors  300  may perform additional steps such as running a credit check on the first participant  110 . In certain embodiments, each vendor  300  works directly with the first participant  110 , and in other embodiments the vendors  300  maintain a centralized database of participant contact and loan-related information and make this information available to the vendors  300 . Regardless of how the participant contact and loan-related information is transmitted to the vendor  300 , the first participant  110  works directly with the vendor  300  to finalize the details of the loan. 
         [0023]    When the loan process is completed and the loan is funded, the vendor  300  who issues the loan pays a lead generation fee  400  to the service provider  100 , in accordance with all applicable laws and regulations ( FIG. 2 ). In general, the vendor  300  who originates the loan sells the loan on the secondary loan market, and the lead generation fee  400  is paid out of the proceeds of the secondary loan market sale. If not previously provided, the vendor  300  transmits to the service provider  100  information regarding the loan and the applicant, including for example the loan amount and the name and other contact information for the borrowers. The service provider  100  then uses this information to determine how to distribute the lead generation fee  400 . In one particular embodiment, the vendor  300  transmits to the service provider  100  an amount of the net sale proceeds of the loan (e.g. in US dollars) along with identifying information, such as the identification number, for the participant who generated the lead (e.g. the loan applicant). In various embodiments, the vendor  300  transmits this information to the service provider  100  at various time intervals, including on a daily, weekly, or monthly basis, or other suitable time interval. The vendor  300  also transmits the lead generation fee  400  to the service provider  100 , using a suitable payment mechanism such as electronic transfer or paper check, at suitable time intervals such as daily, weekly, monthly, or other time periods. 
         [0024]    In one embodiment, the amount of the lead generation fee  400  is 0.8% of the loan amount, although other amounts of lead generation fees  400 , based on other percentages or fixed amounts, are also possible. The service provider  100  in turn distributes portions of the lead generation fee  400  to the first participant  110  and any other participants who have a referral relationship with the first participant  110 , as discussed above. 
         [0025]    For example, in one particular embodiment, if the loan that is issued to the first participant  110  is for $250,000, the vendor  300  pays a lead generation fee  400  of $2,000 to the service provider  100  upon completion and funding of the loan. The first participant  110 , who is the loan recipient and in some embodiments is referred to as the “lead generator,” receives 40%, or $800, of the lead generation fee  400 . The participant who initially referred the first participant  110  to the service provider  100 , referred to in some embodiments as the “sponsor” of the first participant  110 , receives 14%, or $280, of the lead generation fee  400 . The participant who referred the sponsor, who is two levels above the first participant  110 , receives 8% of the lead generation fee  400 . The remainder of the lead generation fee  400  can be divided up among the participants in a number of ways, generally according to how many levels away from the lead generator the particular participant is at, for example participants who are three to eight levels above the lead generator receive 5% of the lead generation fee  400 , which in the example above is $100; and participants who are nine to twelve levels above the lead generator receive 2% of the lead generation fee  400 , which in the example above is $40. Other mechanisms for dividing up the lead generation fee  400  are possible and are encompassed within the invention. 
         [0026]    The maximum number of levels at which participants receive a portion of the lead generation fee  400  based on their referral relationships can be any number. In various embodiments, the maximum number is five, ten, twelve, fifteen, or any other number, which varies depending on factors such as the business goals of the service provider  100  and the expectations of the participants. The lead generation fee  400  can be divided up according to predetermined percentages, as discussed above, or by using fixed amounts that are determined ahead of time according to the approximate value of the loan. For example, Tables 1 and 2 below show examples of lead generation fee distributions for different ranges of loan amounts, for the lead generator plus twelve (Table 1) or fifteen (Table 2) levels of related participants above the lead generator. The distributions are shown as fixed amounts for the given ranges of loan amounts, although other amounts are also possible. In some embodiments, if there are less than twelve (as in Table 1) or fifteen (as in Table 2) related participants above the lead generator, then the remaining, undistributed portion of the lead generation fee  400  amount reverts to the service provider  100 . 
         [0000]    
       
         
               
               
               
               
               
               
               
               
               
               
               
               
               
               
             
               
               
               
               
               
               
               
               
               
               
               
               
               
               
             
           
               
                 TABLE 1 
               
               
                   
               
               
                 Amount of Loan 
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
               
               
                 generated 
                 Lead 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
               
               
                 from Lead 
                 Generator 
                 1 
                 2 
                 3 
                 4 
                 5 
                 6 
                 7 
                 8 
                 9 
                 10 
                 11 
                 12 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 75,000-100,000 
                 240 
                 84 
                 48 
                 30 
                 30 
                 30 
                 30 
                 30 
                 30 
                 12 
                 12 
                 12 
                 12 
               
               
                 100,001-125,000 
                 320 
                 112 
                 64 
                 40 
                 40 
                 40 
                 40 
                 40 
                 40 
                 16 
                 16 
                 16 
                 16 
               
               
                 125,001-150,000 
                 400 
                 140 
                 80 
                 50 
                 50 
                 50 
                 50 
                 50 
                 50 
                 20 
                 20 
                 20 
                 20 
               
               
                 150,001-175,000 
                 480 
                 168 
                 96 
                 60 
                 60 
                 60 
                 60 
                 60 
                 60 
                 24 
                 24 
                 24 
                 24 
               
               
                 175,001-200,000 
                 560 
                 196 
                 112 
                 70 
                 70 
                 70 
                 70 
                 70 
                 70 
                 28 
                 28 
                 28 
                 28 
               
               
                 200,001-225,000 
                 640 
                 224 
                 128 
                 80 
                 80 
                 80 
                 80 
                 80 
                 80 
                 32 
                 32 
                 32 
                 32 
               
               
                 225,001-250,000 
                 720 
                 252 
                 144 
                 90 
                 90 
                 90 
                 90 
                 90 
                 90 
                 36 
                 36 
                 36 
                 36 
               
               
                 250,001-275,000 
                 800 
                 280 
                 160 
                 100 
                 100 
                 100 
                 100 
                 100 
                 100 
                 40 
                 40 
                 40 
                 40 
               
               
                 275,001-300,000 
                 880 
                 308 
                 176 
                 110 
                 110 
                 110 
                 110 
                 110 
                 110 
                 44 
                 44 
                 44 
                 44 
               
               
                 300,001-325,000 
                 960 
                 336 
                 192 
                 120 
                 120 
                 120 
                 120 
                 120 
                 120 
                 48 
                 48 
                 48 
                 48 
               
               
                 325,001-350,000 
                 1,040 
                 364 
                 208 
                 130 
                 130 
                 130 
                 130 
                 130 
                 130 
                 52 
                 52 
                 52 
                 52 
               
               
                 350,001-375,000 
                 1,120 
                 392 
                 224 
                 140 
                 140 
                 140 
                 140 
                 140 
                 140 
                 56 
                 56 
                 56 
                 56 
               
               
                 375,001-400,000 
                 1,200 
                 420 
                 240 
                 150 
                 150 
                 150 
                 150 
                 150 
                 150 
                 60 
                 60 
                 60 
                 60 
               
               
                 400,001-409,999 
                 1,280 
                 448 
                 256 
                 160 
                 160 
                 160 
                 160 
                 160 
                 160 
                 64 
                 64 
                 64 
                 64 
               
               
                 410,000 and above 
                 640 
                 224 
                 128 
                 80 
                 80 
                 80 
                 80 
                 80 
                 80 
                 32 
                 32 
                 32 
                 32 
               
               
                   
               
             
          
         
       
     
         [0000]    
       
         
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
             
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
             
           
               
                 TABLE 2 
               
               
                   
               
               
                 Amount of Loan 
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
               
               
                 generated 
                 Lead 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
                 Level 
               
               
                 from Lead 
                 Generator 
                 1 
                 2 
                 3 
                 4 
                 5 
                 6 
                 7 
                 8 
                 9 
                 10 
                 11 
                 12 
                 13 
                 14 
                 15 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 75,000-100,000 
                 315 
                 117 
                 72 
                 45 
                 45 
                 45 
                 45 
                 45 
                 45 
                 18 
                 18 
                 18 
                 18 
                 18 
                 18 
                 18 
               
               
                 100,001-125,000 
                 420 
                 156 
                 96 
                 60 
                 60 
                 60 
                 60 
                 60 
                 60 
                 24 
                 24 
                 24 
                 24 
                 24 
                 24 
                 24 
               
               
                 125,001-150,000 
                 525 
                 195 
                 120 
                 75 
                 75 
                 75 
                 75 
                 75 
                 75 
                 30 
                 30 
                 30 
                 30 
                 30 
                 30 
                 30 
               
               
                 150.001-175,000 
                 630 
                 234 
                 144 
                 90 
                 90 
                 90 
                 90 
                 90 
                 90 
                 36 
                 36 
                 36 
                 36 
                 36 
                 36 
                 36 
               
               
                 175,001-200,000 
                 735 
                 273 
                 168 
                 105 
                 105 
                 105 
                 105 
                 105 
                 105 
                 42 
                 42 
                 42 
                 42 
                 42 
                 42 
                 42 
               
               
                 200,001-225,000 
                 940 
                 312 
                 192 
                 120 
                 120 
                 120 
                 120 
                 120 
                 120 
                 48 
                 48 
                 48 
                 43 
                 48 
                 48 
                 48 
               
               
                 225,001-250,000 
                 945 
                 351 
                 216 
                 135 
                 135 
                 135 
                 135 
                 135 
                 135 
                 54 
                 54 
                 54 
                 54 
                 54 
                 54 
                 54 
               
               
                 250,001-275,000 
                 1,050 
                 390 
                 240 
                 150 
                 150 
                 150 
                 150 
                 150 
                 150 
                 60 
                 60 
                 60 
                 60 
                 60 
                 60 
                 60 
               
               
                 275,001-300,000 
                 1,155 
                 429 
                 264 
                 165 
                 165 
                 165 
                 165 
                 165 
                 165 
                 66 
                 66 
                 66 
                 66 
                 66 
                 66 
                 66 
               
               
                 300,001-325,000 
                 1,260 
                 468 
                 288 
                 180 
                 180 
                 180 
                 180 
                 180 
                 180 
                 72 
                 72 
                 72 
                 72 
                 72 
                 72 
                 72 
               
               
                 325,001-350,000 
                 1,365 
                 507 
                 312 
                 195 
                 195 
                 195 
                 195 
                 195 
                 195 
                 78 
                 78 
                 78 
                 78 
                 78 
                 78 
                 78 
               
               
                 350,001-375,000 
                 1,470 
                 546 
                 336 
                 210 
                 210 
                 210 
                 210 
                 210 
                 210 
                 84 
                 84 
                 84 
                 84 
                 84 
                 84 
                 84 
               
               
                 375,001-400,000 
                 1,575 
                 585 
                 360 
                 225 
                 225 
                 225 
                 225 
                 225 
                 225 
                 90 
                 90 
                 90 
                 90 
                 90 
                 90 
                 90 
               
               
                 400,001-409,999 
                 1,680 
                 624 
                 384 
                 240 
                 240 
                 240 
                 240 
                 240 
                 240 
                 96 
                 96 
                 96 
                 96 
                 96 
                 96 
                 96 
               
               
                 410,000 and above 
                 1,120 
                 416 
                 256 
                 160 
                 160 
                 160 
                 160 
                 160 
                 160 
                 64 
                 64 
                 64 
                 64 
                 64 
                 64 
                 64 
               
               
                   
               
             
          
         
       
     
         [0027]    In some embodiments, one or more of the participants may be an entity  500 , such as a business or a not-for-profit organization, rather than an individual. In these embodiments, the entity  500  registers with the referral system  10  in a similar manner to a participant who is an individual; for example, the entity  500  provides contact information to the service provider  100  and obtains an identification number  505  ( FIG. 3 ). A web site, dedicated telephone number (e.g. a toll-free number), or other contact mechanisms may be set up to help the entity  500  collect referrals. The entity  500  then collects referrals on behalf of the service provider  100 . If any of these referral participants obtains a loan through one of the vendors  300 , then the entity  500  receives a share of the lead generation fee  400  as the first level referral, or sponsor, of the participant who actually obtains the loan (i.e. the lead generator). In various embodiments, the entity  500  may direct potential referral participants to the service provider  100  using a variety of mechanisms, including for example using a link on the web site of the entity  500  which directs the referral participants to the web site of the service provider  100 . The participants who are referred to the service provider  100  enter the identification number of the entity  500  that referred them, thereby establishing a referral relationship between the participants and the entity  500  ( FIG. 3 ). In some embodiments, the identification number of the referring entity  500  is automatically entered on the web site of the service provider  100  as a result of using the link. As with other participants, the entity  500  will receive varying fractions of any lead generation fees  400  that result from participants that have a referral relationship with the entity  500 , depending on how many levels the entity  500  is removed from the participant who actually obtains the loan from which the lead generation fee  400  arises. 
         [0028]    As mentioned above, the entity  400  may be a for-profit business or a not-for-profit organization. In various embodiments, the business referrals may represent the primary source of income for the entity or referrals may represent a supplementary source of passive income. In other embodiments, the business may share some portion of referral income with employees as part of an employee incentive program. The employees and their family and friends may be encouraged to participate. 
         [0029]    Not-for-profit organizations may include religious organizations, educational institutions, or charitable foundations, to name a few. These organizations may recruit their members, alumni, or the general public to register with the service provider  100 , including entering the organization&#39;s identification number, as a way to provide financial support for the organization. 
         [0030]    As with any other referral participants, the supporters of an organization and/or the employees of a business can generate income by obtaining loans through the vendors  300  to which each supporter or employee was referred and also by referring more participants to the service provider  100 . 
         [0031]    As discussed above, in certain embodiments various aspects of the referral system  10  may be implemented on the computer system  12 . The computer system  12  in some embodiments is connected to a network, e.g. the Internet, and may include a web server. Thus, the participants in certain embodiments can interact with the referral system  10  over the network, for example by the participant using a computer with a web browser to interact with the web server of the computer system  12  over the network. In some embodiments, participants may create and manage their own individual web sites, run from a web server operated by the service provider  100  or by another organization, each of which includes a link to the web site of the service provider  100 . 
         [0032]    In various embodiments of the invention, elements of the referral system  10  disclosed herein are implemented using the computer system  12  described above. For example, the referral system  10  may include a referral tracking subsystem which includes a record of the hierarchical referral relationships. The record of referral relationships may be maintained in a database that is stored on the computer-readable storage medium  18  of the computer system  12 . When a loan is completed (i.e. funded) and the vendor  300  has paid a lead generation fee  400  to the service provider  100 , a calculation subsystem determines how to distribute portions of the lead generation fee  400  to the participants. The calculation subsystem, which can include the processor  20 , refers to the database to determine how to divide up the lead generation fee  400 . The same or a different database can be used to keep track of how much each participant owes or is owed, how much has been paid to the participant, and other information such as the participant&#39;s contact information and preferences such as mode of payment (e.g. electronic transfer/direct deposit or paper check). 
         [0033]    The referral system  10  can include a participant input subsystem for receiving input from participants. The participant input subsystem can include the input devices  14  and the output device  16  of the computer system  12  as well as the network  24 , by which participants can transmit contact and other information. 
         [0034]    The referral system  10  can also include an identification issuance subsystem for issuing a unique identification number to each participant. The identification issuance subsystem can include an identification number database, stored on the computer-readable storage medium  18  of the computer system  12 , which maintains a listing of identification numbers and the participant to which each number has been assigned. 
         [0035]    In some embodiments, the service provider  100  may charge the participants a fee (e.g. a weekly, monthly, or annual fee) for participating in the referral system  10 . In one embodiment, the fee is charged directly to the participant, who must remit payment to the service provider  100 , while in other embodiments the fee is deducted from lead generation fee payments and is only collected if the participant earns lead generation fee payments. 
         [0036]    In some embodiments, the participant may be paid at irregular intervals based on when the participant earns money from a lead generation fee. Such payment may be made the same day that the vendor  300  transfers the lead generation fee  400  to the service provider  100 , or within a day, two days, a week, two weeks, a month, or other suitable time period. Alternatively, lead generation fee payments may be made to participants every two weeks (e.g. every other Tuesday), twice a month (e.g. the 1 st  and the 15 th  of each month), once a month (e.g. the 1 st  of each month), quarterly, or other suitable time period. 
         [0037]    The referral system  10  can also include a payment subsystem for distributing payments to at least one of the plurality of participants. Payment may be made to the participants electronically (e.g. using the network connection  22  over the network  24 ) or a paper check may be printed and sent to the participant. Whether issuing a paper check or an electronic payment, the payment amount and other payee information may be transmitted over the network  24  using the network connection  22  to a third-party vendor who completes the transaction. In embodiments of the invention, various aspects of the referral system  10 , such as initial registration and tracking of referral relationships, may be managed internally by the service provider  100  or may distributed among one or more third-party vendors. 
         [0038]    Thus, the invention provides, among other things, a method and a system for distributing a portion of a loan lead generation fee. Various features and advantages of the invention are set forth in the following claims.