Patent Publication Number: US-2018040014-A1

Title: System and method incorporating discount based incentives in a multi-level consumer environment

Description:
FIELD OF THE INVENTION 
     The present invention relates to the incorporation of discount based incentives in a multi-level or affiliate marketing environment. More specifically, the present invention relates to a discount based incentive system and platform that operates across different business entities. 
     DESCRIPTION OF THE RELATED ART 
     Numerous marketing schemes exist that reward consumers for their behavior. A common organization is a hierarchy structure, such as multi-level marketing (MLM). MLM organizations typically have a person that purchases products directly from a manufacturer and then sells these products to consumers, much like a normal business. Another aspect of MLM organizations is that the person also may encourage others to sign up with the manufacturer to market the products. The people signed up under this process may be called “downline” while the person is an “upline.” The person does not serve in a supervisory role usually associated with normal business practices. The upline, however, receives compensation based on the activities of the downline. 
     Other marketing plans include referral programs, where a consumer receives benefits from encouraging others to sign up with a business. As the signees shop at the business, the consumer receives coupons or discounts. The consumer, however, does not receive direct compensation from the business. 
     SUMMARY OF THE INVENTION 
     The disclosed embodiments include a system to incorporate rewards or discount based incentives across several entities. The rewards or discounts derive from points collected on purchases and activities linked in a hierarchy structure. 
     A computer-implemented method for using discount based incentives in a marketing environment having a plurality of business entities connected by a network is disclosed. The plurality of business entities include member linked in a hierarchical structure. The computer-implemented method includes accumulating a first type of points based on activity within a first business entity by a member and at least one downline member associated with the member within the first business entity as well as on activity within a second business entity by the member and at least one downline member associated with the member within the second business entity. The computer-implemented method also includes accumulating a second type of points based on activity within the first business entity by the member and at least one downline member associated with the member within the first business entity. The computer-implemented method also includes storing the first type of points and the second type of points in a database connected to the first and second business entities. The computer-implemented method also includes accessing a client input page on a device connected to the network by the member to make a purchase at the first business entity. The computer-implemented method also includes retrieving an amount of the first type of points and an amount of the second type of points from the database in response to accessing the client input page. The computer-implemented method also includes redeeming an amount of the first type of points and an amount of the second type of points according to the first business entity. The computer-implemented method also includes applying a discount to the purchase by the member based on the amount of the first type of points and the amount for the second type of points at the first business entity. 
     A computer-implemented method for applying a discount within a marketing environment having a plurality of business entities associated with each other over a network connected to a central server is disclosed. The plurality of business entities include members linked in a hierarchical structure. The computer-implemented method includes accessing a page on a device connected to the network to make a purchase at a first business entity. The computer-implemented method also includes retrieving, from the central server, a first type of points for a member of the plurality of business entities. The first type of points is related to the first business entity and a second business entity that is separate from the first business entity. The computer-implemented method also includes retrieving, from the central server, a second type of points for the member. The second type of points is related to the first business entity. The computer-implemented method also includes determining whether to redeem the first type of points and the second type of points in conjunction with making the purchase at the first business entity. The computer-implemented method also includes applying a discount based on the redemption of the first type of points and the second type of points to the purchase. 
     A computer network system also is disclosed. The computer network system includes a plurality of business entities connected over a network to a central server. Each of the plurality of business entities includes a hierarchical member structure such that members within each of the business entities are linked together. The computer network system also includes a central server having a database to store information about each of the plurality of business entities. The computer network system also includes a communication device at the central server to exchange data between the central server and a plurality of devices associated with each member with each of the business entities. The computer network also includes a calculation device at the central server to determine a discount for a purchase within a first business entity based on a second type of points accumulated from activity of a member and at least one downline member with the first business entity and further based on a first type of points accumulated from activity of the member and at least one downline member with the first business entity and from activity of the member and the at least one downline member with a second business entity separate from the first business entity. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
       Various other features and attendant advantages of the present invention will be more fully appreciated when considered in conjunction with the accompanying drawings. 
         FIG. 1  illustrates a communication network for incorporating rewards in a hierarchy structure commerce environment according to the disclosed embodiments. 
         FIG. 2  illustrates a block diagram of a mobile device according to the disclosed embodiments. 
         FIG. 3  illustrates a block diagram of example business entities according to the disclosed embodiments. 
         FIG. 4  illustrates a block diagram of a web platform for use with the system according to the disclosed embodiments. 
         FIG. 5A  illustrates a flowchart for registering a client profile for incorporating rewards in a hierarchy structure commerce environment according to the disclosed embodiments. 
         FIG. 5B  illustrates a flowchart for creating a member profile according to the disclosed embodiments. 
         FIG. 6  illustrates a flowchart for making a purchase within the system using accumulated points according to the disclosed embodiments. 
         FIG. 7  illustrates a flowchart for calculating discounts and rewards for a purchase within the system according to the disclosed embodiments. 
         FIG. 8  illustrates a flowchart for accumulating point totals for a member within a business entity according to the disclosed embodiments. 
         FIG. 9A  illustrates a flowchart for using points within the system according to the disclosed embodiments. 
         FIG. 9B  further illustrates the flowchart of  FIG. 9A . 
     
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
     Reference will now be made in detail to specific embodiments of the present invention. Examples of these embodiments are illustrated in the accompanying drawings. Numerous specific details are set forth in order to provide a thorough understanding of the present invention. While the embodiments will be described in conjunction with the drawings, it will be understood that the following description is not intended to limit the present invention to any one embodiment. On the contrary, the following description is intended to cover alternatives, modifications, and equivalents as may be included within the spirit and scope of the appended claims. 
       FIG. 1  depicts an example communication network  100  for incorporating rewards in a hierarchy structure commerce environment according to the disclosed embodiments. Various client devices may communicate with each other within environment  100 , such as devices  106 . Devices  106  include mobile telephones, smartphones, desktop computers, laptop computers, tablets, smart watches and televisions, point-of-sale devices, and the like. Devices  106  may exchange information with a central server  102  over information network platform  104 . Preferably, network platform  104  is the Internet. Each device  106  may have an Internet protocol address to distinguish the different devices from each other. 
     Central server  102  also communicates with other components in network  100 . Central server  102  may act as the control component of the disclosed embodiments in that the functions and process are executed at the server or under its direction. Central server  102  includes a database  108  to store information and data regarding the auxiliary marketing system. For example, records may be stored in database  108  for each participant and customer in the hierarchy structure as well as the relationship between all the participants. Database  108  also stores the points for each participant. 
     Central server  102  also includes database management system  110 . Database management system  110  retrieves and stores information within database  108 . For example, database management system  110  may retrieve records as request through central server  102 . Further, database management system  110  receives updates or information to be stored in database  108  and determines the data structure to implement or modify in response. Database management system  110  may include a processor to execute operations as well as its own dedicated memory to store instructions for execution by the processor. 
     Calculation device  112  and communication device  114  also reside on central server  102 . Calculation device  112  executes the processes to determine the amount of points or other values associates with participants in the marketing structure. Central server  102  receives data from devices  106  on activity of the participants across various business entities using communication device  114 . Calculation device  112  then updates the points and any rewards associated as a result of the received data, as disclosed below. 
     Calculation device  112  also may include a processor to execute the operations to enable the processes disclosed below. It also may include a memory to store instructions for the processor as well as any data needed to implement its functions. Alternatively, calculation device  112  may be a software program that configures a processor into a special purpose processor dedicated to executing the functions disclosed below. Communication device  114  is hardware, firmware, or software that receives and transmits packets of information over network platform  104  to devices  106 . Communication device  114  may modify the information to meet the different protocols supported by network platform  104 . 
     Other components may be included in central server  102 . Further, the central server may be a plurality of servers linked together to provide the resources needed to support the disclosed system. For example, central server  102  may access three databases  108 , with two databases located in other servers. Database management system  110  coordinates interaction with the different databases to ensure that the proper information is stored in the proper location. 
       FIG. 2  depicts a block diagram of a mobile device  200  according to the disclosed embodiments. Mobile device  200  relates to a mobile device of devices  106  shown in  FIG. 1 . Other computers and devices also may incorporate some features of mobile device  200  in providing the functionality disclosed below. In short, the components shown in  FIG. 2  may be found in any of devices  106 . 
     Mobile device  200  includes one or more network interfaces  210 , at least one processor  220 , and a memory  240  interconnected by a system bus  250 . Power supply  260  supplies power to device  200  as well as the components disclosed therein. Other components may be included in device  200 , such as a display  202  and input module  204 . Display  202  provides visual information to the user and shows the icons for different applications  246  stored on device  200 . Input module  204  may include a graphical user interface (GUI), keyboard, mouse, and the like that allows the user to interact with device  200 . 
     Network interface(s)  210  contain the mechanical, electrical, and signaling circuitry for communicating data over links coupled to network environment  100 . Network interfaces  210  may be configured to transmit or receive data using a variety of different communication protocols. Further, device  200  may include two or more different types of connections for network interfaces  210 , such as a wired/physical, wireless, or cellular, and the like. Network interfaces  210  also may be configured as a general image input device, such as a code scanner, image detector, and the like. 
     Memory  240  includes a plurality of storage locations that are addressable by processor  220  for storing software programs and data structures  245  associated with these programs. The software programs include applications that reside in memory  240  until launched by processor  220 . Processor  220  includes hardware elements or hardware logic adapted to execute the software programs and manipulate data structures  245 . 
     An operating system  242 , which resides in memory  240  and is executed by processor  220 , functionally organizes device  200 . These software processes or services may comprise a mobile platform process  244 , in addition to one or more applications, or apps,  246 . Applications  246  may each be configured depending upon the particular device  200  within network environment  100 . 
     Other processor and memory types, including various computer-readable media, may be used to store and execute program instructions pertaining to the techniques described herein. While the disclosed embodiments illustrate various processes, it is expressly contemplated that various processes may be embodied as modules configured to operate in accordance with the functions disclosed below. While the processes have been shown separately, those skilled in the art will appreciate that processes may be routines or modules within other processes. 
     Mobile platform process  244  and applications  246  may each contain computer executable instructions executed by processor  220  to perform various functions. For example, applications  246  may include one or more specific or integrated applications, such as a web browser to access and view content over network environment  100 . Other specific applications  246  may include such feature specific applications such as music player apps, consumer product purchasing apps, travel apps, social media apps, banking or financial apps, messaging apps, and the like. 
     The functionality disclosed below may be performed by hardware, software, or firmware, such as in accordance with mobile platform process  244 , which contains computer executable instructions executed by processor  220  to perform the functions corresponding to the apps. 
     On mobile device  200 , the various applications  246  may be represented graphically by an icon. An icon is a pictogram displayed on a screen in order to help a user navigate a computer system. The icon is a quickly comprehensible symbol of an application  246 . It can serve as an electronic hyperlink or file shortcut to access the application that it represents. The application is activated to turn mobile device  200 , for example, from a computing platform to a specific purpose platform. The user activates the icon by using a mouse, pointer, finger, or even voice commands. The placement on display  202  in relation to other icons may be set according to some criteria or by the user. In activating an application using an icon, the user can move directly in and out of the identified application without knowing anything about the location or requirements of the data structures, or code. 
     Periodically, device  200  may receive instructions from central server  102  via network platform  104  to update applications  246 . Further, application  246  may store data that is sent to central server  102  as part of the disclosed marketing environment and to operate the affiliated marketing rewards system. 
     Referring back to  FIG. 1 , a plurality of independent entities  122  is shown. The entities may represent physical or virtual businesses. For illustrative purposes, businesses A, B, and C are shown. Member  120  may interact with each business entity  122  and receives points based on these interactions. 
     This concept may be shown in better detail in  FIG. 3 .  FIG. 3  depicts a hierarchical business structure environment  300  according to the disclosed embodiments. Business entities  122  are shown with the structure for each. The basic structure is similar for each entity  122 . In each entity, members  120  are organized by some methodology, such as genealogy, sponsorship, referrals, and the like. Preferably, the structures resemble a MLM structure. Each member can have up to 1 upline member directly linked to him/her. For example, in business entity B, member  120  is directly upline to member  126 . In business entity D, member  126  is upline to member  120 . 
     Moreover, each member can have a plurality of downline members directly linked. Referring to business entity A, member  120  has two direct downline members. The actual organization per entity may be different. For example, the maximum number of direct downline members may be different between entities. Thus, member  120  has two direct downline members in business entity A, but three in business entity B. 
     Within these entities, members  120  and  126  accumulate points due to activities taken within the business entities. There may be three categories of points. A first category is points X generated at cross entities. These points may be used on purchases. The other two types of categories of points are entity specific. These are points generated within the entity itself. A second category of points Y is used for discounts on purchases within the entity. A third category of points Z is used as an exchange for gifts, vouchers, or other rewards, within the entity. 
     Points are generated and collected from the activity of the member and from the activity of downline members linked directly or indirectly to the member. In the case of cross entity points, these points are collected from all entities where the member is listed. For entity specific points, the points are collected specifically from this entity. Thus, being a member within the disclosed system entitles one to two levels of discounts due to activities within the business entities. 
     Thus, for each entity participating in the disclosed process, each member is entitled to several types of benefits from converting points accumulated within the business entities. As noted above, three main types of points may be used. For convenience, the points are referred to as points X, points Y, and points Z. “Points” also may be referred to as types or categories, such as points of type X or points in category Z. For each type of points, the amount of points is calculated on the actual purchase amount, or the purchase value after any applicable discounts, by the member or the downline members linked to the member, either directly or indirectly, as shown in a hierarchical marketing organization. 
     Points Y, or points of type Y, are collected based on the level of a member&#39;s activity at one single entity. Points Y, in addition, may be used only at this entity. Type Y points may be exchanged for discounts on goods or services at the entity. Consequently, these points are used exclusively when making a purchase. This usage does not require any additional action from the member. On a particular case, a member may request to convert other points to type Y points, if the entity&#39;s policy allows for such a conversion. The conversion would occur according to the conversion rate set forth in the policy. 
     Points Z, or points of type Z, are collected based on the level of downline member&#39;s activities at one single entity. Type Z points also may only be used at the entity. Type Z points may be exchanged for free goods or services, such as in exchange for a voucher, cash, and the like at the entity. Thus, points Z are not bound by performing a purchase but require the member to make the explicit request to make the exchange by redeeming type Z points. The policy of the business entity may require the member, or customer, to perform a purchase before granting the requested good or service. On a particular case, a member also may request the conversion of type Z points to type Y points, if allowed by the policy and at a rate determined by the policy. 
     Points X, or points of type X, are collected based on the level of downline member&#39;s activities at a plurality of business entities  122 . Type X points may be exchanged for a discount on goods or services. Thus, these points are used when making a purchase by the member. This usage typically does not require any additional action taken by the member. 
     Point collection is done for each type of points and for each entity. The collected points may be a percentage of the actual consumption, or the price actually paid for the good or service, of all members listed in the business entity, of each level. Each entity, however, may enact different calculation rates per level and per type of points. These rates are set forth in each entity&#39;s policy. For example, one entity  122  may have a 3% rate for all members 4 levels downline of the member. The member may receive points corresponding 3% of the total prices on all purchases by downline members connected to the member. In another example, the percentage rate for a type of points may be 5% for directly linked members, 3% for directly linked of directly linked members (friends of friends), and 1% for directly linked of directly linked of directly linked members. Thus, many point collection schemes may be enacted, though there must be some relationship between members to earn points. 
     The policies within the entities may be updated to reflect changes. For example, during a special promotion period, the collection rate of type X points may be twice the normal rate from members directly linked to another member. In another example, entity  122  may decide to extend the range of type Y point collection from 3 levels to 4 levels. 
     Entity policies also may set forth conversion rates per type of points. For example, the conversion rate of type X points and type Z points may differ between entities. The disclosed embodiments, however, take into account the points earned for purchases at another entity, or points X. In order to ensure a fair distribution of type X points, it is recommended to set a unique rate of collection, as well as a unique rate of usage, for all entities defined in the plurality of entities  122  of each type X points. 
     Referring to  FIG. 3 , members  120  and  126  are shown. Member  120  collects points in business entities A, B, C, D, and F based on the member&#39;s activities in those entities. With regard to entity A, member  120  collects points Y and Z for purchases or activities within entity A. Points Y may be used for discounts within with entity A. Points Z may be used for rewards within entity A. Member  120  would not receive points Y or Z for member  126 &#39;s activities as this member is not within the downline organization. Staying with entity A, the activities of member  120  in entity B also results in points X being awarded from the cross entity relationship. 
     Looking at entity B, however, member  120  would receive points Y for activities taken by member  126  because this member is in the downline. The same scenario may be seen for entity C. The situation reverses in entity D with member  120 &#39;s activities generating points for member  126  as the upline. According to the disclosed embodiments, limits may be placed on the levels of downline able to generate points for the member. For example, member  120  may only receive points for activities of two downline levels. 
     Discounts by application of points may occur after a generic discount at purchase within the entity, regardless of point amount, and the prior consumption of points used as a discount. In other words, member  120  may receive a generic discount and a discount from the conversion of collected points. These discounts are calculated and deducted automatically from the original purchase amount, after confirmation to central server  102 . The actual purchase price within the business entity will include the applied discount. 
     Thus, two types of points are used for automatic discounts. One type, points X, are generated by cross entities. The disclosed system automatically calculates the discounts at the time of purchase, and should not require member action. At each use, only part of the cross-entities points X may be used, as a percentage of the total points available, and limited to a maximum of the resulting discount. All, some, or none of the points may be used in conjunction with the purchase. 
     Discounts may even be applied for a member not listed in the business entity. Referring to  FIG. 3 , business entity E does not include member  120  or member  126 . If member  120 , however, purchases products from business entity E, then he/she may still receive discounts under the disclosed system. First, a generic discount based on membership within the system may be provided. This discount could be a percentage of the original purchase price. Then, a discount may apply given the cross entity points, or points X, much like within other business entities. The discount under this scenario, however, may be limited to the amount after the generic discount and to the allowed fraction of the available point amount and to the allowed maximum discount amount as a percentage of the original purchase amount. 
     For a member listed within the business entity, the discounts are applied in the following fashion. First, a generic discount is provided as a percentage of the original purchase price. Second, a discount is provided as a conversion of the entity-specific points for a discount, or the use of points Y. Then, a discount is applied as a conversion of the cross-entity points, or points X. The application of points Y may be subject to the condition of reaching or exceeding a minimum level of consumption cumulated during a given period. This minimum consumption level is referred to as the activation level. The activation level corresponds to the level needed every month, quarter, year and the like, for a member within the hierarchy marketing network to maintain his/her access to entity-specific points. 
     The discount using certain points is limited based on other point levels. Thus, the discount given for entity specific points Y is limited to the amount of the sum of the amount after the generic discount and the cumulated previous actual purchase value, which exceeds the activation level, as well as the amount after the generic discount itself, plus the available amount of entity specific points Y. This limitation may apply to whatever point determination comes first. In other words, there is a limitation on the amount of discount available to member  120 . 
     The conversion of cross entity points X is limited to the application purchase value reduced by the discount plus the allowed fraction of the available amount of cross entity points X. The discount for cross entity points X also is limited so that the final total discount does not exceed a pre-defined maximum level, preferably as a percentage of the purchase value. Again, the maximum discount for a purchase is set, and the application of cross entity points X may not exceed this amount. 
     Thus, each member  120  or  126  enjoys two levels of a profile. A generic profile is used system-wide using minimum information. The generic profile, for the most part, stores cross entity points and enables behavior analysis through the plurality of business entities, such as the ones shown in  FIGS. 1 and 3 . A member also has an entity profile that is specific to each business entity. The entity profile is used mainly to store entity-specific points and to position the member in the hierarchy of that entity. 
     Each business entity  122  also may include its own profile. These profiles include the parameters of the multi-level structure, or hierarchy, which will impact the listed members. The profiles also may include the geographic location, such as global positioning system (GPS) coordinates. A virtual shop may not include GPS coordinates, or, for instance, may use a (0,0) coordinate. The entity profile also lists the type of product or service offered. 
     Referring to  FIGS. 1 and 4 , central server  102  includes database  108 , database management system  110 , calculating device  112 , and communication device  114 . Using network platform  104 , central server  102  transmits and receives information from devices  106 . A device  106  may use a webpage or webpages that link the device to network platform  104 . Alternatively, a smart device application, such as application  246 , is used to enhance the member experience and to reduce the dependency on web-based platforms. 
     As noted above, system  100  is operated remotely by central server  102 . Server  102  communicates with devices  106 . Devices  106  may belong to a client, or shop owner. Alternatively, devices  106  may reside with a client representative, or a shopping platform for a virtual shop. Central server  102  communicates using network platform  104 . 
     Database  108 , in addition to the functions disclosed above, includes information related to the members listed in the hierarchy structures of business entities  122 . Database  108  also stores information related to the shops. Central server  102  retrieves this information using database management program  110 . Database management program  110  communicates with calculating device  112  to make use of the data from database  108  and to store results from calculating device  112 . 
     Communication device  114  manages the communication between calculating device  112  and devices  106 . Communication to devices  106  also may be provided, such as for generating or updating access codes. Communication is performed primarily using network platform  104  via webpage(s) comprising several sub-pages or screens that include, at the least, main webpage  401 , information webpage  402 , client identification webpage  404 , input webpage  406 , and member registration webpage  408 , as shown in  FIG. 4 . An additional interface may be provided for an administrator. Main webpage  401  may be used to access the other webpages shown in  FIG. 4 . 
     Member  120  must register with system  100  to create a unique profile for use with business entities  122  using member registration page  408 . This profile helps tracks appropriate upline and downline relationship for a proper determination of points for use within the system. The resulting profiles may be taken to each business entity that includes member  120 . Member  120  also may import his/her system profile while making a client profile at a business entity  122 . The profiles and codes facilitate the tracking of points due to purchases and activities within system  100 . 
     The client, or member, may access the functionality of system  100  by accessing the main webpage and clicking on the link for identification page  404 . Identification webpage  404  is used to grant access to input webpage  406 , which will be used to input the member&#39;s purchase amount and return the result of the calculation. Identification webpage  404  provides, at a minimum, an input field for the client code and an input field for a password. These values are transferred to central server  102  for granting access to and redirecting to input webpage  406 . For client convenience, identification webpage  404  also may contain a link to a “forgot my password” webpage or to the main webpage. Alternatively, these fields and links may be integrated directly on the main webpage  401 . If access is granted, then input webpage  406  is displayed. If access is not granted, then an error message is displayed. 
     Input webpage  406  is the main communication portal between member  120 , mobile device  200 , application  246  and central server  102 . It can be customized by the client, for instance, displaying the business name or logo, or a set/changing background color. Input fields for input webpage  406  include ones for the customer code, the original purchase value of a good or service at a business entity, and a validation button. Input webpage  406  also includes a display field for the discounted amount and a “to be paid” value. Input webpage  406  also includes a link to new member creation webpage, such as member registration webpage  408 , a button for a new purchase, and a button to select the customer code type used (specific to this entity or from system  100 ). Additionally, it is recommended that input webpage  406  includes display fields for customer information, customer name, current cumulated purchase amount, current point X level, current point Y level, and current point Z level. 
     Mobile device  200 , via input  204 , may display a numerical keyboard, like a calculator, for directly inputting the customer code and original purchase value. This enables a direct input interface for the client when using mobile device  200 . 
       FIGS. 5A and 5B  may disclose example processes for creating profiles. These processes are illustrative only, and the disclosed embodiments are not limited to these processes when creating a profile. Other processes may be used. For example,  FIG. 5A  depicts a flowchart  500  for registering a client profile for incorporating rewards in a hierarchy structure commerce environment according to the disclosed embodiments. 
     Step  502  executes by logging onto member registration webpage  408  associated with system  100 . This step may be performed using mobile device  200  using an application  246  or on the page hosted by the website for system  100 . Member registration webpage  408  includes input fields displayed to the member or client to receive input information. These input fields include client based code, name, surname, contact information (communication media), and the like. In addition, a validation button and a return button is displayed. 
     Step  504  executes by inputting profile information for a new client on the webpage. Such information includes name, optional password, a unique client code, address, email, and the like. In some embodiments, the member or client places this information into the input fields displayed on webpage  408 . This information is sent to central server  102  via network platform  104 . 
     Step  505  executes by validating the referral information for the new member. If a client based code is provided, then central server  102  accesses database  108  and checks if an entry already exists of the provide code. If a match is found, then an error message is displayed on the screen of mobile device  200 . 
     Step  506  executes by creating the system profile for the new client. Once confirmed by central server  102 , it creates the system profile for use within system  100  in accumulating and redeeming points at the business entity  122 . Central server  102  generates a system code and stores it in database  108  along with the inputted profile information set forth above. 
     Step  507 , step  508  and step  510  execute respectively by determining the rate of accumulation, parameters of reach and discount rate for each type of point X, point Y and point Z. Additionally, step  510  determines the generic discount for members and non-members. 
     Step  512  executes by determining any additional information or parameters for the profile. Step  514  executes by storing the generated profile along with the rates and parameters in database  108 . 
       FIG. 5B  illustrates a flowchart  550  for another process for creating a member profile according to the disclosed embodiments. Flowchart  550  may be used by system  100  to create a member profile and properly assign a member code with the appropriate referral for upline/sponsor tracking. It also ensures that proper credit is provided within business entities  122  for point tracking. The functions disclosed below may be executed on central server  120  in conjunction with devices  106 . 
     Step  552  executes by accessing the member creation page by the new member/client to system  100 . The member creation page may be similar to member registration webpage  408 . Step  554  executes by inputting information for the new member. Such information may include name, optional password, address, email, and the like. This information may be stored in data storage within system  100 . 
     Step  556  executes by determining whether a referral is provided with the input information. For business entities  122 , a new member should have a referral, such as a “sponsor” or someone upline from the new member. The referral helps the new member get involved with the business and is credited with bringing the new member into each business or businesses. The referral preferably is another member and should have a code or other identification associated therewith for tracking within system  100 . 
     Thus, if step  556  is yes, then step  558  executes by determining whether the referral client code is valid. For example, system  100  may determine whether the client code for the referral is still active. If step  558  is yes, then step  560  executes by determining whether the new member has a system code. If no, then step  562  executes by creating a system profile and code for the new member. The system profile and code may be used by the new member within system  100 . If step  560  is yes, then step  564  executes by creating a member profile or code with the referral information. 
     If step  556  or  558  are no, then step  566  executes by creating the member profile or code without a referral. Thus, under step  566 , the new member is placed within the business entity without upline. In a sense, the new member would not have his/her activities count towards a referral&#39;s point totals. The new member is not precluded from participating in system  100  or a business entity because he/she does not have a referral. 
       FIG. 6  depicts a flowchart  600  for making a purchase within system  100  using accumulated points according to the disclosed embodiments.  FIG. 6  shows the process of a business entity  122  interacting with central server  102  via input webpage  406  during a purchase of a good or service. At the moment of a new purchase, either in a physical or virtual setting, step  602  executes by member  120  access input webpage  406  with business entity  122 . If at a physical location, client or member  120  uses mobile device  200  and application  246  to display and interact with input webpage  406 . 
     Step  604  executes by making a purchase of a good or service at a business entity  122  having a hierarchy organization, such as MLM or affiliate marketing. The purchase includes a price or cost associated with it. Step  606  executes by selecting a type of customer code used by the customer, or member, to register the purchase. The code may have been generated by the business entity or system  100 . A default code value may be set in accordance with codes having the highest occurrence to help save time. 
     Step  608  executes by inputting the customer code via the customer code input field on input webpage  406 , preferably using a displayed keypad as input  204 . Step  610  executes by validating the customer code, along with any shop or business entity code and input method. Step  612  executes by sending this validation information to central server  102  via network platform  104 . 
     Step  614  executes by central server  102  accessing database  108  to get the system customer code. This step enables central server  102  to link an existing code already used by the business entity before joining system  100 . Hence, a business entity  122  may start enjoying system  100  without having to destroy a legacy system, thereby avoiding the need to generate a complete new set of codes for existing members. 
     Step  616  executes by retrieving information by central server  102  from database  108 . When the customer code is known, central server  102  retrieves the name of the customer/member and point levels associated therewith. For example, central server  102  may retrieve current level of points X, points Y, and points Z associated to this client code, as well as the current cumulated actual purchase amount. Step  618  executes by displaying this information on input webpage  406 . 
     In the event that the customer/member is not yet registered in system  100 , central server  102  displays an error message. This action may occur when no system code is allocated. Central server  102  also may forward a link to member registration webpage  408 . The input of the purchase value, however, will not be allowed. 
     In the event that the customer/member is already registered in system  100 , but not yet with this client/business entity, central server  102  allows the input of the purchase value. The system code is recognized but there is no link created with the client code yet. Central server  102  may forward instructions to input webpage  406  to display a suggestion to the customer/member to register. 
     As soon as the purchase input is activated by input webpage  406 , the client/business entity can key in the customer/member total original purchase amount. Thus, step  620  executes by obtaining the purchase amount of the transaction. The purchase amount can be input by direct input in the input field of input webpage  406 , or via the keypad, in a similar way as for the customer code input. This value is sent to central server  102  via network platform  104  from devices  106 . 
     Step  622  executes by determining the applicable discount or reward based on the accumulated points and types of points associated with the customer/member. Central server  102  may perform this step, as disclosed in greater detail by  FIG. 7 .  FIG. 7  depicts a flowchart  700  for calculating discounts and rewards for a purchase within system  100  according to the disclosed embodiments. 
     Step  702  executes by receiving the original purchase price from the client/business entity at central server  102 . Specifically, the original purchase price may be forward to calculation device  112 . As noted above, calculation device  112  may be a processor configured to be a special purpose processor by executing software instructions. The original purchase price is sent via input webpage  406 . 
     Step  704  executes by determining whether the member plans to use points Z, related to points used at the business entity/client exchanged for free goods or services. In short, these points are used as a reward as opposed to a discount on goods or services. If no, then points X or Y will be used to provide a discount on the purchase price. 
     Step  706  executes if step  704  is no by accessing database  108  for the point totals of the member. As disclosed in greater below, points for activities within the different business entities  122  by the member and their marketing network accumulates points for the member to use. The points are stored in database  108  and available for use when a purchase is being made at one of the business entities. Calculation device  112  retrieves these amounts in step  708 . The amounts may be sent to input page  406  for display to the member. 
     Step  710  determines whether the member has enough cumulated actual purchase amount. System  100  or each business entity  122  may require a certain amount of cumulated purchases prior to providing any discount to the member. If step  710  is yes, then step  714  executes by determining the discount based on the number of points Y available. Flowchart  700  proceeds to step  715 . 
     If step  710  is no, then flowchart  700  proceeds directly to step  715 . Step  715  executes by determining the discount based on the number of points X available. A limit, however, of the total discount after this step may be set, thereby limiting the usage of points X. Calculation device  112 , at a minimum, determines total discount, new cumulated actual purchase value, new point X value, and new point Y value. These results are sent to input page in step  716 . 
     If step  704  is yes, then step  718  executes by opening a link to a management feature for points Z. For example, a new webpage may be opened in addition to input webpage  406 . The member or client enters the amount of points Z to redeem in the new webpage in step  720 . Alternatively, the actual good or service to receive by converting the points may be entered. Input includes the amount of points Z to be deducted. The webpage includes a validation button and a return button to leave this webpage to return to input webpage  406 . Preferably, the name and surname of the member as well as the system code and current point Z amount is displayed. 
     Step  722  determines whether enough points Z exist to redeem for the good or service at the client/business entity. Central server  102 , or calculating device  112 , determines if enough points Z are available for the inputted values. If no, then flowchart  700  returns to step  704  to process other types of points for possible discounts. If yes, then step  724  executes by validating the proposed reward or exchange against any policies or rules for the business entity. For example, points may be redeemed for only certain products or services. 
     Step  726  executes by calculating the new point value for type Z points by deducting the inputted amount from the current point Z value retrieved from database  108 . Calculating device  112  assists in this process. The information in database  108  may be updated after subtracting the points used in the redemption. Step  728  executes by sending notification to the member or client/business entity, preferably to input webpage  406 . 
     Referring back to  FIG. 6 , step  622  provides the discounted price or applicable reward after performing the calculation using the types of points available for the purchase. Step  624  executes by transmitting the discount and other information to input webpage  406 . The other information includes the actual purchase value, total discount as applied by redeeming all points, point X value, point Z value at this business entity, and, if applicable, point Y value at this business entity. 
     Step  626  executes by receiving confirmation of the purchase with the discount via input webpage  406 . Step  628  executes by updating files/entries in database  108  with the transaction. Central server  102  records the details of the transaction, for later analysis, by adding a line in a transaction log stored in database  108 . 
     As can be appreciated, the calculation of the increment amounts of points X, Y, and Z is very important. The calculation should occur periodically, and can be set by system  100  or each business entity  122 . For example, points can be accumulated and totaled every hour, day, week, every Monday, the first business day of the month, the last day of the month, and the like. All of a member&#39;s activities of a given client may be considered simultaneously. Alternatively, the summary of activities for the different business entities may occur at different time. The results of point accumulation are sent to central server  102 . 
     For example, the disclosed embodiments may have the activity of business entity A members calculated every Monday at 3 pm, while the activity of business entity B is calculated on the 1 st  of each month at 1 am. Different calculation periods may be advisable to stagger the load on central server  102  receiving updates and calculating device  112  performing operations to update records stored in database  108 . The staggered load avoids the probability of high traffic problems, reduces the calculation load at each calculation, results in faster output and reduced risk to impact response speed when a client accesses system  100 , and the like, as well as providing frequent increase information of points X for member having linked members active in several business entities  122 . 
     For a given client/business entity, central server  102  accesses the part of database  108  associated with the client/business entity code to retrieve the members&#39; accumulated actual purchase amounts. Central server  102  may proceed by hierarchy, or from the highest member(s) in the hierarchy, down to the lowest, to determine the purchases at the entity. Alternatively, it may perform member code sorting from the smallest, or earliest, member code to the largest, or any systematic method that makes sure all members within the business entity and their activities are accounted for. Central server  102 , in conjunction with calculating device  112 , also makes sure that there is no redundancy in the point determinations. Central server  102  also retrieves the basic calculation rules for the business entity, such as the commission rates for points X, Y, and Z, and the amount of sub-generation levels for compensation. 
     To emphasize these features,  FIG. 8  depicts a flowchart  800  for accumulating point totals for a member  120  within a business entity  122  according to the disclosed embodiments. The disclosed process in flowchart  800  may occur for each member  120  within a business entity  122 . The process also can occur whenever specified as noted above. As disclosed below, flowchart  800  refers to a single member of the group of members within the hierarchy of the business organization. 
     Step  802  executes by accumulating point totals for each business entity  122 , at the times specified. The accumulated points may be stored at the business entity or forwarded to central server  102 . Step  804  executes by receiving or retrieving the member code for member  120 . Central server  102  includes instructions for each member when doing the updates for point totals at that time. 
     Step  806  executes by retrieving the member codes of members directly linked to the member code of member  120 . Central server  102  retrieves these codes from database  108 . Step  808  executes by retrieving the cumulated actual purchase amounts associated with these members for this client/business entity. Other activities that accumulate points also may be retrieved. Central server  102  can log onto a database at business entity  122  or access records stored in database  108 . 
     Step  810  executes by multiplying the cumulated actual purchase amount for each member with the commission rates for the different types of points. Each type of point may have a different commission rate. For example, type X points may be 25% of the purchase amount, type Y points may be 10%, and type Z points may be 15%. The different commission rates reflect the importance of the points to the respective business entity. A business entity may reward more for activities and purchases done at the entity itself. Step  812  executes by adding the different types of points calculated to the existing point totals. These steps may occur for the first level of downline connected members of member  120 . 
     Step  814  executes by proceeding to the next level within member  120 &#39;s hierarchy to perform steps  804 - 812  again for these members connected to member  120 . In other words, these may be members connected to member  120  through the first level of downline members. The point totals for the second level is added to the different categories of points for member  120 . The process is repeated to cover as many levels as allowed, or until the totality of members connected to member  120  is reached. 
     The process of flowchart  800  is repeated until every member is analyzed and goes through the point total steps with an update to their points for categories X, Y, and Z. Step  816  executes by resetting the actual cumulated purchase amounts to 0 (zero) in the business entity for all members listed in this business entity. Through this process, all points are provided to the members within the business entity and proper credit given to the upline members. 
     System  100 , therefore, enables the disclosed processes for point accumulation to encompass several business entities  122 . This is done by allocating independently a set of parameters that are used for the calculations. The parameters may be the same for all entities, but their respective value may be set differently for each entity. Thus, step  811  executes in flowchart  800  by retrieving parameters for commissions set in flowchart  500 . These parameters, which are specific to the business entity, are used to determine the commissions for each category of points as well as the limits on members tied to member  120  that provide points for their activities. 
     For each member  120  in system  100 , there are two levels of profile, entity-wide and system-wide. A member has the possibility to make an entry in system  100  by either through an entity, or directly to system  100 . Preferably, a member makes the entry to system  100  through a business entity  122 . Member  120 , however, must have a system-wide profile. It is not necessary to have an entity-wide profile for each entity  122  within system  100 , though this may occur upon registration with one business entity. The entity-wide profile may be submitted to the other business entities  122 . 
     System wide parameters include a unique identification number and the type X points. In addition, the parameters may include other information for identification, such as name and surname, and communication media, such as phone number, email or social media support. Entity-wide parameters may include the cumulated actual purchase amount, the type Z points, the type Y points, and the direct downline members&#39; identification as listed in the specific entity. These profiles are stored and maintained in database  108  at central server  102 . 
       FIGS. 9A and 9B  depict a flowchart  900  for using points within system  100  according to the disclosed embodiments. Flowchart  900  may complement the embodiments disclosed above, or may provide a stand-alone process for redeeming points by member  120 . The functions of flowchart  900  may be set as program instructions stored on central server  102  and used to convert central server  102  into a special purpose computer to redeem the points using the disclosed process. Further, the retrieving steps disclosed below involved a device  106  accessing a storage location within database  108  to transmit the desired information to device  106  to complete the transaction. 
     Step  902  executes by accessing the client input page. Access may occur when member  120  is going to make a purchase at a business entity  122 . Step  904  executes by selecting a member code type. Step  906  executes by determining whether a system code exists for member  120 . The system code allows the points for the member throughout system  100  to be accounted for. 
     If step  906  is no, then step  908  executes by determining whether a client code exists for member  120  at the business in which the purchase is being made. As mentioned earlier, a client code should be generated for members when they register with system  100  or at a business entity  122 . If no, then step  910  executes by showing an error with the transaction. If step  908  is yes, then step  912  executes by retrieving the system code for member  120 . Flowchart  900  then proceeds to step  914 . 
     If step  906  is yes, then step  914  executes by determining whether member  120  is registered with this business entity  122 . If no, then step  916  executes by retrieving points X. Step  918  executes by applying a generic discount for a non-registered member of business entity  122 . Step  920  executes by applying the discount from points X based on the defined rules for redeeming points at business entity  122 . Flowchart  900  then proceeds to step  942 . 
     If step  914  is yes, then step  922  executes by determining whether member  120  wishes to redeem points Z for goods or services at business entity  122 . If yes, then step  924  executes by retrieving points Z for this business entity  122 . Step  926  executes by inputting points Z used for this transaction. Step  928  executes by reducing the amount of points Z by the amount used for the transaction. 
     If step  922  is no, then step  930  executes by retrieving points X. Step  932  executes by retrieving points Y and the cumulated actual purchase amount for this business entity  122 . Step  934  executes by applying the generic discount for a registered member within this business entity  122 . Flowchart  900  then proceeds to step  936 . 
     Step  936  executes by determining whether the cumulated actual purchase amount and the current purchase value after the generic discount reaches an activation level. The use of the activation level is disclosed above. For certain types of points, member  120  needs to reach the activation level in order to redeem them. If yes, then step  938  executes by applying the discount from points Y based on the defined rules. If step  936  is no or following step  938 , then step  940  executes by applying the discount from points X based on the defined rules. Flowchart  900  then proceeds to step  942 . 
     Step  942  executes by displaying the amount to be paid after accounting for all applicable discounts. Because of the involvement of member  120  in system  100 , the purchase price should be reduced. Step  944  executes by determining a validation status of the transaction and use of the points. If yes, then step  946  executes by reducing points X and Y by the amount used in the transaction. Step  948  executes by increasing the cumulated actual purchase amount to the amount to be paid in the transaction. In other words, system  100  ensures that member  120  gets credit for the transaction. If step  944  is no, then step  950  executes by ending the process disclosed by flowchart  900 . 
     The disclosed embodiments of  FIGS. 9A and 9B  may be shown by the following examples. The examples are for illustrative purposes, and the disclosed embodiments may deviate from the examples as long as the deviations are within the scope of the claims. 
     A case may arise where a member  120  is registered in system  100 , but not listed in the business entity  122  at which he/she intends to make a purchase or redeem points. In such a case, member  120  may receive, at first, a generic discount as a percentage of the original purchase value, as defined by the policy of business entity  122 . After this, member  120  may receive an additional discount from the conversion of type X points. This conversion may occur at a rate defined in the entity policy, limited to a percentage (less or equal to 100% but more than 0%) of the available points, and to a maximum overall discount as a percentage of the original purchase value. The transaction is then recorded in system  100  upon validation/confirmation, as disclosed above. This relationship may be expressed as the minimum, or MIN, of [maximum discount rate for point X usage for non-registered members*original purchase value−generic discount; rate of usage of point X for non-registered members*amount of points X]. 
     Example 1 
     Member  120  makes a purchase of $100 at business entity or shop A. 
     Shop A&#39;s generic discount for non-registered members—3%. 
     Maximum discount with use of type X points for non-registered members—30%. 
     Rate of usage of points X for non-registered members—20%. 
     Current points X for member  120 —150 points. 
     Generic discount in business entity A—3%*$100=$3. 
     Points X used—Min [30%*$100−$3; 20%*150 points]=Min [$27:$30]=27. 
     Overall discount—$3+$27=$30. 
     Actual purchase value to member  120 —$70. 
     Example 2 
     Member  120  makes a purchase of $100 at business entity A. 
     Shop A&#39;s generic discount for non-registered members—3%. 
     Maximum discount with use of type X points for non-registered members—30%. 
     Rate of usage of points X for non-registered members—20%. 
     Current points X for member  120 —50 points. 
     Generic discount in business entity A—3%*$100=$3. 
     Points X used—Min [30%*$100−$3; 20%*50 points]=Min [$27:$10]=10. 
     Overall discount—$3+$10=$13. 
     Actual purchase value to member  120 —$87. 
     Thus, as can be seen, points within system  100  help reduce the costs of items sold across business entities within system  100 . 
     A member  120  registered may practice the disclosed embodiments in system  100  and be listed in business entity  122  at which he/she intends to make a purchase, whether or not listed in another business entity. In this situation, member  120  is entitled to all types of discounts by following the disclosed processes. Similar to examples 1 and 2, member  120  receives a generic discount, as a percentage of the original purchase value, as defined in the entity policy. The percentage of the generic discount may be different from the previous cases, preferably at a level same or higher than the discount for non-registered members. 
     Should member  120  achieve the defined activation level set forth in the policy, he/she is entitled to additional discounts based on the conversion of type Y points. The conversion occurs at a rate defined in the entity policy and is limited to the amount of available points as well as the amount of the purchase value subject to the redemption of points Y. To assess the amount of the purchase value subject to the redemption of points Y, system  100  with central server  102  and calculating device  112  calculates the sum of the historical actual purchase value, or what has actually been paid by member  120  at business entity  122 , within this calculation period or retrieves the cumulated actual purchase amount from database  108 , plus the current purchase value after the generic discount, minus the activation level. 
     If the result of this calculation is negative, then member  120  has not reached the activation level yet. The amount of the purchase value subject to the redemption of points Y is zero (0). If the result of this calculation is less than the current purchase value after discount, then member  120  has reached the activation level due to the current purchase so only the amount exceeding the activation level will be used. The amount of the purchase value subject to the redemption of points Y is the result of this calculation. 
     If the result of this calculation is greater than or equal to the current purchased value, then the activation level has been reached previously. The totality of the purchase value after the generic discount may be used. The amount of the purchase value subject to the redemption of points Y is the purchase value after the generic discount. One way to express this relationship is, for points Y used, MIN [current purchase value after generic discount, points Y available, MAX (cumulated actual purchase value+current purchase value after generic discount−activation level, 0)]. 
     An additional discount may be granted by converting points X, in a similar way as shown in Examples 1 and 2. The maximum discount, however, for points X may be different, or preferably higher than the discount available for a non-registered member. One way to express this relationship is, for points X used, MIN [MAX (1−maximum discount rate for point Z usage for a registered member)*original purchase value−generic discount−points Y used, 0], original purchase value−generic discount−points Y used, rate of usage of points X for a registered member*points X]. These transactions may be recorded by system  100  upon validation/confirmation. 
     The disclosed embodiments may be shown by the following examples. The examples are for illustrative purposes, and the disclosed embodiments may deviate from the examples as long as the deviations are within the scope of the claims. 
     Example 3 
     Member  120  makes a purchase of $100 at business entity B. 
     Generic discount for registered members—5%. 
     Maximum discount with points X for registered members—50%. 
     Rate of usage of points X for registered members—30%. 
     Activation level—200 points. 
     Member  120  current points Y—200. 
     Member  120  current points X—300. 
     Member cumulated actual purchase amount—$0. 
     Generic discount—5%*$100=$5. 
     Point Y usage—MIN [$100-$5, 200, MAX ($0+($100−$5)−200, 0)]=MIN [$95, 200, 0]=0. 
     Point X usage—MIN [MAX [(1−50%)*$100−$5−0, 0], $100−$5−0, 30%*200]=MIN [MAX [45, 0], $95, 60]=MIN [45, 95, 60]=45. 
     Actual purchase amount—$100−$5−$0−$45=$50. 
     Example 4 
     Member  120  makes a purchase of $100 at business entity B. 
     Generic discount for registered members—5%. 
     Maximum discount with points X for registered members—50%. 
     Rate of usage of points X for registered members—30%. 
     Activation level—200 points. 
     Member  120  current points X—200. 
     Member  120  current points Z—300. 
     Member cumulated actual purchase amount—$120. 
     Generic discount—5%*$100=$5. 
     Point Y usage—MIN [$100−$5, 200, MAX ($120+($100−$5)−200), 0)]=MIN [$95, 200, 15]=$15. 
     Point X usage—MIN [MAX [(1−50%)*$100−$5−15, 0], $100−$5−15, 30%*200]=MIN [MAX [30, 0], $80, 60]=MIN [30, $80, 60]=$30. 
     Actual purchase amount—$100-$5-$15-$30=$50. 
     Example 5 
     Member  120  makes a purchase of $100 at business entity B. 
     Generic discount for registered members—5%. 
     Maximum discount with points X for registered members—50%. 
     Rate of usage of points X for registered members—30%. 
     Activation level—200 points. 
     Member  120  current points Y—200. 
     Member  120  current points X—300. 
     Member cumulated actual purchase amount—$300. 
     Generic discount—5%*$100=$5. 
     Point Y usage—MIN [$100−$5, 200, MAX ($300+($100−$5)−200),0)]=MIN [$95, 200, 195]=$95. 
     Point X usage—MIN [MAX [(1−50%)*$100−$5−95, 0], $100−$5−95, 30%*200]=MIN [MAX [−50,0], $0, 60]=MIN [30, $0, 60]=$0. 
     Actual purchase amount—$100−$5−$95−$0=$0. 
     It may be noted that the calculation of the examples 1 and 2 expressed above may be seen as a particular situation of examples 3-5. 
     As disclosed above, type Z points may be converted to rewards, prizes, gifts, vouchers, and the like, or any other reward not covered above. In other words, points Z are not used for real time discounts. These points, therefore, are expected to be used separately from making a purchase. 
     Moreover, as the locations of the business entities are known, it is possible to define the geographic reach of member  120 . Looking at business entities  122  where member  120  is listed and where he/she is active (or reaching activation levels), system  100  may determine an area of reach defined by the location of the entities, plus some set distance around it. Any other participating entity  122  located within this area theoretically is reachable by member  120 , and, therefore, of potential interest. System  100  then may make targeted advertisements of the local entities  122  to member  120 . 
     Likewise, system  100  can identify the other members already linked to member  120  within one entity  122 , but missing in other entities when member  120  is already listed. System  100  may suggest to member  120  to invite the other members to the other entities. As for virtual entities, such as e-commerce businesses, system  100  also may suggest new entities or suggest invitations to other members based on the entities where they are active, and the type of product that interest these members. These features bring the further advantage to the participating entities  122  to be part of system  100 . 
     It will be apparent to those skilled in the art that various modifications to the disclosed may be made without departing from the spirit or scope of the invention. Thus, it is intended that the present invention covers the modifications and variations disclosed above provided that these changes come within the scope of the claims and their equivalents.