Source: http://www.google.com/patents/US20040215561?dq=5,371,548
Timestamp: 2014-07-31 04:41:36
Document Index: 14833603

Matched Legal Cases: ['art 1', 'art 4', 'art 5', 'art 6', 'art 5', 'art 5']

Patent US20040215561 - Method and system for paying small commissions to a group - Google PatentsSearch Images Maps Play YouTube News Gmail Drive More »Sign in<nobr>Advanced Patent Search</nobr>PatentsHere we disclose a method for enabling a seller to pay micro-commissions to multiple individuals who deliver a sales message to the same prospect. The main obstacle to paying a micro-commission is the cost of verifying that a sales message has been delivered by an individual. A second obstacle is the...http://www.google.com/patents/US20040215561?utm_source=gb-gplus-sharePatent US20040215561 - Method and system for paying small commissions to a groupAdvanced Patent SearchPublication numberUS20040215561 A1Publication typeApplicationApplication numberUS 10/424,190Publication dateOct 28, 2004Filing dateApr 25, 2003Priority dateApr 25, 2003Publication number10424190, 424190, US 2004/0215561 A1, US 2004/215561 A1, US 20040215561 A1, US 20040215561A1, US 2004215561 A1, US 2004215561A1, US-A1-20040215561, US-A1-2004215561, US2004/0215561A1, US2004/215561A1, US20040215561 A1, US20040215561A1, US2004215561 A1, US2004215561A1InventorsMichael RossidesOriginal AssigneeRossides Michael T.Export CitationBiBTeX, EndNote, RefManReferenced by (3), Classifications (6) External Links: USPTO, USPTO Assignment, EspacenetMethod and system for paying small commissions to a groupUS 20040215561 A1Abstract Here we disclose a method for enabling a seller to pay micro-commissions to multiple individuals who deliver a sales message to the same prospect. The main obstacle to paying a micro-commission is the cost of verifying that a sales message has been delivered by an individual. A second obstacle is the cost of transferring a micropayment efficiently. The inventive method overcomes these obstacles by paying referrers with a fair chance to win all or part of an amplified commission. In simplified form the steps of the method are: (1) a seller enters a referral offer into a computer database system, (2) referrers then enter referral claims that identify a prospect and that represent claims on a potential commission, (3) the expected value (EV) payment process is used to �probabilistically amplify� the commission owed through a fair bet, (4) if a claim �wins� the EV payment bet process, the amplified commission is calculated and an inspector verifies the winning claim, (5) then, if the claim is found valid, the referrer who submitted the claim is paid his share of the amplified commission. Images(6) Claims(6)
[0338] An alternative approach is to use an extrapolation formula that estimates how many other claims have been made for the same prospect, based upon historical, claim data. For example, through statistical analysis of claim records, system operators might find that the average prospect is contacted by 5 referrers, and consequently, they might create an extrapolation formula that assumes that each claim has a right to ⅕ of a commission. [0339] An extrapolation formula would not have to be used instead of machine matching of claims; it could use automated match data. For example, if machine matching finds 3 matches for a claim, a formula might then extrapolate that there are actually 5 claims that match the winning claim. In fact, if machine and/or human matching of claims are used, it is likely that an extrapolation formula will be used to adjust the match figures�this use of a formula is analogous to the use of an adjustment formula, described in Part 1, Step 9. [0340] We do not mean to oversimplify the idea of an extrapolation formula. The formula could be quite complex and depend on a variety of variables. For example, the number of referrers may depend on the size of a commission�i.e., more people may contact large businesses. The particular formula will depend upon the implementation and the experience of system operators, who will have to perform the statistical analyses of claim data. The formula will have to be set so that claims do not get paid too much, on average. [0341] The point is that an extrapolation formula�one that estimates how many claims match another claim�is another way of calculating a claim's share of a commission. [0342] In most cases, an extrapolation formula will be less accurate than a human assisted match process at finding a claim's proper share of a commission. But, the advantages may be so great that users will accept the seeming unfairness. [0343] If a system that executes the MPSC uses an extrapolation formula, Ray could leave a message as in the example above, and not have to remember the phone number of a business or the exact spelling. His claim, if it is a winning one, could be deciphered by a human, who could verify whether Ray really did speak to Tom Jenks. [0344] Such a formula can also be applied, of course, to claims submitted by email or online form. Part 4: Using Auditing to Prevent Cheating and Reduce Costs [0345] The MPSC ensures that only valid claims get paid off because it includes an inspection step that verifies the data submitted for winning claims. Inspection takes place at last or second-to-last step of the MPSC. The most important purpose of inspection is to keep users honest, to ensure that they have actually made a recommendation, and are entering true claim information�for example, a referrer who truly makes a verbal recommendation will be able to enter the correct name of the person he spoke to. Invalid claims are disqualified. Operators of the MPSC could impose stiffer penalties, such as banning a referrer from participating in any other referral payment offer. [0346] An alternative to inspection at the last stage of the MPSC is auditing�inspection before the result of an EV payment bet is known. With a certain probability claims could be audited at any stage, after they are registered in a claims database, not just after winning an EV payment bet. If the penalty for an invalid claim is stiff enough, the auditing could enforce honesty, and eliminate the need for an inspection only of winning claims. [0347] If the MPSC employs inspection of winning claims, there is still a possible use for auditing. Rather than inspect all the winning claims, the method could audit a certain percentage, instead. Referrers who have winning claims could be required to pay a deposit guaranteeing that the claims are valid. If the deposit were large enough, and the probability of being audited were high enough, only honest referrers would rationally submit deposits, and so, only honest claims would be paid off. Thus, the cost of inspection, perhaps the largest cost of operating the MPSC, could be reduced. [0348] (We note that if auditing at any stage is used to enforce honesty, then the role of the EV payment bets in the MPSC is to amplify the commissions so that transferring payment is worthwhile. However, if definite micropayments become cost-effective to do, then even EV payment bets themselves may not even be necessary to compensate referrers.) Part 5: Providing Payment Estimate Statistics to Users [0349] Providing Payment Estimate Statistics [0350] If the MPSC processes claims for and offer made for multiple prospects, then a useful feature is to provide potential referrers with information for estimating how much they will be paid for making a recommendation. Accordingly, the MPSC can include payment estimate formulas that use historical data from the claims database to arrive at useful payment estimate statistics. (Some such formulas may require data that are not generated from claims data, but that are entered into the system database by system operators.) [0351] If the MPSC includes such formulas, it will also include steps for enabling users to see the statistics. The statistics may be displayed automatically by a system, or a system might enable referrers to query the claims database. Here we will list some of the kinds of questions that payment estimate formulas can answer, as shown in FIG. 4: [0352] The number (21) of referrers who have already contacted a prospect [0353] The average number (22) of people who contact a prospect before a sale is made [0354] The average chance (23) that a sale will be made to a prospect [0355] The average payment (24) for a successful recommendation [0356] The average payment (25) for a recommendation, including unsuccessful ones [0357] The average payment (26) to people who contact prospects with a given characteristic [0358] The average chance (27) that a sale will be made to prospects with a given characteristic [0359] In addition, a system operating the MPSC can show commissions paid, and being paid, for existing and past sales. For example, if the Y-Pages has paid a commission for a sale to Home Depot, the system could show how much the commission is. This information could help Ray decide when he is considering recommending the Y-Pages to Sears. [0360] In addition to displaying such statistics, a system operating the MPSC can include means for enabling a referrer to enter his own estimate of the revenues from a sale. The system can include a formula for generating a commission estimate for him, based upon data in the claims database. Part 6: Using the Method to Populate a Commercial Directory [0361] Business Problem: Populating a Commercial Directory [0362] For companies trying to start a new commercial directory, one that charges advertisers for listings, an immense obstacle is the cost of populating the directory. Even if a new directory offers advantages, there is an enormous cost in trying to get the sales message through to advertising prospects. This problem is well recognized and has led to the demise of many a new directory, and has prevented people from trying to establish new directories. Not surprisingly, then, most of the leading Yellow Pages are those formerly owned by Ma Bell. [0363] Of course, Yellow Pages are not the only kind of commercial directory. Directories of websites are another example, as are product/service catalogues. Consider trying to start a universal catalogue of products, not just a list of sellers of products, but also the products themselves, along with all the sellers who sell them. It is possible to create such a directory, but it is also obvious that, under current sales methods, the costs would be prohibitive. [0364] Of course, the MPSC is not just for new directories; it can be used to populate an existing directory with more listings. [0365] The MPSC Solution [0366] In this part of the specification, we will consider how the MPSC can solve the problem of populating a commercial directory, especially an online directory. In our description, we will assume that the MPSC is incorporated into an online directory, i.e., the directory system will include a sub-system for processing referral claims according to the MPSC. [0367] The MPSC can enable the directory to pay anyone, especially users of the directory, for recommending the directory to advertisers. [0368] In fact, if a commercial directory incorporates the MPSC, an implicit feedback loop is created that provides users with either listings of businesses in the directory, or, implicitly, businesses NOT in the directory. That is to say, if a business does not appear in the directory, then the user knows that the business is a prospect. [0369] (We note that in certain cases this loop could be made explicit, if the directory includes paying and non-paying listings. The non-paying listings could be labeled as �live prospects.�) [0370] Let us illustrate with our Y-Pages example, which we will assume is an online phone directory. [0371] Let us assume that the Y-Pages makes a grassroots referral payment offer to people who recommend the Y-Pages to businesses. Now, let us consider the sequence of events for a user: [0372] Assume the user does a lookup by business name [0373] The user finds that the business name does not exist in the directory [0374] Thus, the user realizes that he may get paid for recommending the Y-Pages to this business (further, since he is doing a lookup in the Y-Pages, there is a reasonable probability that he planning to contact this business anyway�by calling, going in person, or visiting its website) [0375] If the user contacts the business, he can recommend the Y-Pages [0376] If he recommends the Y-Pages, he can submit a referral claim to the Y-Pages [0377] The same process applies even if the user does a lookup by keyword. That is to say, if the directory returns listings for several businesses�say, car dealerships�the user may see that certain dealerships are missing, and that they are good prospects for buying ad listings. [0378] Consider a hypothetical product catalogue, Product Pages, as another example: [0379] Assume that the user enters the search term: Oakley sunglasses [0380] The user finds a number of merchants listed under the term, but not the Sunglass Hut. [0381] Thus, the user realizes that he may get paid for recommending to the Sunglass Hut that it get listed in the Product Pages under the product name, Oakley Sunglasses. [0382] In this case, the product/service that Ray is recommending is not just the Product Pages, but the Product Pages and the search term, Oakley sunglasses. Thus, the Product Pages could offer to pay people not just for recommending that businesses advertise, but also for recommending search terms to those businesses. Accordingly, different referrers could be paid for referring the same business, but with different payments corresponding to different search terms. [0383] Providing Payment Estimate Statistics�Creating Explicit Payment Feedback [0384] Taking up the payment estimate features described in Part 5, we realize that we can create a explicit payment feedback loop within an online directory that incorporates the MPSC. Using the methods of Part 5, the directory can provide users with payment estimate statistics. Thus, as shown in FIG. 6: [0385] A user enters a search term (28), for example, Roma Barbers [0386] The directory queries (29) its database and does a lookup (30) [0387] If no match is found, the directory: [0388] Queries (31) a referral claims database [0389] Generates (32) payment estimate statistics that correspond to the search term [0390] Displays (33) the payment estimate statistics [0391] If a match is found, and other listings are possible (34) under the search term: [0392] Queries (35) a referral claims database [0393] Generates (36) payment estimate statistics that correspond to the search term [0394] Displays (37) the payment estimate statistics [0395] If a match is found, and no other listings are possible under Roma Barbers, then the directory displays (38) the matching listing. [0396] Payment estimate statistics that �correspond to the search term� may specifically use data on similar search terms, or less specific averaging data. One way to provide useful payment estimate statistics is to show the commissions being paid for similar listings, such as the listings under the search term. Thus, a directory can automatically show the commissions paid on a listing, or can enable users to do a query to find out. Another way is for the directory to track how many queries there have been for a particular search term and to show that number. The number can also be plugged in as a variable in a payment estimating formula. [0397] We should not that in certain implementations, payment estimate statistics may only be averages that apply to all claims. Such averages could be posted on the directory's homepages or on a special page for showing the statistics. In other words, the statistics do not have to be shown along with directory listings. [0398] We should also note that in many implementations, the directory system would not be able to know whether more listings are possible under a search term. So, the directory will either be set up as a directory in which there is only one paying listing per search term. In this case, the directory does not need to show payment estimate data along with a listing. Alternatively, in a directory where there is more than one possible prospect under a search term, or where the directory cannot detect whether more than one listing is possible, the directory will then default to always showing payment estimate data. Referenced byCiting PatentFiling datePublication dateApplicantTitleUS7702584 *Dec 19, 2003Apr 20, 2010Ebay Inc.Method and system to facilitate a payment in satisfaction of accumulated micropayment commitments to a vendorUS8051007 *Aug 20, 2009Nov 1, 2011Ebay IncMethod and system to facilitate a payment in satisfaction of accumulated micropayment commitments to a vendorUS8521650Feb 26, 2007Aug 27, 2013Zepfrog Corp.Method and service for providing access to premium content and dispersing payment therefore* Cited by examinerClassifications U.S. Classification705/40International ClassificationG06Q30/00Cooperative ClassificationG06Q30/02, G06Q20/102European ClassificationG06Q30/02, G06Q20/102RotateOriginal ImageGoogle Home - Sitemap - USPTO Bulk Downloads - Privacy Policy - Terms of Service - About Google Patents - Send FeedbackData provided by IFI CLAIMS Patent Services©2012 Google