WO2001040898A2

WO2001040898A2 - Method and system for online third party referral system customized to the purchaser's needs

Info

Publication number: WO2001040898A2
Application number: PCT/US2000/042088
Authority: WO
Inventors: Gilam Levi
Original assignee: Gorefer.Com, Inc.
Priority date: 1999-11-11
Filing date: 2000-11-09
Publication date: 2001-06-07
Also published as: WO2001040898A3; AU4707101A

Abstract

The present invention is directed to a system and method for third party referral of the online and offline collection of information on potential purchasers from lead suppliers 110) and matching the information with participating merchants (120) of the desired products and services, providing the information on the suitable merchants to a potential purchaser also referred to as an 'Intender' (130), or providing the information on an Intender to a merchant or merchants who can provide the desired products or services. The system is capable of evaluating a lead to ensure that false or dubious leads are eliminated The system and method of the prsent invention is applicable to business to business or business to individual transactions.

Description

METHOD AND SYSTEM FOR ONLINE THIRD PARTY REFERRAL SYSTEM CUSTOMIZED TO THE PURCHASER'S NEEDS

Cross Reference to Related Application

The present application corresponds to Provisional Application No. 60/164,984 filed November 11 , 1999 and claims priority thereto.

Field of the Invention

This invention relates generally to an Internet online referral system and a wide reaching, but targeted method for providing third party intention-based referrals of products and/or services for merchants. More particularly, the present invention is directed to a system and method for the online and offline collection of information on potential purchasers from lead suppliers based on the intent to purchase, matching this information with participating merchants of the desired products and services, providing the information on the suitable merchants to a potential purchaser also referred to as an "Intender", or providing the information on an Intender to a merchant or merchants of the desired products or services, who can then contact the Intender directly. The term "Intender" and the like shall be understood to include any individual or entity with the intention to buy a product or service and include an Intender who represents a business (referred to as 'Business'). The term "merchant" and the like shall be understood to include any seller of a product or the provider of a service in an industry or a product/service area (referred to as 'PSA'). Industries or PSA are those on which information has been collected and is available on the database. For example, these include home appliances, jewelry, cutlery, dinnerware, curtains, blinds and various window treatments, cars, clothing, etc. and service providers, such as real estate agents, travel agents, accountants, car service organizations, airlines, etc. The lead supplier is one who knows of someone who wants a particular product/ service or anticipates an event or occasion to take place and would need products/services for the event or occasion. More specifically, the system and method provides a monetary incentive to a lead supplier to participate and to provide the participating merchants an opportunity to directly market to a purchaser who has specific intentions of purchasing a product service and thereby increase the probability of making a sale. The system is capable of evaluating a lead to ensure that false or dubious leads are eliminated. The system and method is also capable of generating a package of information on the products and/or services, which may be desirable to an Intender based on information on imminent occurrence of certain life experiences of an Intender, such as birth, graduation, wedding, relocation, establishment of business, renovation of a home and retirement. These are referred to as "value-generating events" when a host of products and services are usually needed or desired. The merchants of the products and/or services for the value-generating event may then contact the Intender or the Intender may contact each of the merchants of the desired products/services. The system and method of the present invention is applicable to business-to-business or business-to-consumer transactions.

Background of the Invention Up to the present, a potential purchaser with an intent to purchase a product or service, referred to also as an Intender, would rely on advertisements, Internet searches, the yellow pages or word of mouth of a friend, colleague, family member or an acquaintance to locate a merchant who provides the desired service and/or product. The information may be provided by a newspaper, a magazine, a television commercial or on the Internet. Alternately, a potential purchaser may enlist the services of an agent for certain types of services, such as real estate agents or travel agents, where the information on a seller is generally referred to a potential purchaser by a third party agent and information on a potential purchaser/lntender is referred to a seller by a third party agent. Such information may be provided for free on a friendly basis as between family, colleagues, friends and acquaintances. Alternatively, the information is provided on a commission based as a percentage of the final sales price, such as in a real estate transaction, reservation for an airline ticket, a hotel accommodation, or car rental, with the commission being paid by the merchant. The information is provided haphazardly, often with insufficient knowledge of the reliability of the information provided. Moreover, there is little opportunity for an Intender to compare the quality of the services or products provided and/or the price charged without extensive footwork. A message may be posted on the Internet to describe the intended purchase. However, the lack of security and confidentiality of the information provided is a deterrent.

More recently, with the availability of the Internet, several websites have been developed to connect purchasers with merchants. There are sites for self-referrals such as: http://www.respond.com; http://www.iwant.com; http://www.imandi.com; http://www.autobytel.com; http://www.onvia.com; http://www.bizbuyer.com. There are sites for third party referral of friends such as http://www.tomeo.com and http://www.favemail.com.

Some of the self-referral websites, such as respond.com, imandi.com and bizbuyer.com, allow a purchaser to provide information on a product/service he/she desires. The purchaser's inquiries are sent to a network of merchants who then submit an offer product/ service to the purchaser based on the information provided by the purchaser to the website operator, which acts as an intermediary. In most of these sites there is no direct contact between the merchant and the purchaser. Usually the contact details of the purchaser are kept in secret and the merchants are allowed to submit their offers as bids in a reverse auction. After receiving a few bids from the merchants, the purchaser can make a decision from whom to buy. This is transmitted to the website operator who transmits the decision to the merchant for close of the sale transaction.

Another website, tomeo.com, provides a method by which a person can send referrals and/or can recommend merchants to his/her friend on merchants providing products/services. If the friend uses the referral and/or buys, the information sender is compensated. However, the information provided by tomeo.com is not delivered based on preliminary information on the Intender's intention/interest and cannot generate intention-based leads. Also, tomeo.com does not evaluate the information in the referral to determine its reliability.

A majority of present sales efforts are through media advertising or promotion campaigns that are aimed at a wide audience in the hope of generating a sale from among the many who are exposed to the advertisement or the promotion materials. Even with the advent of available websites on the internet, the merchants are listed as providers only of certain products/services with little or no information on the quality of the product/service provided. More important, there is no method by which a list of merchants providing products/services generally necessary for an event or occasion is generated to assist the Intender and facilitate the preparations for such an event or occasion. It would also be desirable for merchants to have information on potential purchasers/lntenders and be able to directly sell to the purchaser in accordance with the needs and requirements of the purchaser. The availability of such information would increase the effectiveness of the sales effort and decrease the amount of money required to advertise.

It would be desirable to have a system to provide information on a list of likely products and or services and their merchants generally considered to be necessary for an event. The service provided by the system is analogous to that of a consultant or facilitator, who provides advice and information based on preliminary information from or about the Intender of an anticipated event.

It would be desirable for a purchaser confronted with an event/occasion requiring a variety of products and services to be able to have a list of products and services that should be considered and the merchants thereof.

It would be further desirable to have a central system where information would be available through the internet on merchants including the quality of goods and services provided by each merchant.

It would also be desirable to have a system where the possessor of value generating information about an Intender would be able to gain financially by making the information available and to provide incentive to the Intender to utilize the system.

Summary of the Invention

The present invention is a method of using the Internet to effectively connect merchants with potential purchasers, thereby assisting the purchaser to fulfill his/her buying intention and, at the same time, helping the merchant to close a sale . It is effective because it is based on specific information on intended purchase(s). The system provides an advantage to a merchant in that much less money is required for advertising goods/services through a mass media in order to reach a very small percentage of the population. Using the referral system of the present invention would enable faster and more efficient ways of selling products and services.

Accordingly, the present invention provides a system of collecting information on leads via the Internet, cellular devices or other telecommunication methods (e.g. telephone, facsimile, etc) on potential purchasers/lntenders and/or merchants from lead suppliers. The lead information is then categorized, indexed, rated and stored in a database. The lead information may also include the

Intender's planned budget to ensure that the right merchant would get the lead, thereby increasing the probability of closing a transaction. The lead supplier is provided with an option to choose the merchant or merchants, set a limit on the number of merchants or the number of contacts to be made to the Intender. The lead supplier may join the program as a member and is rewarded with cash or by other means for each lead supplied and may be further rewarded when a sale is made. The lead supplier may also be the Intender.

The present invention further provides a system of collecting and evaluating information on merchants. Such information is also categorized, indexed, ranked and stored in a database. The information is collected from the merchants and the users of the merchants' products and/or services. Each merchant may also be evaluated and ranked based on actual purchase information and is of value to a potential purchaser, also referred to herein as the Intender. The merchants who participate in the program pay the system an agreed upon fee for each lead and/or a commission for each sale transaction consummated.

At the same time, the system collects and stores information on the lead supplied. Based on the record of past sales closed, the lead supplier is given a credibility rating to ensure that the information provided is of value and not false. After a lead is received in the system, the Intender is provided with an option to "opt in" or "opt out" of the system. If the Intender "opts in", the information is routed to the merchant(s) who can contact the Intender directly.

When an Intender "opts in", the system matches the needs of the potential purchaser/lntender with selected merchants and provides highly targeted information on the potential purchaser in a systematic manner to the selected merchants or provides the highly targeted information on the selected merchants to the potential purchaser/lntender.

In accordance with a second aspect of the invention, based on the lead information provided, the system generates a list of products/services likely to be necessary or desirable to the Intender upon an event he/she is about to go through. The list of selected merchants for each product/service area and the particulars of each merchant are provided to the Intender. Information on the quality of the products/services and the price range may also be provided. The list of merchants, their names, addresses, telephone numbers, facsimile numbers and e-mail addresses together with information on the quality of the products and/or services provided by the merchants may be provided to the Intender or the lead supplier. According to a thir j aspect of the invention, the lead supplier is provided with an incentive to supply leads. Loyalty to the system is also encouraged through awards provided (e.g. as frequent lead supplier awards) to lead providers that have built a high credibility rating. The Intender may also be provided with an incentive for utilizing the system, such as participation in a purchasers' club, wherein discounts or bonuses are provided to the Intender if the Intender buys through the system. Satisfaction in the system is assured through options such as selection of the form in which the commission is paid, both to the system and to the lead supplier, and the monitoring of the manner in which an Intender is handled.

According to a fourth aspect of the invention, the system collects and stores information from the lead supplier and tracks the success rate in order to calculate and collect a commission based on a sale closed and in order to provide a credibility rating to evaluate the information from the lead supplier. According to a fifth aspect of the invention, the system is capable of collecting information on purchasers, generating and providing information on the imminent occurrence of certain value-generating events.

The system and method of the invention will be more readily understood and apparent from the following detailed description of the invention when read in conjunction with the accompanying drawings, and from the claims that are appended at the end of the detailed description.

Brief Description of Drawings

Fig. 1 A is a table listing the typical data fields for a lead supplier to join and to submit information on a non-business lead. Fig. 1 B is a table illustrating the typical data fields for a lead supplier to submit information on a business lead. Fig. 2 is table listing the typical data fields for a participating merchant to provide and update information.

Fig. 3 is a flow diagram illustrating a process for routing a useful non- business lead requesting the authorization from an Intender to proceed. Fig. 4 is a flow diagram illustrating a lead routing process to forward information on an Intender to a primary merchant or merchants.

Fig. 5 is a flow diagram illustrating a process for a lead supplier to check into his/her account and obtain payment.

Fig. 6 is a flow diagram illustrating the process by which a merchant registers as a participating merchant or updates information.

Fig. 7 is a flow diagram illustrating a process by which a merchant accepts a lead and makes an offer.

Fig. 8 is a table listing the typical data fields for a merchant to receive information on a lead and to respond thereto. Fig. 9 is a table listing the typical data fields for the account of a lead supplier and payment of reward to a lead supplier.

Fig. 10 is a block diagram of a system according to the invention.

Fig. 11 is a block diagram of the central server of Fig. 1.

Detailed Description of Invention In connection with the foregoing, a method and system is disclosed for allowing a lead supplier to provide information on a potential purchaser/lntender (a lead) and referring the lead to a merchant.

Participating Merchant

The system invites a merchant who wishes to participate to sign on and provide information on the types of products and/or services that are supplied.

The information includes the merchant's name, address, telephone number, e- mail address, the types of products and services provided, the name of a contact or the names of contacts, the telephone number, e-mail address of the customer service department, the number of employees, the address(es) of service location(s), the locations where the merchant is licensed, the telephone number and e-mail address for the corporate sales department, the telephone and e-mail address for the consumer sales department. Other information, such as the ranking of the merchant, the history of performance, may also be added. Any changes in the information may also be made by updating the existing database for a particular merchant. The merchant who signs on is given an identification number (ID No.) and selects a password for accessing the confidential merchant profile database to update his profile.

The information from the merchant may be utilized to contact purchasers for their evaluation of the quality of the products and services. All of the information is stored in the merchant profile database. The merchant is categorized and put into the PSA covering the products and services provided by the merchant. Typical PSA included are: computer equipment such as hardware, system hardware and networking equipment; computer software solutions; electronic equipment, such as televisions, satellite video receiver equipment and service; financial management services for investment and planning, such as 401 (k) plans, annuity plans, financial planning, investment advise; debt collection services; payroll services; home improvement products and services, such as air conditioning, heating, plumbing repairs; construction and remodeling; commercial contractors; Internet services, including access, web hosting, web design, web site development; luxury goods, such as artworks, crafts; office equipment, such as copiers, phone systems, fax machines, voice mail systems; shipping and logistics; telecommunication equipment and services, such as long distance, wireless phones and services, paging; translation services; event and meeting organization services; corporate travel and lodging services; sales and rental services for commercial and residential real estate, etc. Each PSA is assigned a code number for efficient management. With the database, the system is also capable of selecting a list of merchants providing various services/products generally required by an Intender for a value-generating event, such as: a wedding, a birthday, an anniversary, a graduation, a move to a new location, a funeral, renovating a house. Each such event requires particular products and services, which the system is capable of providing information thereon.

A participating merchant is given the opportunity to accept leads at a set price per lead when a lead is accepted and additional commission to be paid at the successful conclusion of a transaction. The merchant may be required to sign an agreement to comply with reporting procedures and to permit auditing of their accounts to ensure that the agreed to commission for a successful sale is paid to the system. A merchant may also be monitored using available customer relationship management (CRM) systems presently used in telemarketing. Two versions of CRM systems - Sales Force® and Gold Mine® - are known and are commonly used. This allows the system to review the correspondence between the Intender and the merchant to determine if a sale has been consummated. The monitoring is conducted with the agreement of the participating merchant. A merchant is encouraged to sign on as a participant because it provides credible leads resulting in increased sales for each dollar of cost associated with generating a sale and at the same time the cost for making a sale may be reduced by participating.

To promote efficiency of the system, the success rate of each merchant is monitored. If no status report is received, the ranking of the merchant is downgraded and fewer leads at less frequent intervals will be provided. If status report is received and the success rate is high, an incentive is provided, in terms of lower price per lead and/or a lower commission.

Lead Supplier

The system may invite a lead supplier to open an account with the system and join as a member and from time to time provide leads. The incentive ^for joining and submitting a lead is the provision of a financial reward for supplying useful, credible leads on an Intender. The lead supplier may also be referred to as a "Member" and assigned an identification number (ID No.) The information on a lead to be supplied may include the name, address and e-mail address of the Intender, and the need of the Intender. Optionally, the information may include the Intender's personal preferences. The lead supplier is also provided with information on the financial award to be received based on the following milestones: providing a lead, Intender opting in, acceptance of a lead by a merchant and upon consummation of a sale. The lead supplier is given a choice on how the financial award is to be handled, (i.e., whether the lead supplier is to be paid in cash, credit or provided as a gift to the Intender). For purposes of evaluating the potential of generating a sale, additional information may also be supplied by the lead supplier, (e.g., the relationship of the Intender to the supplier, the period of time the need exists, his/her opinion on the extent of the need, the Intender's budget and preferences). Optionally, the gender and telephone number of the Intender is also included. The lead supplier may select the merchant(s), the manner and the number of contacts to be made by each merchant and the time period for such contacts. The lead supplier may also choose whether the Intender is to be informed of the lead supplier's identity. If the lead supplier makes no selection, the number of contacts per merchant is arbitrarily set for a certain number, such as 5 contacts. The lead information may also be updated and edited by the lead supplier as needed.

It is to be noted that all of the information provided is secured by methods generally known and used for secure information transfer to/from websites on the Internet. The members and merchants can access the secured information only if they have the valid password. Such methods include authentication of each user, (i.e., the lead supplier, the Intender, the merchant) by a combination of his/her e-mail address and password. Typically the password is alphanumeric and may include alphabets, numbers or a combination of both. A typical password is 4 to 8 characters long. Preferably, the number of characters is 6. The data submitted is encrypted using available encryption software to prevent data sniffing. For example, the encryption software VIRISIGN SSL® may be employed. The website may also be protected by a firewall, such as that commercially available by Check Point Technologies®. Security is further strengthened by preventing access to the database of the server through the Internet. Access to the database is limited to authorized users. The servers holding the databases are also physically secured. The servers may be kept at a facility provided by a commercial Internet server company such as PSINet®. Access is limited only to authorized persons. Typically, the lead supplier joins as a member and submits a lead by logging onto the website with a domain name: xyz.com. The lead supplier may join as a member and provide information on himself/herself. The information includes: name, address, e-mail addresses, telephone number, and a selected password for which a data field is provided. The information may be entered using any of the known methods for data entry including use of a check box, a drop down list or a radio button for each data field.

After the lead supplier is registered as a member with an assigned ID No. and password, he/she is notified of the number of leads that may be accepted and the amount that is paid for each lead that resulted in a sale with a maximum amount to be earned in each month. The amount that is promised may be a specific amount or a commission based on the type of the lead. For example, a specific amount of $25 may be listed for purchase of a specific product or service, such as a television or reserving transportation for a trip; and a fixed amount together with a commission at a specified percentage rate, for example, 3% may be paid for a lead in the real estate area. The amount promised might be paid when the lead is submitted or when the sale is consummated.

A link to the lead submission page is provided. For submitting the lead, the lead supplier selects the product service area ("PSA") that is applicable and indicates whether the Intender is a business entity or a non-business entity, i.e., an individual. The lead information is entered separately for each Intender and each PSA. The information includes the name and address, e-mail address, telephone number and the specific purchase intended. For a business Intender, the information includes the name of a contact person, his/her title and whether the business Intender is a part of the government and whether the lead supplier is an employee of the business Intender. If the lead supplier is a government employee and he/she is providing a lead on a government agency, a polite message declining the lead information will be sent. Optionally, the lead supplier can select the number of merchants and the number of contacts to be made by each merchant to the Intender.

Intender

If the Intender is an individual, the information is routed in accordance with Fig. 3. The individual Intender is contacted by e-mail or telephone and given an opportunity to "opt in" or "opt out". For example, an Intender may be given a period of 48 hours to respond. The Intender is also given an opportunity to edit the lead information orally or in writing on the Internet. If no response is received, it is assumed that the Intender opted in. The Intender who opts out is entered on an Opt Out List and future leads naming this Intender will not be processed through the system. The Intender might be given a financial incentive to opt in and/or consummate a sale in the form of a discount, a bonus payable to the Intender or a choice to donate the award to a charity of his/her choice.

If the e-mail message to the Intender cannot be sent and/or it bounces back, the e-mail is re-sent within a set period of time (e.g. 24 to 48 hours). If it is indicated as received, then the opt in process proceeds. If the e-mail bounces again, the lead supplier is notified and a chance to correct any errors is provided. If no response to correct the information is received, this is noted in the lead supplier's account. If a contact with the Intender is made, the system may validate with the Intender some or all of the details reported in the lead (e.g. Intender's name, contact information, his/her interest in the service/product, etc). The element of the system checking the validity of the leads and the details of the Intender is referred as "the Gate". The output of the Gate is: a false lead, a confirmed lead or an unconfirmed lead. The lead supplied is checked also for duplication; if a duplicate lead is received, the lead supplier is informed and the lead is politely declined.

For an individual Intender who opted in and for a business Intender, the information is routed in accordance with Fig. 4. The lead is processed and routed to select a number of merchants from a pool of merchants listed in the specific PSA database for merchants. A convenient number of merchants are preferably selected, such as 5, to avoid too many contacts. The system may also select a specific merchant as a primary merchant for the specific PSA. For leads in a PSA in which a primary merchant (i.e. a merchant that for business reasons has higher priority in receiving leads) is identified, only that merchant will be notified of the lead and given an opportunity to accept the lead. If the primary merchant does not accept the lead then it may be routed to other merchants. In such a case, the merchants are notified in turn based on the date a last referral was made to a particular merchant. If there is no appropriate merchant for the PSA, a message of non-availability with an apology is sent to the lead supplier.

Merchant-lntender Contact The selected merchants for the necessary or desirable products and services are provided with an opportunity to sign on for a lead and contact the

Intender in accordance with the options selected by the lead supplier: the number of contacts, the period in which contacts are to be made and the manner in which the contact is made. The Intender may contact the merchant directly by clicking on the link to the website of the merchant or by clicking on a radio button to select the merchant. When a sale is successfully consummated, the merchant updates the information on the lead and pays the system accordingly.

Accounts

The system also generates an account for each lead supplier. The lead supplier may access his/her account identified as "My Account". Information on the status of the account, the history of leads, the amount of money credited for each lead and the payment record are generated. See Fig 5. Members may use the "My Account" database to keep track of their earnings on leads supplied, and use the "Pay Me" database to request payment. A lead supplier may also earn revenue based on referring other lead suppliers who refer leads to the system. This can extend for up to four levels with the incentive decreasing the lower the level is. For example, the first level may be 10% of the award per lead, the second level may be 5% per lead, the third level may be 3% per lead and the fourth level may be 1 % per lead paid to the principal lead supplier. The data that is available to the lead supplier is listed in Fig. 9.

Merchants are also assigned an account and may access their individual profiles and accounts for editing or updating the information. See Fig. 6. The data in each merchant's account includes date of lead accepted, amount paid for lead, dates when contacts with Intender were made, date when sale consummated or closed with the dollar amount the sale generated, amount of commission paid, date when payment was made and date payment was received. Each merchant is also given the opportunity to pay in cash or by credit. If credit payment is desired, the merchant profile should also include the credit card information. The "My Account", "Pay Me" and merchant profile databases are secured and may only be accessed with a validated password for the lead supplier or the merchant.

Overview of System Fig. 11 shows a preferred embodiment of a system in accordance with the present invention, where a central server 200 exchanges information over the

Internet 140, with a lead supplier 110, a plurality of merchants 120 and an

Intender 130. Generally, the configuration allows the central server 200 to aggregate information about participating merchants, and to provide the information to the lead supplier 110 for selecting and customizing a list of merchants in accordance with the Intender's needs for products/services for a specific occasion or event.

The lead supplier 110, merchants 120 and Intenders 130 (collectively "system customers") communicate with the central server 200 by accessing a Web site associated with the central server 200 over the Internet 140 using a

Web-browser on their personal computers via an Internet Service Provider ("ISP"; not shown) or by using well-known alternatives to a Web-browser, such as WebTV, Palm Pilots, pagers and other personal digital assistants ("PDA's"). The operation of the Internet 140 and access thereto is well known and is accordingly not described here in detail.

The merchants 120 communicate with the central server 200, and for purposes of illustration, are shown to include merchants of products and merchants of services. As will be discussed in more detail below, the merchants 120 register with and provide the central server 200 with the type of products carried/services provided, price, commission agreed to pay for each product/service and information from purchasers about their history of performance. The information on the past history of performance may also be collected based on surveys conducted by the system for each merchant and incorporated into the database for the merchants. The merchants 120 thereafter become available for selection by the system or the lead supplier 110, and, if selected, information on the merchant(s) is(are) provided to the Intender or visa versa depending on the Intender's authorization.

The Intenders 130 exchange information with the central server 200, for purposes of illustration, as a lead provided by the lead supplier 130a, or directly by the Intenders 130b. As will be discussed in more detail below, an

Intender 130 may also directly register with and provide information regarding the products/services desired or information on an event or occasion the Intender expects to take part in. The information may also include a budget for the intended purchase. When a lead supplier 110 is registered with the system, the database is accessed for prior leads submitted by the same lead supplier to determine the lead supplier's reliability. At the same time, when a lead is received by the system, a message is forwarded to the Intender using the e-mail address provided by the lead to determine whether the lead is genuine or false. If the message bounces several times (e.g. three times), the lead is categorized as false and is noted in the database as a false lead. For a specific lead supplier, a high number of false leads results in a low credibility rating. The leads submitted by a lead supplier with a very low rating will not be processed. If the Intender responds to the e-mail message, he/she is notified that the information about an intended purchase has been received and is requested to make a choice to Opt in' or 'opt out'. If the Intender opts in, the Intender is provided with a list of the merchants supplying the desired product/service with information on these merchants. Further, authorization for contact by a merchant(s) is requested. If authorization is denied, the Intender is requested to contact the merchant(s) directly. If authorization is granted, information on the Intender is provided to the selected merchant(s) for the merchant(s) to contact the Intender directly.

Because of the numerous different types of merchants 120 and Intenders 130 that may exist, as used in the specification and claims, the terms - merchants, Intenders, and PSA have been defined on page 1. Leads may be categorized in groups for ease in using the system. For example, leads may be categorized into two groups, 'group 1' are those for which participating merchants are available and the system is ready to pay an incentive award; 'group 2' are those for which participating merchants are not available and a decision to pay an incentive award has not been made yet.

Central Server

Fig. 11 is a block diagram showing the architecture of a preferred embodiment of the central server 200. As Fig. 11 illustrates, the central server

200 includes certain standard hardware components, such as a central processing unit ("CPU") 205 that is preferably linked to each of the following elements by means of a shared data bus or by dedicated connections: clock 210, random access memory ("RAM") 215, read only memory ("ROM") 220, input/output ("I/O") communications port 225 and a plurality of databases 230. The CPU 205 performs all of the processing functions of the central server 200 in accordance with a stored operating system ("OS"; not shown) having multi-tasking capabilities. Because the system is intended for access by a large number of lead suppliers 110, merchants 120 and Intenders 130 asynchronously, the RAM 215 is preferably of sufficient size to prevent problems such as slow loading and system failure due to too many connections being attempted to be established at the same time. Furthermore, the I/O communications port 225 must be configured to include multiple communications channels for simultaneous connections, and may be a stand-alone device.

The central server 200 indirectly communicates with the lead suppliers/lntenders on hypertext transfer protocol ("HTTP") that is secured using a standard secure protocol (e.g., secure socket layer ("SSL")) through the input/output communications port 225. As previously mentioned, the lead suppliers/lntenders gain access to the Internet 140 by means of their ISP's. When the lead suppliers/lntenders request access to the Web site associated with the central server 200 by transmitting the Web site's registered domain name (e.g., "xyz.com"), the requests are routed through their ISPs to a second ISP (not shown) associated with the central server 200. The second ISP in turn routes the requests of the lead suppliers/lntenders to the central server's I/O communications port 225 via a communication line, such as a dedicated phone line (e.g., a T1 , T3 line or a DSL line). This type of line provides a high-speed data connection between the second ISP and the central server 200.

The central server 200 also includes certain software components, such as software servers and software databases, to store information and perform a plurality of transactions. The implementation of software servers to execute Internet-directed software in conjunction with a central server is well known in the art, and the servers' configurations are accordingly not described in detail herein.

Because the system is configured in a preferred embodiment to provide tailored, merchant-specific banner advertisements, the CPU 205 is also in communication with one or more input device 235, such as a keypad and a scanner, to receive the advertisements and their parameters for storage. The central server 200 could alternatively receive this information from advertisers over the Internet 140.

The plurality of databases 230 will now be described in detail below. With respect to the databases 230, it should be noted that each database in the figures is shown to have only a few records contained therein for purposes of illustration, although it should be understood that in practice each database would contain numerous records. Furthermore, it should be understood that the invention is not limited to the fields illustrated in the figures and that fields could be added, replaced or deleted without departing from the scope and spirit of the invention.

Databases

Lead Supplier or Member

A lead provider logs on to the website for program (designated for the present purposes http://www.xyz.com, but may be designated with any domain name) and joins as a member by signing on and provides information on himself/herself, the Intender and the product/service intended to be purchased by the Intender or an event to be taking place for which products/services are needed or desired. The information includes the name, e-mail address, postal address, and telephone number of himself/herself and the Intender and further identifies the location of the intended purchase of goods or services or the location of the Intender. The information on the location of the Intender or the purchase helps the merchants to decide whether contact should be made. The lead supplier or member should also provide information on whether he/she might be identified as the source of the referral, whether the merchant should initiate contact with the Intender and time period in which the contact should be made. The lead supplier or member can also suggest a merchant or merchants for the product or services intended. Figs. 1 A and 1 B shows respectively the typical information for an individual Intender and a business Intender requested of a lead supplier, as listed in the data fields with the rules of entry. Data fields may be added and deleted as needed.

To provide an incentive to a lead supplier to supply a lead, the lead supplier is informed of the award to be made for a useful and successful lead, a lead that resulted in a consummated sale of the product/service to the Intender. For example, a sum of $25.00 may be offered for each successful lead. However, to avoid the submission of a false lead, which causes a waste of time and inefficiencies in the system, the lead supplier is checked to determine whether leads previously submitted are genuine or false. The information on the Intender is also checked by sending a message using the e-mail address provided to ensure that the e-mail address for the Intender is correct and to ensure that there is genuine interest in using the referral service. The Intender is also provided with a choice to 'opt in' or 'opt out¹ of the program. The list is automatically checked every time a lead is submitted to ensure that a false lead is disregarded. If the Intender Opts out', he/she is placed on a list and will not be contacted for a specified period (e.g., six months or a year) if he/she requests so.

Further, for a particular product/service desired by the Intender, more specific information related to the nature of the product or service may be needed for a merchant to make an offer. For example, to rent or buy a home, the following information would be helpful: the desired location, the type of facility, the number of rooms, the length of the lease, when the home is needed, and the amount willing to pay to buy or rent the home.

For the purchase or lease of a car, the following information is solicited: the model and make of the car, the color, the size of the engine, the type of upholstery, etc. Thus, for each PSA, specific information is solicited from the lead supplier or the Intender for that product or that service.

After a lead has been submitted, the system checks the database on all leads that have been submitted to determine if the same lead has been supplied, if a participating merchant is available and there is a decision to pay an incentive award, if the Intender opted out and if the information supplied for the Intender is authentic.

If another member/lead supplier has already supplied the lead, this information is provided to the lead supplier, who is then invited to supply another lead. If the system has no available participating merchants and thus there is no decision to pay any incentive award, the lead supplier is informed. If the Intender has opted out of the program, the lead supplier is also informed. Once the Intender has been contacted and opts in, a confirmation is sent to the lead supplier and an account is set up for him/her. If the Intender 'opts out', the Intender is given a choice to opt out for a specific period (e.g. one year) and the information is added to an 'opt out' list. See Fig. 3. If the Intender 'opts in', the information on the Intender is routed in accordance with Fig. 4 as described below. The merchant providing the product service is selected from the list of merchants who participate in the program. From the selection, the list is further narrowed to the pool of merchants that service the location and the information is finally routed to a merchant working in the PSA and location corresponding with the Intender buying intention. If a merchant participates as a primary or exclusive merchant, only the pπmary merchant is provided with the referral. The merchant may also be required to have participated in the system for a sufficient length of time to establish his/her record and to prove himself/herself as a quality merchant who has provided products of superior quality and/or excellent services.

The system tracks whether contact is made between the merchant and the Intender, and the information is entered into the system. If no contact is made within a specified period, (e.g. four to six weeks) the lead is categorized as invalid and is removed from the list of active leads. If contact is made within the specified period and depending on whether there is a consummated sale, the information is entered into the account database for the lead supplier and merchant. If the sale is consummated, an agreed to award is entered into the lead supplier's account. The lead supplier can log onto this account for him/her and request payment. The payment history is also saved as a part of the database for the lead supplier. See Fig. 5. For convenience, the pages for the account of the lead supplier may be labeled 'My Account' and 'Pay Me'. The information supplied by a lead supplier may also be on an event or occasion that is to take place on a future date in the life of an Intender. The event or occasion may be an engagement, a wedding, a birth, a birthday, a holiday celebration, a move/transfer to a new location, renovating a house, buying or selling real estate, building a new house, a graduation, an attendance at college, a funeral, etc. for which a variety of products and/or services are desired by an Intender. The system includes a database set up for such events and the products/services likely to be needed or desired. The system provides a list of products/services that are needed or desired for the specific event or occasion and a list of merchants for these products/services are provided to the Intender who opts in. For example, for a wedding, the following is a list of products and services that are generally necessary or desired: bridal gown and accessories, bridesmaids' dresses, tuxedo rental, flowers, caterers, limousine service, travel arrangements for honeymoon, wedding consultants, invitations, favors, gifts for bridal party, bridal registry, and photography services. For each of the products or services, a list of the merchants is generated to assist the Intender in planning for a wedding. For re-location, a different list is provided and includes the following products and services: real estate agents for selling and/or purchasing a residence, packers and movers, painters, plumbers, contractors for re-modeling, cleaners, carpeting, furniture, bathroom and/or kitchen fixtures and supplies. Lists of products and services are provided for other value generating events.

Merchants

The merchant registration process is described with reference to Fig 2, which lists the data on a merchant and is referred to as the Merchant Profile. A merchant who wishes to participate in the program can log on to the website and sign on. The merchant provides a profile on himself/herself including the company name, the user name address(es) and telecommunication numbers for contacting sales and customer service. The telecommunication numbers include telephone number(s) and facsimile numbers. The merchant also provides information on the products/services area (PSA) or industry he/she services and the prices for the products/services and service locations. The PSAs in the system may be any of the available products or services. These can include products and services for the home, such as kitchen, bath, linens, curtains, furniture, cleaning; tools, hardware, buying and leasing an automobile, computer/software solutions; telecommunication equipment and service; internet service and website designs and hosting; entertainment media, products and services; professional services such as doctors and accountants; buying or leasing of real estate; travel services; hobbies, crafts, etc. Other information relating to the participating merchant, such as the number of employees, business license, annual revenue and stock symbol may also be provided.

The system further provides security and privacy for the information providers including the lead supplier and his/her account. The identity and information on an Intender and on a merchant are kept secure and private by requiring the use of a password for entry into the database by a merchant, a lead supplier or an Intender. The merchants are stored in the database and may be organized by PSA and location using a hash table. The profile of the merchant may be updated as needed by the merchant to provide current information such as products, services, prices, sales personnel, etc. Information on each merchant pertaining to the quality of the products and services provided may also be entered based on results obtained from purchase surveys and past histories of performance and industry surveys and analyses.

Intender

Information on an Intender as provided by a lead supplier is also entered into a database, which maintains a list of those who opt in or opt out of the program. The database may also be used to track the success/failure of a lead to result in a sale.

Lead Routing

The process by which a lead is routed is described above. A brief summary of the process is provided below. When information on a lead is submitted by a lead supplier, the Intender is contacted to determine if the information provided is accurate. If it is accurate, the lead is confirmed and the merchant contacts the Intender to offer his/her service/product. The Intender is asked to opt in or opt out of the program. If the Intender opts in, permission to contact him/her by a merchant is requested. If permission is granted, then the information on the lead is directed to a merchant in the product/service area (PSA) so he/she can make contact with the Intender and submit an offer. See Figs. 4 and 6.

It is to be understood that the embodiments and variations shown and described herein are merely illustrative of the principle of this invention and that various modifications may be implemented by those skilled in the art without departing from the scope and spirit of the invention.

Claims

We claim

1. A method of using the internet to provide referral services to a participating merchant about an Intender for desired products and services comprising the steps: gathering from a lead supplier through the internet or other telecommunication methods information on an Intender intending to purchase a product or service; setting up an account for the lead supplier to provide him/her an incentive award for submitting a lead and/or for a consummated transaction in accordance with the lead supplied; contacting the Intender to provide a choice to the Intender to use or not to use the referral service, to verify the referral details and to ask permission to be contacted by a merchant; selecting a list of merchants who provide the product/service intended to be purchased from a database containing gathered and categorized information on a plurality of participating merchants of various products or services; providing the information on an Intender to the selected merchant or merchants who can provide the desired product or service.

2. A method according to claim 1 , wherein the information supplied by the lead supplier indicates an event/occasion (e.g. an engagement, a wedding, a birth, a birthday, a holiday celebration, a transfer to a new location, renovating a house, building a new house, a graduation, an attendance at college, a funeral) anticipated by the lead supplier that the Intender is about to go through and for which products and services are needed or desired; and providing a list of merchants for the products and services to the Intender or providing the information on the Intender to each of the merchants of the desired product and/or service.

3. A method according to claim 1 wherein the potential compensation a lead provider is entitled to by providing a lead increases if that lead provider previously provided referrals that were confirmed as true or referrals that lead to a closed sale.

4. A method according to claim 1 wherein a merchant gets priority over other merchants in the same PSA if, compared to other merchants in that PSA, that merchant had in the past a better ratio of closed sales to leads accepted, a higher ratio of intenders opting or a shorter time to contact the

Intender from the moment a lead was accepted.

5. A method according to claim 1 further comprising the steps: tracking to determine whether a contact has been made between the merchant and the Intender and whether the contact resulted in a consummated transaction; calculating the amount of commission owed when the transaction is consummated and forwarding to the merchant or posting on a merchant's account via the Internet an invoice on the amount of commission calculated; and optionally calculating a bonus for the lead supplier and crediting an account for the lead supplier and affecting payment of the bonus to the lead supplier.

6. A method according to claim 1 wherein the information provided to the Intender includes a rating of the quality of goods/services to be purchased and a rating of the quality of the services provided by the selected

merchants.

7. A method according to claim 2 wherein the information provided to the Intender includes a list of products/services suggested for the event/occasion indicated.

8. A method according to claim 1 , wherein an incentive award is provided to a lead provider and/or Intender who uses the referral service more than once.

9. A method according to claim 1 wherein the information comprising a lead on the Intender is provided to selected merchants who supply the desired product and/or service in the area desired together with information on a price for such a lead and, optionally the amount of commission owed upon a successful sale to the Intender.

10. A method according to claim 5, wherein the merchant is obligated to report the status of the lead and the status of the contacts made with the Intender.

11. A method according to claim 9, wherein the status of a lead on the Intender is tracked by direct link through the internet to the merchant's database by using a customer relationship management system.

12. A method according to claim 10 further comprising the step of tracking the database file of the merchant to determine the status of the lead provided to the merchant.

13. A system for using the internet to provide referral service to a participating merchant regarding an Intender for desired products and services comprising a computer with a server connected to the internet through which information on an Intender may be received from and transmitted to a lead supplier and transmitted to the participating merchant; a CPU comprising clock means for dating information received or transmitted, means for random memory access and read only memory, input and output communication ports for communication with a lead supplier, a participating merchant and an Intender and with database files for each lead supplier, each merchant, each product service area and each value generating event and means to process and update the information therein periodically, means to view the information in the database files, means for presenting the database in different formats as specified and means for calculating an amount based on a formula supplied.

14. A system according to claim 13 wherein the access to the system is secured by means of a password selected by the lead supplier for access to the database file of said lead supplier.

15. A system according to claim 13 wherein the access to the system is secured by means of a password selected by the merchant for access to the database file of said merchant.

16. A system according to claim 13 wherein access to the database file of a merchant is by means of a customer relationship system.

17. A system according to claim 16 wherein access to the database file of a merchant is by means of a customer relationship system selected from the group consisting of known software such as Sale Force® and Gold Mine®.