WO2008019711A1

WO2008019711A1 - Network commerce referral systems

Info

Publication number: WO2008019711A1
Application number: PCT/EP2006/066356
Authority: WO
Inventors: Jean-Pierre Eskenazi
Original assignee: Xinek
Priority date: 2006-08-16
Filing date: 2006-09-14
Publication date: 2008-02-21

Abstract

A network of computing systems includes an e-commerce online store which may be addressed by potential customers via a common Internet browser. A third-party affiliate computing system includes special facility to encourage a connection between a buyer and a seller. A toolbar type graphical user interface permits an affiliate to integrate special link objects with common messaging systems including e-mail, instant messages, SMS/MMS, blogs, web pages, among others as a promotional reference. The special link objects include means to track sales transactions related to that reference and enable an accounting scheme used to recompense affiliate members and their associates in a special hierarchy tree.

Description

Network Commerce Referral Systems

BACKGROUND OF THE INVENTIONS

Field

The following invention disclosure is generally concerned with data network sales systems and specifically concerned with affiliate referral networks and management thereof.

Prior Art Advanced messaging and e-commerce systems are quickly becoming highly integrated as communications networks facilitate cooperation between each. As such, many third-party affiliate programs are being devised whereby potential buyers are directed to certain preferred e-commerce sites and commissions are paid to these referring parties. Third-party affiliates direct e-commerce traffic via a great plurality of schemes each having certain benefit and implementation. Some representative systems are better understood in view of the teachings presented in recent patent applications and patents identified herein. In particular, -

US patent number 6,477,509 of November 5, 2002 includes an Internet marketing method and system in which a lending partner is compensated and repaid from revenues paid into the management system related to each individual consumer transaction.

An affiliate commerce system and method presented by inventor Ross Jr. et al. on September 30, 2003, US patent number 6,629,135, teaches of systems for e-commerce in which an affiliate adopts the "look and feel" of a host site, the affiliate operating as a surrogate for visitors such that they are served a page having that same look and feel as if the visitor was viewing the host site directly. A second similar and related application is presented as US patent application publication numbered 2004/0148366 published July 29, 2004.

An affiliate marketing relationship is managed between a user and merchant computer where a content provider is identified by a central processor when it refers a customer to the merchant. US patent application number 2001/0037205 published November 1 , 2001 teaches the systems in detail. A content provider provides access to an e-commerce site. A processor identifies the users referred to the site via the content provider. The processor calculates a commission and referral fee due the content provider.

Landau et al teach in US patent application publication 2001/0047413, dated November

29, 2001 a system, method and article of manufacture for Internet based affiliate pooling for affording virtual affiliates access to an existing affiliate system. The virtual affiliates system is notified of transactions that originated from a referring webmaster. Referring webmasters may be compensated for each completed transaction according to agreed upon terms and conditions. An invention presented in US patent application publication numbered

2003/0023490 is entitled "method system and process to promote the sale of custom indication/imprint services through a pay for performance affiliate marketing system". These systems deliver content to many users on a multi-tier basis via messaging and other networked delivery means. A US patent application publication 2003/0088475 published on May 8, 2003 discloses inventions for remote transaction and tracking protocol for Internet commerce.

A remote transactional and tracking software is presented. A referring site operates as a virtual retail site and passes tracking and transactions to an original retail site. The referring site handles clearing of the financial matters while passing order specifications to the retail site for execution and delivery. The virtual site thereafter provides a settlement with the original site.

Advertising tag lines are added to electronic messages in the inventions taught by

Bosarge et al on October 9, 2003 in the publication numbered 2003/0191689 which is also a US patent application publication. The system intercepts members electronic messages, scans them for keywords, adds related advertising and finally passes the message to its intended recipient.

A method and system for affiliate tracking is presented as the inventions of US patent application filed May 15, 2001. Published December 25, 2003 US patent application publication numbered 2003/0236701 presents systems for managing promotion and reward arrangements between affiliated entities. Kevin Rowney and others teach systems having a promotion link generator for inserting links into a web site. The web site owner gets points or credit for users who follow the link and complete qualifying activity.

US patent application publication by inventor Ling was published February 12, 2004 as publication number 2004/0030605. The systems of Ling do support e-commerce type communications transactions among a plurality of service providers. The bridge computer is used to facilitate interaction between service providers of buyers and sellers. The bridge is used to apply service charges fees, credit card transactions, and to reimburse service providers with referral fees. Another e-commerce affiliate system is presented in publication entitled "enhanced network based promotional tracking system". Merchant and affiliate promotional efforts are tracked and managed by integrated network systems. Sophisticated promotions employing Java-based presentations are deployed across the network of connected affiliates. A selective API is provided to wrap the promotional links. The application by Messer et al is publication number 2004/0111381. Methods for paying referrals are taught in US patent application publication numbered 2004/0215542 published on October 28, 2004. A seller pays commissions to individuals who present a sales message to a target. The systems manage commissions which can be shared over a large group of similar members who together cooperate to achieve some function. The same inventor presents another version of the same inventions in similar publication numbered 2004/0215561 published on the same date. Inventor Estes of Massachusetts presents his invention "method and system for generating and managing referrals" the system uses messaging elements to encourage 30 referrals. The teaching is published as document 2005/0119937 on June 2, 2005.

"Internet based and tangible referral system" is the title of the inventions presented by Eglinton in the US patent application publication 2005/0171838 published on August 4, 2005. A modified version of a web page includes means for tracking and identifying the relationship and offer.

Willie Donaldson teaches an affiliate manipulation system. When a buyer completes a purchase from a merchant, an affiliate code for the commercial agent replaces an existing affiliate code in favor of a preferred commercial agent. The full details of these systems are disclosed as US patent application publication numbered 2005/0203766 published on September 15, 2005.

Computer-based commerce is facilitated in systems and methods of the inventions taught in US patent application publication 2005/0203800 published on September 15, 2005. A module communicates with a vendor to sort product offers by designated category selected by a potential customer. If a user propagates an offer to other users, that user may be entitled a commission. Spam control means are optionally provided.

A reward system for a networked commerce environment is the subject of a patent application publication published November 24, 2005 as serial number 11/027,762 filed on December 30, 2004. Inventor Hanson and others teach tracking of orientation party and series of referring parties in a system aimed to increase cooperation between parties. In some versions, a lead is broadcast to multiple agents to increase responsiveness to customer inquiries. On December 22, 2005 a US patent application publication numbered 2005/0279830 by inventor Chao was publicly disclosed. An income generating business card is embodied within a server and database on a communications network. A business card provides a discount from a registered merchant. The card provides a link to the customer accounts such that credits may be assigned. These systems, among others are representative of the art which is quickly becoming crowded. Affiliate systems provide excellent stimulation for e-commerce markets as communications networks are well-suited for tracking and message exchange which permits quality referrals.

While systems and inventions of the art are designed to achieve particular goals and objectives, some of those being no less than remarkable, these inventions have limitations which prevent their use in new ways now possible. Inventions of the art are not used and cannot be used to realize the advantages and objectives of the inventions taught here following.

SUMMARY OF THESE INVENTIONS Comes now, Jean-Pierre Eskenazi, with inventions of a network commerce referral systems. Systems taught here include affiliate referral programs arranged to drive promotional offers and sales for Internet e-commerce sites. These affiliate programs connect a buyer and a seller by way of a third -party or referring intermediary. A site affiliate passes to potentially interested parties a specially prepared link to a web based e- commerce store featuring a particular product being promoted. The link includes support for tracking and forwarding mechanisms which results in reporting of sales transactions to a servers accounting systems such that the referring party and tree of related associates can be paid a commission.

These affiliate programs are distinguished from those commonly found throughout the Internet today in that at least one important aspect includes a hierarchical relationship between associated affiliates. In addition to simple product referrals, an affiliate further participates by introducing new affiliates to the program. When a new affiliate joins, she joins in an association hierarchy under the affiliate who introduced her to the program. When commissions on any particular sales transaction are allocated, a portion is paid to the referring affiliate and those affiliates above her in the hierarchical tree in accordance with accounting rules set forth in affiliate agreements. Accordingly, a new affiliate earns commissions in two ways: first, by referring product offers to potential buyers who complete a purchase transaction, and second by introducing a new affiliate to the program who thereafter executes a referral which generates a sale transaction. These affiliate programs are further distinguished from those of the art as they are preferably driven from special affiliate management modules which may be embodied as computer code locally executed on an affiliate machine. An affiliate management module, or AMM, provides access and authoring assistance with respect to a collection of specially configured link objects which may be passed in various ways, for example combined with simple messages to potential buyers. A collection of link objects may be stored in a link object library of the AMM. This library is subject to frequent updates from a system server to reflect sales goals and trends set by a store manager. An AMM additionally provides means of driving special time sensitive promotional campaigns in a "live window" display field space. A live window running in an affiliate system AMM alerts the affiliate to an attractive offer and encourages the affiliate to promote the offer by preparing and sending messages with relevant included links. Such AMM maintains a data connection to a remote server which feeds the AMM from time -to-time with new promotional schemes. A very important aspect of an AMM is its ability to interact with common Internet messaging systems. While an AMM can be implemented in a standalone executable program running on an affiliate computer system, or while an AMM can be implemented as a web service addressable via a web browser, preferred versions include those where an AMM is deployed in conjunction with a software host running on an affiliate's computer. For example, best versions of these inventions include an AMM which runs as a browser helper object, BHO, in conjunction with a web browser. Common Internet browser applications support custom toolbars which permit access to interdependent program functions and interface. For example, an affiliate can author web mail messages and easily insert these custom links via functionality provided at the BHO implementation of an AMM. An AMM deployed as a toolbar BHO in a FireFox web browser provides access to these systems while users enjoy popular networking websites. While using popular social networking systems such as MySpace, an affiliate has ready access to her own library of special links via the AMM browser toolbar. A "click" on "message me" brings up an interface where one creates a message to another MySpace member; or alternatively one places a "comment" onto a MySpace friend's comments page via similar web interface, in both cases an AMM implemented as a toolbar within the normal browser interface provides easy access whereby a user can place referral links within private messages, or comment pages or other types of communications. A click on the appropriate AMM control effectively copies an HTML block to the clipboard and thereafter is placed in an insertion point chosen by the message/comments author. Accordingly, AMMs of these inventions which are integrated with standard Internet browsers are particularly effective for interacting with messaging/social networking systems such as MySpace. Alternatively, an AMM can be arranged to run in conjunction with an e- mail client program such as Microsoft Outlook where the AMM functionality is addressable by way of a toolbar fully integrated with a standard Outlook user interface. An AMM may similarly be deployed in conjunction with an instant messaging software tool such as ICQ or Yahoo Messenger. When one launches ICQ, the AMM toolbar becomes immediately available as part of the user interface whereby an affiliate can quickly form instant messages with a link object pasted therein. In this way, the affiliate does not have to fuss with any complex underlying coding construction, but rather he or she uses simple point-and-click actions to insert attractive links directly within his/her instant messages. A primary function of an AMM is to generate special link objects and make them available for integration and transmission within various types of messages which support HTML. While these systems are especially cooperative with HTML browsers, certain versions also support text-only browsers like SMS and others. A link object may be recalled from a library in response to a user point-and-click action. A link object is copied into a message or alternatively onto a system clipboard for a paste action to be executed later in connection with forming a message. A link object may include a text portion, a graphic portion, and a routing code and tracking portion. An object link is received by an end-user and may be played at a receiving browser, or e-mail client for example. The text and graphic portions may be displayed, while the routing codes remain hidden from an end-user's view but remain underlying and associated with the link object and known and interpreted by the browser and receiving computer in accordance with standard hyperlink functionality. Should the link object be addressed via a user click action, the routing code functions to direct the user browser to the appropriate tracking systems where identity information may be noted and then further to the associated e-commerce site and more particularly the precise product page having detailed information about the product on offer. The routing code of the object link is best implemented as a URL or uniform resource locator, but may be included in other schemes.

At the heart of these systems is a server computing system connected to the Internet. A server, which may be arranged as a widely distributed system with components in a plurality of locations widely removed from others, maintains the various system states. A server computer system maintains an affiliate membership including an affiliate hierarchy. A server computer system is arranged to also maintain membership relationships with e-commerce sites which devise various sales strategies and promotional campaigns in view of the attributes afforded by the systems. A server computer provides updates to affiliate link object libraries to maintain the accuracy and freshness of information in the links objects. A server computer system runs real-time, and time sensitive promotions in an AMM 'live window', a display field of a graphical user interface. A server computer is arranged to track transactions between an affiliate member and potential buyers or end-users. A server computer maintains information regarding a potential buyer's visits to associated e-commerce web sites. A server computer also documents and records data relating to sales transactions taken up at an e-commerce site by a visiting end-user having been so tracked to the system. A server computer is additionally arranged to provide a commissions accounting functionality which allocates payment to the various affiliate members and invoices e-commerce sites or vendor members.

Objectives of these Inventions It is a primary object of these inventions to provide affiliate systems for e-commerce web sites.

It is an object of these inventions to provide affiliate systems having advanced automated tracking features.

It is a further object to provide network e-commerce affiliate systems having a membership structure which encourages membership activity. A better understanding can be had with reference to detailed description of preferred embodiments and with reference to appended drawings. Embodiments presented are particular ways to realize these inventions and are not inclusive of all ways possible. Therefore, there may exist embodiments that do not deviate from the spirit and scope of this disclosure as set forth by appended claims, but do not appear here as specific examples. It will be appreciated that a great plurality of alternative versions are possible.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

These and other features, aspects and advantages of the present invention will become better understood with regard to the following description, appended claims and drawings where:

Figure 1 is scenario diagram illustrating primary transactions between elements from which these inventions are comprised;

Figure 2 is a top level block diagram of the primary components of one preferred version;

Figure 3 is a block diagram of an example database system and relations of data records with their appropriate subsystems.

Figure 4 is a detailed block diagram of an important element of these systems; and Figure 5 illustrates an affiliate hierarchical tree showing relationships between various affiliate members.

GLOSSARY OF SPECIAL TERMS

Throughout this disclosure, reference is made to some terms which may or may not be exactly defined in popular dictionaries as they are defined here. To provide a more precise disclosure, the following terms are presented with a view to clarity so that the true breadth and scope may be more readily appreciated. Although every attempt is made to be precise and thorough, it is a necessary condition that not all meanings associated with each term can be completely set forth. Accordingly, each term is intended to also include its common meaning which may be derived from general usage within the pertinent arts or by dictionary meaning. Where the presented definition is in conflict with a dictionary or arts definition, one must consider context of use and provide liberal discretion to arrive at an intended meaning. One will be well advised to error on the side of attaching broader meanings to terms used in order to fully appreciate the entire depth of the teaching and to understand all intended variations.

Blip Pixel A blip pixel is an HTML image tag specifying a non-displaying or otherwise hidden image; the tag including a URL which is automatically called on a page load event of any page containing the blip pixel, the URL is directed to a tracking system and may further include coded information.

Live Window

A live window is a display field of a graphical user interface which presents images and text in accordance with a real-time or near real-time data feed from an external server. The live window may receive continuous or frequent updates and includes auto refresh functionality.

Link Object A link object is arranged as an HTML text and/or image type hyperlink with a specially coded URL which points to a tracking system. The URL may be appended to include browser forwarding and affiliate identity information also.

Affiliate user/system

An affiliate 'user' is the operator of an affiliate 'system' which is computing hardware and software coupled to the Internet.

End-user Browser An end-user browser is any computing system with a messaging device which processes

XML/HTML. Such browsers may be particularly useful for coupling with messaging systems; examples include: web mail; blogs; an e-mail client; instant messaging system; chat room window; SMS/MMS; among others.

Sale/Purchase transaction

A sale transaction is synonymous with a purchase transaction and these terms are interchangeably used in context with respect to the point-of-view from which the transaction occurs; i.e. from the point-of-view of the buyer or seller for example.

PREFERRED EMBODIMENTS OF THESE INVENTIONS In accordance with each of preferred embodiments of these inventions, network based e- commerce referral apparatus are provided. It will be appreciated that each of the embodiments described include an apparatus and that the apparatus of one preferred embodiment may be different than the apparatus of another embodiment.

Details of these systems are readily understood in view of a working example of one embodiment which illustrates various key transactions taken up between four major system components. These primary components may be envisaged as including: 1) a server computing system, 2) and e-commerce online store, 3) a promoting affiliate computing system enabled with application specific software herein called an affiliate management module or AMM, and 4) an end-user browser. Each of these major system components are computing systems in TCP/IP communication with the Internet. Both of the e-commerce online store and the affiliate computing systems need at least minor preparation to work properly as part of these systems and thus they are distinct from general purpose e- commerce online stores and general purpose computing systems. Both of the e-commerce online store and the affiliate computing system are prepared with necessary software in support of the invention's objectives. In contrast, the end-user's browser is preferably any standard browser without modification or special preparation.

Upon careful consideration by and at the will of an affiliate user, a specially prepared HTML hyperlink, or more simply: 'link' or 'link object', is included with an electronic message and transmitted to a friend, acquaintance or associate. The contact receives the electronic message with the integrated link therewithin and expresses further interest by 'clicking' the link: after a very brief "behind the scenes" action, end-user browser is forwarded to a product page of the e-commerce web store where details of the selected offer are presented to the end-user for further consideration. When the end-user executes a purchase, the server is notified of the transaction such that the referring party, the affiliate can be paid a commission. This example is extended in detail in the following description which includes reference to the drawing figures and various reference numerals therein. Figure 1 illustrates representative transactions between the primary system components and clearly illustrates these network based e-commerce affiliate systems. Encircled reference numerals reflect communication events between any two system components. Standard reference numerals are used to denote system component objects as opposed to events. Any users of computer systems can enlist to become an affiliate member of these programs by forming a membership relationship with the program administration. A computer user who desires to become an affiliate member forms this relationship and executes an agreement. The administration provides proprietary software to the new affiliate who installs the special AMM software on his computing system to initiate program execution. In addition, the new affiliate enters an affiliate hierarchy in accordance with a prescribed rule set. Details regarding the new affiliate member and relationships with other affiliates are duly noted and recorded in the membership database. The computer user is thereafter an affiliate member and may execute all program functions by way of the AMM software running on her computer. Similarly an e-commerce site participates in these programs by forming a member relationship with the program administration. In preferred cases, these systems require e-commerce sites to adopt very slight modifications to their commerce web sites and in particular to certain web pages which may be served therefrom. It is necessary for the member e-commerce web site to indicate to the main server whenever a sale transaction with an associated referral has occurred. Thus when an e-commerce site becomes a program participant, the site administrator adopts some special reporting functionality integrated with the site.

The reader's attention is drawn to Figure 1. An affiliate computing system 1 is equipped with special software system which runs as an affiliate management module 2, AMM. An affiliate user operating the affiliate system decides that a friend or other contact may be interested in a certain product. As a product representative, the affiliate forms a personal message to be transmitted to her friend and includes within that message a specially prepared link object. To facilitate preparation of a message with included link object, an AMM may interact with common messaging software packages and include easy to use command buttons. These command buttons automate "cut and paste" functionality to insert HTML code blocks defining the link object into a message text body. For example, the message might be embodied as an e-mail type message. While some e-mail systems are characterized as text only, more popular systems permit XML/HTML codes within a message body and e-mail client computers respond by parsing and handling HTML tags in accordance with appropriate rules. As such, the e-mail message may include a standard text message and a hyperlink with a text and/or graphic displayed and enabled with point-and-click functionality; i.e. the link is made responsive to a "click event". The link object includes an underlying URL which is engaged and activated if the message recipient clicks the link. The URL associated with a link object is carefully prepared and contains important information. First, the URL contains the address of a tracking system which will be contacted in the event of a user click action. Second, the URL contains indication relating to a forwarding address (the address of the e- commerce site) to which the user's browser will eventually be redirected. Third the URL contains the identity information of the affiliate who instantiated and transmitted the link to the potential buyer.

The message, so prepared by an affiliate is transmitted © from the affiliate system to an end-user's 3 browser which runs normally on a standard computer. The message received on the end-user's system may be displayed and presented for the end-user's consumption but does nothing else without further interaction and stimulation by the end-user. However, should an end-user click 4 a link, the end-user's browser is pointed to and directed via the URL associated with the link. In the case of a well-formed link object of these systems, the end- user's browser is directed to and calls © via a web request action a server 5 and more particularly a tracking system 6 which does some preliminary operations before forwarding the browser on to a particular e-commerce site. Namely, the tracking system writes © a "cookie" type text file to the end-user's file system. The cookie's contents may include information relating to the particular e-commerce site associated with the link, the affiliate message, the affiliate identity, day/time information, et cetera. In addition to the deposited cookie, the server also makes entries in a system database which relate to the transactions taking place.

After a cookie is deposited into the user's file system and appropriate data has been written to the database, the user's browser is redirected © to the e-commerce site 7 recommended by the referring party. A coded reference in the link object URL tells the tracking system which address to execute the redirection action upon. In preferred versions, the user browser is not only directed to the e-commerce site, but also to the specific page of the e-commerce site which contains information about a particular product recommended by the promoting affiliate. The end-user then reviews the product offer to come to an affirmative purchase decision and executes © the purchase transaction. Standard e-commerce "shopping cart", "basket", and "checkout" may be used to carry forth these transactions in the normal manner and tracking operations do not interfere with this standard functionality. These systems do not impose unusual accounting/operational constraints which would prevent use of common e-commerce web site principles and devices. In a final step of the sale process, the e-commerce store prepares and transmits © a confirmation page to indicate success of the transaction. However, confirmation pages particular to e-commerce members of these programs require a special "hidden" device included therein. Confirmation pages prepared in accordance with these inventions include a pixel arranged as a non-displaying 'image' which automatically causes the user's machine to make an additional web request triggered by loading download of the confirmation page at the end-user browser. This invisible image is herein referred to as a "blip pixel". When the confirmation page is parsed by the browser for presentation at the end-user machine, the confirmation page attempts to load the blip pixel thus forcing the end-user machine to make a web request in accordance with the URL associated with the blip pixel. Since the blip pixel URL is directed to the server system, the blip pixel in effect forces the end-user machine to make a final call to the server where details of the sale transaction become known to and recorded at the server. While a blip pixel may be a static device, it is sometimes preferred to prepare the device by way of user script.

One example way to form a blip pixel in a confirmation page of these systems is to provide a Javascrtipt script block in the HTML of the comfimation page. When the page loads at an end-user's browser, the script executes to write the HTML image tag (<DVIG SRC>). The variables which become part of the blip pixel URL are defined by 'ima' and 'nbs' and include such information as: transaction identity information; product identity information; currency identity information, among others. This is one preferred example of a script which can place a suitable blip pixel in a confirmation page, of course, many alternatives are possible.

<SCRIPT language = "javascript"> var ID_BASKET = '******* ID_BASKET *******'; var REV = '******* REV *******'^■ var ID_PROD_ADV = '******* ID_PROD_ADV *******'; var ID_CU RRENCY = '******* ID_CURRENCY *******'; var ima = "http://stats.tracker.net/REC.aspx?PU=TRAN&ID_BASKET=" + escape(ID_BASKET )+ "&ID_PROD_ADV=" + escape(ID_PROD_ADV) + "&ID_CURRENCY=" + escape(ID_CURRENCY) + "&REV=" + escape(REV); var nbs_t= " border=O' height='1 ' width='1 ' alt=">"; document.write('<IMG SRC='+ima+nbs_t); </SCRIPT>

As it is necessary to alert the tracking and accounting systems that a sale transaction has occurred, it is desirable that the confirmation page sets that into motion. Accordingly, a confirmation page includes such blip pixel. The blip pixel image tag has the useful property that it includes a URL which is automatically called when a page containing it is loaded at a browser. Thus an e-commerce site can prepare a confirmation page having such blip pixel therein to cause the user's machine to call the URL. So, when a user's machine loads a confirmation page of these systems it automatically also calls © the tracking system (http://stats.tracker.net - in the above example) to report the occurrence of a sale transaction.

There are at least two useful ways to convey the details of the sale transaction to the tracking system. In a first preferred arrangement, the e-commerce site prepares and deposits new cookies on the user's machine, or modifies existing cookies already there. The e- commerce site can be arranged to write coded information relating to all the details of the sale transaction such as time of execution, amount of sale, detailed list of products/quantities, et cetera. These cookies so written and prepared by the e-commerce site, and deposited into the end-user file system may thereafter be analyzed by cooperating systems with an understanding of the code used to prepare the cookie.

In alternative simple and brief systems, is not necessary to write a cookie to the user machine, but rather the URL of the blip pixel can be modified when the information page is prepared to include all the sale transaction information. When the end-user's machine calls the URL it simultaneously transmits encoded sale information to the tracking server by way of the URL. However, as URLs are limited in length, it is not always possible to include extensive details relating to a complex sale transaction in a single URL. In such cases the cookie method may be preferred.

In a final step, the tracking system notifies ® an accounting system 8 of the sale transaction and details relating thereto such that the accounting system can appropriately charge the e-commerce site for services in agreement with the accounting rules and membership agreements and can further distribute its revenues to the affiliate membership in accordance with those membership agreements.

In some special circumstances, these systems are adopted and slightly modified to interact with non-HTML compliant devices. A great many mobile system today are based upon a text only message which cannot include HTML tags and handlers for processing those information types. Good examples include the short messaging systems, or SMS systems, integrated with the ubiquitous cell phone. In addition, text only e-mail browsers or clients remain quite common despite the more used HTML based e-mail now seemingly dominant. On the occasion where an affiliate member decides to send a referral, and one is passed to an end-user via a text-only system which does not support HTML, a few intermediate steps are additionally included. When a referral message including a link object is intended for a text only system, the AMM intervenes to generate a reference code which can be fully represented in the text only device. A receiving user responds to the referral by manually taking that received reference code to any HTML browser, pointing the browser to a prescribed system web site specifically arranged to permit manual entry of the reference code. Entry of the reference code in this way operates as if the end-user clicked a normally transmitted link object passed in a full HTML message. A cookie is written to the user's browser and the browser is redirected to the appropriate site in agreement with the code. In this way, text only type end-user systems are also included as recipients of link objects in these inventions. While a useful example of the transactional nature of these systems is illustrated in Figure 1, the block diagram of Figure 2 is presented to show more detail relating to the system components and their relationships with each other. Figure 2 illustrates in block diagram preferred systems of these inventions including major components and their relations with other components as well as their connection relationship with a widely distributed data network such as the Internet. In addition, the figure illustrates some important minor components and their corresponding relationships. These systems primarily comprise: a server computing system 21; an affiliate computing system 22; an e-commerce (vendor) online sales type web server 23; and an end-user computing system 24, each of these being coupled via HTTP communications protocol 25 with the Internet 26. In addition, the affiliate computing system, the server computing systems, and sometimes the e-commerce vendor may also be in FTP 27 communication where files may be transferred directly into the file systems of each. The server computing system may be comprised of various components and each of these may be autonomous with respect to another.

In some versions, a first portion of the server may be implemented entirely separate from another portion of the server. For example, a tracking system may be arranged as an independent system in remote communication with a server accounting system. It is possible to "outsource" certain tracking services to independent commercial tracking entities while remaining an integral part of a system server for purposes of this description. That is, the diagram of Figure 2 is not meant to imply a restriction as to the physical location of a server and its subsystems.

A server system is comprised of five main subsystems including a tracking system 28, an accounting system 29, a membership system 210, an updates subsystem 211, and a campaign subsystem 212. In addition, servers may include either or both HTTP and FTP couplings to external data networks.

Preferred affiliate computing systems are comprised of FTP and HTTP connections to the Internet. Further, an affiliate computing system is comprised of an affiliate management module 213. While it is possible to arrange an AMM as a web service or web application which is addressable via standardized software such as common Internet browsers, it is preferred that an AMM be implemented as code being executed on a local processor. Thus in preferred systems, an affiliate prepares her machine with custom software upon becoming a member. Affiliate systems also include messaging tools 214 such as an e-mail client, instant messenger, blog authoring systems, chat interfaces, among others. Preferred AMM software packages further include subsystems therein including: a link object library 215, a graphical user interface 216, and a collection of executable functions 217 or software modules.

An e-commerce computing system or 'vendor' comprises an HTTP server 218 which hosts therein a web site arranged to make sales offers and execute sales transactions, and further includes confirmation pages 219 which have therein a special blip pixel devices 220 designed to cause an end-user browser to make web requests to a predetermined tracking server and report data regarding a sale transaction. An e-commerce computing system also may be comprised of a cookie writer 221 operable for writing data to the cookie file system of an end-user, the data including information relating to a sale transaction.

Finally, an end-user computing system includes an HTML browser 222 operable for receiving messages and making calls over the Internet. Further, the end-user computing system is arranged to support special cookie file system 223, read and write operations sometimes and herein known as "cookies".

The main server comprising its five main subsystems is presented in further detail herefollowing. The tracking system's main task is to record activity and details relating to link object placements, site visits, purchase/sale transactions. To effect this, a tracking system requires the functional ability to write cookies to an end-user's machine. When a tracking system is hit with any web request action from an end-user who clicked a suitably prepared link object, the tracking systems response includes deposit of a cookie to aid in tracking functions. In preferred versions, a cookie may include at least the following: a session ID; and affiliate ID; a vendor ID; manufactures products reference; and a date/time associated with the click action. The tracking system is additionally arranged to receive notifications from an end-user whenever the end-user browser receives a specially configured confirmation page having therein a blip pixel to trigger a call to the tracking system. Such call to the tracking system may invoke a web service module which responds by reading information in a cookie on the end-user's machine to learn details about a sale transaction. Alternatively, the web service may simply be arranged to parse the URL to gather all information relating to a sale transaction contained directly in the URL.

A server additionally includes an accounting system. The accounting system is arranged to read and process recorded transactions in the database in accordance with account rules and agreements. The accounting system provides billing services such that vendor members accounts are appropriately charged in agreement with all activity tracked to that account. When specific sales/purchase transactions are associated with a vendor member, the corresponding account is applied with charges set by the membership agreement or contract. Further, accounting servers also apply credits to the accounts of affiliate members. When an affiliate member promotes a product such that it results in a sale/purchase transaction, the affiliate is paid a commission in accordance with his/her membership agreement. In addition, the accounting system also applies commission payments to the other related and associated affiliate members in agreement with various schemes set forth in a membership rule set.

A membership server provides membership services with regard to program participants. In brief, two types of members include vendor members and affiliate members. Vendor members join these programs as independents and form no appreciable relationships with other participating vendor members. On the other hand, affiliate members join the program in a well ordered seniority scheme which necessitates associations and relationships between various of the affiliate members with respect to each other and the circumstances upon which they join the program. A membership server manages and dispenses these membership services. Further details are provided in sections following.

An update server provides refresh services to affiliates. In particular, as consumer markets are highly dynamic and products and product availability are subject to frequent change, an update server is arranged to make adjustments and revision to link objects which may be contained in a link object library on an affiliate system. The update services may simply upload new files in a prescribed format to a prescribed location on the affiliates of file system via FTP transfer. When the affiliate uses her AMM normally, updated information is automatically accessed via the refreshed files called by the AMM. As such, vendors have great latitude to change their product offerings without requiring their affiliates to download and apply new software updates. A campaign server also provides highly dynamic and time sensitive information to an affiliate system. A "live window" image field of the AMM receives a feed provided by the campaign server to present information to an affiliate in real-time. Campaigns may be fashioned in a manner to encourage specific affiliate activity. For example, a campaign may suggest a time limited offer where an affiliate earns a bonus should she meet certain activity targets before expiration of a prescribed time limit. A campaign may be devised to pay a bonus to any affiliate who sends 20 link objects in the hour immediately following campaign announcement. Certain campaigns may be targeted to various classes of users known to be online at any given time; or to a particular gender or age group. Of course, the various possible campaign schemes are endless and it is not useful to attempt to enumerate them here. However, it is important to note the device in combination with a live window connected to the real-time feed of the campaign server is discreet and clear. The campaign server may be coupled to the accounting system whereby temporary adjustments to membership accounting schemes may be made to accommodate a particular campaign strategy.

A server and all its subsystems are coupled to a database where all information and system states may be maintained. Systems characterized as: tracking; accounting; membership; update; and campaign may be implemented as sets of "business rules" and function embodied as "back office" software package. In addition, a main server may also include a "front office" portion which provides a user/administrator interface to the database, tables, and data therein. In one example implementation, a database is set out in the nine tables described in Fig. 3. The tables have relationships with external and internal subsystems as indicated here following. Examples of tables are also appended here to illustrate some possible embodiments. It will be fully appreciated that many alternative tables will also provide good basis upon which these inventions may rely.

Figure 3 presents an illustration of a server database and relationships which drive data read/insert/delete actions. A main server 31 is comprised of an HTTP server 32; an FTP server 33; and SMTP server 34; and a main database 35. A database may include primary tables as follows: a products table Tl ; a vendor table T2; a user table T3; a URL table T4; referral sent table T5; link downloaded table T6; reward table T7; campaign table T8; and homepage table T9. Of course, the true database includes many additional tables and the precise nature of how these may be set up is not of any importance in this teaching as many hundreds of alternatives will serve equally well. However, it is useful to understand how data and transactions may be recorded in the database tables mentioned as it illustrates how activity taken at any major system element interacts with the server in the most important ways. A table of vendors records enrolled vendor members and forms an association with a plurality of entries in the products table as indicated by the relationship connecting those tables. The product table maintains a relationship with the campaign table to connect any of a group of products to a particular campaign. Accordingly, there is at least a 'one -to-many' type relationship between the products and campaigns. There may be a many-to-many relationship between these tables is some special cases. The URL table maintains records for each URL associated with a products page which may be addressed by a browsing affiliate user to drive the toolbar new link object alerter service. Every time an affiliate user sends a referral, a record is placed into the referral sent table. This information is checked whenever an end- user makes a purchase to reconcile back to the affiliate referrer credit for making the referral. A relationship between the products table and the link downloaded table connects a particular product to a specific downloaded link. This relationship is a one-to-one type relationship. Affiliates can be associated with a particular campaign - and this is maintained by connecting the campaign table with the user table. The user table is further coupled with the link download table to reflect which link objects have been established in any particular user's library. Credit values are stored in a reward table and those credits are each associated with one user by way of the relationship between them. Each link object is connected to exactly one product and those tables are connected accordingly. Web pages associated with a particular product have a URL stored in the URL table which is connected to the products table.

An affiliate computer system and more particularly, an affiliate management module are further detailed in the following description which is presented with reference to Fig. 4. An affiliate computing system 41 includes a computer coupled to the Internet via both HTTP and FTP servers and further having application specific software installed thereon including at least one messaging tool 42 such as an Internet browser or e-mail client, and further including an affiliate management module 43. The AMM primarily comprises a graphical user interface GUI portion 44, a collection of function models 45, and a link library 46

An AMM provides services to an affiliate user of the systems. An AMM is preferably embodied as software installed on a local affiliate machine. An AMM may also be arranged in several ways. While it is possible to provide the AMM services via a stand-alone application, for example as a Windows application, preferred versions include those where an AMM runs in conjunction with a host application such as Internet Explorer; Outlook; or Yahoo messenger. Some best versions of AMMs are arranged to run alongside and in conjunction with such applications whereby the AMM becomes an integral part of the host program interface.

In preferred versions the GUI portion of an AMM may be implemented as a "toolbar" type interface. In particular, where an AMM is integrated with messaging software systems such as Outlook or Instant Messenger, the toolbar provides an attractive and seamless feel. Toolbars of these systems include standard GUI controls supporting "point-and-click" functionality such as drop-down lists; menus 47; command buttons 48; et cetera. Menus and command buttons may be coupled with underlying code modules which execute a prescribed function whenever these controls are stimulated. In this way, the GUI permits a user to easily access functions provided by the AMM. In addition, some versions of these GUIs also may include authorization systems 49 supporting member logon/logoff functionality as well as a "change user" function where one user can be replaced by another at a single machine. A most important part of the toolbar GUI of these systems includes a "live window" image field 410 device which supports receipt of information from a live feed from a main server. The live window operates to provide quick refresh of data and is useful for presenting to an affiliate particular information relating to a sales campaign provided by a vendor member of the system via the campaign server. When a campaign designed to attract the interest of an affiliate user is presented to an affiliate, the live window may be "clicked" to activate a pop-up window 411 with a detailed description of the campaign and its rules. Thus a live window presents text and graphics and additionally support for association with a pop-up window.

An AMM is also useful for reporting to a main server the connection status with regard to a particular affiliate user. When an affiliate system is connected and active, an indication of this condition is provided to the server via the connection status system 412. When a server is aware of which affiliate members are currently active, it can better tailor various campaigns to suit the nature of the active affiliates. Additional functions may also run from the AMM. For example, a refresh system 413, can be arranged to provide a "wake -up" and daily maintenance operation which may include a prescribed set of routines to be taken up automatically on a periodic basis. Although there is no need for user interface, a refresh system can run in the background as an AMM function.

The link library 46 is a store and manager for link objects 414. Affiliates maintain a custom library of links for various products which the affiliate would like to promote. Each link obiect may be embodied as an HTML code block. An example follows: c ht ml ;

<bod

< Λ l-ie£=" tracker URLJ " > IΛanfe c f th^ pxo auccj < ! A>

( .trac tor JPL] )

< /html> where "tracker URL" is a valid URL with parameters for tracking; forwarding; and providing identity information.

In one particular version, a function module of the AMM is arranged to support a "cut and paste" operation whereby a particular link object HTML code block may be selected by an affiliate via a GUI control and be deposited to the system clipboard. An affiliate user can select a desired link object from a list for example in a drop-down list box web control, and activate a "cut" action 415 via a click on a command button. Thereafter, the affiliate places an insertion point cursor in any location of a message where a paste operation is desired. The link object may be easily pasted from the clipboard into a message from a message tool software interface, or by the universal paste operation triggered by the key press combination: 'ctrl-V.

A special function additionally provided by the AMM relates to encouraging affiliate members to take on new link objects and receive them into their personal link library. A function module is arranged as a "new link object alerter" 416. When the AMM is running as a toolbar in a browser window, this alerter system continuously monitors the current URL to which the browser is pointed. The alerter system compares the URL to a stored list of URLs received from the main server to determine correspondence between the current page and known vendors. When the URL corresponds to a registered vendor member having available link objects not already in the affiliate's link library, the toolbar background changes colour to indicate subtly to the affiliate that new link objects are available for addition to the affiliate user's custom link object library. Upon seeing the colour change, the affiliate can then respond by investigating further which new link objects are associated with products and services she would like to recommend to her friends. She can further add those desired link objects to her library by simple point-and-click actions. In this way, affiliate users are continuously reminded as they browse the Internet, and in particular those sites of vendor members, to update and upgrade their link object libraries.

A very important aspect of these systems uses the power of "word of mouth" or community sharing to form a seniority hierarchy and encourage recruitment of additional affiliates. By encouraging another to become an affiliate member, a commission sharing scheme dictates that a portion of the newly introduced new members commissions are paid to the one who introduced her to the program. The same methodology can be extended to several generations of the hierarchy tree. So, it not only increases one's profits to encourage those under him in the hierarchy to promote products, but it also pays to encourage those to recruit new affiliate members. Multi-level marketing schemes have relied upon similar structures for many years, but this arrangement is not otherwise deployed in conjunction with referral affiliate systems applied and embodied in electronic commerce networks.

Figure 5 illustrates one example affiliate hierarchy including three generations of affiliates and the relations of each affiliate with others. First generation affiliates joined the affiliate family without invitation from any currently enrolled affiliate and these affiliates enjoy a top level position in the hierarchy tree. Affiliate members Elena and Earling are first generation affiliates. Elena has promoted the program to two of her friends, Nadia and Caroline, and these friends enrolled as second generation affiliates under Elena. Whenever Elena promotes a product by transmitting links in messages which result in a sale, she is paid a commission. As there are no members senior to Elena, the commission payments stop there. However, should Nadia promote a product to sale, the commission will be split between Nadia and Elena in accordance with agreed upon proportions. Elena is senior to and in the same branch of the hierarchy tree as Nadia. Similarly, Nadia has introduced the system to two of her friends rnes and Anne. And these friends join as third-generation affiliates under Nadia, and further under Elena. Should rnes promote a product via these AMM link objects to produce a sale, then rnes will be paid a commission, Nadia also, and finally Elena. Depending upon the various rules for commission distribution agreed-upon when an affiliate joins the program, commissions are split among a referring affiliate and senior members in generations above in the immediate affiliate hierarchy branch. Caroline has promoted the program in a particularly ambitious manner and has recruited seven new affiliates: Mia, Claire, Celine, Camille, Sophie, Aurelie, and Karina, each of whom join as third-generation affiliates, under Caroline, and under Elena. It can be shown that as a result of any sale produced by either of 12 associates (including Elena herself), Elena will receive a commission portion. Careful examination will also reveal that should Jenny promote a product to sale, she, Melanie and Earling will receive a commission. Elena receives nothing from sales brought by Jenny.

Use of the term "e-commerce" web sites is convenient, however it is not intended to limit these inventions to only 'for-profit', sale-transaction systems. Indeed special versions are suitable for use with non-commercial entities and in some situations where a sale transaction does not occur at all. In those special cases, a "vendor member" is any entity who wishes web traffic to be directed to a site via referral mechanisms taught here. A vendor member may be a member who wishes to distribute free information and thus wishes to have visitors arrive at the website to establish a download relationship. It is not the case that a vendor member necessarily have items for sale on the site. However, it is required that there be some system activity (for example, a download action, or an enrollment action) which results in processing of a confirmation page including a blip pixel. An illustrative example includes one where an entity such as the Red Cross wants to generate traffic in order to encourage people to join a newsletter mailing list. Of course the Red Cross is not an "e-commerce" entity in the precise sense of the word, but for the description herein we accept the Red Cross as a "vendor member". When a referred person joins a newsletter mailing list (equivalent of a "sale transaction" for purposes of this disclosure), a confirmation page is sent triggering completion of the prescribed activity and further execution of the compensation mechanisms which reward an affiliate member for providing the referral.

One will now fully appreciate how advanced e-commerce referral systems having an affiliate membership hierarchy are realized. Although the present inventions have been described in considerable detail with clear and concise language and with reference to certain preferred versions thereof including best modes anticipated by the inventors, other versions are possible. Therefore, the spirit and scope of the invention should not be limited by the description of the preferred versions contained therein, but rather by the claims appended hereto.

Claims

1) Network affiliate systems comprising: a server computing system; a vendor computing system configured as an online e-commerce system; an end-user browser; and an affiliate computing system comprising an affiliate management module, each of said server, vendor, browser, and affiliate systems are in TCP/IP communication with a distributed data network, the said affiliate management module comprising: a graphical user interface; a library of link objects each comprising a product reference and a routing code; and a collection of executable functions embodied in programming code, said graphical user interface providing addressable access to the collection of functions, said collection of functions including integrating a linked object with a message to be transmitted to an end-user browser.

2) Network affiliate systems of claim 1 , said server computing system further comprising: a membership system; a tracking system; and an accounting system, said membership system comprising affiliate members and vendor members, means for adding/deleting affiliate members, means for adding/deleting vendor members; said tracking system comprising means for recording visits and purchase actions of end-users with respect to vendor e-commerce sites and associating those visit and purchase transactions with vendor members and affiliate members; said accounting system comprising : a commission rules set, vendor accounts, affiliate accounts, the accounting system being responsive to visit and purchase action records such that the vendor and affiliate accounts are credited and debited in accordance with the commission rules set.

3) Network affiliate systems of claim 2, said membership system further comprises an affiliate member hierarchy tree which provides associations between various affiliate members.

4) Network affiliate systems of claim 3 , said hierarchy tree includes a plurality of generations, newly added members are assigned a position in the hierarchy tree one generation higher than the member referring them and an association is formed with that referring member.

5) Network affiliate systems of claim 1 , said tracking system forms a visit record in response to a user click action associated with a linked object received by the user the visit record includes an affiliate member identity, visit details, said tracking systems forms a sale transaction record in a response to a sale transaction executed at a vendor member e-commerce site, the sale transaction record includes: affiliate identity information, and purchase detail information.