INCORPORATING_A_PRODUCT_IN_A_MULTI-LEVEL_MARKETING_SYSTEM

US20210374787A1(19)UnitedStates(12)PatentApplicationPublication(lo)Pub.No.:US2021/0374787AlCooper(43)Pub.Date:Dec.2,2021(54)INCORPORATINGAPRODUCTINA50/01(2013.01);G06F16/955(2019.01);MULTI-LEVELMARKETINGSYSTEMG06Q30/0214(2013.01);G06Q20/1235(2013.01)(71)Applicant:KwikClick,LLC,Murray,UT(US)(72)Inventor:FredCooper,Farmington,UT(US)(57)ABSTRACT(21)Appl.No.:17/332,916Thepresentdisclosureisdirectedtoasystemandmethodto(22)Filed:May27,2021allowsellersofproductstoestablishindividualproductsinamultilevelmarketing(MLM)commissionsystem,whereRelatedU.S.ApplicationDatatheproductisofferedandsoldtoafirstpurchaser—whothenactivelybyrequestingacode,orpassively,throughtheProvisionalapplicationNo.63/031,358,filedonMay(60)purchaseoftheproduct,becomesauserofthecommission28,2020.system.Thisuserisprovidedacodesuchthatthecodemaybepassedontofollowersoftheregistereduser.Theregis­PublicationClassificationtereduserwillbeallowedtoadvertisetheproducttoa(51)Int.Cl.secondpurchaserandthesecondpurchaserwillbeallowedG06Q30/02(2006.01)topurchasetheproductandprovideadvertisementstootherG06Q30/06(2006.01)purchasers.Commissionspaidtorespectivedownlinepur­G06Q30/00(2006.01)chasersforasingleproductmaybelimitedbyapresetG06Q20/12(2006.01)numberofdefinedlevels.ThecodemaybeembeddedinaG06F16/955(2006.01)mediafilewhichmaythenbesharedonsocialmedia.After(52)U.S.Cl.aproductispurchased,commissionsarepaidouttoeachCPC....G06Q30/0222(2013.01);G06Q30/0633respectivepurchaseraccordingtothedefinedcommission(2013.01);G06Q30/0185(2013.01);G06Qlevels.PatentApplicationPnblicationDec.2,2021Sheet1of6US2021/0374787AlPatentApplicationPnblicationDec.2,2021Sheet2of6US2021/0374787AlPatentApplicationPnblicationDec.2,2021Sheet3of6US2021/0374787AlPatentApplicationPnblicationDec.2,2021Sheet4of6US2021/0374787Als>T3UserUpioadsMediaFile"S-toAdminNetwork&s510S'shd________iil________c2UserIdentifiesProductS"AssociatedwithMedia&sS'Files520XO«ffiCreateSmartLinkandEmbedinMediaFilels>O530ls>CZ5ICTSendEmbeddedMediaffiFiletoUserDeviceU1540o________ik________UserSharesEmbeddedMediaFileonSocialdCZ5Medials>O550ls>o<1■u<100<1>PatentApplicationPnblicationDec.2,2021Sheet6of6US2021/0374787Alooot**cototo<£»11oooCiy»CMtotototo<0US2021/0374787AlDec.2,20211INCORPORATINGAPRODUCTINAtotheirrespectiveDistributors.CompensationisexclusivelyMULTI-LEVELMARKETINGSYSTEMintheformofcommissionsthatrequireaparticipanttoenteracontract,pledgingexclusivityinparticipationtotheMLMCROSS-REFERENCETORELATEDcompanypayingthecommissions.Anewrecruitbycon­APPLICATIONtract,isexpresslyprohibitedfromjoining,recruitingforanotherMLM,andofferingalternativegoodsorservices[0001]ThepresentapplicationclaimstheprioritybenefitfromanyotherMLMCompany.ofU.S.provisionalapplicationNo.63/031,358filedMay[0007]MLMcompensationplanstheoreticallypayoutto28,2020,thedisclosureofwhichisincorporatedhereinbyparticipantsonlyfromtwoprimarypossiblerevenuereference.streams.ThefirstispaidoutfromcommissionsofsalesBACKGROUNDOFTHEINVENTIONmadebytheparticipantsdirectlytotheirownretailcustom­ers.RetailcustomersarenottrackedorknownbytheMLMFieldofInventioncompanythereforeMLMcompaniescannotsubstantiateeithertheirexistenceortheirsalesvolumeindividuallyor[0002]Thepresentdisclosureisgenerallyrelatedtomulti­collectively.Thesecondispaidoutfromcommissionsbasedlevelcommissionpaymentsystemsandmethods.Moreuponthewholesalepurchasesmadebyotherdistributorsspecificallythepresentdisclosureisdirectedtoprovidingbelowtheparticipantwhohaverecruitedthoseotherpar­commissions,referral,and/orfinderfeestopurchasesmadeticipantsintotheMLM;intheorganizationalhierarchyofbyrelatedusers.MLMs,theseparticipantsarereferredtoasone’sdownlinedistributors.DescriptionoftheRelatedArt[0008]MLMsalespeople(distributors)are,therefore,[0003]AMultilevelmarketing(MLM)commissionpay­expectedtosellspecificMLMcompanyproductsdirectlytomentsystemisasalesmethodologyusedbysomedirectend-userretailconsumersbymeansofrelationshipreferralssalescompanies,whichmaybeusedtoencourageexistingandwordofmouthmarketing,butmostimportantlytheyaredistributorstorecruitnewdistributorswhoarepaidaincentivizedtorecruitotherstojointhecompany’sdistri­percentageoftheirrecruits’sales.Therecruitsare“down­butionchainasfellowsalespeoplesothatthesecanbecomeline”ofthedistributors.Distributorsalsomakemoneydownlinedistributors.throughdirectsalesofproductstocustomers.Amway,[0009]Currently,nolargefinanciallysuccessfulMLMwhichsellshealth,beauty,andhomecareproducts,isansalesperson(distributor)canearncommissionsofanysig­exampleofawell-knowndirectsalescompanythatusesnificanceortakefulladvantageofacommissioncompen­multilevelmarketing.sationplanwithoutpersonallyrecruitingothersintotheir[0004]Multilevelmarketing(MLM)hasbeenfoundtobedownline.alegitimatebusinesssalesmethodologyifparticipants[0010]AllMLMcompensationcompaniespermanentlyreceivesomethingofvaluefortheirparticipationinanplacenewrecruitsinatreestructureforcalculatingcom­MLMorganization.EventhoughAmwayhasapyramidlikemissions.Onceplaced,allsalesmadebythatdistributorstructurewheresponsorsmayreceivemorebenefitsthanfromtheirpersonalpurchases,orfromnewrecruitstheynewrecruits,Amwaybeenjudgedtobealegitimateorga­sponsor,generatecommissionsonlyfortheirsponsorandnizationbecauseallparticipantsreceivethebenefitofpur­upline,regardlessofallfutureproductssold.chasingproductsatacompetitiveprice.Oneproblemwith[0011]MLMcompaniesoffergoodsorservicesofferedsomeMLMorganizationsreferredtoas“pyramidschemes”specificallyandexclusivelybythem.ThelargemarkupsisininstanceswherenewrecruitsdonotreceiveanybenefitrequiredforpaymentofcommissionsnecessitateMLMbasedonjustjoiningtheMLMorganization.Onecharac­companiestolimitwhatproductstheycanoffersuchthatteristicofanMLM“pyramidscheme”versusalegitimatetheywillbefinanciallyindifferentregardingwhichproductMLMorganizationisthatina“pyramidscheme”partici­adistributorchoosestobuy.pantsreceivebenefitsbasedprimarilyfromsigningupother[0012]MLMcompaniescurrentlyrequirea“paytoplay”newrecruits.Thus,moneyreceivedfromthenewrecruitsrequirement.Distributorsarerequiredtomakemonthlyonlypayspeopleabovethemoratthetopoftheoiganizationpurchases,and/ormeetdownlinegroupsalesvolumestoratherthannewrecruitsorotherswhoactuallyperformworkqualifyforcommissions.Thus,themode,medianandaver­(e.g.thesellingofproducts).Assuch,a“pyramidscheme”agepurchasesizeofaDistributorinMLMsisvirtuallyequalisalsocharacterizedbypayingsponsorsratherthanindi­tothisminimumqualificationrequirementandnogreater.vidualsthatperformthework.Thisiswhy“pyramid[0013]Distributorsonlyqualifyforcommissionsiftheyschemes”areillegal.These“pyramidschemes”involvehavepurchasedaminimumthresholdofproductsofferedtakingadvantageofpeoplebypretendingtobeengagedinexclusivelybytheMLMcompanyassetforthbyanMLMlegitimatemultilevelornetworkmarketingactivitieswhencompany’scommissionprogramrules.theirgreaterfocusisonrecruitmentratherthanonproduct[0014]Currently,inordertojoinanMLMorganization,sales.thereisaninitiationfee,whichmaybeabarrieragainst[0005]Oneissueindeterminingthelegitimacyofamul­thosethatjustwishtoreferasingleproductofferedbythetilevelmarketingcompanyiswhetheritsellsitsproductsMLMcompany.Currentmulti-levelmarketing(MLM)sys­primarilytoconsumersortoitsmemberswhomustrecruittemsdonottakefulladvantageoftheinternetandhownewmemberstobuytheirproducts.Ifitistheformer,theconsumerscaninfluenceotherconsumerstomakepur­companyislikelyalegitimatemultilevelmarketer.Ifitisthechases.Also,currentMLMsystemsdonotincorporatelatter,itcouldbeanillegalpyramidscheme.incentivizingusersofamultilevelmarketingsystemby[0006]EachMLMcompanydictatesitsownspecificofferingadynamiccommissiontree.Inaddition,thereisnofinancialcompensationplanforthepayoutofanyearningscurrentMLMsystemthatutilizesthemoneyorfundsUS2021/0374787AlDec.2,20212dedicatedtodiscountsorcouponstobereincorporatedintonetwork.Theadministrationnetworkgeneratesdifferentamultilevelmarketingsystemtoincentiveconsumerstocode(codeB)thatisassociatedwithuserBandwithcodemakepurchasesandadvertisetheproductthattheypur­A.TheuserAisawardedcommissionbecauseuserBusedchased.codeA.Anotherbuyerpurchasesthesameproductusingthe[0015]Currently,acompanythatisnotutilizinganMLMcodeassociatedwithuserB.Thethirdbuyeralsoautomati­structureforpayingcommissionsforsales,cannotintroducecallybecomesauser(userC)oftheadministrationnetwork.onewithoutdevelopingacompensationplanspecificforTheadministrationnetworkgeneratesdifferentcode(codetheircompany,followingthemethodologyoutlinedabove,C)thatisassociatedwithuserCandcodeB.BothuserAandandthusrequiringthemtobecomeandsubsequentlyadhereuserBareawardedcommissionbecauseuseCusedcodeB,toapplicableMLMlaw.whichisassociatedwithcodeA.[0016]Thus,thereisaneedtoprovideanycompanyan[0026]Alternatively,acomputerthatispartofanadmin­opportunitytocompensateconsumersinthewayofcom­istrationnetworkreceivesanotificationthatabuyerhasmissions,referral,and/orfinderfeeswithoutbeingsubjecttopurchasedaregisteredproduct.ThecomputerthenidentifiesMLMlaw.thebuyerasauser(userA).Thecomputergeneratesacode[0017]Further,thereiscurrentlynosystematicwayfor(codeA)thatisassociatedwithuserA.UserAprovidesaconsumerstopromoteanybrandofpreferenceoutsidethemediafiletothecomputerandthecomputerembedscodeAMLMindustryandbepaidinanMLMcommissionmeth­inthemediafile.Thecomputerreceivesanotificationthatodologywithoutsubjectingthemselvestoacontractualanotherbuyerhaspurchasedthesameproduct,andthesignup,initiationfees,minimumrecurringpurchasessalesnotificationincludescodeA.Thecomputerthenidentifiesvolumerequirements,recruiting,exclusivityandpermanentthesecondbuyerasauser(userB).Thecomputergeneratestreeplacement(resultinginonlyuplineDistributorsearningadifferentcode(codeB)thatisassociatedwithuserBandcommissions).codeA.ThecomputerawardscommissiontouserAbecause[0018]Further,advertisingbythemembersoftheMLMisthenotificationincludedcodeA.ThecomputerreceivesausuallyamanualprocesswithmostMLM’ssimplyprovid­notificationthatanotherbuyerhaspurchasedthesameingtheirmemberswithareferrallinkandapre-writtenproduct,andthenotificationincludescodeB.Thecomputerstatementthattheycanemailtoothersorpostonawebsite.thenidentifiesthethirdbuyerasauser(userC).TheThus,thereisaneedtoprovideusersamethodtojoinancomputergeneratesadifferentcode(codeC)thatisasso­MLMforfree,distributetheMLMcommissionsprovidedciatedwithuserC.Thecomputerawardscommissiontobythesellerstothepurchasersformarketingtheseller’sbothuserAanduserBbecausethenotificationincludedproducts;andtoallowuserstosharemediacontentquicklycodeB,whichisassociatedwithcodeA.andeasilywithselectsocialgroupsandtrackthechainofdistributionsuchthatusersareappropriatelycompensated,DETAILEDDESCRIPTIONallwithinoneapplication.[0027]ThepresentdisclosureisdirectedtoasystemandmethodtoallowsellersofproductstoemollanindividualBRIEFDESCRIPTIONSOFTHEDRAWINGSproductinamultilevelmarketing(MLM)typecommission[0019]FIG.1illustratesasystemforMulti-LevelMar­system[system],whereagoodorservice[product]isketingofproductsviaasetofcomputingdevices.offeredbyanyvendorandsoldtoafirstpurchaser—whoat[0020]FIG.2illustratesamethodthatmaybeperformedthetimeofthepurchasebecomesasystemuser.Thisuserbyacomputerthatperformsfunctionsconsistentwiththehasacodetiedtothespecificproduct(s)offeredbytheadministrationnetworkcomputer110ofFIG.1.participatingvendor.Thecodeissharedbythisfirstuser[0021]FIG.3illustratesamethodthatmaybeperformedpassively(byapurchase)oractively(byrequest)tothenewatauserdevicewhenoperationsofamulti-level-manage-buyer.Thecodesharemakesthenewbuyerauserofthementsystemconsistentwiththepresentdisclosurearesystem.Thenewuser,likethefirst,willbeallowedtoperformed.purchasetheproductandprovideadvertisementstoother[0022]FIG.4illustratesamethodthatmaybeperformedpurchasers.Commissionspaidtorespectivedownlinepur­byacomputeratthethirdpartynetworkcomputer160ofchasersforasingleproductmaybelimitedbyapresetFIG.1.numberofdefinedlevels.Afteraproductispurchased,[0023]FIG.5illustratesstepsthatmaybeperformedcommissionsarepaidouttoeachrespectivepurchaserbetweentheadministrationnetworkcomputeranduseraccordingtothedefinedcommissionlevels.deviceofFIG.1.[0028]Anadministrationnetworkcomputer,asshownin[0024]FIG.6:IllustratesacomputingsystemthatmaybeFIG.1,identifiesthataproducthasbeenpurchasedfromausedtoimplementanembodimentofthepresentinvention.user(s)ofthesystem[firstuser].Thesystemmaygenerateanembeddedcodedlinkthatconnects(links)thereferrertoSUMMARYOFTHECLAIMEDINVENTIONthepurchaser(s).Thislinkmaybesharedautomaticallyormanuallydependingonthereferrer’spreference.Thecom­[0025]Abuyerpurchasesaproductthatisregisteredwithputermaythenautomaticallypaysremuneration,intheformanadministrationnetwork.Thebuyerthenautomaticallyofacommissions,referral,and/orfinderfees,tothefirstbecomesauser(userA)oftheadministrationnetwork.Theuser.Additionally,thepurchaser(s)becomesaseconduseradministrationnetworkgeneratesacode(codeA)thatis(s)ofthesystem.ShouldanewindividualbuythesameassociatedwithuserA.UserAembedsthecodeAinamediaproductfromtheseconduser(s),anotherembeddedcodedfileandusesthatmediafiletoadvertisetheproduct.Anotherlinkmayconnectthefirstusertonotonlytheseconduserbutbuyerpurchasesthesameproduct,andintheprocessofthenewindividual(s)aswell.BoththefirstandsecondusermakingthepurchaseusescodeA.Thesecondbuyeralsoofthesystemareremuneratedforthenewindividual(s)automaticallybecomesauser(userB)oftheadministrationpurchase.Thiswaveofcreatingandrecreatingusers(1,2,US2021/0374787AlDec.2,202133,etc.)basedonpurchasesandlinkingthemtogethermaybewithitsassociatedcommissionstructure.Theterm“singleindefinitelyiterative.Remunerationonthisspecificproductproducttree”referstoauniquestructureforassociatingmaybepaidtoalluserslinkedtogetherinthesystem,eachdistributorsofanMLMorganizationwhereproductsaretimeapurchaseismade.Thelinksmaybeuniqueandareusedtoidentifyrelationshipsbetweendistributorsandcom­fixedtoeachgoodorservicebeingreferred.missionspaidtorelateddistributors.This“singleproduct[0029]FIG.1illustratesasystem100forMulti-Leveltree”structureallowsforaparticularusertobeconsideredMarketingofproductsviaasetofcomputingdevices.TheasponsororanyotheruserbasedonthatusersendingsystemofFIG.1includesanadministrationcomputerorpromotionstootheruserstopurchaseaproductthatthose“administrationnetwork”computer110,ausercomputingotheruserswerenotpreviouslyassociatedwith.device140(userdevice),andathirdpartynetworkcomputer[0033]Theadministrationnetworkcomputer110may160.EachofthedevicesofFIG.1,theadministrationalsoprovideapluralityofbuyers/distributors,allowtheatnetworkcomputer110,thethirdpartynetworkcomputerleastonefirstsellertoemollaproducttotheMLMsystem,160,anduserdevice140maycommunicatewitheachotherandallowatleastafirstbuyer/distributortopurchasetheviathecommunicationsnetwork190suchastheInternetorproduct.Otherfunctionsthatmaybeperformedbytheacloud.administrationnetworkcomputer110includeallowingthe[0030]Amemory,asshowninFIG.5,attheadministra­atleastthefirstbuyer/distributortoadvertisetheproducttotionnetworkcomputer110maystorecommissionprogramotherpotentialbuyers/distributorsandallowingatleastainstructions120executedbyacomputerprocessor,andansecondbuyer/distributortobuytheadvertisedproduct.Hereadministrationdatabase130.Userdevice140ofFIG.1maythesellermaysetacommissionstructureforaproduct,maybeanyuserdevicesuchasalaptop,smartphone,tablet,emolltheproductintotheMLMsystem,mayallowthefirst,computer,orsmartspeakerwhichmayincludeauserdevicesecondandsoonpurchasers/distributorstopurchaseandcommunicationinterface150whichmaybeanetworkadvertisetheproduct.interfaceasshowninFIG.5.Thethirdpartynetwork[0034]Onceproductshavebeenemolledwithacommis­computer160ofFIG.1mayincludediscountprogramsionstructure,theadministrationnetworkcomputer110instructions170executedbyacomputerprocessor,amayallowthepurchasers/distributorstoreceiveacommis­memory,andacommunicationinterface150whichmaybesionbasedupontheseller’sproductcommissionstructure.anetworkinterface.Adistributormayrefertothenon-salariedworkforceselling[0031]Useofthesystemmaybeasfollows.Auserthecompany’sproductsorservices.Heretheearningsoftheconnectsauserdevice140tothecommunicationnetworkparticipantsmaybederivedfromapyramid-shapedor190viatheuserdevicecommunicationinterface150.binarycompensationcommissionsystem.ThetermproductThroughthecommunicationnetwork190theuserdevicemayrefertoarticlesorsubstancesmanufacturedorrefined140connectswiththethirdpartynetworkcomputer160viaforsale.Productmayrefertoanindividualproduct,alinethethirdpartynetworkcommunicationinterface170.Asetofproductssuchasuniquebrandandmodelofdrill,oraofthirdpartynetworkdiscountprograminstructions180groupofproductssuchasallpowertools.Aservicemayallowtheusertopurchaseaproductfromthethirdpartyrefertoasystemsupplyingapublicneedsuchastransport,networkcomputer160andapplyadiscounttotheproductcommunications,orutilitiessuchaselectricityorwater.ifauserhasacode.Confirmationofthepurchaseandthe[0035]Aservicewhichmaybeanactofdealingwithacodearethensentfromthethirdpartynetworkcomputercustomerinastore,restaurant,orhotelbytakingtheir160totheadministrationnetworkcomputer110.Iftheuserorders,showing,orsellingthemgoods.Additionally,adidenteracode,asetofadministrationnetworkcommissionservicewhichmaybeworkthatsomeonedoesortimethatprograminstructions120willpaycommissiontoatleastsomeonespendsworkingforanorganization,orabusinessanotheruserthatisassociatedwiththecode.Anewcodeisthatoffersaparticulartypeofhelporwork.Thesystem100thengeneratedbytheadministrationnetwork110pertheofFIG.1maydistributecommissionsaccordingtoanMLMadministrationnetworkcommissionprograminstructionstreeorcommissiontreethatisapaymentstructureinwhich120.Thenewcodeisassociatedwiththeuseroftheusercommissionsaregivenoutatdifferentpercentagesatdif­device140.ThecommissionandthenewlygeneratedcodeferentlevelsoftheMLMtree,forexample.Insuchasystemarestoredintheadministrationnetworkadministrationdistributor(users)thatperformthesaleorthatareataleveldatabase130.thatis“closer”tothedistributorthatperformedthesalemay[0032]Programcodeinstructionsoftheadministrationreceivelargercommissionsthandistributorsthatare“far­networkcomputer110maybeoiganizedasoneormorether”fromthesale.softwaremodulesthatincludeinstructionsforperforming[0036]Inanotherexample,afirstMLMdistributorthatdifferentfunctions.Forexample,asetofcommissionpro­performsasalemayreceiveahigherpercentagethanagraminstructions120mayincludebaseprograminstruc­seconddistributorthatsponsoredthefirstdistributor,andations,advertisingprograminstructions,calculationprogramthirddistributorthatsigneduptheseconddistributormayinstructions,andvendorprograminstructions,theadminis­receivealowercommissionthanthecommissionreceivedtrationnetworkcomputer110mayalsoaccessoneormorebytheseconddistributorforthesale.Distributorsinandatabases,suchasacompensationdatabasethatstoresMLMtreemaybereferredas“downline”or“upline”compensationdataandacodedatabasethatstoresprogramdistributorsdependingonwheredifferentusersrankonthecodeorweblinkdata,forexample.TheadministrationMLMtree.Forexample,afirstuserthatsponsorsasecondnetworkcomputer110mayacceptsellers(thirdparties),useris“upline”fromtheseconduserandtheseconduseriswherea“singleproducttree”multi-levelmarketingmethod“downline”fromthefirstuserintheMLMtree.Further­isformed,comprisingthestepsof,providingatleastonemore,anyuser/distributorthatthesecondusersponsoredproduct,providinganMLMsystemwithaseller’scommis­wouldbeconsidereddownlinefromtheseconduserandsionstructure,andprovidingatleastonesellerofaproductcouldbedownlinefromthefirstuseraswellforagivenUS2021/0374787AlDec.2,20214MLMproducttree.Whena“singleproducttree”structureis[0040]AnuplinemayrefertotheMLMdistributorsthatusedtoidentifycommissions,usersthataredownlinefromrecruitsworkforassalespeopletoselltheproductsorthesecondusermaynotbedownlinefromtheflrstuserservices.AdownlinemayrefertotherecruitstheMLMbasedontheseconduserpurchasingandadvertisingprod­distributorsareabletosecureasparticipantsintheMLMuctsnotassociatedwiththeflrstuser.Whentheflrstusersystem.DownlineMLMtreesmaygoacrosscountrybound­purchasestheproductinitiallyadvertisedbytheseconduser,ariesandcommissionsmaybepaidoutforanMLMtreethesecondusermaybeconsidereduplineoftheflrstusereventhoughtheparticipantsinthe