WO2001031529A1

WO2001031529A1 - Incentive program associated with equity acquisition

Info

Publication number: WO2001031529A1
Application number: PCT/US2000/011773
Authority: WO
Inventors: Carolyn A. Clute; Donna Lynn Kuker; Matthew Ho; Paul B. Hudson; Frank Slacik; Liam Andrew Supple
Original assignee: KOLOSKI, Raymond, S.
Priority date: 1999-10-22
Filing date: 2000-05-02
Publication date: 2001-05-03
Also published as: AU4978800A

Abstract

A method of implementing a loyalty-based reward plan for use by a participant (10) in a loyalty program involving equity ownership is disclosed. A transaction is conducted by the participant (10) with a merchant participating in the program. Points based on the transaction are awarded. The points are assigned a dollar value redeemable for use in acquiring an equity interest and/or a good and/or service.

Description

INCENTIVE PROGRAM ASSOCIATED WITH EQUITY ACQUISITION

Cross-Reference to Related Application

The present invention claims priority to Provisional Application Serial No. 60/160,914 (Attorney Reference 046448-0002), filed on October 22, 1999, and Patent

Utility Serial No. 09/492,792 filed on January 28, 2000 (Attorney Reference 046448- 5002), both are incorporated by reference herein in its entirety.

Field of the Invention The present invention relates to a reward plan, and more specifically a reward plan which encourages a participating consumer to transact with one or more participating merchants for an opportunity to obtain a reward, possibly including equity in the merchants.

Discussion of the Related Art

It is known for merchants to offer incentive programs to encourage customer loyalty. Credit card companies offer money back or discounts on goods or services based on the spending of the card holder (e.g., carrying a balance, purchases totaling more than a predetermined minimum during a specified time interval, free gasoline based on past gasoline purchases, etc.) Often, these types of programs reward the customer with small, incremental awards. Additionally, these types of specialized awards are often of marginal use to customers, and are not related to the customer's true economic interest. For these reasons, incentive programs often do not succeed in influencing large numbers of customers to significantly alter their acquisition of goods or services from specific merchants. Since participation in these programs is thus limited, the programs are often difficult and expensive to administer.

For the reasons discussed above, it is desirable to have an incentive program whereby valuable rewards of wide use are offered to customers consistent with their true economic interests. Summary of the Invention

It is an object of the present invention to provide a reward plan which awards incentives which are of great use to a reward plan participant.

It is another object of the present invention to provide a loyalty-based reward plan which satisfies a customer's true economic interest.

It is still another object of the invention to provide a loyalty-based reward plan which succeeds in influencing large numbers of customers to significantly alter their acquisition of goods and services from merchants participating in the reward program.

It is still another object of the invention to provide a customer loyalty-based reward plan which successfully influences program participants to loyally acquire equity interests, goods, and services from participating merchants in which the customer has a tangible economic interest.

To achieve these and other advantages and in accordance with the purpose of the present invention, the present invention provides a method of implementing a loyalty- based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring an equity interest.

The present invention further provides a method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring a good and/or service.

The present invention further provides a method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding dollar values based on the transaction redeemable for use in acquiring an equity interest.

The present invention further provides a method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding dollar values based on the transaction redeemable for use in acquiring a good and/or service.

The present invention further provides a method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership before the merchant has offered stock shares in an upcoming offering of the equity, including the steps of conducting a transaction with a merchant participating in the program, and awarding points that are redeemable for use in acquiring an equity interest after the offering of the equity has occurred.

The present invention still further provides a method of implementing a loyalty- based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring an equity interest including a mutual fund share. The present invention still further provides a method of implementing a loyalty- based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding points based on the transaction redeemable for use in acquiring an equity interest, wherein a redemption ratio required to obtain a predetermined equity interest fluctuates with market price of the equity interest.

The present invention still further provides a method of implementing a loyalty- based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, awarding rewards based on the transaction redeemable for use in acquiring an equity interest or good and/or service, and transferring a portion of the rewards to a second participant.

The present invention still further provides a method of implementing a loyalty- based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, awarding rewards based on the transaction redeemable for use in acquiring an equity interest or good and/or service, and earning additional rewards based on program participation criteria.

The present invention still further provides a method of implementing a loyalty- based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring an equity interest, wherein the equity interest is acquired through a direct stock purchase plan.

The present invention still further provides a method of implementing a loyalty- based reward plan for use by a participant in a loyalty program involving equity ownership, including the steps of conducting a transaction by the participant with a merchant participating in the program, and awarding dollar values based on the transaction redeemable for use in acquiring an equity interest, wherein the equity interest is acquired through a direct stock purchase plan.

Brief Description of the Drawing Figures The accompanying drawings, which are included to provide a further understanding of the invention and are incorporated in and constitute a part of this specification, illustrate embodiments of the invention and together with the description serve to explain the principles of the invention. In the drawings:

FIG. 1 A is a block diagram showing an overview of a system for a reward plan of the present invention;

FIG. IB is a block diagram showing an overview of an alternate embodiment of a system for a reward plan of the present invention; FIG. 1C is a block diagram showing an overview of another alternate embodiment of a system for a reward plan of the present invention;

FIG. 2 is a block diagram showing an overview of a participating merchant providing funds for obtaining a reduced cost equity interest for the present invention; FIG. 3 is a block diagram showing an overview of a participating merchant providing stock for the present invention; FIG. 4 is a block diagram showing an overview of the use of features of the reward plan for the present invention; and

FIGS. 5 - 17 are representative views of Internet pages for the block diagram of FIG. 4.

Detailed Discussion of the Preferred Embodiments FIGS. 1A, B, and C are block diagrams showing an overview of a system for a reward plan of the present invention. It should be appreciated that FIGS. 5-17 show representative Internet pages of presently preferred implementation of many of the broad concepts (e.g., the user interface) revealed in FIGS. 1 A, B, and C, and that those FIGS should be read and understood in conjunction with one another.

A prefeπed reward plan 100 allows a program participant 10 to obtain an equity interest in a participating merchant at a reduced cost or at no cost when a predetermined threshold of desired business activity has been achieved with the participating merchant. Preferably, a plurality of participating merchants are enrolled in the reward plan 100.

Reward Plan System Overview

The reward plan 100 includes a number of program participants 10. The program participant 10 can be any entity (including a person or a business, which may or may not issue equity interests such as stock), or alternately a combination of one or more entities, that participates in a transaction, as indicated by transaction in the drawings, with a participating merchant. In its broadest sense, transactions may include buying, selling, inquiries, and/or any interactions (e.g., web site hits) regarding all types of products and/or services (including equity interests such as stocks, which may be registered or unregistered shares, or other securities exercisable, redeemable, or convertible into an equity interest, mutual fund shares, personal property, intellectual property, and real property, subscription services, credit cards, etc.) conducted either electronically at a location other than at the merchant's place of business (including Internet pages, telephone, facsimile, teletype, electronic mail, etc.) or at a merchant's place of business. It is appreciated that the participating merchant is any entity which participates in a transaction with the program participant 10. Preferably, the program participant 10 will be a person or a business that buys goods and/or services via the Internet and or at the merchants' place of business. A tracking system 20 is used by the participating merchant. Preferably, as explained below, the participating merchant will be an entity entitled to file a direct stock sale plan with the Securities and Exchange Commission. The participating merchant funds the purchase of shares and the operation of the reward plan 100 through a transfer of funds and or equity interest to a transfer agent of record 55 and/or funds to a broker- accounting entity 53 of a stock fulfillment 50, indicated as funds/equity interest transfer in the figures. Of course, the participating merchant may modify the terms and/or conditions or cancel the reward plan 100 at any time. The operation of the stock fulfillment 50 will be discussed in detail later. The tracking system 20 is adapted to recognize a set of desired transactions conducted by the program participant 10 with the participating merchant. For example, the tracking system may capture transaction attributes from an individual user as she makes an e-commerce purchase from an Internet site. Alternately, the set may include the purchase of goods and/or services at the participating merchants' place of business by the program participant 10. Additionally, the set of desired transactions can be one or more of the transactions discussed above.

The data captured by the tracking system corresponding to the set of desired transactions is transmitted to a database 30, as indicated by transaction data in the drawings, which is managed and maintained by a database entity 31, e.g., Stock Power Inc. The captured data may be the transmitted directly by the participating merchant (as shown in FIG. 1A), may be gathered from program participant 10 payment data (including bank and credit card data), and/or may be provided by an outside party. The captured data may be transmitted in real-time, or alternately may be transmitted on a periodic basis. Preferably, the set will be transmitted directly from the participating merchant on a real- time basis to the database 30.

The tracking system 20 is further adapted to receive payment instructions from the database 30 and/or the database entity 31, as indicated by payment instructions in the drawings. The payment instructions include payments, funds, and/or equity interest transmitted to operate the reward plan 100. The program participant 10 can establish a reward account with the participating merchant, the database 30 and or the database entity 31. The program participant 10 can be responsible for providing and/or verifying correct and accurate personal information, including taxpayer identification, to participate in the reward plan 100.

The database 30 is adapted to receive and record the captured data. The database 30 may record the captured data in a variety of formats and structures. The formats include assigning arbitrary or predetermined point values to the set, and /or assigning arbitrary, predetermined, or actual subjective or objective dollar values to the set. Preferably, the database 30 will record predetermined point values in proportion to the objective or subjective dollar value of an underlying transaction relating to the captured data. For example, a program participant may be assigned a predetermined number of points (e.g., five) for a subjective dollar value assigned to the transaction type in the set of desired transactions (30 seconds of inquiry at a participating merchant's Internet page is subjectively valued at $5.00) or for an objective dollar value assigned to the transaction type (a $5.00 purchase).

It will be appreciated that the predetermined number of points can correlate to a redemption scenario, as explained below. For example, a point may be proportional to an amount of funds which is applied against the price of the stock share (e.g., each (1) point is worth $.50 which can be applied against the price of the stock share), or alternately, the stock share can be obtained when the requisite number of points have been obtained (e.g., a stock with a price of $5.00 per share requires an exchange of 20 points.) The preferred database 30 may durably record the captured data in a variety of media. The media includes electronic storage within the database 30 and/or generation of electronic mail or printed media having an encrypted and or un-encrypted record of the set. Preferably, the database 30 will record the captured data via electronic storage within the reward account of the program participant 10 in the database 30. An interface 40 is adapted to receive and convey the captured data stored in the database 30, as indicated by data in the drawings. The interface 40 may be an Internet page, telephone switchboard, fax-on-demand system, or may generate an electronic mail message or printed media having an encrypted and or un-encrypted record of the memorialized set. Preferably, the interface 40 is an Internet page or a telephone switchboard which may be accessed by the program participant 10. By this aπangement, the program participant 10 may determine, via the interface 40, the status and other information relating to an award account in the database 30.

The interface 40 can also receive instructions from the program participant 10, as indicated by data in the drawings. The program participant 10 may use the interface 40 to instruct the database 30 and/or the database entity 31 to execute a reward redemption (e.g., an equity acquisition and/or a good and/or service) when the captured data in the reward account of the program participant 10 is at least equal to the predetermined threshold. The program participant 10 may also use the interface 40 to instruct the database 30 and/or the database entity 31 to make a reward redemption automatically when the captured data in the award account is at least equal to the predetermined threshold. The predetermined threshold may be of a variety of formats, including a fixed value or a fluctuating value. By this arrangement, the predetermined threshold may increase or decrease in value as an underlying equity value increases or decreases. Alternately, a fixed value may be assigned to the predetermined threshold. The purchase of an equity interest at a reduced cost or at no cost is accomplished by the stock fulfillment 50, to be discussed in detail later.

Preferably, the program participant 10 will access the interface 40 in the form of an Internet page and/or telephone switchboard to exchange the memorialized set for equity interest at no cost. Of course, the interface 40 can also be used by a potential program participant desiring to establish a reward account. The interface 40 can additionally include a number of useful features. The interface 40 can show past reward redemption activity, such as through communication with the stock fulfillment 50, to be described in detail later. The interface 40 can provide information about the reward account of the program participant 10. The information can be substantially an entire history of the reward account, or alternately can include information concerning certain desired business transactions. The interface 40 can also convey multiple captured data sets, thereby allowing the program participant 10 to receive information relating to reward accounts for multiple participating merchants.

The interface 40 can also include a number of variations and functionality. The interface 40 can be configured to prevent a reward redemption from the reward account of the program participant 10 if the reward account (e.g., points) has been held by the program participant 10 for longer than or not at least as long as a predetermined time period. Moreover, the interface 40 can be adapted to award additional value to the reward account of the program participant 10 if the account has been held by the program participant 10 for longer than or not at least as long as a predetermined time interval. Additionally, the interface 40 can be adapted to award additional value to the reward account if the program participant 10 has been consistently active for a predetermined time period. The interface 40 can also be adapted to award additional value to the reward account of the program participant 10 if the account has been held for a predetermined time interval. It is to be understood that the above discussed functionality, and the various available adjustments to and prohibitions on reward redemption can be performed with respect to one or more of the elements of the reward program 100 described herein.

The database 30 and/or interface 40 can also be further adapted to record, store and/or convey information regarding existing incentive programs offered by the participating merchant (e.g., car rental programs and/or frequent flyer miles offered by credit card companies, airlines, etc.) The stock fulfillment 50 includes the broker-accounting entity 53, the transfer agent 55, and a stock market 57. It should be appreciated each embodiment of the present invention provides for a stock fulfillment 50 which may or may not be a party separate from the database entity 31 and/or the participating merchant. As discussed above, the broker-accounting entity 53 is adapted to receive instructions from and convey information to the database 30 and/or the database entity 31 , as indicated by purchase instructions and account data in the drawings. The database 30 and/or database entity 31 instruct the broker- accounting entity 53 to initiate the stock share purchase, as indicated by purchase instructions in the drawings, and receives confirmation of the purchase from the broker- accounting entity 53 after the stock share is purchased and noted in an account of the program participant 10, as indicated by account data in the drawings. The broker- accounting entity 53 processes the order according to plan terms, including receiving funds and matching those funds with the order.

The broker-accounting entity 53 sends instructions and funds to the transfer agent 55, as indicated by purchase instructions/ funds in the drawings. The transfer agent 55 purchases the equity interest from the stock market 57 or directly from the issuer, as indicated as funds and equity interest in the drawings. The transfer agent 55 ensures the terms of the S-3 by tracking the number of outstanding shares versus the number of total shares allowed under the filing. The transfer agent 55 also distributes any SEC mandated investor communications to the broker-accounting entity 53. The broker-accounting entity 53 distributes (parcels) the shares to the account of the program participant 10 in book-entry in accordance with the percentage of the overall purchase. The broker- accounting entity 53 updates the database 30 and/or the database entity 31 so that the reward account of the program participant 10 can be appropriately updated. The accounting-broker entity 53 requests funds from the participating merchant through the database 30 and/or the database entity 31 in an amount required to fund the stock share purchase, including any transaction costs, as discussed previously and shown as funds/ equity interest transfer and funds transfer in the drawings.

The reward program 100 can optionally include a number of additional features. The program participant 10 can be given a variety of services, discounts, and or other nonstock rewards at a reduced cost or at no cost from the participating merchant, including monetary payments. These can be based on the amount of time the program participant 10 has owned the stock share obtained through the reward program 100, and/or on the level of desired business activity conducted by the program participant 10. Additionally, the program participant 10 participating in the reward program 100 having reward accounts with multiple participating merchants can exchange a reward value from a first merchant to purchase equity in a second, different merchant. The reward value can be discounted, such that a larger reward value is needed to obtain equity interest in the different participating merchant. On the other hand, the reward program 100 can increase the reward value when additional desired transactions are conducted by the program participant 10, and/or when the objective or subjective worth of the participating merchant is increased. The reward program 100 can allow the program participant 10 to earn and/or purchase equity at a reduced cost.

The reward program 100 can also be used by the program participant 10 to complete a variety of transactions. For example, the reward program 100 may allow different program participants 10 to sell, trade, transfer and/or swap any of the rewards earned by a particular program participant 10 for any reward or rewards earned and/or monetary payment by another particular program participant 10. The equity interest can include equity in a mutual fund and/or other collective vehicle comprised of securities of one of more separate issuers in the participating merchant or merchants. The mutual fund can be managed by a third party.

The reward plan 100 can also include awarding an equity interest and/or a good and/or service to the program participant 10 based on the transaction. The transaction can be conducted among a program participant and/or a participating merchant and or any other entity.

Reward Plan System Overview- Alternate Embodiment

FIG. IB is a block diagram showing an overview of an alternate embodiment of a system for a reward plan of the present invention. In the present embodiment, the reward plan 100 includes a stock fulfillment 50 including a stock clearing entity 55 a.

The stock clearing entity 55a performs many of the same functions as the transfer entity 55, except that the stock clearing entity 55a operates with an additional transfer agent 59, as indicated by data in the drawing. The transfer agent 59 ensures the terms of the S-3 are satisfied by tracking the number of outstanding shares versus the number of total shares allowed under the filing. The transfer agent 59 distributes any SEC mandated investor communications to the stock clearing entity 53.

Reward Plan System Overview- Alternate Embodiment

FIG. 1C is a block diagram showing an overview of another alternate embodiment of a system for a reward plan of the present invention. In the present embodiment, the reward plan 100 includes a stock fulfillment 50 including a stock clearing entity 55 a. A transfer agent is preferably not used in this embodiment, as the rewards may include stock shares which are not registered or offered through a direct stock sale plan.

Fund Provision Overview FIG. 2 is a block diagram showing an overview of a participating merchant providing funds for obtaining a reduced cost stock share for the present invention. The fund diagram 200 allows the program participant 10 to obtain reduced cost equity interest without an additional monetary expenditure.

The program participant 10 instructs the database 30 and/or the database entity 31 to acquire equity interest, as indicated by transaction in the drawing. The database 30 and/or the database entity 31 requests funds from the participating merchant through the Automated Clearing House network 60, as indicated by ACH funds request in the drawing. The ACH network 60 requests funds from the participating merchant account 70, as indicated by funds request in the drawing, which are subsequently delivered (B) to the ACH network 60, as indicated by funs delivery in the drawing. The database 30 and/or database entity 31 also instructs the broker- accounting entity 53 to purchase equity interest, as indicated by instructions in the drawing. The broker-accounting entity 53 purchases the stock from the stock market 57, as indicated by purchase in the drawing, when the funds are transferred from the participating merchant account 70 to the broker-accounting entity account 59, as indicated by funds transfer in the drawing. The broker-accounting entity 53 credits the account of the program participant, and sends confirmation to the database 30 and or the database entity 31, as indicated by confirmation in the drawings. Stock Provision Overview

FIG. 3 is a block diagram showing an overview of a participating merchant providing stock for the present invention. The stock system 300 allows the program participant 10 to acquire stock provided by the participating merchant.

The program participant 10 instructs the database 30 and/or the database entity 31 to acquire equity interest, as indicated by transaction in the drawing. The database and/or the database entity 31 instructs the participating merchant 69 to provide equity interest, as indicated by instruction in the drawing. The participating merchant 69 transfers stock to the accounting-broker entity 53, as indicated by equity interest transfer in the drawing.

The database 30 and/or the database entity 31 instructs the accounting-broker entity 53 to credit the stock to the account of the program participant 10, as indicated by instructions in the drawing. The accounting-broker entity 53 sends confirmation to the database 30 and/or database entity 31 , as indicated by confirmation in the drawing.

User Interface Overview and Examples

FIG. 4 is a block diagram showing an overview of the use of features of the reward plan for the present invention. FIGS. 5 - 17 are representative views of Internet pages for the block diagram of FIG. 4. The program participant 10 accesses the reward plan 100 from the commerce area 401 of the participating merchant. Enrollment in the reward plan

100 occurs when the program participant 10 visits an Internet page of the participating merchant and/or is engaged in the process of shopping, regardless of whether goods and/or services are purchased. A screen 501 is representative of an interface which can be used on the Internet page of the participating merchant to enroll the program participant 10 in the reward program 100 while the program participant 100 continues to browse goods and/or services available from the participating merchant.

The program participant 10 can access the reward plan 100 via an Internet page that is not substantially operated by a single participating merchant. For example, the Internet page may be operated by the database entity 31. The page can be designed specifically for enrollment in the reward plan 100. Alternately, access to the reward plan 100 can be available from a third party site.

The database entity 31 can collect data from the program participant 10, including personal information (e.g., address.) The database entity 31 can also collect program participant 10 consent for participation in various marketing programs. The participating merchant can provide personal information of the program participant 10 to the database entity 31. The database entity 31 can then collect the additional required personal information. A form 502, which is an abbreviated version of a form 503, can be used when the participating merchant does not provide the database entity 31 with the required personal information of the program participant 10. Alternately, the form 503 may be used when substantially all required personal information of the program participant 10 is required (e.g., enrollment of a new program participant.) A confirmation screen 504 confirms enrollment in the reward plan 100 to the program participant 10.

A portfolio screen 505 displays the memorialized set of the program participant 10 in the reward plan 100. The screen 505 can also display any portion of a memorialized set exchanged by the program participant 10 for a reduced cost stock share, a current number of equity interest owned by the program participant 10 and/or the current market value of the equity interest owned by the program participant. The screen 505 can display a history of transactions and/or other details on the transactions conducted by the program participant 10. The program participant 10 can also select to exchange a portion of the memorialized set for equity interest on the screen 505. A redeem points screen 506 describes the required set of desired transactions necessary to obtain for equity interest. The screen 506 can display the memorialized set held by the program participant 10. The program participant 10 can input a portion of the memorialized to be exchanged for equity interest. The screen 506 can be used to inform the program participant 10 of the time interval in which the stock share purchase is to be completed. The program participant 10 can be required to read the plan prospectus for stock purchase in the participating merchant before obtaining the stock share. The text of the prospectus can be accessible from the screen 506.

A redemption request summary screen 507 allows the program participant 10 to review the stock share redemption request. The screen 507 can display the stock share redemption request details and/or allow the program participant 10 to alter the request. As discussed above, the screen 507 can allow the program participant 10 to confirm access to the plan prospectus of the participating merchant. The program participant 10 can be prohibited from obtaining stock unless the program participant 10 confirms access to the plan prospectus.

A confirmation screen 508 is presented to the program participant 10 after submitting the stock share redemption request. A reference number and/or other identifying element can be provided to enable the program participant 10 to obtain information regarding the request.

A preferences page 509 allows the program participant 10 to alter personal information (e.g., change of address), or modify the option to participate in the marketing programs, etc. An edit confirmation screen 510 is presented to the program participant 10 if any changes have been made to the preferences page 509.

The rules of the reward plan 100 are accessible through a rules screen 511. The program participant 10 can be required to consent to terms and conditions on the terms and conditions screen 512. The program participant 10 can also access answers to frequently asked questions or the like on help screen 513.

As discussed above, the program participant 10 may be required to read the plan prospectus of the participating merchant before obtaining a stock share. All equity interest offered in the reward plan 100 can be subject to the terms and conditions of the prospectus. The prospectus can contain information on equity interest the participating merchant offers stock to the program participant 10 and/or investors in general. The reward plan 100 is also accessible through a portal site 515. The site 515 can offer access to any type of reward program offered by the database entity 31 and/or the participating merchant. The site 515 can be hosted by the database entity 31 and/or a third party. While the invention has been described in detail and with reference to specific embodiments thereof, it will be apparent to one skilled in the art that various changes and modifications can be made therein without departing from the spirit and scope thereof. It is intended that the present invention cover the modifications and variations of this invention provided they come within the scope of the appended claims and their equivalents.

Claims

What We Claim Is:

1. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring an equity interest.

2. The method according to claim 1, wherein the equity interest comprises a share of the merchant.

3. The method according to claim 1, wherein the equity interest comprises a share of a second, different entity.

4. The method according to claim 3, wherein the dollar value is converted to a second, different dollar value.

5. The method according to claim 1 , wherein the dollar value is used to decrease a price of the equity interest.

6. The method according to claim 1, wherein the equity interest is acquired through a stock purchase plan.

7. The method according to claim 6, wherein the stock purchase plan is a direct stock purchase plan.

8. The method according to claim 1, wherein the equity interest is managed by a third party.

9. The method according to claim 1, wherein the equity interest includes a mutual fund share.

10. The method according to claim 9, wherein the mutual fund is managed by a third party.

11. The method according to claim 1 , wherein the participant comprises a group of entities.

12. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring a good and or service.

13. The method according to claim 12, wherein the good and or service is redeemable in the merchant.

14. The method according to claim 12, wherein the good and/or service is redeemable in a second, different entity.

15. The method according to claim 14, wherein the dollar value is converted to a second, different dollar value.

16. The method according to claim 12, wherein the dollar value is used to decrease a price of the good and/or service.

17. The method according to claim 16, wherein the participant comprises a group of entities.

18. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding dollar values based on the transaction redeemable for use in acquiring an equity interest.

19. The method according to claim 18, wherein the equity interest comprises a share of the merchant.

20. The method according to claim 18, wherein the equity interest comprises a share of a second, different entity.

21. The method according to claim 20, wherein the dollar values are converted into second, different dollar values.

22. The method according to claim 18, wherein the dollar values are used to decrease a price of the equity interest.

23. The method according to claim 18, wherein the equity interest is acquired through a stock purchase plan.

24. The method according to claim 18, wherein the stock purchase plan is a direct stock purchase plan.

25. The method according to claim 18, wherein the equity interest is managed by a third party.

26. The method according to claim 18, wherein the equity interest includes a mutual fund share.

27. The method according to claim 26, wherein the mutual fund is managed by a third party.

28. The method according to claim 18, wherein the participant comprises a group of entities.

29. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding dollar values based on the transaction redeemable for use in acquiring a good and/or service.

30. The method according to claim 29, wherein the good and/or service is redeemable in the merchant.

31. The method according to claim 29, wherein the good and or service is redeemable in a second, different entity.

32. The method according to claim 31 , wherein the dollar values are converted into second, different dollar values.

33. The method according to claim 29, wherein the dollar values are used to decrease a price of the good and/or service.

34. The method according to claim 29, wherein the participant comprises a group of entities.

35. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership before the merchant has offered an equity interest in an upcoming offering of the equity, comprising the steps of: conducting a transaction with a merchant participating in the program; and awarding points that are redeemable for use in acquiring the equity interest after the offering of the equity has occurred.

36. The method according to claim 35, wherein a predetermined number of points are required to obtain the equity interest.

37. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring an equity interest including a mutual fund share.

38. The method according to claim 37, wherein the mutual fund is managed by a third party.

39. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding points based on the transaction redeemable for use in acquiring an equity interest, wherein a redemption ratio required to obtain a predetermined equity interest fluctuates with market price of the equity interest.

40. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; awarding rewards based on the transaction redeemable for use in acquiring an equity interest or good and/or service; and transferring a portion of the rewards to a second participant.

41. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; awarding rewards based on the transaction redeemable for use in acquiring an equity interest or good and/or service; and earning additional rewards based on program participation criteria.

42. The method according to claim 41 , wherein the program participation criteria comprises an expected value of additional desired business activity by the program participant.

43. The method according to claim 41 , wherein the program participation criteria comprises a time interval during which the rewards have been held and not redeemed for a commodity.

44. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding points based on the transaction that are assigned a dollar value redeemable for use in acquiring an equity interest, wherein the equity interest is acquired through a direct stock purchase plan.

45. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding dollar values based on the transaction redeemable for use in acquiring an equity interest, wherein the equity interest is acquired through a direct stock purchase plan.

46. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: providing information to a database from an existing incentive program of a participating merchant; and retrieving information to the participant on the existing incentive program and the reward plan from the database.

47. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding an equity interest based on the transaction.

48. The method according to claim 47, wherein the equity interest comprises a share of the merchant.

49. The method according to claim 47, wherein the equity interest comprises a share of a second, different entity.

50. The method according to claim 47, wherein the equity interest is acquired through a stock purchase plan.

51. The method according to claim 50, wherein the stock purchase plan is a direct stock purchase plan.

52. The method according to claim 47, wherein the equity interest is managed by a third party.

53. The method according to claim 47, wherein the equity interest includes a mutual fund share.

54. The method according to claim 53, wherein the mutual fund is managed by a third party.

55. The method according to claim 47, wherein the participant comprises a group of entities.

56. A method of implementing a loyalty-based reward plan for use by a participant in a loyalty program involving equity ownership, comprising the steps of: conducting a transaction by the participant with a merchant participating in the program; and awarding a good and/or service based on the transaction.

57. The method according to claim 56, wherein the good and/or service is redeemable in the merchant.

58. The method according to claim 56, wherein the good and/or service is redeemable in a second, different entity.

59. The method according to claim 56, wherein the participant comprises a group of entities.