Our three-level rewards mechanism is the "earth-changing idea" that MIT eludes to that would transform Facebook into something beyond just another ad-supported site.
The motivated referral platform we call "Referral-ti$ing" is the "holy grail" the trusted friend referral described by Zuckerberg.
Here’s how it works:
>>> A shopper we’ll call Adam buys a product from a store referred by a Facebook friend. He posts info of that purchase and about the shopping rewards he earned from the purchase with two clicks at time of checkout.
>>> His friend we’ll call Bill sees the post and buys the same product from the same store. He too earns rewards and Adam, the shopper who referred him, gets more rewards.
>>> Two of Bill’s friends, Carl and Don, also purchase and post. They each get rewards, both Bill and Adam gets more rewards from Carl’s purchase and rewards from Don's purchase.
>>> Two of Carl’s friends, Fred and Gary purchase, and two of Don’s friends, Hank and Izzy purchase. Adam gets more rewards resulting from all purchases; Bill gets rewards from all purchases; Carl and Don get more rewards from all purchases... etc.
>>> Rewards are earned by everyone in the loop when friends, friends of friends, and friends of friends of friends purchase. After three levels, original shopper Adam drops off, but referrals and rewards continue on as long as people continue to purchase from referrals.
This example involves only 9 people. The average Facebook user has about 200 friends. When you work out the potential on three levels of rewards with that many friends, that’s 200 X 200 X 200 which is 8 million! Certainly not every friend would buy, but even a small fraction would deliver a huge bounty of rewards for all shoppers in the loop.
And while shoppers drop off after three levels of rewards, as more friends purchase, rewards continue like the waves that roll in at the beach. As soon as one hits the shore, there's another 3 or 4 behind it. We call this the "Buddy Train" that keeps running generating more referrals, more sales and more rewards.
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