Here is how it replaces traditional online click advertising:
BBB replaces the world's most popular ad model, "pay-per-click," with a Pay-Per-Sale option for merchants. So instead of advertisers paying for those annoying ads to hopefully generate a click-through, that hopefully results in a sale (which happens on average only .03% of the time!), they pay for sales AFTER they are made. We like to say "Why pay-per-click when you can pay-per-sale?" We think it's pretty clear which is superior.
Shoppers earn exponential rewards. In other words, when you make a "Buddy purchase" at a participating online store and share that purchase info with your Facebook friends, you earn rewards. But it gets better... because when your friends makes a purchase, you earn more rewards. And when your friend tells his/her friends and they make a purchase, you get more rewards, and when your friend's friends make a purchase, you get more rewards, and finally, when your friend's friends's friends make a purchase, yup... MORE REWARDS. And everyone in the loop gets these rewards (SEE INFOGRAPHIC). So shoppers are earning a tidy little sum of valuable rewards we call Buddy Bucks for doing nothing more than referring their friends to the store at which they made a purchase. Simple.
The Buddy Buddy Buddy reward mechanism acts as an incentive for your customers to drive their social network of friends to your store. By offering customers "Buddy Bucks" as a reward for purchasing, and then additional Buddy Bucks when their friends, friends of friends, and friends of friends of friends purchase "Buddy items" from your store, you are leveraging the power of Social Media. And those friends, or "Buddies" are motivated in the same way. And so too their friends. And so on and so on.
Buddy Bucks are "redeemed with purchase" in much the same way as coupons. Consumers purchase selected "Buddy Redeem Products" at participating BBB online stores and get great discounts by redeeming their Buddy Bucks rewards. Store owners can "maximize" their inventory by offering selected items for Redeem Sales at significant discounts in order to drive traffic to their store.
Here's how it works: BBB sales items are selected by the store owner. The consumer appeal to BBB plays out in two ways: "Buddy Premium Sale items" that ISSUE Buddy Bucks with purchase, and "Buddy Redeem Sale items" that REDEEM Buddy Bucks with purchase. Premium items have a fixed discount of 3% while Redeem Sale item discounts are determined by the store owner. The Buddy Redeem Sale is the KEY FACTOR to understanding and leveraging the POWER of BBB as it applies to inventory management/maximization. Remember this: Unlike pay-per-click where you pay for a lead and HOPE for a sale, with BBB you pay after the sale. This allows you to effectively maximize your inventory by selecting "loss leader" items with aggressive discounts for sale as Buddy Redeem items. This prompts the viral referral nature of BBB to engage and drive customers to your store in the way of motivated Facebook referrals. The greater the discount, the more shoppers you draw in. With each sale resulting in a stream of motivated referrals, it doesn't take much to see how aggressive pricing revs up the sales model, drives more saleswhich drives more motivated referralswhich brings in more shoppers... and the cycle continues unabated.
There is no catch! All a shopper needs to do is to make two clicks at the end of a purchase to inform their friends of their purchase, and that sets the whole system in motion. One click on the "BUDDY THIS SALE" button on the Thank You page of a transaction, and another click on our site that says "SEND BUDDY ALERT TO ALL MY FRIENDS." Shoppers can select to send their purchase alert to some and not all of their friends with a few more clicks if they want, and they can add a message to their post, but that's optional, and THAT'S ALL SHOPPERS HAVE TO DO TO PARTICIPATE. Period.
Eventually, as the system catches on, the annoying click ads we've all learned to despise will slowly disappear, because merchants will see the Buddy system works to generate sales, and realize: Why pay-per-click, when they can Pay-Per-Sale?
And because this is all about "friends helping friends", those great deals will pop up in consumer's Facebook feed and NOT in the annoying ad space or newsfeed and not anonymously.
Watch this video to see a quick 2 and-a-half minute demonstration on how it works: