# US 7,610,235 B2 · Incentive based vertical market

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- Number: US 7,610,235 B2
- Document ID: US7610235B2
- Status: Granted
- Kind: B2
- Application number: 09/963,197
- Filed: 2001-09-25
- Published: 2003-02-27
- Granted: 2009-10-27
- Earliest claimed: 2001-08-27
- Assignees: BGC Partners, Inc.
- Applicants: Julie Uman, legal representative; Eileen Varacchi, legal representative
- Inventors: Howard W. Lutnick; Joseph Noviello; Jonathan Uman; Frederick Varacchi
- Web page: https://patentgrep.com/patent/US7610235B2

## CPC

- G06Q 30/02: Marketing; Price estimation or determination; Fundraising
- G06Q 30/0208: Trade or exchange of goods or services in exchange for incentives or rewards
- G06Q 30/0213: {Consumer transaction fees}
- G06Q 40/00: Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
- G06Q 40/06: Asset management; Financial planning or analysis
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

A vertical market is provided in which members of the market are incentivized to exchange goods and services within the market. The members of the market may enter into an agreement. The participants of the agreement are incentivized to generate revenue within the market. These incentives may include the option to convert warrants at the full conversion rate into ownership shares of the goods and services owned by the participants of the agreement. Warrants may be converted into shares when a pre-determined amount of gross revenue is achieved within a certain amount of time (success incentive), or based on the ratio of gross revenue generated within a certain amount of time over the target amount of gross revenue to be generated within the term of the agreement (growth incentive). Participants may also be entitled to fees for services provided.

## Claims

### Claim 1

A method for incentivizing a plurality of participants to exchange goods or services of a vertical market on a marketplace, comprising:
based on an agreement among the plurality of participants, issuing with a processor at least one warrant to a participant who trades on the marketplace, in which the warrant provides a right to the participant for converting the warrant into at least one ownership share of the marketplace, and in which the right is conditioned on the participant's performance on the marketplace;
determining via the processor the participant's performance on the marketplace;
determining via the processor, based on the participant's performance, a quantity of warrants that may be converted into the at least one ownership share of the marketplace; and
transmitting to a remote device a notification of the quantity of warrants to the participant, in which the remote device and the processor are in communication over a network.

### Claim 2 (depends on 1)

The method of claim 1, in which the participants agree to exchange goods or services of the vertical market directly with other participants.

### Claim 3 (depends on 1)

The method of claim 1, in which determining the participant's performance comprises determining a revenue generated by the participant's trading activity on the marketplace over a period of time; and
in which determining the quantity of warrants that may be converted comprises determining that the revenue generated by the participant during the period of time meets a threshold for converting the warrant to the at least one ownership share.

### Claim 4 (depends on 1)

The method of claim 1, in which determining the participant's performance comprises determining a revenue generated by the participant's trading activity on the marketplace over a period of time; and
in which determining the quantity of warrants that may be converted comprises determining that the revenue generated by the participant during the period of time exceeds the threshold, in which the warrants are converted at a full conversion rate.

### Claim 5 (depends on 1)

The method of claim 1, in which determining the participant's performance comprises:
determining a growth rate of the marketplace, in which the growth rate is attributed to the participant's trading activity over a period of time.

### Claim 6 (depends on 1)

The method of claim 1 further comprising:
determining that the participant's performance comprises a trading activity that is accomplished via a plurality of services, in which at least one of the plurality of services is provided by the participant.

### Claim 7 (depends on 6)

The method of claim 6, in which determining the participant's performance comprises:
determining a level of service provided by the participant over a period of time.

### Claim 8 (depends on 7)

The method of claim 7, in which determining the participant's performance comprises:
determining fees derived from the level of service provided by the participant over the period of time.

### Claim 9 (depends on 1)

The method of claim 1, in which determining the quantity of warrants that may be converted comprises:
determining a ratio of a first revenue to a second revenue, in which the first revenue is generated by the participant during a first period of time and the second revenue is a pre-determined revenue that the participant is expected to generate over a second period of time.

### Claim 10 (depends on 9)

The method of claim 9 further comprising:
multiplying the ratio by an amount of warrants issued in accordance to the agreement.

### Claim 11 (depends on 9)

The method of claim 9, in which determining the quantity of warrants that may be converted is based on:
determining a percentage of the goods or services that is owned by the participant.

### Claim 12 (depends on 1)

The method of claim 1 further comprising:
receiving an indication, from the remote device, to convert the warrant into at least one ownership share of the marketplace.

### Claim 13

An apparatus comprising:
a processor; and
a memory, in which the memory stores instructions which, when executed by the processor, direct the processor to perform the steps of:
issuing, based on an agreement among the plurality of participants, at least one warrant to a participant who trades on the marketplace, in which the warrant provides a right to the participant for converting the warrant into at least one ownership share of the marketplace, and in which the right is conditioned on the participant's performance on the marketplace;
determining the participant's performance on the marketplace;
determining, based on the participant's performance, a quantity of warrants that may be converted into the at least one ownership share of the marketplace; and
transmitting a notification of the quantity of warrants to the participant.

### Claim 14 (depends on 13)

The apparatus of claim 13, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
determining the participant's performance by determining a revenue generated by the participant's trading activity on the marketplace over a period of time, and
determining that the revenue generated by the participant during the period of time meets a threshold for converting the warrant to the at least one ownership share.

### Claim 15 (depends on 13)

The apparatus of claim 13, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
determining the participant's performance by determining a revenue generated by the participant's trading activity on the marketplace over a period of time;
determining that the same revenue generated by the participant during the period of time exceeds a threshold for converting the warrant to the at least one ownership share; and
converting the warrants at a full conversion rate.

### Claim 16 (depends on 13)

The apparatus of claim 13, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
determining the participant's performance by determining a growth rate of the marketplace, in which the growth rate is attributed to the participant's trading activity over a period of time.

### Claim 17 (depends on 13)

The apparatus of claim 13, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
determining that the participant's performance comprises a trading activity that is accomplished via a plurality of services, in which at least one of the plurality of services is provided by the participant.

### Claim 18 (depends on 17)

The apparatus of claim 17, in which the memory stores instructions which, when executed by the processor, further directed the processor to perform the steps of:
determining the participant's performance by determining a level of service provided by the participant over a period of time.

### Claim 19 (depends on 18)

The apparatus of claim 18, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
determining the participant's performance e by determining fees derived from the level of service provided by the participant over the period of time.

### Claim 20 (depends on 13)

The apparatus of claim 13, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
determining the quantity of warrants that may be converted by determining a ratio of a first revenue to a second revenue, in which the first revenue is generated by the participant during a first period of time and the second revenue is a pre-determined revenue that the participant is expected to generate over a second period of time.

### Claim 21 (depends on 20)

The apparatus of claim 20, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
multiplying the ratio by an amount of warrants issued in accordance to the agreement.

### Claim 22 (depends on 20)

The apparatus of claim 20, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
determining a percentage of the goods or services that is owned by the participant.

### Claim 23 (depends on 13)

The apparatus of claim 13, in which the memory stores instructions which, when executed by the processor, further direct the processor to perform the steps of:
receiving an indication to convert to the warrant into at least one ownership share or the marketplace.