Here’s how Buddy 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 unabated. We call this the "Buddy Train" because shoppers get on by purchasing, and after three levels they get offbut other shoppers take their place. So the Buddy Train keeps running generating more referrals, more sales and more rewards.
The whole system/process is called Buddy Buddy Buddy for the three levels of rewards.
Now, about those rewards. They’re called by Buddy Bucks and they’re portable in the sense that Buddy Bucks earned at the shoe store can be redeemed with purchase at the book store, for example.
Merchants will realize the amazing power of the system and how it will drive sales. They control the value of the rewards through redeem sale management and will see that the greater the discount the more shoppers it will attract. In other words, they can offer "redeem sale items" for a mix of cash and rewards. For example: 50% cash and 50% Buddy Bucksor even up to 90% Buddy Bucks and 10% cash. It's completely up to the merchant. Why would they do this? Because it will drive sales and each sale starts another chain of referrals and further sales. Also remember: they are no longer paying large sums of money for click ads, so they re-direct that spend to the consumer. Now they are in controlnot Google.
And the best part? Instead of shoppers searching Google to buy, they will search Facebook for friends who have purchased the product they are looking for. And when that happensand it will happen quicklyit’s the death knell for the dreaded pay-per-click ad because with BBB, they pay a fee only after a sale is made, whereas with AdWords, they pay Google for each click-through whether a sale is made or not. Add that to the fact that clicks ads are a mere .03% effective, you can readily see why they will drop the pay-per-click ad like a hot potato because: Why pay per click when you can pay per sale?
And with the death of the click ad, it’s also the beginning of the end of the insidious tracking of user activity because it is no longer profitable. The advertising middle man is REMOVED from the selling equation. Facebook becomes a sales partner instead of an advertising platform.
Everyone wins… except for Google. We’ve disrupted the disrupter. Good riddance. Don’t let the click ad hit you on the way out the door!