Reverse-Auction System for Social Network Monetization

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Solution Overview

Problem

Social network platforms struggle to monetize their vast user traffic due to user privacy concerns, aggressive advertising skepticism, and lack of effective methods to leverage the inherent trust within micro-communities for commercial transactions.

Innovation Solution

A fully-automated, live, reverse-auction system integrated into social network platforms allows buyers to initiate transactions within their micro-communities, enabling dynamic pricing and optimizing seller targets like price, inventory, and revenue, while providing a non-intrusive, targeted approach to connect buyers and sellers.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If conventional advertising and marketing methods are used on social network platforms, then revenue generation is attempted, but user trust is eroded and subscriber resistance increases

Engineering Contradiction:

Improverevenue generationVSAvoiduser trust

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The patent inverts the conventional advertising approach by allowing subscribers to initiate transactions rather than sellers pushing products. Subscribers post purchase requests and receive offers from sellers, reversing the traditional marketing flow and eliminating the trust erosion caused by aggressive advertising

Inventive Principle:

Principle #13The other way round (Inversion)

Solution Approach 2:

The system enables subscribers to self-initiate transactions by posting what they want to purchase. This self-service approach eliminates the need for external advertising pushes and allows subscribers to control their own transaction initiation, maintaining trust while enabling revenue generation

Inventive Principle:

Principle #25Self-service

2Productivity

If aggressive advertising push is used to monetize subscriber base, then revenue opportunities are sought, but subscriber trust and engagement are diminished

Engineering Contradiction:

Improvemonetization capabilityVSAvoidsubscriber engagement

Core Design Contradiction:

ProductivityVSEase of operation

Solution Approach 1:

The system inverts the advertising push by having subscribers initiate transactions through purchase requests. This reversal eliminates the aggressive marketing approach while maintaining monetization capability, as sellers are motivated to respond to genuine subscriber需求的

Inventive Principle:

Principle #13The other way round (Inversion)

Solution Approach 2:

The system changes the fundamental parameter of transaction initiation from seller-driven to buyer-driven. This parameter change transforms the interaction model from aggressive advertising to responsive selling, maintaining engagement while enabling monetization

Inventive Principle:

Principle #35Parameter changes

3Adaptability or versatility

If conventional online transactions are implemented on social networks, then commerce functionality is provided, but the unique trust dynamics of micro-communities are not leveraged

Engineering Contradiction:

Improvecommerce functionalityVSAvoidtrust utilization

Core Design Contradiction:

Adaptability or versatilityVSProductivity

Solution Approach 1:

The patent applies local quality by tailoring the transaction mechanism to the specific context of micro-communities. Instead of uniform conventional transactions, the system leverages local trust dynamics by allowing subscribers to initiate transactions within their trusted networks, making the commerce functionality adaptive to local social structures

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The system introduces dynamics by allowing transaction parameters to emerge organically from subscriber requests and seller responses. Rather than static conventional transaction models, the system adapts to each micro-community's unique trust dynamics and transaction patterns

Inventive Principle:

Principle #15Dynamics

Data Source

PatentUS9947059B2Group formation and dynamic pricing for E-commerce in social networks

Publication Date: 2018.04.17 PEAK SILVER ADVISORS LLC

AI summary

A system platform and associated methods are provided for implementing online reverse auctions in a social network platform (SNP). A fully-automated, live, reverse-auction based system is integrated into an SNP to enable buyers to initiate desired transactions and take advantage of a subscribers' network of friends, colleagues, co-workers, family members and connections by connecting buyers and sellers in a non-intrusive, targeted fashion. Sellers compete for buyers' business by providing dynamic, real-time seller-specific pricing while simultaneously optimizing the seller's target parameters such as price, inventory levels, profit, revenue and volume.