Method for Acquiring and Maintaining High Quality Subscribers Using a Bifurcated Contract

• US 20080243651A1
• Filed: 03/30/2007
• Published: 10/02/2008
• Est. Priority Date: 03/30/2007
• Status: Abandoned Application

• Current Assignee: SAG Acceptance Company LLC
• Original Assignee: SAG Acceptance Company LLC
• Inventors: Zizian, Richard S.
• Application Number:
  US11/694,444
• Publication Number:
  US 20080243651A1
• Time in Patent Office: Days
• US Class Current: 705/30
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method to provide an enterprise with the ability to keep service contract subscribers for a longer period of time and the ability to retain subscribers during an initial period of time is presented. A bifurcated contract is used with the subscriber for the agreement. The bifurcated contract consists of a service portion and a financial installment portion to pay for the hardware, certain service costs and installation costs associated with the service. The financing portion allows the subscriber'"'"'s credit rating to be affected and affords the enterprise greater collateral or security as well as potentially lower funding costs. The enterprise encourages the vendor that originated the contract to sell the contract by paying the vendor the vendor'"'"'s cost and a portion of the typical vendor profit along with, in certain cases, a percentage of the monthly payments for those subscribers retaining the service beyond an initial term.

Claims

1. A method for acquiring subscribers who have a higher probability of retaining and paying for a service for longer than an initial term of a service agreement, the steps comprising:

creating contractual arrangements that mirror the economic transactions that service providers transact with subscribers that result in periodic payments;

and incorporating a bifurcated contract into the contractual arrangements, the bifurcated contract having a service portion defining the services to be provided by an enterprise and the payments to be made by the subscriber over the life of the relationship and an installment loan portion which provides financing for hardware purchases, select services or installation costs associated with the service.

2. The method of claim 1 further comprising the step of reporting payment performance of the subscriber to at least one credit bureau.

3. The method of claim 1 further comprising the step of determining if the subscriber is likely to stay with the service longer than the initial term.

4. The method of claim 3 wherein the step of determining if the subscriber is likely to stay with the service longer than the initial term comprises the steps of:

determining if the subscriber has a credit rating above a predetermined value;

if the credit rating is above the predetermined value, determining that the subscriber has the potential to stay with the service longer than the initial term.

5. The method of claim 4 wherein the step of determining if the subscriber has a credit rating above a predetermined value comprises the step of determining if the subscriber has a credit rating above a prescribed level as determined by an analysis, the analysis including an analysis of credit information, collateral, and the industry or service to be provided.

6. The method of claim 3 further comprising the step of determining that the subscriber is not likely to stay with the service longer than the initial term if the credit rating is below a second predetermined value.

7. The method of claim 1 wherein the service is an alarm service.

8. A method for acquiring a subscriber and ensuring the subscriber has a higher probability of retaining and paying for a service during an initial term of a service agreement, the steps comprising:

having the subscriber sign a bifurcated contract to initiate the service, the bifurcated contract having a first portion for providing the service and a second portion for financing the hardware and installation associated with the service; and

reporting payment performance of the subscriber to at least one credit bureau.

9. The method of claim 8 further comprising the steps of:

if the subscriber has signed the contract with a vendor;

determining if the subscriber is likely to stay with the service longer than the initial term;

if the subscriber is likely to stay with the service longer than the initial term;

acquiring the contract from the vendor; and

providing the vendor a portion of payments made by the subscriber beyond the initial term.

10. The method of claim 9 wherein the step of acquiring the contract from the vendor comprises the step of paying the vendor for the vendor'"'"'s cost and a portion of future profits.

11. The method of claim 9 wherein the vendor has a pool of contracts with a plurality of subscriber, the method further comprising the steps of:

acquiring the pool of contracts from the vendor; and

providing the vendor a portion of payments made by the plurality of subscribers for those subscribers that keep the service beyond the initial term.

12. A computer readable medium having computer executable instructions for acquiring ensuring a subscriber has a higher probability of retaining and paying for a service during an initial term of a service agreement, the service having hardware that is installed as part of the service, the computer executable instructions, when executed, performing the steps comprising:

reporting payment performance of the subscriber to at least one credit bureau if the subscriber signs a bifurcated contract to initiate the service, the bifurcated contract having a first portion for providing the service and a second portion for financing the hardware associated with the service.

13. The computer readable medium of claim 12 having further computer executable instructions, that when executed, perform the step comprising determining if the subscriber is likely to stay with the service longer than the initial term.

14. The computer readable medium of claim 13 wherein the step of determining if the subscriber is likely to stay with the service longer than the initial term comprises the steps of:

determining if the subscriber has a credit rating above a predetermined value; and

if the credit rating is above the predetermined value, determining that the subscriber is likely to stay with the service longer than the initial term.

15. The computer readable medium of claim 12 having further computer executable instructions, that when executed, perform the step comprising:

providing a vendor a portion of payments made by the subscriber beyond the initial term if the subscribe signed a contract with the vendor for contracts acquired from the vendor.