Facebook members, money 'Beckon'

Facebook Inc's popular online hangout so far has proven to be a better place for promoting fun and games than peddling products. But a new application aims to inject more commerce into the social playground by paying Facebook members who help merchants sell to their friends.

The program, called Market Lodge, revolves around the notion that consumers are more likely to buy merchandise or services recommended by someone they know and trust.

Market Lodge, made by a startup called bSocial Networks Inc, will pay Facebook members a 10 per cent commission on all sales made on their recommendations.

Facebook tried to capitalize on the bonds of friendship last year by introducing a marketing system that includes broadcasting product endorsements among people who know each other.

The strategy hasn't paid off yet, largely because many of Facebook's users rebelled against a feature called "Beacon" that tracked and shared information about their purchases and other actions made on other Web sites. Spurred by the backlash, Palo Alto based Facebook now allows its users to turn off Beacon.
Colorado based bSocial is betting that Facebook's roughly 67 million users will be more receptive to an approach that dangles a financial incentive for participating.
Facebook members who decide to use Market Lodge can customize their own stores, selecting from more than 1,200 products sold by about 50 different merchants.

Once the personal store is set up, Facebook users can then invite others in their network to check out the stuff they're recommending. Market Lodge users can make purchases from their own stores and still qualify for the 10 per cent sales commission.

The entire inventory, order processing and delivery arrangements are handled by the merchants, just as they would be for any other sale.

"We think this could be very lucrative for Facebook's members," said bSocial co-founder Sue Spielman. More than 100 people have signed up for Market Lodge since it quietly rolled out last week.

For now, Facebook won't receive a cut of the sales made through Market Lodge, but bSocial Networks eventually may consider sharing revenue with the social network or other Web sites that might be interested in the application, Spielman said.