Ben Behrouzi, who started a web-hosting business at 15 and founded lead-generation site Reply.com at 20, is not slowing down at the ripe old age of 26. He planned to launch today ePerks.com, a site that promises consumers discounted offers from local service providers.
The initial focus will be on auto dealers and real estate agents, the primary groups served by Reply.com, and home improvement contractors. But Behrouzi says the site will expand in about a month to include dry cleaners, movers, health clubs, medical professionals, retailers and others. “Anybody who has the ability to provide a substantial discount on their services can have a presence in the marketplace,” says Behrouzi, who is ePerks’ president and CEO.
The concept is that consumers will be anxious to identify local merchants and service providers willing to provide goods and services at a discount. Behrouzi will charge a fee for providers to be listed on ePerks.com, offering exclusivity within a market for a price. For instance, a real estate agent can have the only listing in a ZIP code for $130 per month, while a Toyota dealership can get exclusivity within a 50-mile radius for $1,000 per month. Behrouzi says these are introductory prices that will go up once the site gains traction.
Providers must offer discounts to be listed, Behrouzi says. A Toyota dealership would have to offer meaningful price breaks on a number of cars and real estate agents would be expected to reduce their commissions on home sales. In addition, ePerks will take a 19% referral fee on any real estate transactions and return to the buyer 80% of that fee, Behrouzi says. “The buyer could get $3,000, $5,000, $20,000 cash back, which is real motivation to use this agent versus one in the Yellow Pages,” Behrouzi says. He says more than 4,600 service providers will be listed on ePerks.com when it launches.
Behrouzi aims to bring consumers to ePerks.com via online marketing and, later this year, through television, radio and print advertising. The focus will be on building name recognition for ePerks as a place where consumers can get discounts on local products and services.
Based in Pleasonton, CA, in the San Francisco Bay area, ePerks is a division of Brabus Ventures Corp. Behrouzi, who retains an equity interest in Reply.com, says he has provided most of the financing for ePerks himself and may seek outside capital in the coming year.
Back...
