Rewards-based Shopping Portal Launched

Menlo Park, CA-based ad-backed incentive marketer ebates.com launched an online shopping portal that connects
consumers with online merchants and then gives them cash rebates of up to 25
percent on their purchases.

Through ebates.com, shoppers receive rebates on purchases from merchants such
as Amazon.com, CDnow, Reel.com, Dell Computer, Beyond.com and eToys, among
others.

ebates.com said it takes advantage of e-commerce affiliate programs to earn
cash rebates, which are sent to consumers on a quarterly basis. Because
ebates.com is supported by advertising and sponsorships, “every cent of every
rebate is passed through to members,” the company said.

ebates.com was founded by Internet entrepreneurs Paul Wasserman and
Alessandro Isolani, along with co-founder John Nirenstein — a veteran of
five Silicon Valley start-ups.

The company generates revenue through the sale of ads that are displayed in a
small window at the top of ebates.com pages. The company collects demographic
information to better target its ads.

“We’re literally paying people to shop,” said Wasserman, president and chief
operating officer. “For our members, ebates.com is like the DiscoverCard of
the Web. . . .Our advertisers gain access to Internet shoppers with credit cards
at the ready, and our participating merchants can lower their customer
acquisition costs substantially.”

To earn rebates, shoppers must access participating merchants through
ebates.com and use their ebates.com e-mail address when making purchases.
The site was developed in conjunction with Roundpeg and designed by Think New
Ideas, both of San Francisco. ebates.com received venture capital funding
from Foundation Capital.

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