Electricty Rates
About the Company
ElectricityRates.com was developed by Power Target LLC, founded by Rob Rex, a seasoned digital marketer, and his co-founder, a computer science classmate. The platform primarily operates in deregulated energy markets, enabling consumers to compare electricity providers and choose the best energy plans for their needs. Since its inception, the company has remained 100% bootstrapped, financing its growth through profits rather than external investments. The platform aims to streamline the enrollment process, which has significantly contributed to its high conversion rates and revenue generation.
Idea Behind Company
The idea for ElectricityRates.com stemmed from Rob Rex’s observation of emerging online aggregators in various industries that helped simplify complex consumer decisions. Around the same time, several states began deregulating energy markets, giving consumers the freedom to choose their electricity provider. Rob saw an opportunity to apply digital marketing principles to the energy industry, which was not yet saturated with competition. The concept was similar to other comparison platforms like Kayak but tailored to the energy sector.
Creating the Company
Rob Rex, along with his co-founder, began building the platform with a focus on user experience. They reverse-engineered successful aggregator sites like Kayak and Nerdwallet to create a fast, simple, and trustworthy energy comparison platform. Initially, the site linked users to providers for sign-up, but after analyzing data, the team integrated with energy providers to allow users to complete the enrollment process directly on the site. This seamless experience greatly improved the platform's conversion rates.
Launching the Business
ElectricityRates.com launched with a steady, incremental growth strategy. The initial budget for marketing was around $5-10K per month, which focused on paid search engine marketing (SEM). Understanding customer lifetime value (LTV) was crucial for allocating marketing resources effectively. The team built a sophisticated data model to predict LTV in real-time based on location, energy company, and plan length. This strategic approach enabled the company to grow without needing large outside investments.
Earnings
Today, ElectricityRates.com generates $350,000 per month in revenue. The company has seen consistent growth of 20-25% annually. Its business model remains profitable, with marketing as the primary cost driver. The company continues to explore new opportunities, such as business energy solutions and renewable energy options. The platform also leverages various marketing channels, such as SEO, paid search, and email campaigns, to maintain its competitive edge and expand its customer base.
