Web site says town will reap benefits of online selling

By Scott Merzbach
Staff Writer

Published on July 11, 2008

More than $1 million could be coming to the town's general fund within three years if residents begin making purchases through a new Web site.

That estimated revenue stream is the goal of local nonprofit Prepare Don't Despair, based on College Street, which is establishing a so-called Web-based purchasing portal at www.amherstfirst.com that will provide a percentage of each purchase as money back to the town.

James Broadnax, who will set up and manage the portal, told the Select Board Monday his business seeks to help address the problem of cuts to municipal services such as education, during times when state aid is declining.

"We consider it an out-of-the-box idea, but in good faith," Broadnax said.

Market America Inc., based in Greensboro, N.C., is the national company that runs the online shopping Web site, with Broadnax acting as the business advisor to the regional board.

Amherst resident Hughia Magnus is another local representative for Prepare Don't Despair.

A local board is expected to be formed at some point.

Broadnax noted that estimates show a possible 60 percent increase in purchases made online in the next 10 years.

He said he wants Amherst to be able to tap into this.

"This is where we think all businesses should be going," Broadnax said.

Town Manager Larry Shaffer said he began discussing the concept with Broadnax about a year and a half ago, to see how the small amount of money set aside with each purchase could be gifted to the town. "I thought it was a very interesting idea," Shaffer said. There is no risk or exposure for the town, Shaffer said. He called the system a way to capture for local use some of the benefit of retail sales that have migrated to the Internet. The online shopping center has 35 million products and services, and more than 2,000 stores from which to choose.

Local merchants will also have the opportunity to develop Web sites and sell their products and services through the portal.

Select Board member Alisa Brewer said one of her concerns involves getting people to use this Web site, when they may already be accustomed to other online shopping options that offer similar gifts to organizations. "How do we convince people it is worth their effort to do this way, rather than some other way?" Brewer asked.

Board Chairman Gerry Weiss said that unless someone is using another portal, it would make sense for someone to try www.amherstfirst.

Rather than buying a computer directly from Dell, a computer bought using the portal would mean a small amount of money coming to Amherst.

Select Board member Stephanie O'Keeffe said the town should thank the organization for whatever money is raised and given to the town.

"I think it's a lovely model of generosity," O'Keeffe said.

Whatever money comes in would go to the town's general fund and await appropriation by Town Meeting.

Broadnax said he expects coupons and emails to be sent to residents to help promote the portal, and a link from the town's Web site may also be provided.

When people go to the Web site, they will be asked to sign up as preferred customers, which rewards the town of Amherst through the items that are bought.