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Executive Summary
Virtus Interactive LLC - Confidential
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www.asdhelps.com
What Is Athletic Scholarships Direct ?
An NCAA Compliant Virtual Roadmap and personal marketing tool
for
Parents and Student-Athletes
To help them navigate the college athletic recruiting process
Our Mission:
“To Empower Student–Athletes and Parents Through Education”
@ASDHelpsdotcom
www.asdhelps.com
Who We Are;
Athletic Scholarships Direct.com was soft-launched in January, 2012, because as former Division 1 Athletic Administrators and
scholarship athletes, we want to bring light to the darkness that pervades college athletic recruiting services and change the culture of
broken promises and shattered dreams
Even those of us who have served as NCAA Division I Athletic Administrators have a difficult time navigating the maze that is college
athletic recruiting. We have removed the fog and simplified the core issues, extracting key eligibility data, and providing links directly
to important NCAA web sites, making it easier to understand and to comply with eligibility requirements.
Having been in and around the VC culture, I also wanted to make sure that when we finally made the ask for substantial capital, we had
used our own money testing and making mistakes that could be corrected prior to spending OPM. This is why we pivoted the business
model and went to the two-tier subscriber model, Basic (free-limited tools and access) and MVP/Premium (Total Access to coaches and
college database, ability to email directly, open scholarships, who's viewed me, etc.). This assures that we won't be spending OPM
cavalierly on espresso machines and Foosball tables, "no spray and pray" marketing strategy, but seasoned professional management
that will minimize waste and maximize results. If I learned anything from working at Getty Images, it's that we don't want to launch a
site before it's been thoroughly beta-tested and vetted. That is why we have taken the tortoise route with ASD.
Company Structure
Cap Table
Virtus Interactive LLC, State of DE.
Mike Pirolo:
Andrew Vedlitz
Steven Board
Gail Sideman
Exit
94%
2%
2%
2%
www.asdhelps.com
Multiple scenarios include acquisition by Companies
in the College Athletic Web Development Business
such as XOS, CBS Sports; Sports marketing
companies like IMG or Learfield; Athletic Apparel
Companies, e.g.: Adidas, Nike
Additionally, the Company may investigate the
possibility of conducting a small-cap IPO, depending
on the economic and regulatory environment.
(Sarbanes-Oxley, Dodd – Frank)
Why We Are Different…….
•
Unlike every other competitor, Athletic Scholarships Direct charges one flat fee monthly, with no hidden fees
EVER, not for sending profiles to coaches, not for searching , not for multi-sports; everything is included in the low
monthly fee of $9.95, which is affordable for everyone and help ASD achieve initial market share / critical mass.
• Compared to other competitors who offer "free" profiles, then charge you separately for every profile, search,
service, etc.; Unethical “promises” of Scholarships, Thousands of Dollars for “Evaluations”, Too many broken promises
to count……ASD gives basic members free access to profiles and various educational tools , while MVP members
receive direct access over 25,000 college coaches and 1800 universities in our database. MVP members will also
have access to additional premium features including the “Who’s Viewed Me” and Current Open Scholarship
functionality.
• Athletic Scholarships Direct's coaches database is licensed from College Coaches
Online, the company that provides and updates the coaches Database for the NCAA
• Athletic Scholarships Direct has been vetted by the NCAA, before receiving approval in
writing to use links to the NCAA's websites and educational tools
• WE ARE NOT Agents, Paid Recruiters, Evaluators or "Third-Party Experts".....Looking to rip off Parents or make
empty promises......(see NCAA Football, Summer of 2011)
• WE ARE for the often ignored “Other 99%” of High School Athletes, not the ESPN 150 or Under Armour All-Star,
the Parent and Child who really need the HELP.
www.asdhelps.com
Who Benefits From Athletic Scholarships Direct ?....Parents
The Challenge
The only realistic options available to Parents of the “Non-Elite” student-athletes are either the High School
coach with a limited universe of college contacts; getting ripped-off by High priced third-party “Athlete
Marketing” services (7-10K); or having to spend months contacting schools directly on an individual basis,
filling out recruiting forms at every stop.
Our focus groups of Parents revealed that they are tired of getting taken for thousands of dollars by alleged
“recruitment and evaluation” services which have turned this industry into a cesspool. To that end we have
been vetted by the NCAA and the NIAAA resulting in the NCAA giving us written permission to link directly
to their web sites and information about recruiting education.
The Solution ….ASD
• Athletic Scholarships Direct Educates Parents on the processes and criteria for qualifying your child as a
prospective college recruit
• Save Time...Save Money...No Hidden Fees
•No more 100's of Hours searching individual College Sites;
• An NCAA compliant Virtual Road-map for Finding the "Right" College Athletic Scholarship; D1, DII, DIII, NAIA, JuCo
www.asdhelps.com
Who Benefits From Athletic Scholarships Direct ?
So-called “Non-Elite” High School Student-Athletes (The Ignored 99%)
• Get unlimited use of the Athletic Scholarships Direct site and its NCAA compliant educational resources
• Research colleges, coaches and their athletic programs.
• Create and update your multimedia profile 24/7 - 365.
• Multi-sport athlete? Athletic Scholarships Direct allows them to add additional sports to your profile at no
additional cost, unlike the competition
• Send profiles to coaches and recruiters from your personal email to any of the more than 1,800 colleges and
25,000 coaches in our database representing 40 sports
www.asdhelps.com
Who Benefits From Athletic Scholarships Direct ?..... College Coaches
With the exception of the top 15-20 of the top FBS Football schools (120 Total out of 1345 DI – NAIA
Institutions – NCAA, NAIA), e.g.: Florida, Alabama, Ohio State, USC, most Athletic Department recruiting
budgets have been adversely affected by the recession in the form of lost sponsorship, donor, and media
revenues, especially at the D 1 AA, D II levels and below
The Solution – ASD
We Help Great Student-Athletes Find Coaches
• ASD was founded by people who know the business of College Athletic Recruiting - former and current D1 athletic
administrators, coaches and scholarship athletes. We understand how difficult it is to recruit great talent outside of a
Coaches geographic area, especially with recruiting budgets being slashed.
• By registering for free with ASD, Coaches are able to search for student-athletes with our advanced keyword
search. Build dossiers on each recruit as freshmen and sophomores. And, depending on the sport, division and
NCAA regulations, Coaches can even connect with them directly as juniors and seniors.
• ASD allows Coaches to post open scholarship information using our easy-to -use interface and it will be posted in
every subscribers account.
• ASD makes it easier to find the scores of talented young student-athletes across the U.S. who are eager to prove
they have what it takes to be a scholarship athlete.
www.asdhelps.com
Why We Believe in This Venture
Market Size (Customer Universe – US)
High school athletics participation increased for the 21st consecutive year, according to a study done by the National Federation of
State High School Associations, creating a self-regenerating customer base.
Participation at NFHS member schools for the 2010-11 school year reached 7,667,955, an all-time high. Both genders also recorded alltime high US participation rates, with 3,173,549 girls and 4,494,406 boys competing at the high school level in the last academic year.
The survey determined that about 54.8 percent of high school students participate in athletics. “This is certainly another great report
on the interest of high school sports in our nation’s schools,” said NFHS Executive Director Robert F. Kanaby.
Filling a pressing Parental need leads to a significant opportunity for competitive growth….
The largest player in this space, BeRecruited, controls approximately 6% of the entire customer universe.
As of April 2012, according to intelligence we gathered from a high –placed source at BeRecruited, the company is attracting 40,000
signups per month, which only equates to 480,000 annually or 6.3% of the total available customer universe.
All of the existing competitors of any consequence, and particularly market leader BeRecruited.com, are specifically targeted to 12-18
YO, with UI and content which is teen friendly, but busy with blogs, teen chat, etc. NCSA engages in expensive “third-party” Recruiting
and athlete evaluation which falls into a very grey area with the NCAA. Based on our competitive research, NCSA is also one of the most
expensive services (Min. $2,000+), often charging unsuspecting parents thousands of dollars with limited results.
Parents, who are the real drivers behind this activity also have the greatest pain point, affording a college education. Ironically, the
competitive landscape afford Parents, at best, a cursory glance, or preys upon their lack of knowledge and deep desperation.
www.asdhelps.com
Launch Marketing Strategy Overview (Abridged)
Target Audience Demographics:
Primary:
Adults 35-54, Parents of High School Student-Athletes and High School Student-Athletes 13-19;
(With an emphasis toward the “other” 99% of High School Age Student-Athletes, Not the ESPN 150 or Under Armour
All-Stars, especially Women)
Secondary:
US High School-Level Key Sports Organizations; Club Sports, Travel Team organizations, Sports businesses
Tertiary:
25, 000 College Coaches / Recruiters
Target Geographies:
Phase I (Years One-Two):
Based on our research and prevailing resources, we are adopting an Two Phase launch strategy to establish initial
subscriber beachheads in the Top Twenty NFHS Participation States (Representing 74.7% of the Total Customer
Universe; (5,731,959 High School Student-Athletes) and the Canadian province of Ontario ( 270,000 High School
Student-Athletes);
Phase II (Years Three-Five):
Roll out to Remainder of US and Canada, ; Roll out additional Countries as research warrants
www.asdhelps.com
Launch Marketing Strategy Overview (Abridged, Cont.)
Objectives:
Build the basic (free) subscriber base
Drive advertising revenue through basic subscriber registration build (eyeballs)
Drive Paid Subscriber Revenues through conversion of basic subscribers
Strategy:
Develop and Execute a targeted marketing and public relations initiative which will create key stakeholder “push” and end-customer “pull-through”
Build conversion to MVP (paid) subscription base via limiting basic subscriber access to key feature functions, e.g. College Coaches Database, Email
functionality, College Information, Open Scholarships, “Who’s Viewed Me “feature. Etc.
Tactics:
Primary: Adults 35-54, Parents of High School Student-Athletes / High School Student-Athletes (End-customers);
Target keywords in site copy to optimize search engine activity, in addition to comprehensive SEO and Back Link Strategy
Execute targeted viral advocacy campaign on Facebook, local high school sports blogs
Develop and Execute targeted strategic marketing partnerships with destination web sites that create synergy
Develop and Execute targeted Strategic Event Partnerships, e.g.: ESPN Games, Sport Specific Showcases
Develop additional saleable assets for corporate partnerships; Weekly Radio Show, Local High School Sports TV in Key markets
Secondary: Whale Hunting - US High School -Level Club Organizations / Travel Teams/Sports Businesses (Key Stakeholders);
Develop and Execute strategic marketing partnerships with select Key Strategic Partners in the High School Student-Athlete vertical; State Soccer
Club Association, Travel Team Organizations, Professional Sport Schools, e.g.: Extra Innings, etc..
Tertiary: College Coaches / Recruiters
Once we have achieved traction in the subscriber base, communicate the value proposition of AthleticScholarshipsDirect.com for College coaches
and recruiters by a direct marketing campaign through our data base of over 25,000 plus D1-NAIA Coaches and Recruiters to drive free registration
and more importantly, the posting of open scholarships at the D 1 AA level and below, which we can then market to new subscriber prospects.
Additionally, we will investigate potential opportunities to partner with various college coaching associations; e.g., AFCA, WBCA, NABC, etc.
www.asdhelps.com
Why We Believe in This Venture – The Revenue Model
Keep it Simple;
Our initial stream of revenue will come from paid subscriptions; parents of High School Student-Athletes (Adults 35-54 w HHI of
65K and Above) purchasing on behalf of their children.
We are executing a two-tier “basic “free model with limited access to educational tools and an “MVP” Premium level that will
grant direct access to our database of College Coaches and a portfolio of premium features. After two years of consumer research
in this space, this is the model that drives customer action.
We will focus our initial marketing and sales efforts on not only driving subscribers, but building strategic partnerships with
organizations that will provide a positive “Brand Halo”, differentiate us and help us build trust with our target audience. Once we
capture critical mass of subscribers/eyeballs, we will develop an additional revenue stream via advertising revenues from targeted
partners, e.g.: Soft Drink/Energy Drink, QSR, Auto, etc.
Whale Hunting; Strategic Partnerships with High School-Level Athletic Organizations; e.g.; State Club Organizations, Travel
Team Organizations, etc.
We also plan to drive subscriptions via our Strategic Partnerships with High School –Level Athletic Organizations; State Soccer
Clubs, State –wide Travel Team Organizations, etc. who are always seeking incremental revenue streams and additional ways to
add value for their parents and players. Lending additional support to our concept, participation in High School- Level sports has
increased for 21 consecutive years. (NFHS Annual Report on High School Athletic Participation)
Once we build our basic subscription base to a critical point (10,000 ) we will pursue advertising partnerships,e.g. NIKE, Coke,
with relevant brands that will afford AthleticScholarshipsDirect.com a significant halo effect, while not turning the site into a
“Moroccan Bazaar”
www.asdhelps.com
Why We Believe in This Venture – The Revenue Model
Future Revenue Projections
Simple Model, Simple Math:
Simple but very conservative math shows the revenue potential of this endeavor should we secure the following paid sub base: Assuming
0. 4% - Yr 1; 1.0% - Yr 2 (Phase I Customer Universe of 6,001,959); 1. 25% - Yr 3; 2.0% -Yr 4 and 3.0%-Yr 5 of the annual overall available
Phase II customer universe of 8,417,000 (7.667 MM-US / 750K CA) with a projected attrition rate (graduation, Injuries, etc.) of 40%
beginning in year two. For projection purposes I am using a $9.95 per month subscription price point and a 19% conversion rate:
Year (%Customer Universe) (P1)
Basic Subs (Free)
Paid Subs (19% conversion)
Annual Attrition (40%)
Retained Paid Subs
Total Paid Subs
Projected Revenues
(@ $9.95 per “MVP” Level Sub/per Mo.)
1(0.4%)
24,007
4,561
N/A
N/A
4,561
$544,583
2 (1.0%) | (P2) 3 (1.25%)
60,019
105,212
11,403
19,990
1824
5,290
2,736
7,937
13,227
27,927
$1,579,303
$3,334,483
www.asdhelps.com
4 (2.0%)
168,340
31,984
11,170
16,757
48,741
$5,819,675
5 (.3.0%)
252,510
47,976
19,496
29,245
77,221
$9,220,187
Why We Believe in This Venture – The Revenue Model
Year 1
Sales
(Paid Subs)
4,561
Year 2
100%
13,227
Year 3
100%
27,927
Year 4
Year 5
100%
48,741
100%
77,221
100%
Total Sales
$544,583
100%
$1,579,303
100%
$3,334,483
100%
$5,819,675
100%
$9,220,187
100%
Gross
Revenue
$544,583
100%
$1,579,303
100%
$3,334,483
100%
$5,819,675
100%
$9,220,187
100%
Projected
Operating
Expenses
$163,374* +
30%
$473,790*
30%
$833,620*
25%
$1,454,918*
25%
$2,305,047*
25%
$4,364,757
75%
$6,915,140
75%
Projected Net
Income
(Loss)
$381,209
70%
$1,105,513
70%
$2,500,863
75%
*Assumes worst-case scenario –State Representative Commissions, Projected 4% Credit Card Discount Fee, .25 Per Transaction
Merchant Fee, Recurring Annual Fixed and Variable Operating Costs (Salaries, SG&A, Marketing, Legal, Accounting, Development)
+Year 1 Includes Additional Site Design, Development, ongoing Legal, Marketing, Accounting, General & Administrative Costs
(See Use of Proceeds Page for Complete Details)
www.asdhelps.com
Athletic Scholarships Direct ( www.AsdHelps.com) Capital Requirements:
Minimum $475,000 – Maximum $650,000
Founder has Seed-funded the Company through the development, market research and Beta -Testing Phases over the past 2.8 Years:
$138,000 hard capital and 2.8 years of sweat equity
A. Vedlitz, S. Board, G. Sideman have invested two years of sweat equity/professional services into the venture
Current Monthly Burn Rate: $2,650
Use of Proceeds from Raised Capital:
Planned Use of Proceeds
$475,000
$650,000
Marketing , Advertising , Public Relations, Partnerships
$310,000
$450,000
Management Team Salaries
$100,000
$100,000
Working Office Space (Annual)
$8,000
$8,000
$20,000
$35,000
Sales, General & Administrative
$11,000
$18,000
Professional Services (Legal, Acct.,)
Advance to Founder
(Retire High Interest Loans)
$10,000
$15,000
$16,000
$24,000
$475,000
$650,000
Planned Use of Proceeds
Additional Site Feature Development
(Ongoing)
Total
www.asdhelps.com
Senior Management Team
Mike Pirolo , Founder & CEO - Professional Experience:
• Senior General Management, Brand Marketing, Sales and Business Development Executive with over 25 years of Cross-Disciplined Revenue Driving
Success in Diversified Industries, with an Emphasis in Sports Business.
• Senior national account and general management positions for Young & Rubicam, Ogilvy & Mather and Bates North America in various regions of
the United States while working on top agency accounts such as Ford, Sears, Miller Brewing Company, Pirelli Germany, Campbell Soup Company and
the John F. Kennedy School of Government at Harvard University. Additionally, Mike has held senior positions in College Athletics at the United
States Military Academy (Associate Athletic Director) and the Chick-Fil-A Bowl (Associate Executive Director)
• During his Agency tenure, Mike developed and executed Media-driven national, regional and local integrated marketing programs for client
engagement with the NFL (Teams and Super Bowls), NBA, MLB, Olympics, LPGA, AVP, NASCAR, and various entertainment properties (Paramount
Pictures, Cirque Du Soliel, Universal Studios, House of Blues; Jimmy Buffet, Brooks and Dunn, Clint Black concert tours). In one ten-year period during
his career, Mike had responsibility for over 50MM in client sports and entertainment business.
Steven Board , Vice President, Student-Athlete Resources - Professional Experience:
• Executive Director of the 100 Black Men of New York City, that historic organizations' founding chapter.
• Founder and President of FXO Marketing Group, VP of Event Marketing for Bates North America, East Coast Regional Sports Marketing Director for
NIKE, Director, City of New York Sports Division and Senior Director – NBA, where he conceptualized and executed the NBA All-Star Celebrity
Basketball Game, the Rookie Practice and the NBA Jam Van & National Tour. Additionally over the past 20 years, Steven has planned and developed
strategic integrated marketing campaigns for Adidas, Polaroid, USA Network, US Open, Martell Cognac, Chivas Regal and RJ Reynolds.
• A former D III Track and Field athlete at Lincoln College, Steven is also a certified sports conditioning specialist, a sports nutrition specialist and
sports safety instructor.
www.asdhelps.com
Senior Management Team
Andrew Vedlitz, Vice President, Marketing and Partner Development- Professional Experience:
• Andrew brings over 20 years of sports and entertainment business development experience to Athletic Scholarships Direct (ASD). He began his career
as Assistant Executive Director of the Chick-Fil-A Bowl in Atlanta and continued to build on his industry credentials after successful tenures in sports and
entertainment marketing at Wachovia Bank, Young & Rubicam and Philips Arena.
• Served as Vice President of the Atlanta Super Bowl Host Committee in charge of sponsorship sales and marketing, and has direct experience working
with well known companies such as Citibank, Miller Brewing, Russell Athletic, Schering-Plough & Western Union through his various career experiences.
Gail Sideman, Vice President, Public Relations - Professional Experience:
More than 20 years of public relations experience, including 10 in NCAA Division I sports information during which she received national awards for her
work, have led Sideman to emerge as one of the most respected professionals in sports and publishing publicity. When she suggests what a reporter
seeks in a newsworthy story angle, she knows from experience.
She has worked on both sides of the media-PR spectrum, including time as a stringer for the St. Petersburg Times and Tampa Tribune, then as a
freelance writer for sports and business publications. She additionally works with network television production crews at some of the country's most
visible sports events (Final Four, Frozen Four, College World Series, MLB, NBA) which allow her to keep her hand on the pulse of broadcast media.
Doug Murless, , Region Director, Canada: 20 years of business experience, former hockey player, Canadian native, Sports retailing executive
Hiram Green, Region Director, Florida: Former Parade All-American basketball player, Associate Athletic Director-USF, D1 Basketball recruit/player
Jason Bosley, Region Director, Southeast: Auburn University Football (4 years), Elected Captain Senior year, SEC All-Academic Team (3 Years)
Travis Dent , Region Director, Midwest: USMA Varsity Baseball (4 Years), Former High School Baseball Coach and College Administrator, D 1 Recruit
For More Information on the ASD Team, go to http://athleticscholarshipsdirect.com/BoardofAdvisors
www.asdhelps.com
In Closing……
A simple concept. We are filling a need on both sides of the equation; for the parents of High School Student-Athletes who aren’t in the top 00.1%
and getting recruited by the top 30 FBS institutions, we are providing a time-saving, informational conduit to coaches and recruiters nationwide.
Especially after what happened during the forgettable summer of 2011, there has never been a better time to introduce an NCAA compliant
education and marketing resource for parents and high school student-athletes, run by former NCAA D 1 Athletic Administrators and Scholarship
Athletes who want to help drain the swamp.
Because we vetted ASD up front with the NCAA, we conform to even the most recent stringent changes in the recruiting regulations, since we are not
recruiters, agents, lawyers, talent evaluators or “third-party” go-betweens that have fouled so many dreams for student-athletes and their parents in
the past.
We believe our business model of educating the parents and High School Student–Athletes, in conjunction with our grass-roots strategic partnerships
with High School –Level Athletic Organizations will be the differentiator in capturing a significant percentage of the remaining customer base over
time. The ultimate beauty of this endeavor is that it only requires a minimum share of the overall customer universe to generate significant revenue.
We have listened to parents of High School Student-Athletes complain for years about the confusion and concern over finding any scintilla of
information on potential scholarships especially if “MY kid isn’t an ESPN 150 talent, but can play at some level”.
We have listened to College Volleyball, Soccer and Baseball Coaches as they have thrown up their hands in frustration because of cuts to their
recruiting budgets without the relief of lower expectations on the field of play.
This site isn’t for the “ESPN 150” or Under Armour All Star.. It is for the other 99%.
Thanks in advance for your time and consideration.
To view the complete business plan please contact me at:
Mike Pirolo
Founder and CEO
Virtus Interactive, LLC
(877) 237-8419 X 734(wk) (201) 994-5347 (mobile)
mapirolo@asdhsr.info
www.asdhelps.com