Schoolpop.com files for Bankruptcy!

[Andrew_Doan]

Our major competitor is www.schoolpop.com, and they are filing for bankruptcy! This is surprising. This company grew from $25 million to $100 million in revenue in less than 3 years. In 2004, they pulled in over $50 million in revenue, and the first quarter of 2005 they pulled in over $7 million in revenue.

This is a shame that a company that paid out more than $200 million to schools must close and reorganize.

However, this is AWESOME opportunity for www.myfundrazor.org!

MyFundRazor offers a free, turn-key solution for the fundraising needs of churches, schools, and non-profit organizations.

MyFundRazor offers on average, 2X the payout of Schoolpop and IGive. If you're interested in raising money for your organization, please consider us. Our management is VERY strong with a former CFO from Weyerhaeuser, former CEO of a company that invented the DSL line, and a COO that has over 30 years of experience with software entrepreneurship. Many of our executives are physicians and academics who will take philanthropic shopping to a new level and make it sustainable.

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[Shredder]

interesting development. if there were a case study on schoolpop, what lessons would it teach? any reasons for its failure, and how myfundrazor is different and will avoid that? i dont mean to express skepticism, just healthy questioning to learn. i need to start seeking clubs to make pitches to...

 

[Andrew_Doan]

I think Schoolpop failed on several aspects:

1) Schoolpop made lots of money. $100 million/year is a lot. I would like to see a detailed accounting of their spending and executive bonuses.

2) Schoolpop signed up "60,000 schools" but had little infrastructure to support this. Schoolpop, according to public info, had 42 employees. This means each employee had to handle more than 1000 accounts. When a rapidly growing tumor expands in the body, it may outgrow its blood supply and die; thus, this is why there is often necrosis on pathology.

3) It seems Schoolpop acquires technology rather than develop technology. For instance, in their SEC filings, they purchased companies and were planning a purchase of accounting software of $150,000. For $150,000, I can employ two talented programmers to write the code for almost one year. Software can be cheaper to develop if a company recruits the right talent. In fact, I recently recuited a COO who can lead, has business experience, AND he programs. Two of my key executives are programmers.

How MyFundRazor is different:

1) We're employing service reps (YOU) to provide service and recruit organizations. We using effective multi-level marketing strategies and combining Internet technology with traditional salespeople tactics. BTW, you need to interview with me before you can be a service rep, so if you want to be a service rep, then setup a time to chat. Schoolpop had these "champions" who signed up programs, but they didn't share the profits. On the other hand, if service reps are getting monthly checks based on their organizations' performance, then the service reps have more incentive to help their organizations' raise money.

2) MyFundRazor pays out on average two times more than Schoolpop and IGive. This means there will be a STRONGER positive feedback loop where monthly cash will get programs to use our service more.

3) MyFundRazor is focusing on non-profts and churches, outside of schools. Churches have a more devoted following than schools. The church I attend, for instance, has 4000 members. We are currently recruiting a church in Hawaii with 10,000 members.

4) Management is key. Our management team is VERY strong and consists of a former CFO from Weyerhaeuser, former CEO of a company that invented the DSL line, and a COO that has over 30 years of experience with software entrepreneurship. Many of our executives are physicians and academics who will take philanthropic shopping to a new level and make it sustainable.

5) Marketing is key. MyFundRazor VP of Marketing is a talented writer and director. He is making commercials for service reps to use. Remember, Ray Croc didn't invent the hamburger, he just repackaged it into a Happy Meal and resold it to help McDonalds become a $41 billion dollar company.