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Educational Tutorial Services

Lisa Russell, CEO
www.educationaltutorialservices.com
Problem
•

•
•
•

•

Nearly 30,000 youth age-out of the U.S.
foster care system without the skills
needed to be self-sufficient.

•

Typical outcomes for youth who age out
of our foster care system:
–

Only about 50% of youth in foster care will
be reunified with their families.

–

At least 60% of youth in care will be there
longer than 12 months.

–

Foster youth are twice as likely to repeat a
grade in school due to interruptions in
their education (multiple placements,
etc.)
Less than 2% of foster youth will earn a
college degree compared to 24% of the
general population.

–

–

•

22% experience homelessness soon after
age 18
33% live at or below poverty for years
following care
75% of females will become pregnant at
least once by 24
25% are incarcerated within 2 years of
leaving foster care
25% are diagnosed with post-traumatic
stress disorder (PTSD)

These outcomes have wide-reaching
societal and economic impact on
everyone
Solution
•

Targeted intensive academic interventions
performed by highly qualified teachers
trained to work with youth in foster care

•

Improve access to affordable homework
assistance for all youth who need to catch
up with their peers

•

Make it easier for caregivers to help foster
youth by removing transportation barriers
and providing services on demand to
meet scheduling needs

•

InstantTutor – online tutoring program
designed to meet the unique learning
needs of youth in foster care
Students are able to upload homework assignments so their
tutor can help them instantly.
Tutors and students communicate in real-time using a variety
of tools from whiteboards to audio and video messaging.
Tutors are able to play pre-created YouTube video lessons to
help students better understand specific learning concepts.
Students and tutors can share desktop screens to improve the
tutoring sessions and speedup the student’s comprehension.
Market Opportunity
• Approximately 700,000 youth in care annually in U.S.

• Between 2,000,000 and 5,000,000 foster youth around the world.
• Nearly 80% of U.S. households have Internet access.
• $56.2 billion e-learning business is likely to double by 2015.
• U.S., Europe, and Asia account for nearly 90% of e-learning market.
• Knowledge retention improves by nearly 60% with e-learning,
making it a desirable and successful market.
Business Model
•

•

•

•

Fees for service ranging from $15 to $45
per hour of tutoring (potential of $2M to
$101M annually)
Additional revenue from non-foster care
youth around the world who need
tutoring

Relevant paid advertising on site from
complementary but not competitive
companies

Fees for Service
($101M with 2500 tutors)

$38M
$101M

Practice tests ($10) for exams including:
–
–
–
–

ACT
SAT (all subjects)
GED
GRE

Gross Revenue

Net Profit
Traction
•

•

Beta site is nearly completed along
with practice tests

•

Have license for 50 tutors to begin
providing tutoring immediately

Recruited 50 tutors and have process
in place to scale up to the desired
2500 tutors
Strong international social media
following and other contacts that
have expressed interest in
InstantTutor

•

ETS CEO is advisory board member of
national organization ready to
connect their foster families to our
tutoring services

Already invested the funds needed to
build the interactive learning
platform

•

•

•

Long-standing relationships with
foster care agencies and advocates
across the country and around the
world
Competition
•

General online tutoring agencies:
–
–
–
–
–
–

•

Tutor.com
TutorTango.com
WyzAnt.com
TutorVista.com
InstaEdu.com
TutaPoint.com

Foster care tutoring agencies:

•

– Tutors-international.com

– ProfessionalTutors.com

•

Foster care online tutoring agencies:
– ProfessionalTutors.com

Global online tutoring agencies:

•

Global foster care online tutoring agencies:
– None
Competitive Advantages
•

Only agency offering online tutoring to foster youth on a global basis

•

Our tutors are specifically trained to help bridge learning gaps experienced by
youth in care who are multiple grades behind their peers

•

We specialize in reading and math basics as the building foundation of all other
learning

•

InstantTutor is a multi-language learning platform that will match students to tutors
based on language preference

•

Our tutors are able to provide one-on-one assistance to students with learning and
other disabilities
InstantTutor Features
•

24/7 Access to Tutors

•

Video Chat

•

Real-Time Tutoring

•

Multiple Languages

•

Individual Tutoring

•

Resources for Parents

•

Chat Capability

•

Free Worksheets for Students

•

Ask a Question Option

•

Secure Site

•

Desktop Sharing

•

System Check

•

Session Recording

•

Screened Tutors

•

White Board

•

Special Needs Tutors

•

508 Compliant

•

Facebook Wall Paste & Friend Invite
Market Approach
•

Annual Marketing Budget: $78,750 for online, social media advertising, search engine
optimization, and direct mail

•

Channels: past and current clients in U.S. and U.K., including foster care agencies, human
services, Workforce Investment Boards, and schools

•

Conversion Strategy: foster youth get discounted rate for tutoring, and we are looking to
partner with an organization similar to iFoster to ensure all youth have computers

•

Strategic Relationships: already have major partnerships in large metropolitan areas such as
Los Angeles and San Francisco

•

Average Customer Acquisition Cost: $15 which includes multiple marketing avenues

•

Average Revenue Per User: $1,000 gross based on current average of 40 hours per student

•

Average Life-Time Value of Customer: $400 net after paying tutors and covering
administrative expenses
ANNUAL TUTORING GROSS REVENUE

Financial Projections
$120,000,000

$101,250,000

$100,000,000
$80,000,000

$60,000,000

$40,500,000

$40,000,000

$10,125,000
$20,000,000

$2,025,000

$0
Year 1 (50 Tutors)

Year 2 (250 Tutors)

Year 3 (1000
Tutors)

Year 4 (2500
Tutors)

(Based on an average of $25/hour session, 8 sessions per tutor per day
during the school year as well as summer school, assuming 75% capacity.)
Our Team
•

•

Provided in-home tutoring services to more than 20,000
foster youth across the country since starting company.

•

Serves at least 2,000 youth annually through contractual
relationships with foster care agencies and partnerships
with workforce development boards.

•

Lisa Russell
CEO & Founder

MBA who started Educational Tutorial Services in 1996
when she realized there were no tutoring organizations
dedicated to foster youth.

Hires and trains 500+ tutors annually to provide high
quality tutoring to youth in care.

•

Proven track record of strategic positioning, creative
conceptualization and motivational leadership combined
with an innate ability to build and maintain strong client
relationships.

•

Professional and personal accomplishments include:
–
–

Advisory Board Member, National Health Care Services for Foster Children
Honoree, Cystic Fibrosis Foundation's 50 Finest, 2011
Our Team
•

Julianna Gardener
Educational Coordinator

--------------------------------------------------------------------------------•

Maria Novey
Educational Coordinator

Julianna has been an Educational Coordinator for ETS
since 2009. She hires, trains, and supervises tutors.
Julianna ensures all tutors and staff understand foster
care educational rights. As liaison with
schools, parents, and foster care agencies, she oversees
all aspects of foster care tutoring in various communities
across the country.

Maria provides critical support to the CEO. In addition to
administrative assignments, she is an Educational
Coordinator for key communities such as San Francisco.
On the ETS team for 15 years, Maria oversees
tutors, reviews progress reports, and communicates with
schools, foster care agencies, and parents/guardians.
Our Team
•

Ryan Brown
Tech Director

--------------------------------------------------------------------------------•

Becky Seel
Marketing Coordinator

Ryan is the liaison with InstantTutor programmers and
provides ongoing technical support to
tutors, parents, and students. He has been in the IT
support industry for nearly 15 years. Ryan specializes in
technical environment assessments, user tech
support, and system configuration. He has been on the
ETS team for over 10 years.

Becky is the technical writer and provides marketing
support to ETS and InstantTutor. She has been an ETS
team member since 2007. Becky is responsible for social
media and other promotional activities of ETS. With
nearly 20 years of writing and marketing experience, she
will oversee the marketing and advertising strategy for
InstantTutor.
Our Team
•

Rosalind Davis
Business Manager

Rosalind provides essential business support to the team.
She is responsible for reviewing and processing tutor
payments and company invoices. She has been with the
team since 2007. She oversees other payment
processors. Her quality reviews ensure payments and
other business processes are efficient and accurate. Her
work streamlines annual financial reporting since payroll
is the company’s biggest expense.

---------------------------------------------------------------------------------
Educational Tutorial Services
Lisa Russell, CEO
(888) 705-6383
lrussell@educationaltutorialservices.com

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Educational Tutorial Services

  • 1. Educational Tutorial Services Lisa Russell, CEO www.educationaltutorialservices.com
  • 2. Problem • • • • • Nearly 30,000 youth age-out of the U.S. foster care system without the skills needed to be self-sufficient. • Typical outcomes for youth who age out of our foster care system: – Only about 50% of youth in foster care will be reunified with their families. – At least 60% of youth in care will be there longer than 12 months. – Foster youth are twice as likely to repeat a grade in school due to interruptions in their education (multiple placements, etc.) Less than 2% of foster youth will earn a college degree compared to 24% of the general population. – – • 22% experience homelessness soon after age 18 33% live at or below poverty for years following care 75% of females will become pregnant at least once by 24 25% are incarcerated within 2 years of leaving foster care 25% are diagnosed with post-traumatic stress disorder (PTSD) These outcomes have wide-reaching societal and economic impact on everyone
  • 3. Solution • Targeted intensive academic interventions performed by highly qualified teachers trained to work with youth in foster care • Improve access to affordable homework assistance for all youth who need to catch up with their peers • Make it easier for caregivers to help foster youth by removing transportation barriers and providing services on demand to meet scheduling needs • InstantTutor – online tutoring program designed to meet the unique learning needs of youth in foster care
  • 4. Students are able to upload homework assignments so their tutor can help them instantly.
  • 5. Tutors and students communicate in real-time using a variety of tools from whiteboards to audio and video messaging.
  • 6. Tutors are able to play pre-created YouTube video lessons to help students better understand specific learning concepts.
  • 7. Students and tutors can share desktop screens to improve the tutoring sessions and speedup the student’s comprehension.
  • 8. Market Opportunity • Approximately 700,000 youth in care annually in U.S. • Between 2,000,000 and 5,000,000 foster youth around the world. • Nearly 80% of U.S. households have Internet access. • $56.2 billion e-learning business is likely to double by 2015. • U.S., Europe, and Asia account for nearly 90% of e-learning market. • Knowledge retention improves by nearly 60% with e-learning, making it a desirable and successful market.
  • 9. Business Model • • • • Fees for service ranging from $15 to $45 per hour of tutoring (potential of $2M to $101M annually) Additional revenue from non-foster care youth around the world who need tutoring Relevant paid advertising on site from complementary but not competitive companies Fees for Service ($101M with 2500 tutors) $38M $101M Practice tests ($10) for exams including: – – – – ACT SAT (all subjects) GED GRE Gross Revenue Net Profit
  • 10. Traction • • Beta site is nearly completed along with practice tests • Have license for 50 tutors to begin providing tutoring immediately Recruited 50 tutors and have process in place to scale up to the desired 2500 tutors Strong international social media following and other contacts that have expressed interest in InstantTutor • ETS CEO is advisory board member of national organization ready to connect their foster families to our tutoring services Already invested the funds needed to build the interactive learning platform • • • Long-standing relationships with foster care agencies and advocates across the country and around the world
  • 11. Competition • General online tutoring agencies: – – – – – – • Tutor.com TutorTango.com WyzAnt.com TutorVista.com InstaEdu.com TutaPoint.com Foster care tutoring agencies: • – Tutors-international.com – ProfessionalTutors.com • Foster care online tutoring agencies: – ProfessionalTutors.com Global online tutoring agencies: • Global foster care online tutoring agencies: – None
  • 12. Competitive Advantages • Only agency offering online tutoring to foster youth on a global basis • Our tutors are specifically trained to help bridge learning gaps experienced by youth in care who are multiple grades behind their peers • We specialize in reading and math basics as the building foundation of all other learning • InstantTutor is a multi-language learning platform that will match students to tutors based on language preference • Our tutors are able to provide one-on-one assistance to students with learning and other disabilities
  • 13. InstantTutor Features • 24/7 Access to Tutors • Video Chat • Real-Time Tutoring • Multiple Languages • Individual Tutoring • Resources for Parents • Chat Capability • Free Worksheets for Students • Ask a Question Option • Secure Site • Desktop Sharing • System Check • Session Recording • Screened Tutors • White Board • Special Needs Tutors • 508 Compliant • Facebook Wall Paste & Friend Invite
  • 14. Market Approach • Annual Marketing Budget: $78,750 for online, social media advertising, search engine optimization, and direct mail • Channels: past and current clients in U.S. and U.K., including foster care agencies, human services, Workforce Investment Boards, and schools • Conversion Strategy: foster youth get discounted rate for tutoring, and we are looking to partner with an organization similar to iFoster to ensure all youth have computers • Strategic Relationships: already have major partnerships in large metropolitan areas such as Los Angeles and San Francisco • Average Customer Acquisition Cost: $15 which includes multiple marketing avenues • Average Revenue Per User: $1,000 gross based on current average of 40 hours per student • Average Life-Time Value of Customer: $400 net after paying tutors and covering administrative expenses
  • 15. ANNUAL TUTORING GROSS REVENUE Financial Projections $120,000,000 $101,250,000 $100,000,000 $80,000,000 $60,000,000 $40,500,000 $40,000,000 $10,125,000 $20,000,000 $2,025,000 $0 Year 1 (50 Tutors) Year 2 (250 Tutors) Year 3 (1000 Tutors) Year 4 (2500 Tutors) (Based on an average of $25/hour session, 8 sessions per tutor per day during the school year as well as summer school, assuming 75% capacity.)
  • 16. Our Team • • Provided in-home tutoring services to more than 20,000 foster youth across the country since starting company. • Serves at least 2,000 youth annually through contractual relationships with foster care agencies and partnerships with workforce development boards. • Lisa Russell CEO & Founder MBA who started Educational Tutorial Services in 1996 when she realized there were no tutoring organizations dedicated to foster youth. Hires and trains 500+ tutors annually to provide high quality tutoring to youth in care. • Proven track record of strategic positioning, creative conceptualization and motivational leadership combined with an innate ability to build and maintain strong client relationships. • Professional and personal accomplishments include: – – Advisory Board Member, National Health Care Services for Foster Children Honoree, Cystic Fibrosis Foundation's 50 Finest, 2011
  • 17. Our Team • Julianna Gardener Educational Coordinator --------------------------------------------------------------------------------• Maria Novey Educational Coordinator Julianna has been an Educational Coordinator for ETS since 2009. She hires, trains, and supervises tutors. Julianna ensures all tutors and staff understand foster care educational rights. As liaison with schools, parents, and foster care agencies, she oversees all aspects of foster care tutoring in various communities across the country. Maria provides critical support to the CEO. In addition to administrative assignments, she is an Educational Coordinator for key communities such as San Francisco. On the ETS team for 15 years, Maria oversees tutors, reviews progress reports, and communicates with schools, foster care agencies, and parents/guardians.
  • 18. Our Team • Ryan Brown Tech Director --------------------------------------------------------------------------------• Becky Seel Marketing Coordinator Ryan is the liaison with InstantTutor programmers and provides ongoing technical support to tutors, parents, and students. He has been in the IT support industry for nearly 15 years. Ryan specializes in technical environment assessments, user tech support, and system configuration. He has been on the ETS team for over 10 years. Becky is the technical writer and provides marketing support to ETS and InstantTutor. She has been an ETS team member since 2007. Becky is responsible for social media and other promotional activities of ETS. With nearly 20 years of writing and marketing experience, she will oversee the marketing and advertising strategy for InstantTutor.
  • 19. Our Team • Rosalind Davis Business Manager Rosalind provides essential business support to the team. She is responsible for reviewing and processing tutor payments and company invoices. She has been with the team since 2007. She oversees other payment processors. Her quality reviews ensure payments and other business processes are efficient and accurate. Her work streamlines annual financial reporting since payroll is the company’s biggest expense. ---------------------------------------------------------------------------------
  • 20. Educational Tutorial Services Lisa Russell, CEO (888) 705-6383 lrussell@educationaltutorialservices.com