Virtual Ed Link Announces Freemium Business Model With Projected Revenues of $10 to $14 Million Annually
04 May 2010 - 10:00PM
Marketwired
Virtual Ed Link, Inc. (PINKSHEETS: VRED)
-- Virtual Ed Link announced today that it is
releasing a new "freemium" business model for New York and New
Jersey school districts. Freemium is a business model that works by
offering basic safety and security Web services for free, while
charging a premium for advanced or special features.
The base services included in the model contain notifications,
policies and procedures, emergency preparedness and safety and
security tips. Set up revenue associated with the base services
would be approximately $500,000 annually. Based upon VELI's current
rate of add-on services per school, the premium services model
could generate between $10 million and $14 million annually.
The freemium model will enable school districts with 2010 - 2011
budget cuts to provide safety and security services to their
respective students, parents, staff and administration without the
typical upfront payments usually associated with security services.
This pay-as-you-go model is intended to help schools in their time
of need.
The freemium model was conceived by Virtual Ed Link and its
major distribution partners in New Jersey and New York. These two
partner organizations represent about 600 school districts with
purchasing power to reach to over 1,000 school districts.
The premium services include carrier grade emergency alerting,
physical security management, eLearning and learning management
services and courseware such as Swine Flu Awareness, Safe Internet
Security Practices for Student and Parents, and 600 other
individual lessons.
"We believe this freemium model gives schools the opportunity to
provide essential services to their districts during these fiscally
hard times," said John Bay, President and CEO. "At the same time,
it establishes VELI as a leader in the school safety and security
markets both in terms of market penetration and recurring
revenues."
About Virtual Ed Link, Inc. Virtual Ed Link,
Inc., (PINKSHEETS: VRED), sells the Safety and Security
Management System (SSMS), which uses proprietary core technology
solutions developed by Viyya Technologies. The Safety and Security
Management System is marketed and sold primarily to schools and
colleges around the U.S. and geared to be used as a collaborative
Web 2.0 tool to share general information retrieved from any
internet source among the school users, and especially, in the
event of threats or danger, to disseminate alerts to help and guide
students, parents, faculty and law enforcement in the actions
necessary to help protect school attendees, and school
infrastructure.
For more information, visit http://www.virtualedlink.org
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This news release contains forward-looking
information within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including statements that include the words
"believes," "expects," "anticipate" or similar expressions. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the company to differ materially
from those expressed or implied by such forward-looking statements.
In addition, description of anyone's past success, either financial
or strategic, is no guarantee of future success. This news release
speaks as of the date first set forth above and the company assumes
no responsibility to update the information included herein for
events occurring after the date hereof.
Contact: Pam Dominiczak Investor Relations Virtual Ed Link, Inc.
Phone: 973-276-0555 info@virtualedlink.org
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