World Stories seeks school fundraisers for referral marketing

Internet Strategies for Education Markets: The Heller Report, Jan, 2000

World Stories.com (World Stories LLC, Union, NJ) wants to be the global destination for creative competition, says Howard Culang, president and chief marketing officer. The subscription site, which launched in early November, gives paying members the ability to enter creative competitions (primarily writing competitions at this point) and to participate in skills contests. For example, users can enter a love poem contest for a $1,000 prize. The site is intended, says Culang, to be an intellectual step above web-based game sites featuring games of chance. Much of the writing is focused on personal stories and the belief that "people want to be heard." Launching with $2 million in prizes will help to attract the initial subscribers and pursue a policy in which people get paid for their contributions.

Culang also wants to pay members for marketing the site. Subscribers can earn cash back for attracting new members via a viral marketing plan that relies heavily on a pyramid type of referral network. Members pay $9.95 per month and receive 20% back each month for each of their first four referrals and 5% for each of the first four subscribers gathered by those people. The marketing approach requires affinity groups, and WorldStories will be encouraging K-12 schools, universities and organizations within those institutions to use a membership drive for the consumer site as a fundraising program.

There is also content geared to school-age groups. Campus City, an area within WorldStories.com, provides a competition forum specifically for college students. School's Out allows children to compete with other kids their age: Kids World is for ages eight to 10, The Middle Years serves ages 11-13 and Teen Town is for ages 14-16. Other thematic areas of the site, many of which are intended for adults, include Viewpoint, Money Talks, Sports, Entertainment, Lifestyles, BodyWorks, The Mind, Writer's Life and Funny Zone.

Culang envisions organizations such as a high school PTA or university alumni group encouraging members to join the site as a fundraiser. Memberships are by family, so kids and parents can contribute writing pieces and enter skills competitions for the $9.95 monthly fee.

WorldStories.com has a sales staff approaching universities, and they are in the process of making agreements with organizations that have sales channels into K-12 schools.

The site has kid-safe guidelines in place. Profanity is not allowed, and nothing is posted without review by the editorial board. Interestingly, because this site is targeting consumers and not schools, the kids sections include some gritty, real-life stories, such as dealing with an alcoholic mom. Culang is enthusiastic about the web's ability to give immediate feedback on what kids are interested in and what they and their parents find suitable.

Culang says the company is in the process of completing its strategic plans for the post-launch phase. He expects to add new technologies soon, such as video, audio and other forms of interactivity. Culang add that he is in active talks with some of the country's largest media companies for content distribution. World Stories owns all member-generated content posted on the site, and books collecting the brief life stories from the site, for example, are a likely project. World Stories is also making strategic partners with organizations to sponsor contests and attract new members. Generally, contest sponsorship gives the sponsor a clickable logo. A partnership with Urban Cool Net (www.urbancoolnet.com), for example, is intended to help bridge "the digital divide" by giving computers to winning students and schools from the site's inner city audience.

The company was formed late in 1998. Culang says it is very well funded by individuals and financial partners. Jay Negin, chairman, is a private investor with holdings in cable television, advertising, marketing and related industries. Culang is a general partner of J.H. Capital Management LLC, an equity fund, and is principal and president of Laurel Corp., a private investment company. Culang is also a former junior high school teacher who later achieved notable financial success in the mortgage industry. He is among the funders of the site, and his involvement, paired with retirement, eventually drew him into the role of leading the company.