Is Your Registration Company Safe?

With the decline of registrations in our sport, the overabundance of small registration providers, the closing of RaceIt, and most customers abandoning another vendor because of a scenario we predicted in “The Big Short and Registration Payments“, races should make sure they have a viable registration company.

Races have the right and responsibility to vet the financial future of their registration providers, as well as the security of the information. Here are some suggestions:

– Do you keep race funds separate from funds you use to operate your company? (Yes at RSU)

– Is your company Profitable? (Yes at RSU)

– What is your Current Ratio?  (RSU Current Ratio is always >1)

– What is the funding of your company? Debt? Investors? (Bob seeded the company. We have 0 debt. We can finance our growth with our own cash flow and profits)

– What is the “exit plan” for the company? (None. We are an employee owned business and do profit sharing and the RunSignUp Community Grants with our profits)

Another set of topics is the security and privacy of the data. This area is a bit known, but there is potential risk of races being liable if participant data is misused or stolen. Races should ask for documentation of the following:

– Proof of PCI Compliance. (Level 1 is the highest level and includes a yearly independent audit)

– Data Privacy Policy

– COPPA compliance

Here is some reading that may be helpful on vetting registration companies:

Registration Company Viability

What the Running Boom Pop Means for Races

The Risks of Declining Registrations

US Registration Market Analysis

Why Software Dies

When Software Dies

Non-Exclusive Contracts

Technology Change Rates

The Big Short and Registration Payments

Race Registration Company Valuations (from 2015, but predicts what is happening)

Here are some good blogs on our background:

RunSignUp Converts to an S Corp

2017 Year in Review

2017 Availability Report

Guiding Principles

RunSignup History Timeline

RunSignup Philosophy Over the Years

Becoming a Payment Facilitator

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