I used to get asked all the time, "How is ActiveRain going to make money?". However, since the HouseValues investment things have slightly changed; now everyone is eager to tell me how ActiveRain is going to make money.
The funny thing is that most people's understanding of ActiveRain's value proposition is wrong. Most people tell me that the value of ActiveRain is in our member's content. That is false. Although the content on ActiveRain is valuable to it's members, I do not view it as a primary value to ActiveRain Corp. At least in the sense that none of our planned revenue models are dependent on utilizing our members content to make money.
Seth Godin published a post today that explains ActiveRain's business strategy perfectly, so I am going to leave you with a portion of his post instead of trying to paraphrase what he said.
"...the understanding that the real asset most organizations can build isn't an amorphous brand but is in fact the privilege of delivering anticipated, personal and relevant messages to people who want to get them.
It adds to that the fact that what people really want is the ability to connect to each other, not to companies. So the permission is used to build a tribe, to build people who want to hear from the company because it helps them connect, it helps them find each other, it gives them a story to tell and something to talk about...
Everything the organization does is to feed and grow and satisfy the tribe. Instead of looking for customers for your products, you seek out products (and services) for the tribe."
Hey Jon
I happened to catch Seth's post earlier today and found it fascinating. I like his departure from traditional branding to literally building product credibility from the ground up. He also made some valuable points concerning permission based marketing which points clearly to blogging as the ultimate marketing tool. Can't argue that.
Glad you brought this up.
Hi Ed,
Yes, blogging is a great permission building marketing tool, however that is not what I was hoping to get across with my post. Perhaps I should have just included the last line in Seth's quote:
"Everything the organization does is to feed and grow and satisfy the tribe. Instead of looking for customers for your products, you seek out products (and services) for the tribe."
ActiveRain's primary mission going forward is to bring remarkable products or services to our tribe.
We may partner with companies that fit the bill, or build the products ourselves.
I agree with Fran...I'll have to give this some thought...tribe...
hmmm...
Jonathan,
I see Active Rain more as a 'nation' composed of many 'tribes'...each tribe serving a particular need...so the value of Active Rain is in the sinew that binds all these units together! JMHO, Thanks, Fran
P.S. The beauty of AR is that it is a 'dynamic' entity...constantly growing in membership, quality of content, character of its members, and value in general!!!
Hi Fran,
Good points. I should be careful when talking about "the value of AR". In this post i am talking strictly about AR's ability to generate revenue. There are many institutions that have tremendous value, and don't make any revenue. Wikipedia for example. ActiveRain has a ton of value for it's members and non-members as well, in the way of learning, friendship, etc.
Pull, pull, pull.
How many times do I have to say it???
Soo good, Jon! Thanks.
Mike in Tucson
So Jonathan, I guess if we are a tribe, then that would make you Chief! : )
The idea of the goal is in providing information and services for the tribe is interesting. I am helping a friend with company blog and at my meeting today I was talking about how one of the blog's purposes is to be a resource for it's visitors (current and prospective customers) and create a "club" of raving fans to spread the word. So now instead of just a "club", I can think of it also as a "tribe".
Fascinating, Mr. Spock....
Why did not anyone see this before??
Hmmm......
Isn't the statement of purpose of the company enough of a clue?
"We are a free on-line community for real estate professionals
designed to help them promote and grow their business."
Hmmmm.....
Jon, I will go and read Seth's post because I am interested in what he has to say about AR because you referenced it. I sincerely want AR to make money, not just get capital infusions from endless fundings.
I agree that the platform is the value proposition, not the content.
Good luck to ActiveRain, and to all of us.
Bill Roberts
I'll tell you... what I'm afraid of here is that HV thinks they are the product that needs to be marketed to the tribe...
A/R is an amazing community. And, I hoe that it generates values for its owners, and doesn't get devalued..
I tried the HV product and moved in.
I tried Active Rain and I am still there. It is all about results and value. I hope their influence does not hurt our results.
Lane,
HV made their investment based on a plan that we already had. We will be executing on our plan..........not an amended one
My only previous experience with tribal management up to this point involved an Indian reservation and gambling. Pretty interesting article you found though. I'm starting to see why your office has so many Seth Godin books floating around.