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How does Active Rain make money?

It seems like the general concensus with internet websites, the best way to make money with a website is to blast your site with advertisements and get paid per click. Or get paid business from it's members.

I have loved the whole site for months now, and have never seen one single advertisement, no popups....nothing.

I also have never been solicited for a donation to benefit the Active Rain community. Thanks Active Rain!

But it still confuses me. How can Active Rain support a staff, travel the country to promote the business, and keep the boat rolling? I mean, these folks are obviously technological masters, couldn't they work for ONE healthy salary engineering for Google or Apple? They must get what they deserve here...right?

Is Active Rain funded by private investors? Is the site set for purchase by a private or public company in the future?

How does Active Rain manage to keep it going, and make all of us happy with managing the continued integrity of the site?

Posted by Jonathan Vetter on 07/05/2007 07:05 PM

Comments (23)

active rain

23 Comments on How does Active Rain make money?

JUL

2007

Very Good Question. I have wondered that as well.

Thats a damn good one! No pop-ups or banner ads...how IS this possible??

I'm sure the day is coming... :0)

...that said, I've often said that I'd pay $5/mo for the service. But don't tell anyone.

Endea, I think it daily, maybe we will get an answer!

Tony- I think there is something we don't know about website, I want an answer! JK

Chris- I think a lot of people would pay for it. Are they saving up, and going to send us one huge bill later on. I am obviously kidding.

Jonathan,

There are rumors (some true and some not) that are out there. I bid this quest on you that you discern which ones are which. Good luck... :)

I use to wonder about it too. Now I just enjoy it and figure we'll know when we're suppose to know. I think I heard they had private investors. If they opened it up more, I would be one. Wouldn't you ? I just don't want to be gobbled up by someone like homegain. Google could buy it though and that would make everyone happy.

I can't imagine why someone would NOT want to buy it. Look at our numbers and growing more every day !

Do you think we should send a care package to Caleb, and the gang ?? NAA......... just kidden'

very good question..there is no kind of advertising. Well maybe one of these days we will find out.

Jason- Thanks for commenting. I have heard some rumors as well, but is what they are, just rumors.

Missy- There have to be people looking at it. It is too strong not to have some interested parties.

Ron- I wonder if we bother the parties that be, they would answer....I doubt it!

I don't really care how they make a living. I will continue to use it because it works.

I'm not sure that I would pay, but a select group of target advertisers would pay for this target audience.

John and Larry, I think it is a gold mine, and am not complaining. I think people would pay a lot for this target, for sure.

I'd pay. And if they did that it would make all the bad people go away. Maybe. Hope? Let's see....my husband pays x amount per month to play a game that is not for his business so....hey, I think I'm covered. whew

They first get a lot of people addicted. They let people see the value that the site offers and then they can start charging. I'd easily pay $100/year. Multiply that by 37,000 and that comes out to millions. There are many directories that charge $100/yr. just to have a small listing. I think ActiveRain probably creates more business for agents than Realtor.com and look how much they charge.

I kind of feel guilty not paying anything but I guess that is up to them.

JUL

2007

Active Rain is just like any start up company. They probably started out with money from their own savings. They they probably raised investment capital. AR is a good candidate for venture capital.

I've seen lots of discussion on this topic. I too am curious at what they are planning for the future. They have been out a year now and have seen tremendous growth. I'll be curious to see what happens. I don't think they would have near as many subscribers if there was a charge.

Sally! I think a lot of people would pay, and I am sure that there are people noticing that. Aloha!

Tim- I think $100 per year is about the max that most people would pay. I think it is worth more than that, but let's face it, you have to weigh it out to see if it makes sense for YOU. Thanks for coming by Tim!

Lenn- It is an honor to have you stop by. I guess there is always future value, isn't there. I think there definitely is future value here. I just hope that if it were to get bought, it wouldn't change the integrity of the site, the crew has done such a great job. Thanks for coming by!

Angie- I think they wouldn't have as many subscribers, but the core of who use this would still be here. I wonder what percentage of the 37000 are active on the site every week?

JUL

2007

They will be offering their members some enhancements to AR in the near future, I think Matt posted about it a few months ago.

I thought I saw an ad on the Question and Answer page.

Jonathan,

Some of those rumors that you may have heard are in fact true.

JUL

2007

Jonathan, I had the chance to ask Lydia that very question at the AR Birthday party in Seattle. The answer to that question is still classified! :-) I was reassured that good things are in the works!

JUL

2007

Thanks Jay. I would think new ideas are in the pipe all the time.

Jason, You never know what to believe until it is in action, but I have all the faith in the world in them.

Julianna, Thanks for coming by, I am sure they have some amazing things working, it will be great to see it all come together over time!

I would definitely pay for active rain. I have a website and google ads and AR is still my best source for new business. They are geniuses and I wish them the best from one entrepreneur to another. pop up ads would annoy me but I know they need to make a living too- as long as they do not sell my info.

JUL

2007

Jon.... Lenn makes a great comment and Jay said the rest. This is about all I know. Matt did say that they would never make it a paid site, but that you would be charged if you wanted other features. Upgrades. Now, could this change if they ever sold it? Sure... time will tell. But this is a great asset and they have the hook in many.

Now if it went to a paid site, I wonder if we would see some of the types of blogs change. I am seeing way too many geared towards Active Rain... Ar this and AR that... points this points that. If they want to sell this on thje market, no investor is going to want that. They are going to want more real estate and mortgage content.

jeff belonger

Thanks for your comment Jeff. I think they will keep us happy no matter what they do!

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