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."
 

25 Comments on ActiveRain business insight - Tribe Management

20 Most Recent Comments Displayed Show All

JAN
30
2008
597,357 Points 39 Featured Posts Outside Blog

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!!!
7:47pm • #6
165,482 Points 85 Featured Posts Outside Blog Called Shot Master

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.  
8:01pm • #7
1,949,535 Points 478 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Pull, pull, pull.

How many times do I have to say it???
8:18pm • #8
599,558 Points 79 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp
Jonathan, does this mean we have to run around in loincloths and body paint?
8:20pm • #9
712,458 Points 118 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Soo good, Jon!  Thanks.

Mike in Tucson
8:21pm • #10
874,487 Points 154 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master
I read Seth's post today, wasn't thinking about us at the time, but I get it. I'm excited about the future for all of us. I like Fran's analogy. Sorta like the tribes of Israel...
8:33pm • #11
111,189 Points 26 Featured Posts Localism Sponsor Outside Blog
Jonathan, I agree with you, Seth and Ed. It makes more sense that there are two separate values at work, one internal and one external. Thanks!
9:22pm • #12

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". 
9:50pm • #13
600,380 Points 45 Featured Posts Outside Blog
This also seems relevant to the VillageMaker product from Real Pro Systems, which is a way for us to create such a community for our clients. Glad you included the link to Seth's actual post. Keep up the search for products and services for us!
10:01pm • #14
208,810 Points 25 Featured Posts
Jonathan - Methinks the tribe protest too much.
11:03pm • #15
808,031 Points 7 Featured Posts Outside Blog Called Shot Master
Jonathan - that's a great philosophy, and it seems to be working.  If you love what you're doing, and you do it well, then sooner or later you will be rewarded, if you can hang in there long enough.  It's nice to see integrity is alive and well in America.  Congratulations for having the perseverance... Chief.
11:40pm • #16
JAN
31
2008
1,419,668 Points 52 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
This spins traditional marketing 180 degrees, but it's becoming clearer every day that that's the directon the public wants to go. Will be very interested to see if Seth expands on this in his keynote to the KW Family Reunion (our national convention) in February.
12:48am • #17
455,241 Points 11 Featured Posts Outside Blog

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.....

Can anyone say....'Hmmmm'...???? 

 

 

 

 

 

 

 
4:33am • #18
158,848 Points 17 Featured Posts Outside Blog Called Shot Master

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
9:31am • #19
130,235 Points Outside Blog
here is one more person agreeing with Fran that this will take some thought -
11:33am • #20
882,832 Points 50 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

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.. 
10:36pm • #21
FEB
01
2008
597,029 Points 106 Featured Posts Localism Sponsor Outside Blog Hit Router

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.
12:38pm • #22

Lane,

HV made their investment based on a plan that we already had. We will be executing on our plan..........not an amended one 
10:07pm • #23
MAY
06
2008

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.
Aaron Warner
3:03pm • #24
MAR
14
2011
556,002 Points 31 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

When I saw the term Tribe Management I thought it was the policies for the staff that worked at AR!

However, the concept of having the members interact with each other seems to work pretty well.

Phil
5:31am • #25

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