Home > Blogs > Jonathan Vetter > San Francisco Loan Officer Blog

How does Active Rain make money?

By Jonathan Vetter

Mortgage and Lending with Mercury Lending

July 05, 2007 12:05 PM

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?

Comments(23)

Comment

Show All Comments Sort:

Jonathan Vetter

Mercury Lending - San Francisco, CA

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.

Jul 05, 2007 12:30 PM

Jason Price

Mortgage Financial Group, Inc (NMLS 219650) - Tavares, FL

The Mortgage Rider

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... :)

Jul 05, 2007 12:32 PM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

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'

Jul 05, 2007 12:35 PM

Ron Hackett

Coldwell Banker Heart of the Hills - Kerrville, TX

CRS,GRI,ABR,SRES,e-Pro

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

Jul 05, 2007 12:43 PM

Jonathan Vetter

Mercury Lending - San Francisco, CA

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!

Jul 05, 2007 12:49 PM

John Walters

Frank Rubi Real Estate - Slidell, LA

Licensed in Louisiana

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

Jul 05, 2007 12:55 PM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

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

Jul 05, 2007 01:30 PM

Jonathan Vetter

Mercury Lending - San Francisco, CA

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.

Jul 05, 2007 01:39 PM

Celeste "SALLY" Cheeseman

Liberty Homes - Mililani, HI

(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

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

Jul 05, 2007 02:36 PM

Tim Maitski

Atlanta Communities Real Estate Brokerage - Atlanta, GA

Truth, Excellence and a Good Deal

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 05, 2007 02:41 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

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.

Jul 05, 2007 11:00 PM

Angie Vandenbergh

Crye-Leike, Realtors - Memphis, TN

A Crye-Leike Blogger

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.

Jul 05, 2007 11:54 PM

Jonathan Vetter

Mercury Lending - San Francisco, CA

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 06, 2007 04:31 AM

Jay McGillicuddy

Berkshire Hathaway HomeServices Verani Realty - Exeter, NH

Real Estate Broker

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.

Jul 07, 2007 09:49 AM

Jason Price

Mortgage Financial Group, Inc (NMLS 219650) - Tavares, FL

The Mortgage Rider

Jonathan,

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

Jul 07, 2007 12:04 PM

Julianna Hind

eXp Realty - Tacoma, WA

REALTOR, 206-679-4768, Tacoma Federal Way, Auburn, Kent, WA

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 07, 2007 07:44 PM

Jonathan Vetter

Mercury Lending - San Francisco, CA

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!

Jul 09, 2007 11:52 AM

Kate Hart

Hart & Associates Staging and Design - Radnor, PA

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 09, 2007 01:50 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

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