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My Six Month Review, Market Leader Makes Further Investment in ActiveRain

By
Services for Real Estate Pros with Suplari, Inc.

Nikesh Parekh at Keller Williams MegaCampEveryone,

It has been six months since I became CEO of ActiveRain, and as many of you know, it has been an eventful six months.   I started as CEO of ActiveRain on April 11, 2011 with a commitment to invest in the underlying technology of ActiveRain, continue to foster a vibrant ActiveRain community, and make training investments to see greater success with our RainMaker premium blogging subscribers. 

We have made good progress towards those goals.  We have invested significantly in the ActiveRain technology, thanks to our technology lead Chris Paredes, Chris Beahm and Patrick Lesher from Market Leader and a team of consultants from around the country.  The platform is much more stable now.  We are not experiencing the outages that we have seen in the past.  We have developed ActiveRain University with online training, webinars and guides to help both RainMakers and the community as a whole learn about real estate search engine optimization (SEO), blogging, and social media.  Now ActiveRain University conducts 10-15 webinars per week on a wide variety of topics, some associated with ActiveRain and others which are just great training in real estate. 

We also transitioned RainCamp from an in-person event to an online webinar, complemented by local in-person MeetUps.  This was a tough decision, but we were losing money on in-person RainCamps and needed 3-4 people full time to support the activity.  The new RainCamp Online format has appealed to a broader community (rather than just the members living in one area like Dallas or Los Angeles) and the first round of ActiveRain MeetUps were more successful than hoped, with more than 300 people attending 45 MeetUps around the country.  Watch for much more to come around RainCamp Online and MeetUps.

While we have made progress in many areas, we continue to face challenges. 

ActiveRain as a platform is now stable, but we want and need ActiveRain.com to be faster from a page loading perspective and easier to develop upon.  As I have blogged about previously, the ActiveRain software platform (Ruby on Rails) and database (PostgreSQL) have not been updated in 5 years.  Imagine not changing the oil, sparkplugs or filter in your car for five years and then asking it to race the Indianapolis 500.  Because of this, ActiveRain suffers from occasional stability problems, slower page loading speeds, and challenges in developing new technology.    More investment and capital is needed in the technology and in the business overall to take ActiveRain to new heights.

Today, ActiveRain has two large shareholders: Market Leader who owns 51% of the company and the founder Jon Washburn who owns 45% of the company.  Market Leader decided to make an additional investment into ActiveRain and offered Jon Washburn the opportunity to participate equally / pro rata alongside them.  Having started a new company called Daily Ticket, Jon Washburn chose to sell his shares to Market Leader and focus on his new company and other activities, rather than investing additional capital into ActiveRain.  Though I am sure this was a very hard decision for Jon to make, it is the right decision from an entrepreneur’s perspective.  He was a minority shareholder in ActiveRain without day-to-day involvement in the business.  Jon is also a savvy entrepreneur with great ambitions for Daily Ticket, so being asked to put more money into ActiveRain was a challenge.

Market Leader has owned 51% of ActiveRain for more than a year, since September of 2010, when two ActiveRain founders Matt Heaton and James Hillyerd sold their shares in ActiveRain.  Market Leader has invested close to $4M (!) into ActiveRain to-date and believes in the vision of ActiveRain as an independent community of real estate professionals, with an editorial voice.  In the past, Market Leader has been a great partner supporting ActiveRain in visible ways through our technology challenges and sponsoring our new business initiatives.  Market Leader has also been very helpful in ways less visible to the community, but very important to the company like lending ActiveRain their HR department to help with employee benefits and recruiting.

Going forward, Market Leader will own 100% of ActiveRain and will continue to invest to make ActiveRain the leading blogging platform and social network in real estate.  ActiveRain will operate independently from Market Leader just as it has been doing for the past five years, and I will continue as the CEO.  ActiveRain has a separate office in a different location. Market Leader does not plan on integrating ActiveRain into Market Leader, though we at ActiveRain will have more access to assistance from Market Leader (like with technology and HR). 

So, where does ActiveRain go from here?  We continue to focus on building and fostering the ActiveRain community.  We here at ActiveRain are excited by the opportunities to invest in and enhance the community and the website ActiveRain.com  Over the next three months, you will see us improve the technology platform, re-design key pages on the site, and leverage the collective knowledge of the community to assist both real estate professionals and consumers through the home buying and selling process.

Watch for great things. 

As most of you know, I am very available and will answer questions and comments posted as best I can.

Niki

Posted by

Nikesh Parekh

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Comments(146)

Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Nikki - I'm with Susan on the like dislike buttons.  That would be fun.

Nov 04, 2011 07:17 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Welcome back, Missy.  Your calm, rational personality has been sorely missed here.  You've always been the voice of reason in the Rain and I totally agree with you.  Because the two mid-level investors (Matt & James) were paid the 'true' value of their investment, the four (0.69% total) investors who actually kept AR in business for ALL of us, including all staff and administration, should be fairly compensated as well.  I do hope to hear that ML has made a WISE business decision to do just that--I'd venture to say that it would be a sound investment as positive news travels quickly here, just as the negative did.

If not for this community, there would be no 'cave' and I, for one, think that the people who are in this so-called 'cave' totally rock and are absolutely NOT whiners!  Judging from the commenters above, I'd say there's a pretty rightous group of people in the 'cave' - those who I do consider dear friends and would open up my home or my purse for any of them, ever in need.

Hang in there, Niki.  I do appreciate your frequent updates and you keeping your finger on the pulse of change here in the Rain.

Nov 04, 2011 01:33 PM
Nikesh Parekh
Suplari, Inc. - Seattle, WA
Technology Entrepreneur, Executive, & Investor

Hi Debe,

Thanks for your post. 

There seems to be a lot of misinformation or wrong perception floating around regarding the stock sales at ActiveRain.  In 2010, Matt & James received a lower price per share than the purchase price of the stock in November of 2007 as well.  Since November of 2007, there is no investor who has realized the value per share of that 2007 purchase price.  As I mentioned in comment 86, the 2007 purchase price was "healthy" based on a lot of factors happening at ActiveRain at the time and in the broader real estate market. 

The personal and financial contributions of the 4 AR investors and the broader community have been critical to the strength and continuity of ActiveRain.  Jon and his management team made significant sacrifices in 2009 and 2010 to make sure that ActiveRain continued (low to no salary for a period of time).  The line of credit, extended by Market Leader in 2009 and then again in 2011 was critical to pay off unpaid payroll taxes and back liabilities incurred during lean times at ActiveRain, also made sure the lights stayed on and the computers/servers continued to humm.

We are plugging away and having a great time! 

Nov 04, 2011 02:09 PM
Amanda Evans
DFW Living - Fort Worth, TX
Real Estate Broker - Fort Worth Texas

There is no Cave.

Nov 04, 2011 02:50 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Wow.  There is so much about Active Rain that I had no idea about.  I feel sort of like an outsider after reading this blog and all the comments.  Weird thing is that I signed up for AR back in 2006 I think after a GRI class I took.  I had no idea it was a start up and didn't really do anything for years so I missed all of this.  Finally wanted to start blogging and found out I needed to pay now - I couldn't be grandfathered because I hadn't made the appropriate amount of posts to count even though I was a member.  So I definitely feel like a newbie, and really am, but seriously I don't know any of this seedy underbelly or history and I have no idea what "the cave" is....very enlightening to find out just how much I don't know :-) -Kasey

Nov 05, 2011 05:59 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Kasey in #132:   If I had anything to do with it, I would arrange to "Grandmother" you in... LOL.

Even though I have been "active" on Active Rain since August of 2007, I had not heard about "The Cave" until this post.  If I were to guess... and taking note of some of the names of the folks who have spoken on this post, and seem to know about it, and are part of it... I am guessing that is is a group of some sort of an "In Crowd" of folks who felt sort of a type of togetherness from towards the beginning of AR... and got together even before August 2007.

I also wonder if it was going on when I started, and I just wasn't "cool" enough to be an "In Crowd" type.  And... that is ok.  In fact... I kind of prefer it.  So... I have gradually just created relationships with folks like yourself, and many others.

What I also find humorous, is that I see myself as somewhat of a "loner" who lives in her own cave... and marches... somewhat wobbly at times... to her own drum.  Me and my kittie, Miss Mollie T... we like it in here.

Does any of this make any sense ?  <dorky grin>

Nov 05, 2011 06:25 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Karen Anne, I love that I can always count on you to chime in and answer questions that I have or just converse with me late into the night :-)  (We both always seem to be online late at night, right?)

I often feel like I live in my own cave too Karen Anne, there's nothing wrong with that at all.  I like it in here by myself, actually.  I get out occasionally to talk to nice people like you :-)

I have to get off the computer now.  I have so many things I've meant to do tonight and AR sidetracked me, darn it!  Good night everyone!  Good night Karen Anne. -Kasey

Nov 05, 2011 06:49 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

I didn't know there was a cave, and I didn't there were ActiveRain members who lost money on their investment in ActiveRain. That sucks.

Nov 05, 2011 06:58 PM
Brad Andersohn
Retired Executive Director of Education at eXp - Boulder Creek, CA
ActiveBrad - 707.646.1876

Ok - I just screen captured all the comments here for my new series, plus I'm going to expose the "Cave" on my new "REALTY Reality TV Show" to be hosted over on KIKT television.  Coming soon....

But In my honest and most sincere opinion....wait... what was this post about again?  :-O 

 

Nov 07, 2011 07:20 AM
Mimi Foster
Falcon Property Company - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I love the tangents that these comments have taken ~ indicative of the overall camaraderie that people share in ActiveRain.  Once again, Niki, while you can't have this many independent-thinking people together without having differing opinions, I am still impressed with your openness and honesty and leadership, and your willingness to freely share.  Congratulations on surviving the first six months.  Hope the next six put a little more spring in your step at 6:30 am

Nov 07, 2011 11:40 PM
Fred Carver Real Estate Consulant
Retired BC Realtor - Victoria, BC
Accredited Real Estate Consultant

Hi...how about a suggest button..ha. Lively group, more of you can drop by more often on my blogs...Gish I'm one of the old dogs and still singing in the Rain...maybe because i've stayed away from the politics. this for sure, it sure is nice to see an end to the daily error messages, and slow loading days.

Listen, we have a great platform and a great family and even through our Gods change, yet still Wow us. AR has changed many of our lives,,now I just need to systematize my blogging to keep up..ha

Thanks to everyone for making what we have to day, a powerful family that shares and helps one another.

Thanks to all the Gods past and Present...TLW..Thanks to you both, you both shared a lot with us all in the Rain!!

Dec 14, 2011 07:36 PM
Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta

You've made a lot of progress since becoming CEO! Thank you for continuing to make this great community even better! I like online Raincamp, live is awesome, but online makes it more accessible.

Jan 04, 2012 12:39 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

>>>>> still searching for the cave <<<<<

 

Jan 15, 2012 01:57 AM
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Nikesh,

 

You said "if anyone is going to get yelled at on my blog, it better be ME!"

 

Your wish is my command.

 

Seriously???? I gather that Billie, Bryant, and a few others who initially invested some money in AR in its infancy got the short end of the stick when MarketLeader purchased the company. The right thing to do is to compensate them in some way for their loss, not just shrug your shoulders and say "hey, that's life." Even in business, one will reap what one sows, whether it is good or bad. Bank on it.

 

But that isn't what I'm going to yell at you for, oh no. That's between you and Billie, and I know she's given you more than an earful. From the sound of things, you weren't wise and let it pass through your ears. Like I just said, you do reap what you sow.

 

What I have a serious problem is with that off-handed comment about Greg (#35). For being the CEO of a company, you really don't have much experience with exercising discretion when necessary. BTW, discretion is not just useful for business matters, it also should be applied in social matters as well.

I hope that in the next six months of your tenure as CEO of AR (if you last that long), that you seriously get some sense and be more careful about the things you decide to broach on your blog, or in your comments.

Jan 15, 2012 12:53 PM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Okay...

I need to set the record straight so that everyone knows the scoop about Niki and I, how things unfolded and eventually turned out:

<My Afternoon With Nikesh>

I meant to pop in here earlier and leave a link but my boomer brain passed a little gas and made me forget :)

TLW...ROAR!

Jan 15, 2012 01:05 PM
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Bille, I just found out that I'm 2 and a half months late to the party. BTW, that wasn't what my angst with Niki is about, but again, as I'm late, I'll have to discuss some things with him as you did, in private, if it really becomes that important.

Jan 15, 2012 01:32 PM
Larry Story ALC
Total Care Realty - Greensboro, NC
Beneath it all is the Land, Covering all of NC

MISSY,

Gawd I have missed your blogs.  Nikki I support AR and have been around for years.  I do actually pay for an outside blog and gladly do.  I have been very grateful for everything AR has done for me and means for me.  I am not going to comment on many of the issues brought up here.  I do just wish that the platform would be stable. 

Jan 15, 2012 02:05 PM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

William...

I strongly urge you to contact him. I wish I'd done that much sooner. Don't let whatever it is build up. Put the issue on the table and work through it. Just do it cuzz, well, I say so :)

TLW...ROAR!

Jan 15, 2012 02:06 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I heart TLW...just sayin'

Jan 15, 2012 02:41 PM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

HI Debe! Hi TLW! And...Wow Hi Missy and so many other folks I've met here in the Rain!

I should pay closer attention...I was at Rain Camp Dallas and don't remember you at all. Or wait...were there 2 Dallas rain Camps? Just glad to finally figure out who Niki is ;-)

Please maintain the integrity of the communal voice here and as Lenn Harley mentioned, if things don't speed up our readers click off.

I love AR and all the things its afforded me as far as blogging, education and connecting with others and I recently learned that my blog is the most widely read real estate blog in Austin,  I also "employed" the AR outside blog in tandem with the AR blog as a way to connect with many clients, future clients ,friends, business associates and casual readers and AR was paramount in my success. I had to switch to a Word Press platform for my outside blog because it was so unstable and buggy that I received emails and calls daily about the problem.

You really do seem to be on the right track as far as being open, honest and willing to make things work better, intentions are good as long as you guys can fix what wrong under the hood of the awesome engine, tech wise and continue to build this as a platform whre ALL the excellent content is provided by the members.

I am certainly hoping for the best!   Thanks!

WHERE...is the cave?

Jan 16, 2012 12:01 AM