David Carroll

As the founder of another real estate technology startup, I’m taking notes on the lessons learned in these articles. It has given me an insight I wasn’t aware of when I briefly met Dustin Luther and some of the guys from ActiveRain at RETechSouth 2008. The passion, heart and soul, and commitment ActiveRain has for the community are apparent in the real value their service brings to so many. Yet, building a FREE software platform for the benefit of a community is often challenged head on by the financial temptations of “selling your soul to the proverbial devil.” There is never enough operating capital and without revenue or a hefty investment, there is a lot riding on that seed capital alone with a solid team working insane hours topped off with a good bit of luck to go the distance. This challenge is even greater when the revenue based service isn’t built until after the free service is accepted and trusted by the community. Anyone familiar with this process knows, all too well, that a company can bleed out before bringing their vision to fruition. So, where does this leave the community? This is the question any entrepreneur, with a genuine passion of building a better Web 2.0 mouse trap for the good of all, would ask. Unless the company can thrive on its own long enough to monetize, it runs the risk of compromising the original vision or withering away into startup oblivion. Either option leaves behind a couple hundred thousand loyal community members feeling disenfranchised, as they may have no say in the outcome. However, these risks are worth taking by the community. It is from these risks that great platforms such as ActiveRain, Twitter, FaceBook, Google, Flickr, Yahoo, Trulia, et al got their start. Well some of those guys got hefty funding. But it wasn’t always easy. The point is we all benefit if these companies keep true to the original calling that got them started… challenging the status quo with the timeless conviction of “there has to be a better way.” As for ActiveRain, I commend them for challenging the status quo as the pioneers that brought relevant social networking to the real estate industry. The failure of Move, Inc. to recognize ActiveRain’s value confirms the community could have become the biggest losers in the end anyway. I wish ActiveRain all the best as they find their way to monetize and survive while staying true to their vision. ActiveRain, and the like, will make mistakes along the way. It’s part of the process. As long as they keep true to their original vision, the community will be well served. In the meantime, I look forward to getting reacquainted with the ActiveRain guys at RETechSouth 2009, later this month. David Carroll from softRealty.com