Ning Phasing out Free Sites - What Are Your Thoughts?

Today, Ning announced a monumental change in it's business plan. This is good news and bad news. For premium networks, it's probably good news; in that, it's what most premium networks thought they were investing in, in the first place. It will make the premium Ning Networks closer to white label, and likely more valuable assets. It is bad news and extremely sad for some free Ning Networks. Here's an excerpt from the announcement by Ning's CEO - Jason Rosenthal:


When I became CEO 30 days ago, I told you I would take a hard look at our business. This process has brought real clarity to what's working, what's not, and what we need to do now
to make Ning a big success.


My main conclusion is that we need to double down on our premium services
business. Our Premium Ning Networks like Friends or Enemies, Linkin
Park, Shred or Die, Pickens Plan, and tens of thousands of others both
drive 75% of our monthly US traffic, and those Network Creators need and
will pay for many more services and features from us.


So, we are going to change our strategy to
devote 100% of our resources to building the winning product to capture
this big opportunity. We will phase out our free service. Existing
free networks will have the opportunity to either convert to paying for
premium services, or transition off of Ning. We will judge ourselves by
our ability to enable and power Premium Ning Networks at huge scale.
And all of our product development capability will be devoted to making
paying Network Creators extremely happy.

Full Story


New Group: Alternative Solutions to Ning


Please offer and discuss possible solutions, for owners of free Ning Networks. And most of all, let's all offer encouragement to our fellow Ning Network Creators.


UPDATE FROM NING CEO: JASON ROSENTHAL:

ORIGINAL STORY HERE - - Ning Update: Rolling Out Full Details May 4th

Hi Everyone,


As many of you know, we made a decision yesterday to focus 100% of the company on enhancing the features and services we offer to paying Ning Creators. The tens of thousands of you who already use our paid
service represent over 75% of our traffic, and we’ve heard repeatedly
from you ways that we can deliver a killer service to help make your
Ning Network more effective. Some examples of things we are working on
that you’ve asked for include new APIs, a new mobile experience and new
advertising and revenue opportunities.


As part of this change, we’ll be phasing out our free service. On May 4, 2010, we will share with you all of the details of our new offering, including features and price points, through a series of blog
posts, emails, and conference calls. We recognize that there are many
active Ning Networks for teachers, small non-profits, and individuals
and it's our goal to have a set of product and pricing options that will
make sense for all of them. For Ning Creators using our free service who
choose to move to another service, we will off a migration path and
time to make that change. We will still continue to allow free trials
and test networks on the Ning Platform.


We look forward to talking to you further on May 4th.


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Comment by Oh My Heartsie Girl on April 16, 2010 at 1:23pm
As I am looking at alternative to switching I have taken some time to look at Social To Go and think for me would be a very good choice, it seems to have all that ning has to offer.

I currently have over 515 members on my ning and would want to be able to offer the same services.

If there is anyone out there that cannot or will not be moving or would like a place for their members to go I offer mine and it is a Premium Site, at http://livelaughandlovetoshop.ning.com Thanks, Karren
Comment by Pellau.com on April 16, 2010 at 12:34pm
so don't they already make enough money with google ads?
Comment by Hugh Simpson on April 16, 2010 at 12:14pm
As mentioned yesterday I have a relationship with TechCrunch. here is today's story on Ning!

One month after long-time Ning CEO Gina Bianchini was replaced by COO Jason Rosenthal, the company is making some major changes: It has just announced that it is killing off its free product, forcing existing free networks to either make the change to premium accounts or migrate their networks elsewhere. Rosenthal has also just announced that the company has cut nearly 70 people — over 40% of its staff. Here’s the email Rosenthal just sent out to the company:

Team,

When I became CEO 30 days ago, I told you I would take a hard look at our business. This process has brought real clarity to what’s working, what’s not, and what we need to do now to make Ning a big success.

My main conclusion is that we need to double down on our premium services business. Our Premium Ning Networks like Friends or Enemies, Linkin Park, Shred or Die, Pickens Plan, and tens of thousands of others both drive 75% of our monthly US traffic, and those Network Creators need and will pay for many more services and features from us.

So, we are going to change our strategy to devote 100% of our resources to building the winning product to capture this big opportunity. We will phase out our free service. Existing free networks will have the opportunity to either convert to paying for premium services, or transition off of Ning. We will judge ourselves by our ability to enable and power Premium Ning Networks at huge scale. And all of our product development capability will be devoted to making paying Network Creators extremely happy.

As a consequence of this change, I have also made the very tough decision to reduce the size of our team from 167 people to 98 people. As hard as this is to do, I am confident that this is the right decision for our company, our business, and our customers. Marc and I will work diligently with everyone affected by this to help them find great opportunities at other companies.

I’ve never seen a more talented and devoted team, and it has been my privilege to get to know and work with each and every one of you over the last 18 months.

We’ll use today to say goodbye to our friends and teammates who will be leaving the company. Tomorrow, I will take you through, in detail, our plans for the next three months and our new focus.

Thanks,
Jason Rosenthal

Ning’s announcement also says that it will be giving network creators more details in the next two weeks.

While the email talks about Free versus Premium paid networks, Ning actually has a variety of different premium upgrades. Currently, Ning’s premium options include support (which has a $10/month and $100/month options for different service levels); Custom domains ($5 a month); Extra storage and bandwidth ($10 a month); Ad removal ($25 a month) and the ability to hide any trace that you’re running on Ning ($25 a month).

As a result of today’s news I suspect we’ll see quite a few active networks jump to whatever the cheapest premium option is; I don’t expect Ning to make it especially easy to port their data to a different service. There will also certainly be a backlash from Ning’s vocal community of Network Creators, many of whom have invested quite of bit of time building out their niche networks.

While the massive layoffs are obviously a big hit to the company, it isn’t all bad news for Ning: the service is still seeing its traffic grow according to comScore (see graph below). But traffic growth is no longer good enough for the company — it needs to start generating some serious revenue, and advertising clearly isn’t cutting it. Ning has raised around $120 million, getting valuations of a half-billion dollars in April 2008 and a reported $750 million last summer.
Comment by DarkMoonCircle on April 16, 2010 at 12:09pm
Just for others to Know Our coven has a back up a place were we first birthed it on yaoo if need be you can go to yahoo set soemthing up as well not as fancy but it is duable We will work thru this a challenge I ahve learned always have a back up plan
Blessings to you all here who are in same boat.
Comment by Shazyack. on April 16, 2010 at 12:04pm
I as a recluse, (literally) created my site with love and care I have a small amount of members compared to most, but they are loyal, My site is my door to the outside World. I Love each and everyone of my members and think it sad that people like myself Made Ning what it is Today. Shut us out if you must, but I know for one I will not be so eager to let my members down. Baring in mind when I first opened here I asked to buy my site and was told from the very same "NING" My Site was mine for as long as I wanted at NO Cost! Hmmmph, Not to be taken at their word obviously.
Comment by DarkMoonCircle on April 16, 2010 at 12:02pm
I must say i have also doen a three card reading Gilded
1 eight of cups Disappointment and loss, Three of swords cutting news and Tower which deals with the ego, pride and a crumbling loss and destrcutin
I must say Pagan Umbrella hit right on the nose what one sows you reap, and may I sau karma is a bitch
Morrighan)0(
Comment by The Pagan Umbrella on April 16, 2010 at 11:51am
I read Tarot and decided to do a one card pull, keeping in mind the situation here at ning. I pulled the Tower card. As you can see from the pic, is shows a tower with the top breaking off and on fire and someone falling from the top.....interpertation......PRIDE COMES BEFOR THE FALL..... if Mister Big Shot CEO thinks that now ning is too good for having free communities, that is pride and he better watch out or ning will crash and burn and he will fall flat on his face. Happens all the time when you forget about the little people.

Comment by JenSocial on April 16, 2010 at 11:21am
Please Help Missing Children,
Don't despair. There are alternatives. I think I will start a new Group where everyone can help each other on alternative solutions. I would hate to see a site with your purpose give up. It will work out for you, just keep the faith and move forward.
Best,
Jen
Comment by Arianas Attic on April 16, 2010 at 11:12am
I have just had a look at wackwall and it seems okay, so hey ho, Nings loss is anothers gain.. and while ning will keep upping its prices and losing its members.... we can all laugh from our other networks, that are just as good and work just as well!!!

The People behind Ning seem to forget, there are other networking sites out there that are free, we have alternatives.. when ego and greed takes over, there is no turning back... see, there is a reason why a lot of places offer a free version, because will not pay to run a social network unless it is there to make them money.... so instead of making all the ning sites a charged thing... why not simply have a shopping cart add on as a paid thing, and other cool add ons as paid.. giving members and managers options.

Silly silly people... have no business sense what so ever!!!
Comment by Please Help Missing Children on April 16, 2010 at 11:02am
I am beyond heartbroken over this news.

I am disabled, live in chronic severe pain daily, and well below poverty level.

I have spent almost every waking moment of the past year and a half developing a strong foundation and network of people just as devoted to assisting in the search for missing children. Circulation of missing children's faces and information has reached thousands more than they would have otherwise. I now have to stop it all.

I will be unable to keep PHMC open as a result of this greedy decision.

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