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 Magick Light (Brigit Aradiawolf) on April 16, 2010 at 12:35am
I still think it is wrong and Stinks! I have done a lot of Hard Work, along with the help of my members on Magick Light, and have important imformation stored there and the site had its first Anniversary last February 20 2010, and this isn't fair!
Comment by Joseph Kim, MD, MPH on April 16, 2010 at 12:33am
Although my main Ning network (http://members.nonclinicaljobs.com) currently uses the premium services, I am very disappointed by this news. I was actually in the process of creating a few additional networks for several non-profit organizations, but now I will explore other options.
Comment by Mina Sirkin on April 16, 2010 at 12:30am
The phase out is short term thinking in a bad economy. A better way perhaps would be to sell the existing free networks, paid add-on features. There much to be explored, but I think you've got the wrong business plan. Ning should be able to create an environment which is profitable for network owners and Ning.
Comment by JenSocial on April 16, 2010 at 12:26am
Hi Sharon,
If you're already a premium site, I don't think you have anything to worry about. None of us know yet, (1) What constitutes a premium site, for example: which premium features a network need to be called "premium"? (2) We don't know any details on future pricing structures or anything like that.

I don't think the pricing will change, and especially for sites that are already premium. Anything I find out, I'll sure let you all know.

Best,
Jen
Comment by Sharon Hightower on April 16, 2010 at 12:20am
My question is if we already pay for premium services and extra band width each month are we included in being phases out? Are these fees going to change? I do not charge my members. And if I had to they would drop off like flies. Does anyone have the answer to these questions yet? I am really upset that I have donated a lot of time to help my members promote themselves and give them extra places to do that.
When will we know any answers to this stuff? How horrible to have to just tell your members - adios - we are no longer a "group." This seems to be a horrible choice.
Comment by Laughing is Mandatory on April 16, 2010 at 12:18am
Since my two comedy, free, sites on Ning will be eventually phased out, I will be looking for an administrators postion on a premium site group. I have expierence and you can get back to me for a resume. I believe that laughter is the best free medicine that's why I started my Ning sites in the begining.
Raelene
Comment by JenSocial on April 16, 2010 at 12:12am
Suzie, sent you a private message.
Comment by Pet Lovers Paradise on April 15, 2010 at 9:59pm
This just breaks my heart, Jen. Thank you though for attempting to get the word out and share what insight you have. I will look forward to reading what you share and learning what this means to my site. I've been a loyal Ning Network Creator for 2.5 years now, and am so disappointed. I've never charged access fees to PLP, and have paid for numerous items to enhance the site, but have really scaled back due to finances. This will likely put Pet Lovers Paradise in Pet Lovers Heaven.

Take care everyone, and look forward to learning more.
Comment by Simply An Inspired Life on April 15, 2010 at 9:31pm
Yes, I'm very frustrated personally, but let's look at what seems to be going on...

1. Ning announced a major staff reduction, so they seem to be hurting.
2. There is essentially no cost savings to shutting down the free Ning sites, so...
3. Ending the free Ning sites seems to be a desperate ploy to get those with free sites to pay.
4. Very few free sites are likely to start paying.
5. Some with paying sites will get the idea that Ning is in financial trouble, and will look for alternatives. plus no one will sign up for a new Ning site.
6. I predict that Ning is likely to run out of money and shut down completely even sooner than if they kept the free sites.

I just thank my lucky stars that I haven't put a lot of resources into Ning.
Comment by JenSocial on April 15, 2010 at 9:09pm
As far as the Ning Directory goes, and it's moving forward: hang tight everyone - - I think I'm onto some good ideas.
;-)

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