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Ning Will Take a Percentage of Membership Fees - What Are Your Thoughts?

Ning Will Take a Percentage of future Membership Fees - What Are Your Thoughts?

I just found this out from the Ning Creator site. Ning will take a revenue share (percentage) for membership fees. These are fees you will be able to charge your members in the future, if you choose to charge for membership.

Question that was asked on Creators - Original Discussion:
When the new pricing goes into affect, and owners of websites began to charge members a fee, will we have to split the profits with Ning?

Eric's Answer - Original Post: (Eric is the Community Manager of Ning Creators)
Great question! We do plan to take a revenue share on membership fees, partly to cover the costs of processing the payment. We get charged fees by our credit card processor and PayPal. I don't have the final details to share, but I will when I can. Our intention is to provide NCs with as many money-making opportunities as possible, and some of those opportunities will include revenue sharing, which I think genuinely benefits both parties.

Jen's Thoughts:
I can understand Ning charging a percentage, no problem. Especially since they will incur a fee for processing the payments. I mean after all, anything I charge for my Website Design Services or anything else online, I end up paying someone a fee for processing, understandably. It's goodbye to the days of old fashioned Merchant Credit accounts, and "in with the easy-breezy - - umbrella accounts" - - works for me. I do have concerns about this setup, but not enough to matter.

Here's the way I look at this situation overall:
If I own a Social Community that utilizes the Ning platform, I would like to have easy built-in features to monetize my site. To add a membership feature that is not integrated would take a good deal of coding (if even possible), would likely get messy, and could break when the Ning platform implements updates. I would much rather have those features built-in, and share the profits with Ning - - within reason of course.

As a Network Creator, what are your thoughts? Join the Conversation.

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Replies to This Discussion

Permalink Reply by Black Folk Hot Spots on May 16, 2010 at 1:08pm

Think about this as well - Jen...

For some of us that were offering a service for free-
1. Nin fires CEO- new dude comes in that has been sitting in the ashes waiting for his chance.
2. Why doesn't Facebook Charge for Fan Pages- there is alot of money changing hands on a daily basis- what about google- should they charge for searches
3. Ning says we are going to charge the creators- who bring them traffic- how smart is that? w/o us- they don't have a business.
4. those of us that have been building a network for whatever cause or reason- now have to figure out a way to monetize our sites w/o losing members- if we even set a low membership cost to off-set the new price structure so that our members enjoy what we have been giving them- then Ning says- we are going to take a % of that- if they include the interface- cool- but shouldn't that cost already be in the new price structure they have set out. (sounds like greed to me) and that is the 1st way to financial ruin.

I was introduced to Ning- through my high school alumni page years ago(we have 5 high schools from my city, if you combine all of them they have well over 25,000 members(why would a person pay $$$ when they can go to facebook for free (build a group or fan page and better privacy)- now does anyone remember Classmates dot com- who pays to go there? the name of the game is to offer a free service and get money from advertisers- not the people that bring you the people to advertise too. Just saying- I have went over and over in my head whether to give ning the 49.99/mo- or the $600/yr and it just makes sense to put that money into my own designed network. Ning if you are reading this- you can give me a call to discuss -why I feel this way.

and another thing- when choosing to add functionality to my 33K network- I decided on the Ning platform even though I really like the groupsite set up- but since so many people were already on NIng- it just made more sense, as people were more familiar with Ning and all they had to do was signin instead of create- I feel sorry for all the creators who has used this site as their sole website- I told them so- get your own and use Ning as an add on- never depend on something that you can't solely be in on all the major decisions- as a business owner. In the end- "it's theirs and they can do what they want with it" but I am not going to let them take BFHS down in the sinking ship.

Ryan
CEO of BFHS
219-512-9910

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Permalink Reply by JenSocial on May 16, 2010 at 1:18pm

You do understand that I agree with the majority of what you've said, right? I'm just not going to get into specifics on the overall plan and future charges, until a little more time passes and I see all details that unfold.

For the most part, I'm a slow burn. But, once I make up my mind about something, there's no going back. Like a lot of you, I have a tremendous amount of time and money invested in my sites. So, I have to move slowly on any judgments I make. Does that make sense?

You make some very good and valid points. Thank you for your input.

Have a nice rest of day, Ryan.

Best,
Jen

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Permalink Reply by JenSocial on May 16, 2010 at 12:16pm

Thanks for your input Zohra.
I hope your JomSocial is going well. Keep us posted on that. I would love to hear about your experiences in setting it up, etc...
Have a good day,
Jen

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Permalink Reply by JenSocial on May 16, 2010 at 12:05pm

Hi Bob,
I think I used the word processing, because that's the way Eric seem to explain why they would take a "revenue share" of the membership fees. Because they would be the middle man to the processing. I may be just being optimistic that it would only amount to a fee similar to a processing fee, instead of larger "revenue share".
Thanks for your input,
Jen

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Permalink Reply by Venus over Pan on May 16, 2010 at 8:53am

Hello Jen,

How are you today my dear :)

Well and good I hope enjoying your weekend :)

Well I have read your notice and the comments and I must say it made me laugh lol I thank you ALL for that!

It is really funny all of this...Ning really have lost its brain. And is now operating on hot air lol

Could it be so...what? I dont even know!

I have not heard of such a business as this, hell bent on distruction before...but in fairness they are REALLY doing a GREAT JOB of it! lol

I find it amusing at this point... WHAT WILL THEY COME UP WITH NEXT... I wonder?

Will we have to pay to upload youtube videos? So many photos for a price? Pay to log on...read our mail...post a comment?

WHO IS RUNNING THIS BUSINESS ANYWAY?

Mickey Mouse?

I think not...because Mickey Mouse was successful! lol

Honesty I believe is always the best policy because it renders respect, true options and avoids a whole lot of unneccessary problems.

Ning wants money greedily and badly...what good can come out of such motivations but lost at the end of the day?

There is a way to go about anything... a good way and a bad way. I guess Ning have decided to skip the road less travelled by.

Anyway...ENJOY YOUR DAY my dear and have FUN!!!

It will be what it will be :)

*XXX*

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Permalink Reply by JenSocial on May 16, 2010 at 12:14pm

Hi Venus Over Pan,
Of course like I've mentioned in a lot of my posts, these discussions are just the beginning of what Ning has stated will happen. I'm trying to start reporting everything I know, when I find it out. And in fact, I will start reporting more about platforms outside of Ning - - Social Media News/Myth-busters/etc... in a sense.

We're not sure at all, exactly what, how much, or anything much outside of the fact that they did say they would charge a fee to process paid memberships.

Your comment, "Ning wants money greedily and badly...what good can come out of such motivations but lost at the end of the day?"
I'm not so sure that it's not down to a necessity, more than greed. When 110+ million dollars are invested, and the funds spent are not bringing in a profit appropriately (not saying this is true, but looking like this may be the case) - - my guess is, they are trying every way possible to start turning a real profit and make their investors happy.

But, really, I don't have a clue as to why or what, just total speculation. Only time will tell, right?

You have a good day too!
Jen

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Permalink Reply by Carny Town on May 16, 2010 at 11:51am

Of course, we would have to see the "plan" first, but at this point charging members would not be practical, for us. We DO sell advertising and have seen a moderate success with that. In any case the advertising sales DO pay our expenses. Sure, we would like to sell our product, but our competitors would have to get in line and do so also. All that said, I agree with a lot of creators in the opinion that the membership dues/sales plan should be included for free in the PRO package.

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Permalink Reply by JenSocial on May 16, 2010 at 1:05pm

Hi Carny Town,
Thank you for your input, always great and informative. :-)
Best,
Jen

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Permalink Reply by ArtRave.com on May 16, 2010 at 5:17pm

I dont think I like the idea of Ning also taking part of any membership fees we may receive. Unless they were to become a % partner and NOT charge a basic monthly fee that is.

If Ning is charging us to use their platform and hosting services, it should be that alone.

Now if Ning were to offer a 'partnership' where then once again stop charging for premium and allow a free site to stand, then I could agree to a % of the membership fees going to them as they invest in our businesses as we invest in using their platforms, as a partnership, their way seems similar to an Organized Crime' type of approach offering us "protection" where
.we have to pay just to be here [rent]and then
.we have to pay again if we make sales on memberships [to help offset the intial costs of them charging us to be here in the first place!].

Its a win-win for them but more work, effort & costs and potential profit loss for us!!

If Ning were to offer a "Partnership Site Owner package" then they would make money as we make money, but like any real business partner they would have to share in the risks and downtimes with us as well.

After all, most of what they provide us with is automated and outside their 'glitches' and downtime repairs, we have to do 99.9% of all the work on our own sites, not them.

So if Ning were to want to take away from my membership fees as well, that is not acceptable to me, based on the services they currently provide me with.

I have invested more than 100 hours a week for over a year building and developing my site into a haven for artists who are serious about selling their art online and with the economy as tight as it is now, I can not charge my members more especially if they arent making sales! A % would only be fair on a completed sale, so a % for Ning would mean they would also have to not charge when those %'s arent coming in.

It is easy to make a paypal button from paypal - a little tricky at first, but once you get the hang of it, you can make buttons for various sales and member fees and remain independent from any further Ning tapping into your pocket~! Come on~ they are already putting it to those of us with over 150 members~

You can even have an exterior free host for your paypal button payments~ I have just made a first 'rough one' that replaces my backpage checkout on my ning site. I just provide the link to my new checkout page and a return button to bring the member back.

You can post your own paypal button pages on www.wen2K.com along with permalink promos that only you have access to change or delete.A good thing about using a wen2K page is you can link it into any and all sites you already have~ If and when you change pricing or add new features, simply make another free page and tab it into your ning or other accts. It also provides safety for your page should your ning site suddenly disappear, whatever you have stored on wen2k pages remains and you simply put its url onto your next site~!

Here is my sample page - I will make a prettier one down the road a and also shorter, separating merchandice from memberships, but for now this will work for me on every network I own~!
http://www.wen2k.com/tell.php?Id=4634&myw=1 which I went into my
MANAGE>TAB MANAGER>'ADD NEW TAB' >NAME IT PAYPAL> THEN "USE EXISTING URL:" typed in : http://www.wen2k.com/tell.php?Id=4634&myw=1

So now if I get any sales or new memberships, it is between me and them...not ning.
Also WEn2K pages get listed in search engines, so you can make a snazzy title & tags to promote your business. They accept html, pics and slideshows and buttons..

Making buttons is free and easy using http://www.bannerfans.com I make all my buttons there and after you make a couple it gets real easy~

:)Ave

www.artrave.com

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Permalink Reply by JenSocial on May 17, 2010 at 1:17pm

I think it would be awesome if you copied/pasted these great details to our Group for Dolphin Network Creators:
http://jensocial.com/group/boonexdolphinnetworkcreators

If you do, thanks in advance!
Best,
Jen

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Permalink Reply by ArtRave.com on May 16, 2010 at 6:11pm

Ning:

We have a new land of milk and honey~ Its endless and good to build and grow food on. Come join us FREE and build your home and plant your fields~! Enjoy the fruits of your labors~ We have investors who will watch you develop our land and make it into a big city and they will pay us to watch and to sell their ads alongside your homes. Everybody wins~!

So you move in, build your home, plant your fields, raise your family and all is well.

Until Ning comes back years later and says, well times are tough, nothing is free anymore, now you will have to pay for all the free land we gave you OR you have to leave.

So to leave would mean demolishing your house, leaving your neighbors, missing the harvest of your fields and so you ask 'How much will I have to pay you o great Ning, in order to remain in my house and tend my fields?'

Ning says wait til May 4th and I will tell you.. So you wait and hope that what the great Ning demands of you, that you can keep your home and fields.

The day arrives and the great Ning makes his demands known. Now for little homes with less neighbors, the price seems reasonable at $2.95 but some of the services and bus lines will be cut off and you will have to haul your own water and not be part of the overall community as you once were since now you are limited to 150 friends or less.

But o great Ning, I have 275 friends, whom shall I cut off in order to remain here on my land? Well the great Ning said , you can pay me $19.95 a month and keep your friends, BUT you will have to sacrifice some of your current benefits and trim your home - you will have to pay for any other services our Ning city provides which you have received freely for years, you will have less modules and less pages .

Well o Great Ning, what if my fields are full and I need those pages and modules? Well then, the great Ning said, then you can pay me $49.95 a month and keep most of what you now have until I can decide what next I want to charge you extra for~!! [like more bandwidth]

But great Ning, I can not afford $49.95 a month to pay you in order to keep my home and fields and friends~!!What will I do since many of my friends rely on me to provide them with food and shelter~!

O Great Ning replied," Charge them memberships, like I am now charging you"

What a great idea, I can spread out the costs of the great Ning's new decree over all my friends and each of us will have little to pay and we can then remain here in our homes and cultivate our fields~!! A solution with merit~!!!!

BUT WAIT A MINUTE, THE GREAT NING THOUGHT.... HMMM ... ANOTHER WAY TO TAX THE PEOPLE AND MAKE ME RICHER......

For every person you get to help pay you for remaining on ning lands, you will have to give a % to the great Ning for making this a workable solution.

And the people groaned~!! Taxation on taxation... we will be left with less than we started out with!!!

So many of the people, saddened and disheartened by the greedy great Ning, began to pack their belongings and dismantle their homes and burn their fields and thus the Exodus has begun~!!!

For those who remain and pay the great Ning, so they dont have to pack up their homes and leave what they already worked so hard to achieve, they have to live in fear of wondering what will be the next hardship the great Ning will put upon their shoulders~!!

The Ningdom will indeed shrink as neighboring networks, appalled at the new great Ning's dictates are coming forward offering safe haven and shelter to Ningite owners moving away.

Some of these networks are:
grou.ps
spruz.com
yahoogroups.com
facebook.com
myspace.com
webs.com

Webhosting Companies including GoDaddy, can help provide lowcost domain names and also hosting for 2 yrs for about $150 [ less than $8 a month~!]

So there are alternatives to having to pay the great Ning a % of your membership fees~!!!!!!!!!

Ning reminds me a bit like organized crime~ or even the government!! Lets you come in and settle down and than starts demanding money or taxing the heck out of you~

If Ning wants a share of any potential membership fees I could get from my members, then Ning should be a partner and provide the site platform without any separate costs!!!

Maybe Ning should make a "parntership membership" where they can make a membership join button, collect and split the fees with the site creators... that might be a bit more fair.

BUT to charge for the site and then charge a % of the membership fees on top is more like an organized crime trick to me~ great godfather Ning, wants their cut and part of your cut too~ double dipping anyone???

Maybe Ning should pay site creators a salary and just let Ning collect all the membership fees~!!! hmmmm I dont think that would ever 'fly', but come one , what Ning is doing to all who have labored for years at their sites and build relationships with 1000's of members, is all about to be tipped upside down and dumped off the Ning platforms by end of July~!!

If Ning has 3 Million sites and 2 million are free sites, what will the advertisers do with the reduced coverage they will receive when all the free sites are deleted?

It looks like Ning will be heading for more downtime in the near future and this whole new business model is too flawed~ Even if we all paid the $19.95 a month for the mid range site - which is like the Bandzoogle site and other sites that host both social and ecommerce~ ning just going to that level will have alot of glitches to work out and that would mean paying even the $19.95 month fees wont guarantee smooth sailing for anyone and we will never again be secure in trusting the Ning leadership or their contiued viability as a hosting company after the way they handle these current issues~!

I make my own paypal buttons free on paypal, copy the code and put it into text modules. Now Ning will be removing many text modules soon and also limiting what can be placed into a text module ~ SO I now use :
http://wen2k.com to build html pages that are permalinks online and get listed into the search engines.

My paypal buttons are secure there and I only have to link my ning site by tab to my permalink pages, so Ning has no control over what I charge or dont charge for items I sell or memberships I offer my members.
Lets face it, how many of our members can really afford to pay for memberships when many people online 10 or more hours a day are either retired or unemployed to begin with??

I dont want to lose my free members nor force them to pay like Ning is forcing me~ I want to provide options, even if it means some cutbacks, I am looking for ways online to help free members remain free and whatever paid members I do have I dont want to have to raise any fees on them as these are economic hard times for everyone so lets lighten one anothers burdens, not add to them, o great Ning~!!