Ning Forces All Network Owners Pay - May 2010

There has been a lot of buzz about the Ning network phasing out their free networks. Sorry to share the bad news, but this is true. On April 14th, the new CEO of Ning announced that all Ning network owners will need to pay, migrate their existing network to a new service or walk ways. Now is the time to reconnect with friends at free Nings that are not likely to upgrade their network to paid and tell friends where they can connect with you. This change will initiate on May 4th, 2010.

I am wondering how this will effect those network owners that do not have the budgets to pay for their Nings at this time, as well as how much of a loss in popularity will all paid networks and Ning - itself - will take by this decision. I am certain that many free network owners are also patrons of the paid networks.



ORIGINAL ANNOUNCEMENT FROM THE NEW NING CEO JASON ROSENTHAL:


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




SECOND MESSAGE FROM JASON ROSENTHAL:


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 whochoose to move to another service, we will offer 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.