It was April 2010 when I wrote about Ning is cutting 40% of their staff and was stopping free social networks. At the time Ning had about 285,000 free account holders and they were hoping to retain about 9,000 paid users. Instead 50,000 paid social networks stuck around. And it has grown to 90,000 paid users ever since.
Ning was co-founded by Internet entrepreneur Marc Andreessen. Andreessen said that Ning was not making enough money on ads to keep making their website free. ?We debunked the myth that people think everything should be free. If you have a differentiated service, people will pay for it,? stated Ning CEO Jason Rosenthal in an interview with the WSJ. Ning was founded in 2004 and it allows people to create their own custom social networks.
Ning raised over $119 million in funding over five venture capital rounds. On paper, the company is valued at over $500 million.