Ning to freeloaders: Ta ta!
You may have heard through TechCrunch last month that Ning is having trouble making ends meet. They’re laying off 40% of their workers. Their new COO Jason Rosenthal is implementing a drastic plan to keep them solvent. And they’re getting rid of their free networks.
Nonprofit bloggers, such as Beth Kanter, Amy Sample Ward, and others, have suggested that Ning make its networks available to nonprofits for free. Change.org has a petition you can sign if you agree with them. They’re trying to get 1,500 signatures. They’re nearly there.
As a Ning subscriber and group owner, I would like it to remain free. But I don’t think it will. I think that this is probably NOT what they’re going to do, because giving things away for free is how they got in trouble in the first place.
This is the trouble with free.
People value something they pay a lot for. They feel that “you get what you pay for.” And even though that’s not true, they will attempt to steamroll you until you tell them your bottom line.
If your nonprofit offers its services for free, people who use them do not value them as much.
For instance, when I worked at a social services nonprofit, we noticed this trend. If you tell someone she needs to pay $10 for that counseling appointment, she’s going to keep that appointment. If it’s a free appointment, she’s much less likely to keep it.
If you make people pay in advance for a networking meeting or talk, they are much more likely to show up.
I have Aweber as my mailing list client. And I value it, because I pay for it. Even though it’s just $20 per month, it’s worth it to me. And I make certain that I use it.
Have you ever given a nonprofit something for free, and then been shocked when they didn’t value it, but tried to get more free things/services from you?
Nonprofits often try to get their vendors, staff, and others to do things for them for free, and give them things for free. Like Ning networks.
If your nonprofit doesn’t pay you enough, it’s like you’re giving away your services for free, a stipended volunteer if you will. They figure, if they can get you for $10 per hour, why should they pay you more?
If you’re a nonprofit consultant getting nickeled and dimed by the process of getting approved to do nonprofit work, you may be tempted to do some work for them for free.
Don’t do it.
Giving away a little here and there is all right, but don’t make it your business model.
People don’t value free.
I want to know what you want. Please tell me. Takes 5 mins. Tops.
May 14th, 2010 at 9:12 am
Hello, Ms. Treyz. You provoked my thoughts on “free.” Probably the biggest issue with offering “free” is that most consumers know that there is a catch somewhere, and most people will simply want to avoid dealing with it. Some know that they are likely to feel obligated to continue, or purchase, or respond to some thing, and it’s safer to be free of such encumbrances. It’d be like giving control over to the salesperson, when we know we don’t want to buy.
And just so you know, I connected to your website from reading an Answer of yours on LinkedIn.com.
Cheers!
“Marco”
~ Proverbs 3:5-6 ~