A while back I criticized the Xing business model and the fact that the users – the main assets of the networked – are charged a significant fee. It’s not that I cannot afford it, it’s more about the fact that they need users as much, if not more than the other way around.
I just discovered Ning, which offers users to build social networking sites – for free of course. BUT you have the option to pay: You can pay to:
- Remove promotional links
- Control the ads shown
- Use your own domain name
- Increase storage and bandwidth
Whether the model is viable is to be seen – but I consider it more honest towards the users and more robust against competition.