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When Free Isn't Free Enough - Transitioning from Free to Freemium in the Consumer Space

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Page 1: Anne Driscoll Presentation
Page 2: Anne Driscoll Presentation

“FREE OF FREEMIUM, THINGS ARE STARTING TO LOOK UP AT NING”

Taylor Bueley Forbes, August 20, 2010

Page 3: Anne Driscoll Presentation

Every group, business and organization needs a website.

Page 4: Anne Driscoll Presentation

Online users visit social networks in 2010

58%

2014201320122011201020092008

52%

58%

64% 65% 66%61%

42%

SOCIAL HAS GONE MAINSTREAM

Source: U.S. Social Network Users, eMarketer – April 2010

Page 5: Anne Driscoll Presentation

Every website will be social.

Page 6: Anne Driscoll Presentation

NING MAKES IT EASY TO BE SUCCESSFUL

• Creative freedom and control

• Seamless social integration

• Robust, scalable open platform

• Turn-key monetization solutions

• Powerful data and insights

• Complete privacy control

Page 7: Anne Driscoll Presentation

THE WORLD’S LARGEST PLATFORM TO CREATE CUSTOM, POWERFUL SOCIAL WEBSITES

Page 8: Anne Driscoll Presentation

NING IS THE HUB OF YOUR WEB AND SOCIAL ACTIVITY

Page 9: Anne Driscoll Presentation

THE DECISION

Page 10: Anne Driscoll Presentation

NING CUSTOMERS @ APRIL 2010

15,000

325K /1.1 million

80%

20%

PREMIUM

FREE (active/total)

TRAFFIC

Page 11: Anne Driscoll Presentation

DIFFERENT CUSTOMERS

…DIFFERENT NEEDS

<5% Conversion to PremiumLow Effective CPM

Leverage Advanced Features & Customization

FREE PREMIUM

Page 12: Anne Driscoll Presentation

OUR GOAL: Build the very best product for our customers and align our resources to support profitability.

Page 13: Anne Driscoll Presentation

ROLLOUT

Page 14: Anne Driscoll Presentation

3 NEW PLANS FOR DIFFERENT CUSTOMERS

14

Page 15: Anne Driscoll Presentation

NEWS AND ANNOUNCEMENTS

April2010

August2010

End to free networksApril 15, 2010

Pearson PartnershipJune 24, 2010

New Revenue ChannelsJune 16, 2010

Announce Plans & Education SponsorshipMay 4, 2010

Mini Plus ProLaunch July 20,2010

WEGO Partnership July 19, 2010

Public announcements supported by •Steady Drumbeat of customer communications•New feature releases every 2 weeks•Ongoing discussions on our Creators Site

Page 16: Anne Driscoll Presentation

”“Finally! You guys are

listening! Great decision and I can’t wait for the New Ning! We’ve got your back.

Source: customer email

Page 17: Anne Driscoll Presentation

RESULTS

Page 18: Anne Driscoll Presentation

FOR US IT WORKS

• Tied revenue to our customers’ success • Shed the cost and complexity of being

an uber-publisher• Clarified our product position and target

customer• Gave us the freedom to invest in

building the BEST product for our customer

Page 19: Anne Driscoll Presentation

74 million

Source: Google Analytics Sep 15 – Oct 15 2010

CONVERTED NING CUSTOMERS

MONTHLY UNIQUE VISITORS

BY THE NUMBERS

70,000

MONTHLY NEW CUSTOMERS

5,000 90 % of our former traffic

Page 20: Anne Driscoll Presentation

A NEW ROADMAP & FOCUS

Fast, reliable, cost-efficient infrastructure

Network Creator

control & visibility

Engaging and

delighting members

Integrated monetizatio

n

Platform access & 3rd-party

connectivity

Page 21: Anne Driscoll Presentation

AN OPEN APPROACH TO INTEGRATION & PARTNERS

SOCIAL INTEGRATION

CUSTOM APPLICATIONS

NING EXTENSIONS

MOBILE PARTNERS

INTEGRATED MONETIZATION

ANALYTICS