Amplify advises businesses to re-appraise social media networks as sites introduce premium charges

June 22, 2010 - PRLog -- •   Social network giant Ning set to introduce monthly charges for its 1.5 million members from July 2010

Social media for business specialist Amplify has advised all businesses who are planning to use social media for their business to evaluate the likelihood of the introduction of charges on popular networking sites during the next six months.  Amplify has raised this issue as social network provider Ning is set to introduce monthly charges for all of its 1.5 million members from July 2010.  Ning has proved popular with the business community as it allows users to create their own tailored social network with a host of advanced features including instant chat, blogs and discussion forums.

Ning will be charging $2.95 per month to establish and run a basic social network limited to 150 users through to $500 per year for its ‘Ning Pro’ offering which includes music and video uploads and advanced customisation options.  All Ning members who have established networks on the Ning site will be requested to select a payment option during July, with uncertainty for owners of Ning networks who do not pay to subscribe to Ning by the end of July.

The introduction of premium charges for all Ning members marks a new departure for social network providers who typically allow entry-level users to access a free service but charge for advanced functionality – a charging model called ‘Freemium’.  Examples of this include professional social network LinkedIn which allows upgraded customers to send messages directly to LinkedIn members outside of their immediate network.

Amplify advises businesses to be aware of the changes in charging structures from social media networks, as the providers start to ramp up revenues from their sites.  It also stresses that although the introduction of these charges will eat into already stretched marketing budgets, a paid-for model can bring benefits for businesses, including increased stability, improved functionality, help-desk support and the removal of unwanted adverts.

Amplify recommends that the start of the shift towards premium charging models for social network sites should act as a trigger for businesses to examine their social media strategy to see if they are getting maximum value and usage from each sites, and to map the sites they use to see if they are relevant for their business growth strategy.

David Holt, business development manager, Amplify, commented:
“As social networks start to charge premiums for usage, it should act as a wake-up call for businesses to look at their social media strategy and audit the sites they are currently using.  Businesses need to ask themselves whether they are using the right sites for their audience and if they are getting the maximum value from the social media activities.  

Businesses that are using Ning but do not want to pay the premium charges to set-up their own social networks have a choice of free sites to switch to such as SocialGo, Webs or Spruz, but it is worth thinking about the consequences of moving an established social network from Ning to a new free provider.  Consider the merits of each social media provider before moving just on the basis of costs.”

For more advice on building a social media strategy for businesses, visit http://www.dthomas.co.uk/amplify.

About Amplify
Amplify brings together online digital marketing and sales management with integrated services to enhance your sales covering Customer Relationship Management, Website Development, Content Management Systems, Search Engine Optimisation, Social Media for Business, Email Newsletters and extranet and intranet solutions using Microsoft Sharepoint.  Visit http://www.dthomas.co.uk/amplify for more information.

For more information about Amplify, please contact:
David Holt, Business Development Manager, Amplify
Tel: 023 9282 2254.  Email: dholt@dthomas.co.uk
www.dthomas.co.uk/amplify

For all Amplify media enquiries, please contact:
Miles Clayton / Simon Bennett, Agility PR Limited
Tel: 01992 586 190.  Email: miles@agilitypr.co.uk/simon@agilitypr.co.uk

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Amplify brings together online digital marketing and sales management with integrated services covering CRM, Website Development, Content Management Systems, SEO, Social Media for Business, Email Newsletters and extranet and intranet solutions.