Struggling with a faulty revenue model, Meetup.com bit the bullet and went from free to paid in 2005.

Scott Heiferman, the site’s founder, tells the story of this transition in an interview with Signal vs. Noise:

“[A]ll of a sudden, in a flash, you see 95% of your activity go away. I mean, that’s the backlash in its most visceral form. … We never really wavered seriously, but it’s a punch in the gut.”

But after the initial shock, he and his colleagues adapted:

“We said, ‘OK. If we get 10% or 5% to continue and pay that would be great.’ Because we were in this to make something great for people.”

Six years later, Heiferman says of Meetup, “We’re solidly profitable. We’re doing well.”

Heiferman also feels charging has simplified everything the company does. “There’s so much good potential that can come out of just charging people for your good product,” he says.