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Zoto

Zoto, the photo-sharing service, will launch version 3.0 tomorrow, while telling its free users to upgrade to paid accounts or leave.

The major upgrade has been in development since October and a live preview has been available since then. The new stuff includes a new logo, a pretty new interface and plenty of slick ajaxy features – in fact, the whole site has been rebuilt from scratch with some big improvements. Log ins will be disabled today while they perform the update. To be fair, Zoto also ended the registration of free accounts at the end of December and warned users that they were switching to a paid model.

Tomorrow, all of Zoto’s paid account holders will be moved over to the new servers, while free account holders will have to upgrade to a paid account for $9.95 for the first year, followed by $29.95/year after that. Not all Zoto users are happy about the change, and one forwarded this mail from Zoto:

If you have a free account on Zoto AFTER 10am CST on Wednesday, your account information will be imported into Zoto 3.0, and flagged as a non-paid account. When we launch 3.0 sometime on Thursday, your account will be available for limited login, but you will be required to upgrade to a paid account to have immediate access to your photos….For those of you NOT wishing to upgrade to a paid account, your images from your 2.0 account will be available for download (or deletion at your discretion) after the 12th of March on a landing page when you login to 3.0. Those archives will contain ALL photos and meta data added to your account while it was on 2.0. Once you start the download, you will be given 24 hours to complete any other archive downloads you need. After that, your account and archive will be deleted from the Zoto system.

I’m not going to criticize Zoto for the way they handled the customer relations here: they seem to have given adequate warning, they’re offering a discounted first year rate for those users that move up to a paid account and they’re providing a service that will export photos to your Flickr Pro account if you leave.

But I do think moving to a paid-only model is a supremely stupid business decision. Even if they retain the majority of their free users, they’re still going to kill growth by forcing new users to pay. All the public stats (Compete, Alexa etc) already show traffic plummeting, particularly since the end of free accounts in December, and it can only go downhill from there.

If your business is growing too fast to handle – as Zoto said in December – then you either take funding or get acquired. Purposely stunting your growth seems like suicide.

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