The problem with anything “free” is that it often doesn’t stay free. Ning is a case in point. (I’d link to the site, but they’re currently down.)
Ning allowed you to set up your own social networks, completely for free.
I tried Ning out, and even paid for the service for a year, but I eventually gave up on it, because it was plagued with spammers, and frankly babysitting the site was more trouble than it was worth.
However, Ning is enormously popular, with 1.9 million networks created, according to Techcrunch.
If you have a Ning network, and don’t feel like paying, new solutions are emerging, so don’t panic. 
Posterous, an application which I like, and use, is offering to shelter the Ning orphans.
A blog post, Posterous commits to building a Ning blog importer. Bring your network to Posterous, for free – The Official Posterous Posterous reports:
“Posterous is the best way to publish anything online, providing email and web based tools to post and share anything. Posterous lets individuals, families, and brands create a fully customizable website and easily post photos, video, audio, and documents.
A Posterous site can require a password, and have multiple contributors, allowing you to create a private community within Posterous.”
I’ve heard good things about blueKiwi too, and they offer a free option.
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