The good news is that the renewal rate was high enough for App.net
to be profitable and self-sustaining on a forward basis.
Operational and hosting costs are sufficiently covered by revenue
for us to feel confident in the continued viability of the
service. No one should notice any change in the way the App.net
API/service operates. To repeat, App.net will continue to operate
normally on an indefinite basis.
The bad news is that the renewal rate was not high enough for us
to have sufficient budget for full-time employees. After carefully
considering a few different options, we are making the difficult
decision to no longer employ any salaried employees, including
founders. Dalton and Bryan will continue to be responsible for the
operation of App.net, but no longer as employees. Additionally, as
part of our efforts to ensure App.net is generating positive cash
flow, we are winding down the Developer Incentive Program. We will
be reaching out to developers currently enrolled in the program
with more information.
I would have loved to be proven wrong on my pessimistic
predictions and criticism of their scattershot product direction.
They’re good people. But I just don’t see a fundamentally social
platform, even with a bunch of other features on top of it,
getting a usefully large audience to succeed “on a forward basis”
rather than “winding down” without being mostly free and having
explosive growth from the start — especially when competing with
similar, massive, free services.