App.net just announced in a blog post that it won’t be able to pay full-time employe anymore.
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.
For those of you who don’t know what App.net is, basically its like Twitter but for developers to build apps and communicate, also App.net don’t have ads, which in the beginning was something that everyone liked, but slowly this heat started fading away.
App.net is supported by users pay for their premium account, and in return they will have the ability to follow as many people as they want, and for developers they will get an access for the App.net API
And according to Dalton Caldwell and Bryan Berg, App.net will still operate normally:
We continue to believe in the usefulness of a sustainable social platform where users and developers are customers, and not the product being sold to advertisers. If this were a company without a clear business model, App.net would have disappeared long ago. The market conditions that were the driving force behind App.net’s creation have not changed, if anything, there is more of a role for a social platform like it. We would like to thank the developer and member community for taking App.net from just an idea two years ago to a fully realized service today. Needless to say, it’s been humbling for all of us on the App.net team to have the support of so many amazing people.
I hope that App.net don’t go away, for the reason being that no family member is over there.