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.
It’s a tough sell, really, to say that the service will chug along just fine without a dedicated team to keep it flourishing. Once people are no longer invested in it, their attention shifts elsewhere and projects like these often become lifeless entities, mere shadows of what they once were.
It’s a true shame, really. I had high hopes for App.net and its potential to thrive. But alas, it seems they were ill-prepared to deliver a crystal-clear message to the world at a time when such clarity was in dire need."