First, we are introducing a $5/month Member plan. Second, we are dropping the Member price from $50/year to $36/year. All existing members will get the benefits of the yearly price drop.

Smart move. $50/year was just too much for the average person to justify on a social network - even one that promises to not repeat the mistakes of Twitter.

The membership of App.net is just about to cross the 20,000 user level, which creates some economies of scale for us. Remember, the original pricing model assumed 10,000 users.

20,000 x $50 = $1,000,000. Not to mention some of those initial accounts were $100 developer accounts.