Simon raises an excellent point when he says

But what if it’s not only too late, but it was never time? What if not everything that flits across our screens — computer or cellphone or whatever — can be contorted into serving as a profit center? As I’ve said before: I don’t think every tweet or blurp or bloop or fart that emanates from a human can or should have ads sold against it or be otherwise monetized. [source]

Now with the economy going sideways and the VC firms warning tech companies to slow their burn rate and batten down the hatches so as to weather the storm,  some of our beloved social media apps  may disappear. Being loved isn’t enough to get through the current rough patch.

Rafe Needleman wrote

Although well-used by many and even relied upon by some (like me), Twitter has yet to turn on a revenue model. It’s not like the company would lose users, if it set up a minor advertising strategy as a test; people want to see the company make some money. Please, Twitter, turn on the revenue before it’s too late. [source]

So, who’s right? Do you think Twitter is in danger of getting crushed under the fail whale? (image source: Yiying Lu)

Post from: EveryJoe

Maybe Twitter SHOULDN’T Monetize

Heck, look at Jeremiah Owyang’s tally of the Social Media layoffs recently:

Oct 10: Fast Company, which has social network for website and popular videoblogger, lays off 20

Oct 10: Seesmic, a video conversation player lays off 7

Oct 6: eBay to lay off 10% of workforce to streamline after recession.

Oct 3: Gawker blog network lays off 19, and brags about it.

Om goes on to say that because of this meeting, Sequoia is telling its companies to put survival strategies in place and figure out ways to outlast the broader market troubles. (image source: GigaOm)

Sequoia isn’t the only one advising its startups to tighten their belts and prepare for a roller coaster ride. Ron Conway, a well-known angel investor in the Valley who has invested in companies like Google, offered very sobering advice to his companies via email earlier today. (from Om)

Raising capital will be much more difficult now. You should lower your “burn rate” to raise at least 3-6 months or more of funding via cost reductions, even if it means staff reductions and reduced marketing and G&A expenses. This is the equivalent to “raising an internal round” through cost reductions to buy you more time until you need to raise money again; hopefully when fund raising is more feasible.

Letting go of staff is hard and frequently sickening.  A re-evaluation of timelines and re-focus on milestones with an eye to doing more with less will allow you to live many more days, and the name of the game in this environment in some respects is survival — survival until conditions change. If you are in a funding cycle, you should raise your funding as soon as possible and raise as much as possible but face the fact that if you can’t raise money now you must cut costs. [source]

Post from: EveryJoe

VCs Warn Start Ups to Reduce Their Burn Rate