1. Social networks are important enough that a subscription model is viable
2. Social networks should be built on a platform for social network applications
Obviously neither idea could save app.net. Which idea caused most of the problems?
I think a subscription model could be viable with better execution but it really seems like that would be best with a tiered approach so the social network wasn't held back by the payment requirement.
But freemium is hard: Either you make a market for ads, and have intrusive data collection and analytics, and you have to compete with the most intrusive ad-supported products that already dominate the ad market and you become as bad as them, OR you have pure freemium and you have the question of how to make the up-sell compelling enough while keeping the free level of service interesting enough. The only good example of success at freemium is LinkedIn where they segmented their user population and only made the recruiters pay a very high premium price.