[vineet]

It seems that he is suggesting app.net to build two-sided market for social apps: users on one side and developers on the other side.

Sounds great - once they build a successful marketplace. But until then, the value proposition is not currently compelling. As a user - ad-free is not in itself compelling enough (yes, ad-free with a user base similar to twitter or facebooks is compelling), and as a developer their user base is again too small to matter.

They likely need to figure out which group is more important. If it is users, they likely need to focus on a killer app, or a killer community (perhaps by focusing the group they are targeting). If developers are more important, and they don't have a user base that is large enough to be compelling, perhaps they need to pith a different pricing model to developers (something to the effect of free to build apps and $1/user with these 100 social features).