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Again, I must run and hide behind the great work Twitpic is doing.

Twitpic is self funded and ran by one guy from his apartment

He does it because he loves it, not because it pays the bills. Does everything HAVE to turn a profit?

If it's a business with shareholders and investors it does.

Does everything have to turn a profit? No.

Does everything that you're trying to earn a living off of, pay bills with, and hire employees with have to turn a profit? Hell yes.

If you're not going to aim at providing a return on investment, don't pretend you're a business.