They’re doing it (mostly) right:

Instagram isn’t just small; it’s tiny. It’s miniscule. It is famously located in Twitter’s old digs in San Francisco’s South Park neighborhood. But here’s the thing: Instagram subleases its space from another company. Instagram isn’t in Twitter’s old office, it’s in Twitter’s old conference room. The entire company is nothing more than a collection of desks arranged bullpen-style in a room that is smaller than most two-car garages.

They’re taking their time to grow. Smart. They just need to figure out how to start making some money. I’d pay $0.99 to make sure it sticks around.