How do we turn this logo into a simple avatar?
Profile images on Facebook are automatically cropped to 160 pixels square for the profile page and reduced to a 32 pixel thumbnail in comments. Most logos are not ideal in a square (and worse, a tiny thumbnail) but there are workarounds. For many logos, an initial from the logo, or a visual detail in the branded colors will work— remember, the name of your company is written in large letters on your Facebook/LinkedIn/Twitter page next to your profile picture, so your profile image does not have to be legible.
Here we try the monogram detail from the logo, which retains some legibility even in the 32 pixel thumbnail.
Here is another example, using a letter in the branded typeface and colors—simple and legible.
The same principles apply to formatting a branded favicon (a yet smaller representation of your brand).
In any case, look sharp—even when you are tiny.