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BurnLounge

 

BurnLounge has got to be one of the most interesting MLM opportunities out there right now.  The company has combined a way to make money with the overwhelming trend of downloading music online.

If you sign up with BurnLounge you get your own website that you can promote to friends, relatives, and through social network sites.  This website allows you to sell a variety of single tracks and albums for which you earn a small commission.

The company has been extremely popular and has grown to have a significant membership.  Yet, recently there is a backlash against the company with many people alleging that it's a BurnLounge Scam.

Much of the outrage stems from disappointed customers and the pending FTC lawsuit, claiming that BurnLounge is an illegal pyramid scheme.  These allegations come about when an MLM company is said to be focusing more on recruiting new members than product distribution.

In the case of BurnLounge it is their commissions and payouts that point to this situation.  For instance it has been reported that for the sale of a full album a distributor gets around .50 cents.  On the other hand for the recruitment of two new members they get a bonus of $50.

Thus, with BurnLounge subscription fees ranging between $15-$500, low commission rates, and the fact that distributors are competing with music giants like iTunes the assumption is that the only way to recoup and make money is by recruiting more members.

The ethics and legality of BurnLounge have been heatedly contested over the net, with two camps taking sides.  Those that are in the program and claim to be making more money from music sales and those that are former customers and have a wide range of complaints.

On top of the pyramid scheme complaints there are also reports of a wide number of technical errors that have caused members to lose money and quit BurnLounge.  Then there's also the folks that simply have not made any money from the opportunity.

Overall, BurnLounge has tapped into a really unique business concept.  However, people need to know that due to the extreme competition level of the music industry you will be forced to sell primarily to your warm market i.e. friends and family.  Also I would hold of joining until the results of the FTC case come out.

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