BurnLounge Burning Out?

People have been telling me about BurnLounge.com for years. And I've always resisted getting involved or even writing about the service. Something about the multilevel business model never sat well with me.


Here's part of an article from Digital Media Wire (one of many news stories making the rounds online):

The Federal Trade Commission (FTC) has filed a complaint in a California federal court against BurnLounge, alleging the digital music store is in fact an illegal pyramid scheme.

New York-based BurnLounge charges users between $30 and over $400 a year for subscriptions to its service, which allows them to create their own digital music stores.

But the FTC said the company provides payments mainly for recruiting new participants, rather than on the retail sale of products -- which the FTC alleges would result in most participants losing money.

I know this is a hot issue, depending on which side of the fence you sit. So I don't want to get side-tracked debated the pros and cons of BurnLounge. Just read up on it and make your own decision.

-Bob


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