Tuesday, July 17, 2007

Cleaning Up Their Act (a little) - Burnlounge Update

Previously, I wrote about Burnlounge and their shady business model which looked suspiciously like a Quixtar pyramid scheme. It seems that after getting the unwanted attention of the FTC, Burnlounge decided it wasn't worth it. They've changed their business model to "eliminate the network marketing portion." Now instead of paying them for the opportunity to sell their music, you can create your own Burnlounge store for free. Of course you'd still be selling their music, but without the fee, the Burnrewards you get in return seem a little more enticing.

Of course there are still a number of for-pay services available, but they are a lot more straightforward now. You can still pay a monthly fee in order to get cash instead of Burnrewards, but you no longer get cash or rewards for convincing other people to sell stuff under you . . . though there is something about getting rewards for sales your "affiliates" make. I think the value of some of their for-pay services is still questionable, and the affiliate thing sounds a little pyramid-ish, but the new business model is definitely an improvement. Take a look at their frequently asked questions for more info the changes.

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