Burnlounge Review

In a normal multi-level marketing or network marketing arrangement, individuals associate with a parent company as an independent contractor and are compensated based on the sales of products or service, as well as the sales accomplished by those they bring in to the business.

In the best MLM company, commissions are earned only on sales of the company's products. No money might be earned from recruiting alone ("sign-up fees"). Some, less legitimate, companies produce revenues primarily by attracting new participants or selling them marketing services, as opposed to selling actual products. One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from new-recruit bonuses or business support sales. - source (wikipedia on MLMs).

Initially, Burnlounge seems such as for instance a wonderful revolution in the music industry. Through my own, personal internet surfing I have find countless individuals with their particular " Burnlounge Stores" and thought nothing of it!

In the event you aren't acquainted with it, Burnlounge is really a company that allows users to set up a digital music store. You subscribe under certainly one of three different levels for a set up fee along side monthly fees. At the end you obtain the possibility to set up your own personal store within your website where people purchase digital music from you that you select to hold, and you obtain a commission from these sales. Towards the top level, not merely do you obtain this, but in addition the capability to recruit (and earn an additional benefit from recruiting) others to open their particular burnlounge store. They themselves may also be in a position to recruit in the normal MLM setup. You receive bonuses from everyone signing up as well as a commission from both yours and their sales.

This can be a "legal pyramid/MLM" ;.Unlike the normal misconception that pyramids are illegal, pyramid companies only become illegal once they break the FTC's rules. These rules are set as much as be sure that the majority of profits result from the merchandise and not the recruiting. Even calling them illegal at that point is misleading. It really means the FTC may take action to shut them down. Considering the digital music marketplace you will see that Apple selling mp3s for the exact same price as Burnlounge proposes barely breaks even, with a sizable market share. Burnlounge store owners can't compete with that large market share, and the immediate conclusion is that those that come in at the higher subscription levels stand to gain much of the profits from the recruitment of others.

This should be considered a red flag to whoever has considered working with this company. Leaving the merits or lack thereof of MLM as a business model, you can see that Burnlounge is on the seedier side of such companies. They appear to be walking the distinct FTC rules while using recruiting that appeals to a young and sometimes naive audience. Their banners say "Wanna be in the Music Industry?" when owning this kind of store is nothing of the sort.

There are many other resources for musicians to obtain their music out there, and for fans to feel part of things. If you should be looking to do that, ignore Burnlounge and keep looking.