Million Media

See Things Differently

Update On Burnlounge, Under Investigation By FTC


We reviewed Burnlounge in April. It has since come under investigation in the US by the FTC, their equal of the OFT in the UK. The FTC are accusing the site of pyramid selling, which notoriously brings riches to the people at the top but very little for the people at the bottom, who are lucky if they recoup their signing on fee. On the surface we can see why it comes in for criticism, although feel that the ‘Recommendation’ model has merit. The affiliate model of business is well established on the Web, and is a potentially significant way of selling music since ‘word of mouth’ is the Number One most powerful marketing tool. But with some fees in excess of $400, music unavailable in MP3 and the return as little as 2c per track, we feel artistes should look carefully in to Burnlounge’s terms, especially when Indiestore offer so much more for less.

Our main gripe about Burnlounge is the awful interface which is so heavy and cumbersome we simply can’t believe anyone parts with their money to have this store.

See also http://digitalmusic.weblogsinc.com/2006/07/19/burnlounge-still-ripping-consumers-off/ 

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About Neil

Neil Cartwright founded Million Media in 2006 with the aim to help people understand digital marketing and use it to their advantage. The vision hasn't changed but the technology has.

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This entry was posted on June 18, 2007 by in music, retail.
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