For those not up to speed on this, Burnlounge is a "network marketing" (read: multi-level marketing) online music store, similar to iTunes...except that iTunes actually works.
Somebody first approached me about getting involved in this company in November. Since then, I've had at least five or six people ask me to get involved, one of whom was willing to pay all my fees. I've also seen the Burnlounge "magazine" in the gym, seen ads in local music publications, and gotten plenty of emails about them.
This company has found a winner in the Nashville music scene. Is it a good investment though?
Tony Zeoli has some good information on Burnlounge that anybody considering the program should read.
I attended a similar event a few weeks ago...
When I asked about how the music was being licensed, I was told it was "direcly via major labels." Wrong. Glad to see this has come out into the open.
I almost asked about a company called Janglefish, which was very similar and went out of business, but thought, "There is no way this is the same company under a different name." Wrong.
What disturbed me most about this company is that nobody seemed to care that the site didn't work. "We're concentrating on building the network now" was the answer to that issue.
I'm a marketing guy. I love the game of convincing people to open up their wallets, take out the cash, and hand it to me. Part of that is handing over something in return though and it seems to me that the only reason Burnlounge has a "store" at all is to keep them from being classified as a Ponzi Scheme.
Music is made to be portable. It's what we listen to while doing other things...
iPod has 80% of the portable music hardware market. iPod doesn't play Windows Media Player, which is what Burnlounge uses.
Isn't this like opening up a record club that only sends music on 8-Track? Sure, you can get it, but you won't be able to play it.
Somebody asked about this and the recommendation was, "Burn your download to CD and encode it to mp3."
Ok, on iTunes, I just download it and it goes to my iPod automatically.
With Burnlounge, I'd have to...
1. Download the file.
2. Burn a CD.
3. Encode the CD to mp3.
4. Transfer to my iPod.
Who the hell is going to do that?
My advice... Stay away. This is a "moneymaker" (for some people), not a real business. You're much better off investing your time, money, and effort into something YOU are doing.