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Is There a BurnLounge Scam?
BurnLounge is a digital music sales service that markets itself as a community-based digital music download service which allows users to construct their own personal digital download stores to make profits from music sales. It operates like a Multi Level Marketing scheme in that most of the profits are derived from sign-up and subscription fees. As such the company appears to have more in common with a pyramid selling schemes than digital music stores. There is growing the growing concern in the digital music industry over their questionable business practices.
Though MLM companies are legal business, most participants fail to make money because higher-level users receive a share of revenue from any affiliates that they personally sign up as well as the sign-up or subscription fees that the affiliate generates. Lower-level participants, which make up the vast majority of those involved, rarely see profits and often end up in debt.
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