BurnLounge followup

Saying that its network marketing scheme was "not integral to its business," BurnLounge will focus on its free service.

Last Thursday, BurnLounge announced that it is eliminating the "network marketing" element in which some retailers pay start-up fees to the company, then earn money by convincing new members to become paying retailers. This was the aspect of BurnLounge that drew a lot of criticism, and eventually led to a Federal Trade Commission (FTC) investigation, as I blogged about a couple weeks ago.

Instead, the company will focus on the free service, in which anybody with a Web site can become an online music retailer. Excellent move. The network marketing aspect seriously dampened my enthusiasm for what otherwise sounded like an interesting new way for artists to publicize their music.

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About the author

    Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure. You can follow Matt on Twitter @mattrosoff.

     

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