BurnLounge, which once operated a multilevel marketing scheme around Web-based music promotion, appears to have gone offline.
I first heard about BurnLounge about a year ago when a fellow musician was approached by one of its representatives in a mall. He asked me if I'd ever heard of them and what I thought.
I, smelled a multilevel marketing scheme, and suggested he proceed with caution. Sure enough, later that week the Federal Trade Commission announced it was investigating the company on suspicion of being a pyramid scheme, and , BurnLounge said it would get rid of its Amway-style program where representatives earned compensation from signing up other reps.
Now the site's gone. You can still see all the skeptical and hostile posts about BurnLounge in the Google search results, but when you try to click through to the site itself--nothing. This doesn't necessarily mean that the company has disappeared--there could have been a domain registration snafu or dispute with their hoster. The Wikipedia entry for BurnLounge says that the company laid off most of its employees last August and suspended operations in November, but has no citations for this information. I can't find any news stories or blog postings about the company that are dated later than mid-2007.
Posting on this subject used to garner lots of comments, so here goes. Any BurnLounge resellers still out there? How's business?