BurnLounge
Burnlounge was a website where people could buy and sell digital music, similar to iTunes or Spotify. Think of it like a big online record store.
However, there was a catch. People were encouraged to become "independent retailers" and sell music to their friends and family. These retailers would earn commissions on the music they sold, as well as on the sales made by any other retailers they recruited.
Some people saw Burnlounge as a way to make a quick buck by selling digital music. Others argued that it was a pyramid scheme, where people were making money from recruiting others to join rather than from actual sales of music.
In 2007, the Federal Trade Commission (FTC) launched an investigation into Burnlounge's business practices. They ultimately deemed it to be a pyramid scheme and shut it down.
However, there was a catch. People were encouraged to become "independent retailers" and sell music to their friends and family. These retailers would earn commissions on the music they sold, as well as on the sales made by any other retailers they recruited.
Some people saw Burnlounge as a way to make a quick buck by selling digital music. Others argued that it was a pyramid scheme, where people were making money from recruiting others to join rather than from actual sales of music.
In 2007, the Federal Trade Commission (FTC) launched an investigation into Burnlounge's business practices. They ultimately deemed it to be a pyramid scheme and shut it down.