Rewriting the Music Playbook

BurnLounge.com could very well be the future of the music industry. Essentially a capitalistic version of iTunes, it enables anyone to set up his or her own online music store-for a fee. That said, BurnLounge is also the Mary Kay of music; more bling than blush, of course, but with a similar invitation-only "get your friends to sell!" expansion theme that promises big bucks if you can recruit your own network of Tommy Mottolas.
   
Richard Rivera, Midwest manager for the year-old company, chafes a bit when BurnLounge is compared to the Avons and Amways of the world, but he doesn't deny the business structures are similar. Rivera-a "VIP Mogul" in the BurnLounge sales hierarchy-moved to Springfield last summer from Houston with a three-pronged mission: find local talent to distribute through BurnLounge's catalogue; find new sellers to open their own stores; and generally spread excitement about BurnLounge in the Midwest.
   
If excitement is a requirement, Rivera is the perfect man for the job. He's passionate to the point of babbling when he gets to talking about BurnLounge, which lunched nationally just last year and has already taken off in major markets like Houston and Atlanta, creating big buzz along the way. (BurnLounge has received writeups in Billboard, and Justin Timberlake, Christina Aguilera, Nelly and Busta Rhymes are just a few of the investors, Rivera says).
   
But why Springfield? Rivera says he was sent here because southwest Missouri has an untapped market of independent artists, many of whom may be looking for some help to get album sales off the ground. When he talks about music and the music business, Rivera sounds less like a former band manager and El Paso FOX-affiliate employee than a musical messiah, spreading enlightenment in the ways of the music industry-and in a way that's just what he's trying to do. "[Bands] think just because they write their name on a sheet of paper it's their music, which is not the case at all." Rivera says. His mission: Find local independent acts and help them understand copyright laws and learn how to protect their creations...and then sign them up to be distributed exclusively by BurnLounge which-though Rivera denies it is a record label per se-then holds the rights to the band's music. (Rivera says BurnLounge does not manage the groups or impose creative control in any way.) Bands need only to sign on the dotted line, verify that their work is their own and collect 50 cents every time one of their songs is downloaded ($5 per album). The band's music is made available to all of BurnLounge's 30,000-plus store owners.
   
With no money required out of pocket, unlimited download potential and BurnLounge's coziness with major labels (partners include Sony/BMG, Universal, and most other industry mother companies. "We can put your right up there next to 50 Cent," Rivera says) the setup has the potential to be a gold mine of exposure for bands. "As long as you're not signed with anybody, we'll take care of you," Rivera says. Worth noting, however: It appears to be easier for bands to get in to BurnLounge than out. If a band signs up with BurnLounge and later decides it wants to sign with a record label, it should be prepared for some contractual wrangling since BurnLounge controls the rights to their music. "Of course there would be negotiations, because we had them first," Rivera says.
   
Since a local launch party in August at Fish, where BurnLounge flashed its big-city party chops and some big-name sponsors like M•A•Cosmetics ("to show we're here to stay," Rivera says), Rivera has been scouring the Springfield music scene for potential bands to sign, with limited success, though Easy's Restaurant owner Kevin Kwok has signed on as a partner (the bar/restaurant on South Glenstone hosted a second BurnLounge party in October). In typical Show-Me State fashion, bands have been slow to embrace the brand-new form of promotion, but Rivera says it'll only take one success story for things to take off.
   
There are people in Springfield who are warming to BurnLounge as an investment, however. A ZIP-code search at BurnLounge.com brings up a number of local store owners, one of them none other than Thuy Dam, owner of So You Boutique. Thuy (burnlounge.com/t2music) got into the business last month after a friend in Kansas City signed her up. She says she sees BurnLounge as a great business opportunity-the site will soon start offering video and ringtones in addition to music-with minimal time commitment. "There's an opportunity to make a lot of money," Thuy says. "And if you can grab it on the front end you'll be so much better off."

Got that burning feeling?

Here's how to get involved in BurnLounge
BurnLounge Midwest manager Richard Rivera breaks down the levels of involvement if you want to run a BurnLounge store. Go to BurnLounge.com, click on "Sell Music" and then "Packages" for more details:

• Fan: For $29.95 a year you can simply sell whatever music you want from your own store, which are designated by MySpace-esque URLs. (Example: burnlounge.com/gomagazine.) Your only pay comes in the form of rewards points, which can be redeemed for swag.

• Mogul: For $129.95 per year and another $8 per month, you earn the ability to build your own team of affiliate stores (and reap the residuals). You'll also get stat-tracking and operations software and can redeem your rewards points for cash as well as swag.

•  VIP Mogul: This is for people who are serious about their BurnLounge: $429.95 a year plus $8 a month gets you everything already mentioned, plus instant messaging software and the ability for your affiliates to grow their own teams (hypothetically, you'll reap even more residuals). This also includes back-office support like letterhead, business cards and promotional materials. This top classification also gets you into exclusive BurnLounge event. Playas only, please.

Make it yours

Once you sign up, you can customize your store's front page and develop your own play lists to sell-as long as it's in BurnLounge's catalogue, it's fair game.

Just shopping?

If you're not interested in BurnLounge as a business, it's still a trendy alternative to iTunes. If you don't know a specific store url, the main site has a number of search functions to help you find what you're looking for. BurnLounge files are compatible with iPods and other MP3 players, and are a flat 99 cents per download. The site has a clean look and is user-friendly, with free 30-second snippets of every song.