Network marketing has been around for a very long time and there are many companies who use this type of marketing plan for their products. In a typical multilevel marketing or network plan, the representatives will work with the parent company as their independent distributor. They are paid on their sales and on the sales on their organization or group that they have built themselves through recruiting.



The companies that run in a legitimate marketing program pay their commissions on the sales of that company's products. You cannot earn money from recruiting alone which is where you just take the sign up fee. There are some ?less? reputable or legitimate companies that do produce revenue from attracting new people or selling them the marketing services instead of selling them the products themselves.

So you need to analyze the compensation plan to see how someone is paid. Are they paid from the actual sale of products or by new recruit bonuses or business support sales?

Burnlounge is a digital music store. It is a place where music is replicated and the operator of that page is able to choose what bands or songs they want to feature on their home page as well as playlists they have customized. It seems like the wave of the future, with iTunes and other digital stores online.

There are 3 different levels you can sign up under and they each have a monthly fee to go with it. You set up your store online, people buy the music that you decide to carry and you get a commission from your sales. The next level, you get commission from your sales but you are able to recruit others to join. You will receive a bonus from their signup and then they too are able to recruit. You get paid bonuses from everyone signing up and from their sales commissions.

This is a pyramid, but a legal one. There are such things as ?legal Pyramids?; they only became illegal when they broke the rules of the Federal Trade Commission. These rules are made to make sure the main profits come from the product, not recruiting.

While looking into the MP3 digital music market, you will see Apple sells mp3s for the same price as Burnlounge, but burnlounge can't compete with Apples prices. They barely break even if they use the same rate Apple does. So those that are actually building the burnlounge business will gain most of its profits from their recruitment and not the profits from their sales.

This needs to be checked into in great detail before deciding to go into this business. Burnlounge, while being a great marketing idea, is walking that fine line with the FTC. They are not doing anything illegal, but they are being watched. There are so many resources out there on the Internet if this is what you are interested in. Just do your research. There are people making a lot of money in this, that is for sure, but the way a pyramid works, the farther it goes down, the harder it gets.

You make your decision carefully, when you do, go for it with all you have. With the right determination and focus, you can be successful at anything you put your mind to and make some great money.