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ENTER THE BURNLOUNGE CONCEPT

Approximately 36 months ago, he came up with the idea to mesh the power and viral growth of a business relationship model with the music and entertainment industry. This model would allow Independent Artists to promote their music in a viral community of people and create income. He shared the idea with Rick Dees, who 60 minutes into the presentation wanted to buy the company. Because the company wasn't for sale, he became and currently remains the #2 shareholder in the company. One other prominent name of interest, Carson Daly of MTV, TRL, etc... has also become a large partner with Burnlounge. Knowing that the concept had "legs," Alex Arnold moved forward and in October 2005 the company was launched out of LA, with an additional corporate office in NY.

In the first month, Burnlounge did approximately $1 million in sales! BurnLounge has received a $100 million dollar valuation from Wall Street and has a corporate strategy to go public possibly as early as next year. What does that mean and who knows about this? It means you are looking at the next Blockbuster of the Music and Entertainment Industry. While we are beginning with 99 cent music singles and $9.99 albums, mirrored to iTunes, we will incorporate ring tones, logo wear, TV shows, movies, Digital playing devices, etc... Who knows about this--very few. We are in the soft Beta launch of this company as the corporate team continues to modify and update the model. However, if you are receiving this, you are privileged enough to participate in the launch with a virtually untapped market. As of February 2006 there are only approximately 14,000 total BurnLounge Retailers/Members in the entire world! There are Billions of people around the world who love music, so the potential is extreme!

That number (14,000) is expected to grow to 3 Million in as little as 2-3 years. The reason that is exciting is because of the power of the binary network-building compensation model in which you have the opportunity to participate. If you haven't figured this out--you have the chance to capitalize on this concept and take advantage of the timing. By participating NOW in the development of what will be the largest network of Digital Content Retail Stores, you can create residual wealth.

THE CONCEPT

Burnlounge combined 3 powerful Industries:

1) The Music & Entertainment Industry. Sony/BMG, Universal, Warner Bros, EMI are the companies that are considered the "majors" in music and entertainment.

2) The Affiliate Marketing Industry (Ebay, Yahoo, Amazon, etc...) where people of common interests buy, sell and refer goods.

3) The Network Marketing Industry (MLM, Direct sales, Network Marketing, etc...) where history has PROVEN that a monetized free enterprise system can create wealth with various products.

WHY EACH INDUSTRY?

1) Music and Entertainment are universal products that reach everyone. We don’t have to carry inventory or change a buying habit. We will never have to convince someone that they are always going to buy music, karaoke,  read books and watch movies. (All products forthcoming from Burnlounge).

2) Affiliate Marketing is a powerful means to distribute products. For example, on Ebay, one could buys/sell any item to anyone with similar interests throughout the world. Relationships and common interests are powerful. Everyone would agree, that personal endorsements and recommendations are more powerful than advertisements.

3) Network Marketing and business relationship models work! There is not a faster way to grow a distribution channel than through the power of relationships. What is more powerful? iTunes paying $35 million in print ads and TV commercials or Burnlounge paying $35 million to thousands of LIVE voices who have personal influence and relationships!

CORPORATE GOAL

Here is the Ultimate Goal of Burnlounge: To become largest, most powerful, digital content distribution channel in the world. To do that, they have partnered with the entertainment majors, implemented an affiliate marketing model and will compensate US (you and me) to build that distribution channel. So here is where many could get confused. Yes, we are currently compensated from Burnlounge to sell products i.e. music, and yes we will be compensated to sell a variety of products in the coming years such as ring tones, movies, TV shows, logo wear, MP3 devices, etc... BUT, we are also paid to create the distribution channel. Why? Because it will have tremendous value and command significant leverage in the Music & Entertainment industry in the coming years. Remember, MySpace just sold to Fox for about $700 million and their only source of revenue was advertising. They didn't even sell a product. So why did MySpace sell for about $700 million? It was a massive distribution channel with millions of people. So essentially, we are helping Burnlounge create that distribution network through our friends, co-workers, etc... and get compensated. The reason it is unique, is because we are part of the first to know about BurnLounge. We also sell a product that never goes away and always changes. Think about it--we get paid upfront to build the network, and during that process and after that process, we get compensated on the sales of universal products that everyone from a young kid to a Senior Citizen can understand—MUSIC AND ENTERTAINMENT!

There has been a 10 year slump in the music and entertainment industry. The reason--people are stealing music. They don't think that copying CD's and file sharing is illegal, but it is. It affects the artists, record labels, everyone. CD sales were down another 20% in 2004. The music industry realizes that we are headed to a digital society where CD's will soon become digital computer music files, DVD's will become digital computer files, digital books, etc... Well Apple and iTunes came up with a solution--sell single songs as a digital computer file for 99 cents, and albums for $9.99. It was a major Homerun. They have cornered the market up until this point. However, there is in our opinion one flaw--their system, iTunes, is not about music. Most people don't realize this, but iTunes is primarily only interested in selling their device, the iPod, Nano, or Shuffle. They also haven't provided an outlet for independent artists, underserved music categories, geo-specific content, or unlicensed material.

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