n another "I told you so" moment, Grant Johnson, the new CEO and Chairman of BurnLounge announced in a press release through the Mi2n.com music network the company will abandon its MLM model for a more traditional affiliate model. BurnLounge affiliates will be able to participate directly in the revenue upside from the sales of music, movies, tickets and other online transactional services without having to invest high fees to use the companies software tools.
This is a 180 degree turnaround since the company dumped Alex Arnold (a former executive of another bankrupt MLM, Excel Communications) in the face of criticism about its MLM structure and the Federal Trade Commission building its case against the company.
BurnLounge has announced that CEO, Alex Arnold, will step down from his post effective immediately. Grant D. Johnson, one of the company's Board of Directors and founding investor will take the helm. Johnson is also founding managing partner of Benevolent Capital, a hedge fund investing in private and public companies.
The Federal Trade Commission went to court this week to ask for an immediate shutdown of the controversial music service, but the court granted the company a stay. Although it still remains operational, the damage has been done. I think you'll see a number of members canceling their memberships.
