

Popcuts (YC S08): Buying Music Has Never Been So Profitable - drm237
http://hyveup.tv/2009/04/popcuts-buying-music-has-never-been-so.html

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patio11
I get worried when I see this described as "profitable". There is no way that
you can describe "I spent $20 and made $6" as profitable in an honest fashion.
Trying to do so just makes it sound less like "innovative method at getting
new artists some exposure" and more like "pyramid scheme".

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mk
I think this is an acceptable use of the word. This particular account may not
have turned a profit, but it might over time. And even if it doesn't this is
certainly more revenue than you would receive with iTunes.

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patio11
_This particular account may not have turned a profit, but it might over
time._

Setting aside the top earner on the service (because they're a record label),
the second highest earner has earned $29 by buying $70 worth of songs. Third
highest: $28 for $64. 4th highest: $24 for $66.

I have absolutely no doubt that with access to their database and a quick
query you'd find out exactly what you find out in any MLM: the overwhelming
majority of the people lose money. And I have a profound, abiding disrespect
for something which is a business model when it is profitable and a
consumption expense when it is not -- its not like Mary Kay recruits people
with promises of access to wonderful new cosmetics.

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seekely
Reading over Popcuts' site, they don't proclaim anything about your ability to
make a profit or start a new living by buying music off their site. In their
about section, they specifically angle it as getting something back for having
'good' taste in music. And they seem to be delivering on their pitch, as the
top earner you cited is getting a 41% discount on the music they purchased.
Their music prices are also aligned with both iTunes and Amazon, so I would
hope nobody feels ripped off or deceived for purchasing market rate music with
the chance of getting something in return.

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hendler
I saw these guys present to the MIT e-club.

Choice of the word profitable: it's profit sharing (for some percentage).
There is a definite incentivization. When one uses a credit card with "cash
back" or to get airline miles there's not a huge difference.

A novel idea - think it just needs some simplification. Maybe it'd also be
good to focus on a niche, or user generated content.

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thristian
This site sounds pretty interesting, but every other "buy DRM-free music" site
I've seen has crippling geographic restrictions (crippling to me at least, I'm
in Australia). I can't find statements one way or the other on the site - does
anybody know what the deal is?

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exaakax
it's profitable in the sense that buying music enables you to get more
music...

