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Comment by patio11 | Hacker News Reader

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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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.

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.

Yeah. I think maybe it might seem less seedy if you earned karma instead of cash.

somehow, you make money out of spending money. Of course the revenue is smaller than the expense, otherwise it wouldn't make sense.

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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