A Product Service System: CD Swapping at Lala.com


Lala.com is a new site on the Internet that's dedicated to allowing fans to trade music CD's for just $1.00, plus shipping. The site works something like an eBay auction and reminds us of Peerflix because of the trading platform. It encourages consumers who sign up for the service to list all the CDs they may want to exchange as well as ones they would be interested in receiving. But, here's the other piece of this: Lala.com gives struggling musicians a major cut of the proceeds. Here's how it works: Once an exchange is arranged, the recipient pays $1.49, of which 49 cents pays for shipping the disc, leaving $1 for the company for musicians, administrative costs and its own cut. Lala.com said 20 cents of each $1 will go into a charitable fund for the musicians. It is looking to pay the musicians via a charitable organization it has set up called the Z Foundation. It plans on keeping 20-30 cents for itself, with the remainder going on administration. The site isn't actually "live" as of now, but the Company says they have been testing the service for several months with nearly 100,000 people and claims to already have another 200,000 people waiting to join the service when it goes live. Thanks for the tip, Matt! Via ::Reuters ::Lala.com