Being a trendsetter can be pricey. As any fashionista or gadget hound knows, the latest frocks and tech toys don’t pay for themselves. But a new Web site is trying to manufacture it profitable for music lovers to stay ahead of the curve — by paying them when other humans purchase MP3s they’ve bought.

Berkeley, Calif.-based Popcuts, which publicly launched its Web site in early August, charges users 99 cents per song. Thereafter, whenever someone else buys the same song, those who have already bought it get paid in credit that can be redeemed for more Popcuts music. The earlier you buy a song, the larger your cut of future sales.

And while credit is currently the payment option, the site’s founders hope to eventually pay users in cash, too.

Hannes Hesse, 28, one of the company’s three co-founders, said the concept came from a desire to better align the interests of artists who want to sell their music and fans who want to get it for free.

“We thought that by providing that additional incentive to buy a song legally, namely, owning a stake in that song, would prepare it more appealing to buy,” Hesse said.

Popcuts user Gary Yao, 25, said that while he’d prefer cash to the current site credit that users earn, he likes being rewarded for buying songs. So far, he’s earned $5.25 by buying tracks.

“It gives me an incentive to go out there and see what’s new and available,” the San Francisco-based product analyst said, adding that he’s discovered a few new bands by using the site by the past month.

The site’s selection is still pretty slim — it includes around 700 songs from about 200 artists — but Popcuts is adding musicians through a deal it recently made with music distributor DashGo Inc. and is looking to connect…

Original post by Mike

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