Ok. Here we go again. A couple marketing guys from Atlanta have announced their new ad-supported music download site. Free All Music. Co-founders Richard Nailing and Brian McCourt think their site will succeed because it’s monetized on a cost-per-action (CPA) vs. cost-per-impression (CPM) basis; users have to watch a 15-second online video ad for every DRM-free track they want to download. In other words, SpiralFrog but with MP3’s.

Now these people have years of experience, but not in the music business. They have invested $1.5 million of their own cash and have just closed on $990,000 of private seed capital. They claim to have closed a deal with one of the majors and are in final negotiations with three others. And they plan to launch a beta by December.

I won’t bore you with all of the reasons why they don’t have a prayer. But we all know that they don’t have anywhere near the amount of money that they’ll need and they certainly won’t get every label to immediately buy into the model, no matter what they’re claiming. They may think that they will, but we all know better. You have to show them the money—and big money to get uncontrolled MP3’s.

Not to mention that nobody will to sit through a commercial before they get a download, especially from a limited catalog. At least not enough people to make it worthwhile. Not when they can get it faster and free as well anywhere on the web.

And if they haven’t been getting calls from so-called consultants and entertainment attorneys offering to help them get licenses, they will soon. Fellas, save your money. You’re messing with your kids’ college fund. I’ve said it many times before—even under the best circumstances, with tons of money and even a big brand, the odds of making it in the digital music space are slim at best.

I’m sure that Brian and Rich are nice guys. Hats off for trying. Good luck to you and I’m actually rooting for you to make it. But I’ve been around the block a few times and have a little advice for you: don’t quit your day jobs.

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