What’s more, the company thinks the same people will be willing to let go of their own CDs for free.

Currently in beta testing, lala.com will facilitate trades between its users, charging each person a dollar for every used CD purchased through the service. The more members, the larger the inventory. Plus, unlike iTunes, Napster and other online services that only carry CDs greenlighted by record labels and artists for digital downloading, anything that’s ever been released on CD is theoretically available with la la. That is, as long as a member is willing to give it up.

Here’s how it works. Users log on to lala.com and select CDs they either want to purchase or give up by clicking on buttons labeled “Want” and “Have.” By clicking on “Want,” you assemble a list of CDs you want to purchase, while clicking on “Have” indicates which of your CDs you’re willing to give up. La la facilitates the trade by sending the giver prepaid envelopes in which to send the CD and picks up a dollar plus a 49-cent shipping charge from the receiver.

Of course, in order to purchase CDs through la la, one must also be a giver. But just about everybody has a few old CDs in the closet gathering dust, discs that others would gladly pay for if only they could get their hands on them.

Pretty neat, eh?

Investors Bain Capital and Ignition Partners thought so. They kicked in $9M in seed money to get la la up and running.

But perhaps one of the coolest aspects of la la is that the company will divert 20 percent of each sale to the artist even though current copyright rules and regs do not require any royalty payments on pre-owned CD sales.

La la was conceived by Bill Nguyen and John Cogan, who say they came up with the concept while listening to Fountains Of Wayne. Along with co-founders Billy Alvarado and Anselm-Baird Smith, Nguyen and Cogan are shooting for a virtual version of the local independent music store where music lovers gather to discuss, explore and purchase music.

But what if la la members don’t have that particular CD that you’re looking for? La la will give its users the opportunity to purchase a new copy if members don’t list the CD on their individual “Have” lists, according to Reuters.

La la may also launch a digital download feature, and is in licensing talks with record labels. However, unlike the a la carte services, the plan calls for selling complete CDs, not individual tracks.

La la is currently signing up new users for beta testing. According to its Web site, la la will officially open for business July 4.

But why wait? Sign up for beta testing and get in on the fun. The more the merrier!

Meanwhile, we’re hoping that someone will take William Hung’s Hung For The Holidays off our hands (it was last year’s Christmas bonus from our boss), so we can purchase a used copy of William Shatner’s epic recording The Transformed Man. With la la everybody wins. We’ll get Captain Kirk’s stirring rendition of “Lucy In The Sky With Diamonds,” and Mr. Hung will get his 20 percent. Such a deal!