5linx

Is 5linx really the ‘premier business opportunity’ they claim or is yet ‘just another’ network marketing opportunity high on hype but short on substance?

Let’s take a much closer look, shall we?

Also, just to be fair – let me state right here and how that I am not a 5linx distributor… nor am I a customer… nor do I actually know any 5linx distributors personally.5linx

But I do have over 30 years of success within the network marketing industry and, in fact, since 1996 have built five six-figure, even multiple six-figure businesses online including a team of over 11,000 active MLM distributors world-wide in one company and a team of over 8,600 in yet another.

5linx Review

If you are reading this post then, chances are, you’ve been approached about joining 5linx as an independent distributor or perhaps as a customer and you’re doing your due diligence.

Which is a good thing. You should do your due diligence before starting any new home business.

So perhaps you’ve read a few “5linx reviews” or have even run across a few “5linx scam” notices and are a little bit unsure about who or what to believe. Which is fair. Because it seems most 5linx reviews will fall into one of two camps:

  1. Positive reviews from those actively promoting the company, products and services
  2. Negative reviews or 5link scam post from those who go in and did not enjoy success

Your best bet then is to first take a look at the facts.

5Linx was established in 2000 and quickly made a name for itself by making the Fortune 500 list in 2005.

The company is backed by a strong management team with a proven track record and a potentially profitable compensation plan.

The company’s business is basically three-pronged: sales of its telecommunications products, direct marketing of the business, and product development. The president and CEO of the company, Craig Jerabeck, has an extensive background both within the MLM industry and with telecommunications and technology.

5Linx is privately held and is considered one of the fastest-growing within the industry. Products include wireless phones and accessories, Internet, satellite TV, long-distance phone services, and its VoIP calling plans.

So far so good. The company is stable, offers a full compliment of products and has an impressive track record.

But the question still begs:

“Can the average person make good money with the 5linx business opportunity.”

5linx Compensation Plan

Like most network marketing compensation plan, there are a number of ways to earn a commission. There are 8 ways to get paid, in fact, with 5Linx, which includes commissions from the sale of their products and monthly residual income when clients and distributors make their monthly payments. You can earn bonuses and incentives such as vacations, luxury cars, and profit-sharing and if you really get in and get busy – you can be driving a FREE Bentley!

You can become a 5Linx representative at two levels, either as a Customer Representative for $99 or as an Independent Marketing Representative (IMR) which requires an initial investment of $499.

There is a monthly fee of $49.99 which gives you a website with all products and services, a back office with all your team and corporate info, 5Linx University, 5Linx TV, 5Linx magazine and access to various other websites provided by 5Linx. There is also a $99 annual renewal fee.

So can you make money? Good question.

The challenge is, because 5linx is a privately held company, they do not have to disclose an income earning statement and… they don’t. This means there is no way to honestly conduct a thorough due diligence including a deep look into how many active distributors are in profit versus not in profit.

And this ONE FACT ALONE would cause me to put the brakes on. Personally.

5linx – the Sobering Reality

Let’s assume for a minute, however, that you do decide to move forward and join this business as an active affiliate with the goal of creating a six-figure residual income in a period of 3-5 years.

Bottom line this means you will need to build a team of at least 2,000 active distributors who all have at a least a handful of active customers because the only way people get paid in a direct marketing company is through the sale of products and services.

So the question is,

“How do YOU intend to promote the business opportunity?”

Once you approach your family, friends, co-workers and other associates – what’s your plan to get the product, service and opportunity in front of a new batch of potential prospects over an extended period of time. How much time to you have set aside to follow up with interested prospects? Do you have a long-term advertising and marketing budget available and, for that matter, any advertising and marketing experience?

Another thing to consider is the profitability of the product line.

5linx offers a variety of technology related services – VOIP, telecom, internet connections and more. All of these could be considered commodities that compete on price. So when you offer a product that is essentially the same as everyone else’s product – the only way to compete is on price. And if I did not have the “promise” of potentially getting paid a commission to use your product or service, would I? Under normal market conditions?

If not, if there was no real, viable benefit-based benefit to using your product or service apart from the promise of potentially getting paid a commission for promoting the product or service – this ONE FACT ALONE would cause me to put the brakes on – because without a competitive advantage… building a profitable business will be tough going.

Bless and be blessed,

Rob Fore

PS – MLM Attraction Marketing Bootcamp | How to Make SERIOUS Money Blogging

Comments

  1. Ann Fresco says

    Hi, I’m very much aware how MLM works and most of the people would think it’s a scam so having people join your group maybe a bit difficult in the beginning. I want to ask you about the tax aspect. How does it work exactly? How do you show that you own a business?

  2. Lemuel says

    I just joined 5linx 30 days ago and I am impressed by the company. I have been in finance and banking for over 15 years. What the author forgot to mention are the tax advantages from owning your own home based business. When calculated, it far exceeds the amount of money you put into the business itself. You can be your own customer and take advantage of the tax benefits small business entrepreneurs are entitled too. Factoring in the opportunity to build your own team, the bonuses and residual income for me is a no brainer. I have worked hard in banking and finance industry and I am only paid for what I put in. If I don’t work I don’t get paid. There are several income a individual makes. One is earned income that is generated from a job. Two is investment income like stocks and bonds. There are others but the one that is most benefiting is residual income. Residual income is receiving money from work you have done in the past like writing a book or song. Everytime, someone buys your book or song you will get residual income. So far, since I have joined the company I have gotten my investment returned to me because of a bonus promotion that I was able to attain ($750). I am online to receive another ($750) in 30 days, thus making my first year of business free. $400 plus $80 x 12mos = $1360 which is less than the $1500. Of course, you have to work on your business to be successful. But, the work and capital that you put in is minimal compared to the returns. Even if I don’t get my bonuses I still have the residual income from direct sales and tax deduction of using my home, car, gas, phone, internet etc. Most people are so accustomed to just working and earning a paycheck. There is nothing wrong with that. However, if you want to take advantage of the benefits of owning a business just like the big wall street corporations this is a vehicle that can get you there. Good luck.

  3. Kris says

    Hi, 5 linx really works. My husband and my son started December 2012 and they are in good start with 5Linx. You just need to know how the system works and a lot of patience. A lot of people are negative especially when they hear networking. You will get a lot of “NOs” but you just have to keep going if you really want to be successful. Remember, becoming successful mostly a matter of being in the right place at the right time.

    • says

      Thank you for sharing, Kris – and you’re right. Building a profitable business simply takes time, patience and a good work ethic. 5Linx has been around a long time and it is a proven opportunity for those who get in and get busy.

  4. Dwight Barnes says

    5Linx does have reps that make pretty nice income but they are definitely the “few”. The checks you may have seen were not all residual I’m sure unless it was from a Platinum SVP or Double Platinum. Most all other reps are mainly only making “CAB” (Customer Aquisition Bonus) money, which simply means you sign a new rep you get paid. The more you sign the bigger your check but ONLY if they are “qualified” if not you will never see that money for any unqualified reps. I was a promoter for about 7 months and did make some money in the company but the comp plan was a lot of smokey mirrors the longer I stayed the more I saw I did not like. The point system, the products were not that great especially the security system and velocity tablet. The so called discounts you can most times get the same rates going directly thru the company itself, like directv. I’m sure an active reps will call me a hater but truth is once I was honest with myself about what I was actually making and stopped “faking it til you make it” I left. I’m not bashing the company but it was not what I thought I did work hard I had over 100 ppl in my downline in 7 months and the residual was just not there. Before I knew it I was going in the hole trying to pay the $49 plus $25 for globalinx to stay qualified myself plus my own services each month with a family. Trying to make a better life I almost made things worse with that comp plan. It’s bonus based so it lures you in but the residual is pennies on the dollar so everyone recruites new reps like they’re on an easter egg hunt, crazy.

    • Lemuel says

      Mr. Barnes, I applaud your effort building 100 people team is quite a feat. However, $49 + $25 = $74 x 12 mos. = $888 is a deductible expense as a business owner. You also, have the others like your home, car, phone, internet, rent, gas etc. that you can deduct. This for me gives me a reason to stay in business because without it I will be paying more out in taxes alone. Good luck to you.

  5. Bryan says

    To the folks that had little to no success with other companies I would just reiterate what has been said a couple of time here already. If you don’t have a plan or more importantly someone that can help you devlop a plan before you sart ANY kind of business you are probably going to be leass than successful. Secondly, most folks (in my experience) when thinking about a business usually have the unconscious mindset of “maintaining versus building” a business. Maintaining a business that has already started is usually easier than building a business from the bottom up. And lastly, in any MLM company it is NOT a get rich quick deal. It takes commitment and dedication to build any successful business. With all that said MLM is a wonderful way to build a thriving business if you are with the right company, for you.

  6. rob says

    Edgar, sorry to hear about your bad experience with Ambit Energy. You don’t make money off recruiting people in Ambit. You make money from gathering customers. I was approached with 5linx and Ambit roughly the same time. Ambit’s credentials and being #1 in 2010 on inc 500 made me choose them as well as them having an A plus rating with BBB, Plus my friend was in Ambit’s “Millionaire Club”. I was ALWAYS against network marketing, and being a former Financial Advisor i can guarantee you i was the most skeptical person you could ever meet about these businesses. In any MLM business you must have a strategy and plan going in, or you will be the majority who fail. Because of Ambit in literally in 4 months, i have a 4 figure monthly residual income. Best of luck to you.

    Rob Becerra
    Chief Marketing Officer
    Liberty Protection Services

  7. Evelyn says

    How much better can it get that you could make a living working from home paying your everyday bills such as your utilities, cell phones, cable, phone, and internet? Its an awesome way to help family and friends save money on their everyday bills that never go away. If you are serious about making an income from home with a will to help others do the same in saving money on their everyday bills and bringing home an income to replace your 9-5 job then inbox me. I am looking for six people to sign on and show them how to be successful? Will you be that person or will you pass this message and continue on doing the same thing that you hate or continue to be broke and just barely getting by? 5Linx is your answer.

  8. sofia says

    Edgar,

    I’m sorry to hear about your experience with 5Linx, but I know friends of mine that are in this business and have shown me the residual income and in seen firsthand what kind of money they are making I have chosen to join myself. So far so good for me.

  9. Edgar says

    5linx is just another MLM hype, just as was Ambit Energy. People in higher levels made their money off of the “new suckers” who paid their initiation fees. I was promissed thousands in comissions; after a year, generating more than one thousand distributors, I only got two hundred bucks, from the fees that my “new SUCKERS” paid to enter into that so called “BUSINESS”, which was only a SCAM! Up to this date, 4 years later, I have not gotten, NOT EVEN ONE PENNY, as “residual income” from that fraudulent scheme.

    • Carl says

      Edgar, based on your statement, that means you’re doing absolutely nothing but complaining, which isn’t going to pay you. Just yesterday I got three new clients for Protect America, our home security partner, and I made $1500 from the bounties alone. Stop complaining and go out and grow your business. If you’re sitting on you rear-end waiting for the customers to come to you, then you don’t know how to market your business. I’ve been in this business for a little over a year, I’m a National Director with a few business partners away from Senior Vice President, and I recently handed in my resignation to HP after matching my 6-figure income. Obviously you don’t know how to leverage the compensation plan or else you definitely would have made more than $2000. I made that in my first 30 days in the business. The business works, you just not…

  10. says

    Most of what was written is true I just want to clarify some things. The start up cost to become a partner is $249 for IMR and $99 for a Customer Rep. 5Linx has 14 profits centers and people can make a great income without having one person on their team into the thousands each month. What people need to understand is that 5Linx is a business just like any other business and as an entrepreneur if you put in the hard work you will reap the the rewards. 5Linx is probably one of the only network marketing company around where you can earn a really nice residual income without having a team. This is just one of the great things about the company. The other thing that’s great is that there are a lot of people making a good income in 5Linx and because our network is open anyone in the network who has questions can reach out to those people and get their questions answered. As far as the benefits that we offer, we help people save money on the services that they are going to pay anyway and if they decide to become a partner they will earn a commission. We provide services to small business owners to help them grow their business. I could go on and on, but I won’t because as we in this industry know that documentation beats conversation every time and being on the INC. 500/5000 6 years in a row says a lot. Anybody looking to get rich quick will not find it here, but if they are looking to make a commitment, be coachable, work hard and invest in personal development they have a chance to change their lives and the lives of their family. So anyone looking at any opportunity should do their due diligence of course, but If you think 5Linx could help change your life, then by all means check us out.

    • says

      Thanks for the clarification, Audry. As an outside looking in it is helpful to get the facts from an active distributor. Appreciate it…

    • Victoria LaPrince says

      hey audry im thinking about joining 5linx but im a little skeptical ive been approached twice and ive seen a few stories but whats getting me is the start of price does different areas have different start up prices. A rep in my area told me that I need 365 to start and that will handle license for global net

      • says

        As I shared in this post, Victoria – BEFORE you decide to jump in, ask yourself: “How will I promote and grow this new business?” And if you do not have an answer, go get that answer first. Otherwise you will join the tens of thousands who also joined a deal (any deal, not just 5linx) without a plan of action in place who LOST MONEY and quit. See http://freedom.mlsp.com/intro to learn how to market first.

    • says

      Now this is all right ! I’am in 5linx and I shall get the best out of it because I “Know that it works” my son is SVP ! Gods will soon to be PSVP ! And I’am working my way up from the bottom to the top ! Gods will ! On my way to PSVP !
      Pray for us all ! Please and thank you ! Gods blessings be upon you all !
      Alonzo M Henderson Senior : From: The Big Apple !

      Gods speed !

  11. doodle15 says

    It was founded in 2001 and featured in Inc. 500 and Inc. 5000, not Fortune 500 yet because it’s still a privately owned company.

  12. aviemon72 says

    5linx distributors are all over the place and the company has exploded, the only problem is, most reps struggle because they lack the skill to generate leads. If you’re a 5linx rep, more than likely you are struggling to get people to watch your company presentation and get people into your 5linx business. You’re not alone, because so many people struggle with lead generation in not only 5linx but network marketing in general.

    • says

      Julien – when we learn a new skill or embark on a new business venture there will always be a learning curve. But once you “get in and get busy” you will find yourself producing better results EASIER as you begin to master it.