5Linx Review – Is 5Linx A Scam?

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5Linx Review – Is 5Linx A Scam?

Wednesday, October 14th, 2009    Subscribe To Our Feed

Here’s a brief introduction to 5linx:

Read the unedited5Linx Review

5Linx is a MLM company that started in 2001 in the internet telecom industry. Although the initial hype and growth spurt of 5Linx is mostly over, they still occasionally are on the horizon with a new product innovation, or they get written up in a home business magazine of one sort or another.

All of the services 5Linx offers are built around communications technology, and they specialize in VOIP services with a wholly owned subsidiary that manages their international communications.

Is 5Linx a good opportunity?

Although I have strong ties to the MLM profession, love the industry, am a proponent of every legitimate company (including 5Linx) and have been successful building organizations all over the world – I would not recommend getting involved in 5Linx.

Before you leap through the computer screen, ranting and raving about how great the opportunity is – let me share with you my reasons why.

Here’s why I won’t join 5Linx:

Basically, I simply will not ever recommend people get involved with the newest, latest technology based product. There are a LOT of reasons for this, but let me share my top two:

Simply put – products based solely on technology have never worked long term in the MLM business model because of negative price pressure from the market place. For example – let’s say your company develops the first phone capable of intergalactic instantaneous transmission. Let’s call the new, fabulous phone the ‘iGalaxy’.

When iGalaxy is first launched it receives a phenomenal response – after all you have no competition, huge demand and a new supply – EVERYONE simply wants to own the iGalaxy, which enables you to have a 75% profit margin. Because of the ridiculous profit margins, you start a MLM company and you’ve got distributors from 14 different solar systems earning million a month.

One month, though, the growth just stops and goes backwards, because one of the third world planets without patent laws takes a look at your iGalaxy and decides to make a newer, better, cheaper phone called the iUniverse – it’s the same as your product, only it costs 95% less.

To compete in the marketplace, your company reduces the cost of iGalaxy by 70%, causing a 95% reduction in your monthly commissions and…

…Bamb! You have to start over from square one, which brings us to the second reason why I won’t join technology companies:

Look at MLM history – can you name one company that has ever succeeded long term with any kind of technology based product? Eventually they all fall apart with pressure from their competitors. Remember Excel Communications? They had some people earning some of the biggest checks in MLM history. NOBODY thought that they would ever go out of business. Even though this is true, natural market forces collapsed Excel and swallowed it whole – collapsing the incomes of hundreds of thousands of distributors in the process. An example of this is that the average earnings of 5Linx representatives dropped by 50% over ONE YEAR – from 2006-2007 according to 5Linx official income statistics.

When it no longer costs 80 cents a minute to call long distance, it’s hard to pay out huge commissions – which is EXACTLY what you see in 5Linx – some of the smallest checks among the top earners in the MLM industry. ACN is the closest company in the MLM profession that I’ve ran across that has a chance of long term success, and I don’t think that they’ll last, either.

All of this being said – I want you to realize that success in 5linx has more to do with your own personal marketing ability than it does with the success or growth of the company.

If you want to make a fortune in 5linx or any other MLM for that matter – learn how to attract prospects and distributors into your business through internet marketing principles. If you understand marketing, it won’t matter if 5Linx goes out of business tomorrow – you’ll be able to instantly create a downline of thousands of people in any company you choose – and you’ll be able to write your own checks in this industry.

If you want to cut past MLM bull-crap and learn the secrets that allow me to earn ridiculous monthly incomes and sponsor 20-50 people per month leveraging technology – visit David Wood’s MLM Training to learn how I beat the odds in Network Marketing.