5Linx Review- The Ugly Truth Behind 5Linx!
Welcome to my 5Linx review!
Is 5Linx a scam? This is a question that I have heard a lot of people asking. I have also seen very many 5Linx complaints about the 5Linx comp plan.
Therefore, I am going to provide the following 5Linx review to help new people to determine whether 5Linx pyramid scheme is worth investing in or not.
Before we get started if you’re sick of recruiting others for your MLM business and just want a real solution for making money then check out my no.1 recommendation below.
5Linx was founded by Jason Guck, Craig Jerabeck and Jeb Tyler in 2001. These two men wanted to base their company on five main principles which are:
The headquarters of 5Linx is in Rochester, New York. The owners of this company state that these five principles together with the company’s representatives come first.
Since it is a multilevel marketing (MLM) company, 5Linx uses an MLM approach to sell its line of products. Once you sign up to become a 5Linx representative, you are allowed to sell the company’s products through a direct sale approach.
Members also earn a specific percentage of the monthly services that they sell to the clients and also by recruiting others into the business opportunity.
The company markets the opportunity as a way for the members to do their daily activities and at the same time recommend their family and friends to buy the products.
However, there is a compensation plan attached. When I first heard about how this company works, I thought that it was affiliate marketing. Later, I discovered that a section of the program is actually affiliate marketing.
The business and personal products that 5Linx deals with revolve around telecommunication and utility, natural supplements, business and health insurance services.
They fall under three main categories; home, wellness, and business products and services.
In this category, 5Linx offers telecommunication, security and technical support for your home. Customers can receive discounted programs on their internet thus enabling them to receive necessary services.
5Linx also offers health inspired products that assist customers to live a happier and more fulfilling life.
With the help of the company’s system, consumers can access a doctor at any time and also get discounted prescription services. You can also get natural drinks such as tea and coffee.
From my research, I discovered that 5Linx offers business services to assist firms to reduce operating costs and increase profits.
One thing I liked about them is that they provide solutions to issues of any nature, be it digital marketing, business improvement, software needs or web conferencing. You can also contact the business if you need payment and financing solutions.
Here’s a Quick Video on 5Linx.
In my opinion, the idea behind 5Linx is jumping on any product that is popular in the market and selling it to your network instead of allowing them to buy products direct from the manufacturers.
Pros Vs. Cons of 5Linx
The following are the things that I liked about 5Linx;
A strong code of ethics
Most potential distributors would be attracted to this MLM Company because of its strong code of ethics. This characteristic has helped this company climb up the success ladder.
The code of conduct covers sensitive topics such as terms of sale, identification, and privacy, deceptive or unlawful consumer or recruiting practices, warranties, and guarantees.
5Linx has a mobile app
Another fantastic thing about this company is that it has a mobile app for both Apple and Android users. The app is named my5Linx app.
The app has simple and easy navigation and also features simplified back-office reporting, product sales pages with videos, track contacts and prospects, sales and commission tracking as well as complete downline access.
Good commission for initially signing up people
A sales representative earns 250% for signing two people, $400 for three people and $1000 for five new people within the first month of joining the company.
I am not sure whether they continue to be compensated after these thirty days, but this commission is excellent.
When I say signing up people, I mean that you have to convince them to register with 5Linx and pay for one package to become a member. People who are good at convincing can earn a lot of money.
The company has received various awards and accolades
Another thing that makes me think that 5Linx is an excellent company to enroll with is the number of awards it has received.
It has received the Inc. 500 as the fastest growing private company, the Rochester Democrat and Chronicle Top 100 local companies, the Inc. 5000 nine-time honoree and the Direct Selling Association Top 100 Global.
Even after receiving those awards for several years, 5Linx Company continues to grow internationally.
The following are drawbacks of this multi-level marketing company and why I think that it is not worth investing in;
No transparency on the compensation
When I did my research, I could not find any information about the compensation plan on the 5Linx website. The cost of their products is also not precise.
I found this quite annoying because they claim that you will make money by selling these items.
If they wanted to attract as many sales representatives as possible, I think that they ought to describe the compensation plan on their website.
Expensive enrollment fee
One reason why I would not advise anybody to enroll with this company is the high enrollment fee.
You have to incur high charges whether you want to start as a customer representative or an independent marketing representative.
It will cost you approximately $99 to sign up as a customer representative and $249 as an independent marketing representative.
I have discovered that these enrollment fees are almost double the enrollment fees of other multilevel marketing companies.
If you are working on a budget, you might have to consider a different direct sales firm with cheaper enrollment charges.
Lack of a clear industry
5Linx does not belong to a specific industry because it offers solutions to energy issues, nutritional problems, home security, and even health, fitness and wellness.
It is correct to say that it is referred to as a telecommunications company, but it does not specialize in providing telecommunication solutions.
Some people might find this wide variety of offerings amazing while others might wonder if the products and services offered are effective. A company that does not have focus might not be very effective.
Members make very little from the sale of products
I also discovered that the sales representatives make very little money from the sale of these products.
Most people are not willing to buy them because they are sold at a higher price when compared to other retailers.
Therefore, recruiting other people into the pyramid remains to be the only way through which members can earn a bulk of money.
In my experience, this is a trend in almost every MLM business model, apart from those that deal with products that everyone wants.
Complicated benefits packages
5Linx’s compensation plan is quite complicated. You need several hours to study and thoroughly understand the company’s payment structure.
If 5Linx is a good company, it would have a clear and transparent benefit package that encourages new people to work with them.
Apart from that, the compensation plan is designed to benefit the people at the top ranks only. Those at the bottom are forced to work hard but earn very little.
Lack of a strong leadership system
The management of 5Linx is not the best because legal issues are shaking it. I think that the incompetence in the administration is caused by recruiting young adults into the management. Previously, the CEO of the company left.
I understand that the company was recently bought out and this caused many employees to leave the organization.
Who it is for
This business model is appropriate for the people who desire to have different products with the aim of making extra income.
I am sure that you will hear all kind of good things about the model, but you should join this pyramid at your own risk since it is it for everyone.
How Does 5Linx Work?
You can sign up to become a 5Linx representative as long as you are eighteen years and above.
Once you pay the fee and become a representative, you can start selling their products and services and earning commissions. According to the company, there are three different ways in which one can earn money.
First, you have to sell the products and services that the MLM Company offers. Secondly, you can help another person to start a business with 5Linx, and lastly, you can share the opportunity with other people and convince them to sign up.
The representatives are also required to maintain a certain criterion. This includes eight points worth of all the products and services offered by the company and one or more preferred service and product.
I also believe that self-consumption qualifies one for commissions. Every product and service has a different point value. The points are as follows;
- Text marketing = 2 points
- All other mobile marketing = 1 point
- Cell plans = 1 to 2 points
- Payment solutions = 2 points
- Montavida coffee = 1 to 5 points
- Hi5 wellness range = 2 to 14 points
- Monthly affiliate fees = 4 points
- Energy = 1 point for residential and 2 for business
- Enhanced MD services = 1 point
- Personal security services = 1 point
- Internet, cable and satellite TV = 1 point
- Business elite services = 2 points
The many independent representatives that I have looked at love the 5Linx compensation plan.
This company has several bonuses and ranks that one has to climb to make more money. Each level has its qualifications. The higher you climb, the more money you make.
1. Qualified IMR
2. Executive Trainer
3. Executive Director
4. National Director
5. Senior Vice President
6. Platinum Senior Vice President
7. Double Platinum Senior Vice President
8. Diamond Senior Vice President
5Linx offers training to assist those who are new to the business. The training is done through the company’s online school called 5Linx University. I love companies that have a training process in place for recruits to help them succeed.
5Linx Support Service
5Linx has an email and a phone number that one can use to contact the support staff in case of any questions or issues. Alternatively, you can get support from their social media platforms such as Facebook, Twitter, and Instagram pages.
The Start-up Cost
If you decide to join 5Linix for business, there are four different membership plans that you can choose from. The four options will grant you access to the products and services that 5Linx deals with.
Before you decide to spend your money, I have to inform you that most of the packages come with some sort of upselling.
However, I have also discovered that with this MLM Company, it is possible to by-pass any upsells and still succeed. The following is the list of the packages;
In this package, you pay $99 plus $5.95 for shipping and getting the starter kit. After that, you get between 10 to 20% commission on the total sales that you make.
2. The leader starter kit
In this other package, the sales representatives are required to pay $499 in exchange for several marketing packages which include dietary supplements, gift cards, and marketing paraphernalia.
3. The VIP starter kit
In this package, the representatives enjoy the benefits of the first and the second package. In addition to that, you also get one ticket to an international event that is worth $149.95.
Apart from the initial membership fees, sales representatives also have to incur other hidden charges. What is disappointing is that the company does not inform you about these charges.
For instance, one is required to pay for the recruitment forms and transportation or the shipping costs for the products. Therefore, I would advise you to be sure of what you are getting yourself into.
5Linx also charges a $3 fee for data processing on all commissions and bonus payments. If you are a representative, you have to pay for all the activities involved in running the business.
Here’s My Final Opinion on 5Linx
In my opinion, 5Linx is not a scam, but it is a company with problems. I would advise you to stay away from companies such as this one where you have to recruit people to earn money.
The rising number of complaints online and the videos posted by earners explaining why they left the company is enough evidence that this company is not worth the hassle.