Looking for an easy way to make some extra money is common. What makes MLMs easier is that the work is basically done for you. The company is already established and all you have to do is sell the products. But that’s usually where the easy part ends. 5Linx is another MLM that promotes a number of different products that could appeal to many different customer types as well as many representatives with different backgrounds. In this 5Linx MLM review, I’ll take you through the many different products they offer as well as the compensation. You may want to think twice about this one.
What is 5Linx MLM?
5Linx was founded by Jason Guck, Craig Jerabek, and Jeb Tyler in 2001. In 2016, the company was reorganized under 5L Holdings, LLC. This multi-level marketing (MLM) company is headquartered in Rochester, NY. They offers a number of different products such as health insurance, utility services, nutritional supplements, business services, and even telecommunication services.
There was a time when the company was listed on the Inc. 500 as one of the fastest growing companies between 2006 and 2009. 5Linx remained on the Inc. 5000 list as of 2014.
Are 5Linx Products Worth Their Price?
5Linx offer both business products and personal products. The personal products include credit score service, home security, ID guard, Internet/Cable TV service, technical support, coffee and tea products, and supplement products. They also offer other products such as Telemed which offers unlimited phone or video access to Board Certified doctors over a toll-free number with no co-pay.
The business products are designed to help businesses with productivity by offering energy plans, security systems, payment solutions such as online payment processing and fraud protection, and text alerts which are essentially robocalls.
According to my research, it would seem that 5Linx are basically a broker for a number of different products and services. For instance, the cable TV service allows you to choose from providers such as Cox, Frontier and AT&T.
I took a look at the cable TV offers between 5Linx and COX Cable Company. Both offers include download speed of around 940 Mbps so the specifications are comparable. You’ll notice that 5Linx is about $60 more than the Cox Cable offer. And the Cox Cable offer also comes with anti-virus protection. The 5Linx offer does not.
So based on this example, the 5Linx product is more expensive. That could make these products harder to sell. Why would a customer buy Cox cable service for $159.99 from 5Linx when they can buy it directly from Cox for $99 and save themselves $60 a month? That’s a pretty decent savings, by the way.
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The 5Linx MLM Opportunity
As a representative of 5Linx, you can choose to sell and promote a range of different products. A lot of the products are focused on technology such as cable TV service, technical support, and home security. So if you have a technical background this could be easier for you.
Selling subscriptions is a great way to earn residual monthly income. Not all products are subscription products. Customers can cancel anytime in some instances.
How Much Does It Cost to Join 5Linx?
To join 5Linx, you have to fill out an application form and pay $249. The application form also suggests that you also sign up for TeeVee at $49.99 a month or $69.99 a month. The TeeVee service is a cable service with Gold or Platinum subscriptions. You can also enroll in the Platinum Discount Network at $49.99 per month. This offer is only available at the time of signup and includes discounts on restaurants, groceries, travel, and more.
The $249 simply means that you get referral bonuses, personal website, earn commissions on products sold and residual commissions sold through any recruits you bring in.
So as you can see, it’s pretty expensive to even get started. This could be a way for 5Linx to have representatives get to know the products. But representatives should be able to choose what product or service they want to try.
Can You Make Money with 5Linx?
Like most MLMs, you make money two ways: selling products and recruiting. You’ll make commissions from all the products you sell but the real money is by recruitment. MLMs have to keep the money rolling in so you are expected to get others to join your team. You get a portion of all the commissions generated by the sales of your team members.
Let’s talk about the commissions. You should know that the commissions here are not as high as other MLM commissions. You’ll start out with a measly 10% commission. In order to earn more commissions, you have to earn more personal customer points. So when you can get 25 personal customer points, your commissions will increase to 15% on new sales. If you can reach 50 customer points or more, your percentage goes up to 20%. So they really make you work for it here.
Variety of Products
There are a ton of different products to choose from here. Most of the products center around technology but there are also a few health related products such as supplements.
Your Own Webspace
Your membership with 5Linx comes with some decent tools. One of those tools is your own webspace and an app that can help you expand your reach to customers.
By getting customers to sign up to subscription services, you are ensuring your own residual monthly income.
Hefty Sign Up
At $249 when you sign up, it’s one of the highest signup requirements I’ve seen among the MLMs I’ve reviewed. Not to mention the suggestion to sign up for other monthly subscriptions on the application form.
Low BBB Rating
According to the BBB (Better Business Bureau) 5Linx only has a C rating. They actually have a lot of decent reviews. The lower rating is because they never responded to a complaint by a representative who had previously been quite happy.
The co-founders were indicted on multiple federal fraud charges that included money laundering and wire fraud. In fact, they admitted to defrauding $2.3 million that was redirected to their personal accounts. In 2018, two of the founders, Jerabeck and Tyler were sentenced to a 124-month prison term for filing false tax returns and fraud. They were ordered to repay $2.3 million to investors and over $118,000 in unpaid back taxes. In May 2019, the third co-founder, Jason Guck was sentenced to seven months in prison.
The new 5Linx management sued the previous management for breach of contract. The suit alleges that Craig Jerabeck was stealing 5Linx representatives for other network marketing companies.
Class Action Suit Waiver
One interesting thing I found buried in the Terms and Conditions was a section called Waiver of Class Actions. As an independent Representative you cannot file a claim against 5Linx as part of a class action suit. You can only file a complaint on an individual basis.
Is 5Linx MLM a Scam?
5Linx started out as a multi-level marketing company with perhaps some shady ethics issues. After the reorganization and new management, the company has tried to become more reputable. The end result is that it is still an MLM so you do all the work for peanuts and the sponsors and management reap all the benefits of your labour. While it may not be a scam, it’s no way to make decent money.
The biggest problem with MLMs like this is that you are at the mercy of the company and its products. And if you don’t get good support from the company, you will never succeed. The minute your team starts quitting, it’s the beginning of the end of whatever success you’ve managed to achieve.
People enjoy the idea of MLMs because they think that all they have to do is sell products. When in reality, it’s usually much more than that. Your first clue is the amount of money you have to invest before you sell your first product.
If a work from home opportunity is really what you are looking for, check out my #l recommendation on how to start your own business. You’ll get plenty of support–in fact, 24/7 support. You’ll also get a website, hosting training and some pretty awesome tools to ensure your success.
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