I believe if you’ve been looking for the right online business or home-based business you probably have come across Multilevel Marketing or MLM for short. Are these marketing multilevel scams is this true or false that is what you are going to find out today.
The multilevel marketing company I’m going to review today is 5Linx. I’m willing to bet some of you have heard of this company and have possibly been a member before like me. Let’s see if 5Linx is a scam or not.
5Linx was founded in 2011 by Craig Jerabek, Jeb Tyler and Jason Guck in Rochester, New York. At the time this writing I don’t believe any of them are any longer affiliated with 5Linx.
The Linxs in 5Linx stands for: Freedom, Integrity, Vision, Opportunity and Success. But did the second pillar Integrity become compromised at one time? You can read more about it here at Wikipedia/5Linx.
What Does 5Linx Offer
When 5Linx first came on the scene they had very few products( I only remember telecom), but now they offer both personal and business products.
- Personal Products:
- Captavida – Glucose Support
- Chroma Credit – Restore Your Credit
- Daily Dimes – Turn Dimes Into Dollars
- Home Security – Protect Your Home
- ID Guard – Protect Your Identity
- Internet, Fiber Video & Cable TV – Bundle
- Montavida – Coffee & Tea
- Oxzgen – Health
- Platinum Discount Network – Save
- Residential Energy Program – Gas & Electric
- SafeGuard Services – Credit Monitoring, etc.
- SafeScore – Credit Fraud
- Tech24/7 – Remote & Onsite Tech Support
- TeeVee – Streaming TV
- TeleMed – 24/7 Telephone & Video Access To Doctors
- Business Elite Services – Business Bundle
- Chroma Digital Marketing – Promote Your Business
- Commercial Energy Program – Gas & Electric
- Commercial Security Systems – 24/7 Security Monitoring
- Payment Solutions – Payment Processing
- TextAlertz – Text Marketing
Whew! You can see that 5Linx offers a wide range of products for personal and business use.
Tools For Success
The new recruit does have access to promotional tools to build his business. But the new rep is pushed to go to company wide events in all parts of the country. You are told that you are more apt to succeed if you make it to the company events.
In reality going to those events cost money. The newbie has to fork out for plane ticket, hotel room and food to eat at these events. This puts the new rep father behind because they keep putting money out and nothing is coming in. The hoopla of these big events doesn’t put money in your pocket.
Here are some of the tools for success the new rep will receive:
- Personal Website
- Virtual Office
- 5Linx Legacy App
- Training Videos
- 5Linx Promote
- 5Linx Store
- Social Media
- Customer Support
Consequently, how many of those tools to you think cost money to build and promote your business? Like I said money going out and nothing coming in. Indecently before you see anything that resembles progress.
5Linx Compensation Program
Notably 5Linx touts that you can live a better life and build a legacy through their company. Is that true or false? I think that depends upon you and your belief system.
There are 8 levels in the 5Linx compensation program and each comes with its own personal customer points. Now these personal customer points are the points you must maintain through product purchases to maintain your level in the company.
QIMR – Qualified IMR
ET – Executive Trainer
ED – Executive Director
ND – National Director
SVP – Senior Vice President
PSVP – Platinum Senior Vice President
DPSVP – Double Platinum Senior Vice President
DSVP – Diamond Senior Vice President
- What they don’t show is that there is a Sliver & Gold Level in the SVP you have to achieve before you can get to PSVP.
What I’m about to show you is why I’m no longer a member of 5Linx. As I said before with each level comes personal customer points and the product comes with a point system. So whatever level you are you must maintain that point level which means product purchases month after month.
Personal Customer Points:
QIMR – 8 Points
ET – 12 Points
ED – 20 Points
ND – 25 Points
SVP – 25 Points
PSVP – 25 Points
DPSVP – 25 Points
DSVP – 25 Points
Let’s look at what that entails. I’m going to go by a scale of theirs where they show the cost of some products. The lowest one is $24.99 and the highest on that chart is $89.99 being rep cost. I can also tell that they have products a lot higher than that.
So, if I’m a QIMR that means I must maintain 8 points. At the lowest cost of a product that’s $24.95 (equals 1 point) x 8 = $199.60 that’s month after month. But would you want to buy the same 8 products month after month? No, you would not and with different products comes higher costs. Example: Even if you did $24.95 x 4 + $39.95 (equals 1 point) x 4 (to get 8 points) = $259.60.
However, you slice it you’re going to be paying about $250 more or less month after month for 8 points. I made it to ED that’s 20 points you do the math.
Most people will think at ED you got to be making some pretty good money. Not so. With Multilevel Marketing or MLM most of your down line don’t work and you begin to put out more money purchasing products than you earn. And you end up stock piling a lot of products you don’t even use.
Also, it’s a proven that most don’t earn any money in MLM. Most are just product purchasers. Just the very elite at the top of the food chain really make what you would say is good money. If you have made good money with an MLM comment below and let us know are you still with them if not why did you leave.
Benefits At The Higher Levels
Anyone fortunate enough to make it to the higher levels do receive some nice benefits. I’ve only personally known 2 people who made it to SVP and the company was paying for a BMW for them. Here are the benefits the higher ups receive:
- $800 Monthly BMW Allowance
- Annual Paid Vacation
- 5,000 Stock Option
- $500 – $1500 Expense Account
- Bentley Payment
- Dream Vacation
- 5,000 Additional Stock Options
- 1 Share of Platinum Pool
- 5,000 Additional Stock Options
- Additional Share Of The Platinum Pool
- $300,000 Earned Position Bonus
- $10,000/Month Life Style Credit
- Additional Share Of Platinum Pool
- Additional 10,000 Stock Options
- The Platinum Pool could consist of millions of dollars
Surely you can see that the benefits of obtaining the higher levels has its perks. As of this writing only 1 couple has obtained the level of DSVP since the company’s conception.
5Linx Review Conclusion
In the final analysis 5Linx longevity of 18 years despite fraud in the upper management speaks highly of the company. Because there have been some multilevel marketing companies that have been shutdown by the FTC, but 5Linx keeps rolling along. So, they must be doing something right.
MLM is not for everyone and it was definitely not for me though it took me two times to get it. Would I recommended 5Linx? Possibly to the battle scarred been in the trenches bulldog salesman, but to a newbie, no way.
Marketing Multilevel Scams Is this True Or False, some true and some false. Do I believe 5Linx is a scam, no. That being said I can’t say that for others. 5Linx like most MLM’s will take years and years of hard work to really reach the top levels and stay there.
Overall, I do feel the point system of these multilevel marketing companies should be changed. They take too much money from the new rep starting out and its money that they need to build their business. That is why so many fail and drop out or don’t make any money.
Most MLM’s just like 5Linx have good products, but asking a new rep to buy your products, go to big company events and build a business at the same time it just doesn’t work.