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.

Marketing Multilevel Scams Is this True Or False

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 Products:

  • 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.

5Linx Tools For Success

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.

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5Linx Compensation Program

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.

Structural Levels:

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.

5Linx Point System

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.

5Linx Compensation

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:

SVP

  • $800 Monthly BMW Allowance
  • Annual Paid Vacation
  • 5,000 Stock Option
  • $500 – $1500 Expense Account

PSVP

  • Bentley Payment
  • Dream Vacation
  • 5,000 Additional Stock Options
  • 1 Share of Platinum Pool

DPSVP

  • 5,000 Additional Stock Options
  • Additional Share Of The Platinum Pool

DSVP

  • $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.

SZA

 

10 Replies to “Marketing Multilevel Scams Is this True Or False”

  1. I find the text over the 5Linx image hard to read. Im not sure maybe it is just a mobile thing as I was looking at it on the phone. Overall I thought the topic was good and a nice perspective on MLM companies. I did not realize how the MLM levels work to actually drain the reps in paying for the products, so it definitelt shed light on that for me.

    Jane

  2. Oh yeah I have heard of 5linx I was approached by one of my customers to join and it sounded pretty good but at this time I was already misled over and over with these programs so I decided to do my own research on the program. YouTube took me to a guy named chad Thompson who was Platinum I believe. He had the BMW with the 5linx decal.

    Well, he was pretty convincing but as I reached out to him he was evading most of my questions and just kept telling me to come to the meetings. 

    SO I kept searching because I wanted that beamer. I stumbled upon a guy name Tupac Derononcourt and he was very convincing so I decided to consider.

    As my Up steam began to explain the program I realized this thing is asking me to spend money before I can even make a dime. Now I know it takes money to make money but there was a ridiculous task to meet and I knew it wasn’t for me. At the time I was approached they were asking me to purchase coffee once per month to sell it and have my security system installed and pay the monthly charge to use it while I sell it on top of flying to events on my dollar. 

    I was all set I’m sure people made money off of it but I’m sure after while the earning stopped.

    Not a scam just too much to play

    Thanks for sharing 

    Shannon

    1. Hi Shannon

      Yes I believe if they revamp that strategy of stop trying to get new reps to put out so much money before they make a dime they might find they’ll get more people joining and sticking around. Thanks for sharing.

      All the best

      Eric

  3. Thanks for the 5Linx review. I’m glad this one seems like a genuine MLM and not a scam. My aunt is one of the member, so it’s good she wasn’t scammed by her superior. I’ve came across several of MLM scam which caused me to not want join any MLM. Just a small question, is there certain indicator to check whether MLM company a scam or not? Thanks

    1. Hi Albue

      I hope your Aunt is having success with it. I would say do your research before joining a MLM. Talk to people who are members, check the Better Businness Bureau and the FTC concerning the MLM. Thanks for sharing.

      All the best

      Eric

  4. Thank you for your post. I started my online business this year and am actively looking for relevant business, including multilevel marketing (MLM). I should say after careful study I found some MLM businesses are sound.

    I recently join one MLM and my upline provides me with extensive training in all aspects of their business. He truly train me to help people and to solve people’s problem.

    You are right that it is important to find reputable MLM company and there are many. After you identify the best one, put all in and you are going to help people and make money.

    It is kind of you sharing this useful information with us.

    1. Hi Anthony

      Good for you I’m glad you found a MLM you’re happy with. I hope it works out for you. Thanks for sharing.

      All the best

      Eric

  5. Hello; 5Links might not be a scam as many MLM companies are not scams but the way in which they formulate their business structure opened the way for some members to be discouraged as they will never stop spending in a bid to earn a profit which they may never earn. 

    While some up top are making a kill every day. I am happy that you realized what was happening before it puts you on the side wald to live.

    DorcasW

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