A Skeptic’s Review Of The 5Linx Opportunity

By affilateguru, on October 7th, 2009

A short background on 5Linx:

5Linx is a MLM company that started in 2001 in the internet telecom industry. 5Linx had a short lived phase where they grew extremely quickly, sponsoring thousands of distributors into their company in more than 20 countries.

Basically, 5Linx has several communications products built around VOIP technology, a rapidly expanding division of global 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 I get 10,000 angry emails from 5Linx representatives, let me briefly share with you why I won’t recommend anyone join this company.

Here’s why I won’t join 5Linx:

To be quick and simple, I just won’t join a company that bases it’s product solely on a technology base. Now there are simply too many reasons for this to discuss in a short article, so let’s talk about the top 2 reasons why:

If you’ve watched MLM for as long as I have, you’ll have noticed that technology based products never last very long in the Network Marketing profession because of the negative price pressure from the market. In other words, you could offer a service – say you have the latest and greatest new ‘magical phone’ that offers instantaneous communication across the galaxy. Let’s call the new, fabulous phone the ‘iGalaxy’.

Well, when you first launch iGalaxy – the response is phenomenal – not only do you have the only product that offers sub-space instantaneous communications, but you have a 75% profit margin because of lack of any real competition. 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.

The stories don’t keep coming, though, because 10 months later China decides to step into the intergalactic communications scene with a new product that behaves exactly the same – only they’re willing to get by with a 5% profit margin – making all of your customer swarm to the cheaper, better product.

So in a panic to stay competitive with people who are willing to work twice as hard for a tenth of your pay, you reduce the price of iGalaxy by 75%, causing a 95% reduction in the monthly commissions of your entire downline, and…

…Presto! You’re back from square one building a new MLM from scratch. Which brings us to reason #2:

Simply put, I’ve never seen a technology based product last long term in the MLM industry – they are simply competing with market forces that pressure them out of business. You remember Excel, don’t you? When it cost 80 cents a minute to make a long distance phone call in the mid 80′s, excell was producing some of the biggest checks in MLM history and NO ONE thought that they would fall apart. Yet the pricing pressure of the marketplace forced them out of business. 5Linx is no exception. In ONE YEAR from 2006 to 2007 the average 5Linx income fell by more than 50% based on official 5Linx statistics.

On a fundamental economical level – when costs of technology go down from increased technological ability and market competition – 5Linx has to pay you less money to stay in business. The closest thing I’ve seen in MLM to a company that could potentially make it long term is ACN, and I’m doubtful about that.

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 money with 5Linx or any other real Network Marketing company, learn how to create endless prospects and influence offline through the power of Attraction Marketing. 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.