5Linx is an unusual network marketing company, simply because it tries to be effective in so many different areas at once. For example, 5Linx offers health and wellness products, along with energy, television, and financial services. It's an odd approach, as most products try to specialize instead.
Still, the idea does have advantages. By offering many different products and services, 5Linx is able to compete in a variety of markets. This is powerful from the sales perspective, as you have a wider audience that you can promote to.
While the products offered many of the services aren't ones that you would typically find in an MLM. They are also services that people would use regularly, such as home security and cable TV.
Reputation And Recent History
A company's reputation can strongly influence their potential to be successful. Because your income is directly tied to the company in question, it's important to consider the company in detail before committing to anything.
Reputation is an area where 5Linx really falls down. In 2017, the co-founders of 5Linx were indicted on fraud charges. The charges in question included investor defrauding to the tune of $2.3 million, along with wire fraud. Two of the co-founders were sentenced in 2018.
Most of the issues relate to the co-founders and their decisions, rather than 5Linx itself or the income scheme. In fact, 5Linx continues to be active under different management. While you can still join the company and potentially earn money, the recent history of 5Linx's founders is likely to influence your chances of success.
Information filed as part of the processes suggests that 5Linx is also much less powerful than it was previously Th co-founder Jason Guck highlighted the issue of a polar vortex in 2014 and the decreased popularity of landlines as key reasons for this decline.
The way that 5Linx has focused on other products (like coffee and supplements) has helped it to remain in the marketplace. However, these items don't have the same profit margin as 5Linx's previous approaches. The current products may also be less competitive, as there are many other companies offering similar items.
These patterns suggest the need for caution when proceeding with 5Linx. Even if the current version of the company does well, its reputation is likely to remain tarnished by the actions of its co-founders.
Two Ways To Make Money With 5Linx
Even though 5Linx focuses mostly on services, they offer the same two ways to earn money that all MLMs have. The first is earning by promoting the products (and services). The other way is to recruit people as well. This angle involves team-building and can theoretically lead to higher income.
In this updated article, I'm taking a look at both of these income angles and how well 5Linx stacks up as a way to make money.
Make Money From Sales
The selection of products and services that 5Linx offers is extensive and includes the following:
- Captavida. A supplement to help normalize blood sugar levels.
- Chroma Credit. Credit score analysis, support, and improvement.
- Daily Dimes. Program for savings and rewards.
- Home Security. 24/7 security monitoring program with equipment.
- ID Guard. Identity theft insurance, programs to protect your computer, and regular fraud alerts.
- Internet, Fiber Video & Cable TV. As the title suggests.
- Montavida. Coffee and tea, that contain ramon seeds.
- Oxzgen. Cannabidiol products.
- Platinum Discount Network. A discount network that uses your smartphone.
- Residential Energy Program. An alternative supplier for electricity.
- Safeguard Services. Includes tech support, credit monitoring, backups and identity protection.
- Safescore. Helps monitor credit score and validate identity.
- Tech 24/7. On-call remote tech support.
- Teevee. HD video with no contract.
- Telemed. Phone and video access to doctors, along with a pharmacy discount card.
All-in-all, 5Linx has a pretty eclectic mix of items. It feels like the company wants a hand in the services industry and in the health field at the same time.
With so many products and services to choose from, going through them one at a time doesn't seem realistic. There isn't much point either, as there are likely to be similar patterns from one product to the next.
Let's take a look at security services. A site called All Security Reviews considered this service in-depth, giving the company just 2.9 stars out of 10. While All Security Reviews is an affiliate site, they are very familiar with the security field and offer details about the basis of their ratings.
One of their complaints was that the service is limited for the field and doesn't offer as many features as customers would need. Despite this, the price is higher than is standard for the industry.
Other services are not up to standard either, with some not performing to the expected quality.
With all of these issues, can 5Linx compete in the market? Sure, the company has interesting services, but many of these can be purchased from plenty of other companies. Why should customers choose the services from 5Linx over competing options?
The answer can't be the opportunity either. If you're going to make sales, the services need to be desirable in their own right. Many people won't be interested in the opportunity side of things. There isn't much to suggest that 5Linx has anything special to offer.
Besides, how many people are going to buy services through an obscure company rather than a reputable one? This is especially true for services like cable and power. There would simply be too much risk in making such a switch.
What You Earn
The commission rate for 5Linx is based on the amount of products that you buy and/or sell. 5Linx takes an unusual approach here. In total, 25% of the product price is earned in commission by distributors. This can range from 10% to 20% for you personally and between 15% and 5% for your upline.
This style has a few implications:
- You're not earning a large amount per sale. 10% is a very low starting commission for an MLM and you're still only getting 20% commission if you reach the highest sales target.
- The low commission on sales could make 5Linx less appealing to some people, making recruitment more difficult.
- A decent amount of your work gets passed onto your upline. This can easily create resentment, especially for beginners who are struggling to make sales.
- If you do build a team, your chances to earn from them are higher than with many other companies.
Thankfully, 5Linx does have some systems that might make sales easier. Consultants are provided with a personal website and an app. These can both help you promote the services to a digital audience. There are various training videos too, along with marketing media that you can use.
Just be aware that MLMs often do not provide much (or any) up-to-date training for being successful online. They remain focused on the idea of promoting products to friends and family members. This may mean that you need to seek outside information to learn how to grow your customer base effectively.
While the commission rate is low, 5Linx does offer recurring commissions, something that is rare in an MLM. This means that you earn a commission for each payment your customer makes if they're enrolled in a subscription program. Many of 5Linx's programs are subscription-based, so you could easily earn recurring income.
The approach means that you could earn consistent income off just a single sale. Of course, this is only true if the services are appealing enough that customers stick with them.
Make Money Building A Team
5Linx claims that you can earn money in seven different ways and most of these are related to team building. Claims like this are common. They're also misleading.
You're not really getting paid in seven different ways. You basically just earn from your own sales (#6), the sales of your team (#7), and then various bonuses (#1 to #5). Most MLMs use a similar system, so you're not accessing anything unusual.
The basic residual commission from your team follows a unilevel rank-based system. This means that the amount you earn varies based on your own rank in the company, along with where individuals fall in your downline. 5Linx summarizes the system like this:
The whole thing is pretty confusing and this is just one aspect of the overall plan. It's also worth mentioning that the numbers here refer to percentages of the Commission Value (CV). In other words, 10% at the first tier under Home is 10% of the 25% CV.
As is always the case, each rank in the company comes with its own requirements. The requirements tend to get more difficult to meet as you go along. The rank approach is one of the biggest challenges of an MLM, as most of the income potential comes from going up through the ranks.
Beyond team, commissions are the bonuses. These provide additional chances to earn but have requirements as well.
Can You Generate Reliable Income With 5Linx?
The 5LINX Review
Despite all of the controversies and limitations, making reliable income with 5Linx still remains possible. Even so, it would be important to plan carefully.
One of the best approaches might be to work out which of the services are truly competitive and promote these. This gives you a greater chance to focus on benefits and means that you're not trying to sell low-quality products or services. The angle could be useful for customers too, as having too many choices is sometimes worse than having too few.
Regardless of what you promote, making money in 5Linx requires finding new customers and new recruits. This gets progressively harder over time if you do not have a plan of action to get your business online and outside the circle of friends or coworkers. Even if you manage to make a profit at first by signing up a few close friends - doing this for years and years is just not possible! You'll quickly find that people stop answering their phones when you call.
5Linx does provide a website that you can make sales through, but this won't be enough on its own. You'll need to use techniques to get traffic to the site and to convince people to buy.
Finally, be aware that you are at a disadvantage with 5Linx. The company doesn't have a great reputation right now and anything could happen. Is this really the right place to invest your time and effort?
MLM Critic & Author: Nathaniell
What's up ladies and dudes! Great to finally meet you, and I hope you enjoyed this post. I have to be honest though. I'm not a big fan of MLM. Tried it. Hated it.
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Im interested to read your article about your expirience here in WA.
I hope i will be one of the member in this kind of marketing organization very soon.
My Question, when will the free membership can avail in the Philippines for starting newbees like me.
This free membership for bigginer is one way to encourage other people like me to join.
I hope you enjoy reading about my experience with WA. I’m still a member, and watching people earn money there all the time! Unfortunately, the free membership is unavailable in some countries like The Philippines, Vietnam, Nigeria, and India. But most countries are able to join the regularly priced membership without any problem!
Great article! I’m consistently amazed at how people continuously fall for these MLM companies. Like you mentioned, there are people who make money, but the vast majority don’t.
And people will continue to fall for it with the “it’s different this time” mentality.
You sound as if you were in 5linx at one time or another, but was lazy and decided that this company wants too much of you. You never get anywhere without some kind of work ethic. I appreciate your response, but I beg to differ on some of the points you brought up.
I guess it may sound like that, but it could be farther from the truth. Just because I have a negative opinion of a company doesn’t mean anything else other than I don’t think it’s legit.
Hi Nathaniel, I thank you for your info on 5LINX. They are actually starting here in the Philippines. As for WA I already started to forward my email and Kyle even gave me a reply. But I think we are not entitled for a free starter lessons considering I am from the Philippines which is outside US and a premium membership was offered instead. My question is will this business be applicable to us outside of US considering products are in the US. Thanks again Nathaniel for the info.
You can start an internet business from anywhere. The only restrictions are for your WA membership. It’s true that the free membership is not available in the Philippines, but the premium membership will function as normal.
What you talk about is commission making which is what the CR Representative does. If you sign up for the Independent Marketing Representative it just makes you be more inspired to build an organization of like minded people who want obtain a more upscale lifestyle. The propaganda that you preach talks of a pyramid scheme. That show that you do not know what one is. Pyramid schemes are illegal.
You are missing the point James – saying it’s a pyramid scheme means that they think even though this company is allowed to run, in essence it’s like a pyramid scheme.