Is 5Linx a Scam or a Great Business Opportunity?

Published: 21st August 2009
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A short background on 5Linx:

5Linx, a home based business opportunity and a telecommunications specialist has been on the internet scene for Network Marketing companies since 2001. Even though 5Linx is past it's initial growth phase, occasionally they still enter the online scene with a new product idea or compensation plan enhancement.

Basically, 5Linx has several communications products built around VOIP technology, a rapidly expanding division of global communications.

Is 5Linx the answer to your financial problems?

Even though I love the Network Marketing industry, I can't personally recommend 5Linx as a good opportunity to join.

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.

Why I would never join 5Linx:
Simply put, I would spend any significant time or energy on any company that relied solely on technology products. There are a LOT of reasons for this, but let me share my top two:

First, technology based products are great for traditional business, but not good for network marketing because of the negative price pressure of the marketplace. 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 $12 million a month.

One month, though, the growth just stops and goes backwards, because one of the third world planets without patent laws takes a look at your iGalaxy and decides to make a newer, better, cheaper phone called the iUniverse - it's the same as your product, only it costs 95% less.

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...

'Bamb! You have to start over from square one, which brings us to the second reason why I won't join technology companies:

Look at MLM history - can you name one company that has ever succeeded long term with any kind of technology based product? Eventually they all fall apart with pressure from their competitors. Remember Excel Communications? 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. An example of this is that the average earnings of 5Linx representatives dropped by 50% over ONE YEAR - from 2006-2007 according to 5Linx official income statistics.

When it no longer costs 80 cents a minute to call long distance, it's hard to pay out huge commissions - which is EXACTLY what you see in 5Linx - some of the smallest checks among the top earners in the MLM industry. 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 seek MLM riches and you're in 5Linx, learn the principles of attraction sponsoring, and you'll draw an endless stream of prospect to yourself like bees flock to honey. That way, it won't matter if 5Linx goes out of business or all of your distributors start earning tiny checks - anyone who is worth his salt and understands Attraction Marketing knows how to instantly create a loyal organization in any company they choose.

David Wood has helped hundreds of people who have read this 5Linx Review to achieve a higher level of prosperity in MLM. To learn how you can takeover your MLM company and dominate this industry online, visit David Wood's MLM Prosperity Secrets.

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