The Company: 5 Linx
Current CEO: William Faucette Jr
Startup Cost: $199 - $999
About 5 Linx
The company was founded in the United States in 2001 and sells a ton of different products through an mlm business model. According to their website they established this company to put the representatives first and help others and have some admirable core values.
But is this really the case?
The opportunity is marketed as a way for you to just go about your daily business and recommend products and services to your friends and family like you normally would, except this comes with a compensation plan attached.
You can earn commissions on selling products and services and by recruiting others into the business opportunity, there’s nothing new there. This is how most mlm’s work. The main difference I found with this company is that they have an enormous and somewhat un targeted set of products.
They sell everything from energy drinks to energy itself… I guess some people may consider this a good thing. It does make me wonder how great the actual products are since the company doesn’t really specialise in anything.
The idea behind this is essentially jumping on the bandwagon of anything that is popular in the marketplace and selling this to your network, rather than them buying this stuff the traditional way.
Getting Qualified As An ‘Independent Marketing Representative’ (IMR)
This information is accurate to the best of my knowledge at the time of writing this (December 2015). In order to become an IMR you need to pay one lump sum AND get 8 customer points to qualify to be in business. One point of which needs to be from a different person. There are 3 options for you to take…
Option 1- Pay a $199 fee to enrol as an IMR and purchase a Platinum Discount Network subscription for $49.95 per month which includes a generic website, discounts and some other stuff. You will also need to buy and/or sell more products to get your next 4 points.
Option 2- Pay a $499 fee which comes with 5 customer points, then sign up to a Platinum subscription to boost you up to 10 customer points.
Option 3- Pay $999 and get 10 customer points, then sign up for a Platinum subscription to achieve 20 customer points total.
Confused? Don’t sweat it, this is typical with mlm’s. They have the most annoying and confusing set of rules and plans, it really is ridiculous!
In order to remain at the IMR base level, you must maintain your 8 customer points or risk being penalised. It is not clear what exactly will happen in the event of this happening, but it won’t be good I can assure you.
They do have a grace period to help you stay afloat which is cool, thumbs up there!
The Costs Involved In Starting Out
- $199 to become an IMR, with other more expensive packages
- A $99 renewal fee each year to remain a rep (waived if you buy Platinum subscription)
- Must maintain 8 customer points which for most will mean recurring product fees each and every month
- Some other BS monthly subscription (Smart Builder) for $55 plus shipping and taxes is recommended
- Conventions and seminars and all associated costs in attending them if you decide to go, this is always heavily pushed
What I Liked
- They don’t have a lot of complaints in comparison to some companies
- They have a bonus pool of 30k that is divided up amongst the top performers within the company each month
What I Didn’t Like
- Charging affiliates for stupid things like sign up forms with over the top postage fees
- They teach warm market technique to grow your business
- Too broad of a product range means they aren’t specialising in anything
Why Most People Fail With the 5Linx Home Business
One of the key reasons why most people find it difficult to get this business profitable is that they are being taught to hustle family and friends. While this may work for some, it’s pretty lame and fails the majority. This method works well for the company itself since it has many representatives overall that it can make a little bit of money off each of these every month. But for you this method will almost certainly not build you a profitable business. Best case you try to recruit every living breathing thing which I personally don’t think is the best approach.
Here’s a snippet from a training webinar I took to show you what they are teaching reps…
“Find some emotional point to get family & friends to support your business, for example you need their support to help your ageing parents”- 5Linx top recruiter
The very same guy also strongly encourages new recruits to get 25 customer points in one month, even if you have to buy a ton of product and pay cancellation fees with your current contracts like your phone bill. If you don’t do this, apparently you just aren’t serious about the business. Let me get this straight… if I don’t spend hundreds of dollars on products, pay hefty cancellation fees and recruit friends and family with questionable sales tactics… you are just not serious about building a business.
Look, I do strongly believe in going all in on your dreams and there’s no doubt that you must be 100% dedicated to achieve success. Yes. However, I personally think this approach with this company will just see a lot of people buying products they don’t use and making hardly any money.
The company offers a broad range of products and services and definitely does have some good things going for it. It does however, embrace the ‘chase your family and friends’ approach which is just not something I can get behind. I also think it’s important to like the products the company has and want to use them yourself. It’s not good idea to just buy a ton of product to qualify for an opportunity. Being passionate about what you do and believing in the products is key.
In my opinion, this is not a scam but I do believe there are better options to consider. Hope this helps!