5linx Review: Is 5linx A Scam?
Do you need to boost your income?
Looking for an option to improve your finances?
We have been presented with many business options and one of them is multi-level marketing — and there are so many companies offering this setup — such as 5Linx.
In this article, we’re going to review 5Linx to decide if it really is the best MLM out there.
We’ll talk about whether 5Linx MLM is the right online business for you.
In the end, I’ll answer some of the most frequently asked questions regarding 5Linx and MLM in general.
And most important, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off MLM for good because it uses some of the same skills but in a much more powerful and profitable way!
Check Out This Simple Way To Run A Digital Real Estate Empire Online
This is so simple, it should be illegal.
Table of Contents
MLM Reviews: What Is 5Linx?
Want to gain financial independence online?
Some reviews give mixed information. But for an unbiased 5Linx review, read on!
What is 5Linx?
It is an American multi-level marketing company providing utility and telecommunication services, nutritional supplements, health insurance, and business services.
It is based in Rochester, NY, and was founded in 2001.
Becoming a 5Linxmember makes you a sales representative. You earn commissions by selling and recruiting members.
What is the Reputation of 5Linx?
Sadly, in 2017, the co-founders of 5Linx were charged with fraud and money laundering. Two of them were sentenced in 2018.
The issues were about the founders and their decisions, and not 5Linx itself or the income setup. 5Linx is still active under new management.
You can still join and make money, but recent history is likely to affect your success.
Who is Craig Jerabeck?
5Linx was established by co-founders are Craig Jerabek, Jeb Tyler, and Jason Guck in 2001. In 2016 Nelson Gerard got the company’s majority stock.
The present leadership of 5Linx:
- Nelson Gerard, Chairman of Board
- Michael Gilbert, Chief Operating Officer
- Denise Nowak, Vice President
- Larry Harper, Chief Sales Officer
What are the 5Linx Product Lines?
5Linxhas a mix of offerings — it’s like the company wants both the health area and business services industry.
The two main categories:
Personal Products (examples):
- Home security services
- Credit score service
- Internet, cable TV, and fiber video
- ID guard
- Discount networks
- Tech support
Business Products include:
- Commercial security systems
- Commercial energy program
- Payment solutions
- Text alerts
Are 5Linx Products Worth It?
- Generally highly reviewed products/services (affordable and good quality).
- You get a website/store (as I know) with a shopping cart to help sell.
- You can buy/sell products on your own without registering with 5Linx.
- Normally direct/network marketing companies have the products they sell for higher prices.
- 5Linx sells third-party programs/services that have good prices and high quality, but you need to pay $249 for membership.
5Linx Quick Report
Price: Joining fee $249. Added + optional $49.95/monthly fee (extra service).
The biggest problem is their hefty starting price plus the network marketing aspect, which is not the business opportunity I would suggest.
5Linx Review: Is 5Linx a Pyramid Scheme?
Multi-level marketing and pyramid schemes are different. Legit MLM companies are legal and give value to sales reps and clients.
Pyramid schemes use the former business model for recruitment. Also, there are rarely any items to sell. Or they are bad quality.
The revenue isn’t generated from consumer sales but recruits come participation fees. Recruits usually have to pay a lot to join.
In both models, there’s an upline and downline.
The real difference between a pyramid scheme and a legit MLM is that in the latter, each sales rep’s main role is to sell products or services, not to recruit.
5Linx is a multi-level marketing or network marketing company based in America.
Don’t get me wrong. The MLM system has its benefits.
Will This MLM Company Work?
MLM is a legal business model (mostly worldwide) and there are a lot of them. They are not scams as long as they abide by the law.
It can be a good way to cut off the middlemen to give items at a competitive price.
People bash this model because they can be pyramid schemes — with dishonest individuals who use unapproved company sales tactics.
It’s difficult for the company to monitor individual sales reps. This causes distrust due to false promises.
But some people do become quite successful with this business model. But it’s not easy to succeed.
MLM is an issue of preference. But there can be a better option you might like which can be leveraged to boost your leads.
What I Like About 5Linx:
- 5Linx offers quality and affordable products and services
- 5Linxhas longevity and accolades
What I Don't Like About 5Linx:
- 5Linx gave no transparency on compensation plan or product costs
- Hefty start-up costs
- Highly saturated market
- Having recruitment as the main force of money generation is not a good business model.
- No wonder in 2015, 5Linx restructured its compensation plan which cut the compensation of the top earners who transferred to other network marketing companies.
- Even the original CEO Craig Jerabeck resigned.
5Linx Reviews: Is 5Linx a Scam? Is It Just A Pyramid Scheme?
Is 5Linx a scam?
5Linx has real products to sell and while it’s not the cheapest network marketing to join, the participation fees are acceptable compared to other pyramid schemes.
Most people automatically treat it as a scam, but that is not true. But, there are many factors to consider.
First issue — the high joining cost. Plus, there are many hidden fees.
Second issue — no transparency in compensation. This is a huge issue and something that a lot of MLM companies struggle with.
Final issue — pressure to recoup the costs with5Linx. The packages are expensive and difficult to sell the items. And you will be competing with 5Linx established affiliates.
NO, 5Linx is not a scam. However, it might not be a great option for you.
Why is 5Linx NOT a Pyramid Scheme?
With pyramid schemes, the majority of its revenue comes from recruitment instead of selling items.
As long as a company has actual products sold to consumers and they make most of their revenue through those sales, they are generally not a pyramid scheme.
Now it is entirely possible to build a profitable, successful MLM business… but there are better business models than Network Marketing.
And unlike 5Linx, it provides real proof of real success from real people as recently as a few days ago.
Summary: 5Linx Review
Company Name: 5Linx
Co-Founders: Craig Jerabeck, Jeb Tyler, and Jason Guck
Product Type: Multi-Level Marketing
Price: $99 starting price
Summary: 5Linx is an MLM company founded in 2001. They specialize in health insurance, telecommunication services, nutrition supplements, etc.
Sadly, co-founders Craig Jerabeck and Jeb Tyler were sentenced to jail for committing money laundering and fraud.
Overall Rating: 3/10
Is 5Linx Still in Business?
5Linx is still in business. But since its owners went to Jail as of December 2018 the future of the company is questionable.
5Linx is still undetermined with its new vision which makes it a worrisome business opportunity.
How To Make Money With 5Linx?
People on top of the pyramid make money.
FTC is getting strict on many companies like Vemma making it even more difficult to succeed with this business model.
You must love their products and the business set up to do well.
Two Ways To Make Money With 5Linx
5Linx offers two ways to earn: (1) Selling/promoting. (2) Recruiting people.
Make Money from Sales
Here are the 5Linx products and services:
- Captavida – A supplement to help normalize blood sugar levels.
- Daily Dimes -Program for savings and rewards.
- Chroma Credit – Credit score analysis, support, and improvement.
- ID Guard – Identity theft insurance, programs to protect your computer, and regular fraud alerts.
- Home Security – 24/7 security monitoring program with equipment.
- Montavida – Coffee and tea, that contain ramon seeds.
- Internet, Fiber Video & Cable TV.
- Platinum Discount Network – A discount network that uses your smartphone.
- Oxzgen – Cannabidiol products.
- Residential Energy Program -An alternative supplier for electricity.
- Safescore – Helps monitor credit score and validate identity.
- Safeguard Services – Includes tech support, credit monitoring, backups, and identity protection.
- Teevee – HD video with no contract.
- Tech 24/7 – On-call remote tech support.
- Telemed – Phone and video access to doctors, along with a pharmacy discount card.
How You Earn
The 5Linx commission rate is based on the number of products that you buy and/or sell.
Basically, 25% of the product price is earned by distributors in commission. This ranges from 10% to 20% for you and, for your upline, between 15% and 5%.
This setup has some implications:
- You don’t earn much per sale. 10% is a very low beginning commission and you’re still only earning 20% commission once you reach the topmost sales target.
- This low commission on sales makes 5Linx less attractive to some, making recruitment harder.
- An acceptable amount of your work gets passed onto your upline. This creates resentment, especially for starters who are struggling to sell.
- By building a team, you can earn better than with other companies.
It’s good that 5Linx has systems that make sales easier — via a personal website and an app. Plus training videos and marketing media.
Despite the low commission rate, 5Linx does offer recurring commissions.
Make Money Building a Team
With 5Linx, you can make money in seven different ways.
But, you just earn from your sales (#6), the team sales (#7), and, the different bonuses (#1 to #5).
The basic residual commission from your team uses a uni-level rank-based setup.
As always, each rank comes with its requirements.
Beyond team, commissions are the bonuses. These provide additional chances to earn but have requirements as well.
How To Get Started With 5Linx?
Signing up is cheap. The $99 package gives you a,10-20% commission on product sales.
Then, there’s $5.95 shipping for this starter kit. The Leader Starter Kit costs $399.
This package has marketing packages, dietary supplements, some gift cards for promotions, and an “energy certification” for your page.
You will also get a VIP Starter Package that has everything from the first two packages, plus 100 -$10 gift cards plus a ticket to their international event.
With these expensive packages, you’ll be pressured for a return on your investment.
Plus, you need to invest in the products themselves (starting at $400).
Can You Really Make Money With 5Linx?
The brand pays you through:
- Quick Start Bonus
- Earned Position Bonuses
- Customer Acquisition Bonuses
- Open-Line Bonuses
- Customer Milestone Bonuses
- Residual Commission on Personal, Referred, and Team Sales
- Car Program
- Annual Leadership Pool
So, Yes… you can make money…
There’s a lot that comes along with Network Marketing that many people struggle with.
In fact, check out our Top 5 Reason Why Most Network Marketers Fail.
Now, don’t get me wrong…
You can certainly make money with Network Marketing, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket my online business to over $40,000+ per month is so simple that making money really does become second nature.
Pros and Cons of 5Linx
- Good quality products
- Earnings via selling products (no need to recruit)
- Has been around since 2001
- Owners went to jail as of December 2018
- No transparency of compensation plan
- Expensive starter packages
- Very saturated market with other5Linx affiliates
- Difficult to sell 5Linx products
- 5Linx products are very over-priced
Training Tools and Support
5Linx doesn’t offer much training and support.
To make money with 5Linx you need to recruit people. But if you have no experience this will be difficult.
Is 5Linx Legitimate?
Some people quickly consider this a “pyramid scheme” and think of it as a scam. But that’s not true. However, there are many factors to watch out for with 5Linx.
Is 5Linx Good for You?
5Linx is for people who like their products and promoting them. The 5Linx business model only works if you truly believe in the products and can sincerely promote them.
But if you have never used 5Linx before, think twice. Get into 5Linx if you’re already an experienced internet or affiliate marketer.
When it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming an MLM marketer, you’ve got way better options than 5Linx.
Keep in mind, I don’t get paid to promote any of the programs I review. I think 5Linx is a great business model, but you could end up leaving way too much money on the table.
What Is Our Top Recommendation For Making Money Online In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where 5linx falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this!
Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this digital real estate program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
Remember 5linx? You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the 5linx MLM in our opinion. This group is much more active.
Unlike 5linx, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike 5linx, more people have been able to walk away from their 9-5 job as well.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…