An Expert Review Of 5Linx – Is This A Good Opportunity?

A short background on 5Linx:

5Linx began with quite a lot of buzz when they first launched in 2001 with their innovative telecommunications products. 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.

All of the services 5Linx offers are built around communications technology, and they specialize in VOIP services with a wholly owned subsidiary that manages their international 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 are the two reasons I can’t recommend 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:

Simply put – products based solely on technology have never worked long term in the MLM business model because of negative price pressure from the market place. For example – let’s say your company develops the first phone capable of intergalactic instantaneous transmission. Let’s call the new, fabulous phone the ‘iGalaxy’.

When iGalaxy is first launched it receives a phenomenal response – after all you have no competition, huge demand and a new supply – EVERYONE simply wants to own the iGalaxy, which enables you to have a 75% profit margin. Just because your profits are so huge and glorious, you’ve got MLM distributors on 17 different planets all earning million plus monthly incomes.

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…

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

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.

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. 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.

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