Is 5linx A Scam?

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Welcome to our 5linx reviews where we attempt to find out if 5linx is a scam or a real money making opportunity.

Companies with strong product lines making them a one-stop shop especially for essential products are every sales person's wish to be part of.

 This makes selling easier and reaching targets a breeze. 5Linx has this covered in some ways with its strong product line.

 But, can a strong product line be enough for a company to balance the other factors and make it a worthy opportunity for aspiring entrepreneurs?

If you are curious what 5Linx offers then we give you our detailed review of this company in this article.

Is this company too good to be true? Could 5Linx be a scam?

 These are just a few questions that we will be answering in this thorough review.

So, you can sit right back there in the comfort of your place and let us give you our honest review of 5Linx.

Read on to find out more.

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Is 5linx A Scam?

The 5linx Company

5linx logo

Founded in 2001, 5Linx is a multi-level marketing company with a portfolio encompassing utility and telecommunication services, health and nutrition, financial products and many more.

The company was founded by Craig Jerabek, Jeb Tyler and Jason Guck but they left the company in 2015. Jerabek and Tyler were arrested in 2017 while Guck was indicted in 2019.

They were found guilty of fraud and money laundering for their acts relating to 5Linx when they were still with the company.

Now, the company is under the new management with Nelson Gerard as the Chairman of the Board and Michael Gilbert as the CEO. The company is headquartered in New York, USA.

It is tagged as no longer in business in Better Business Bureau (BBB) but is still listed there with no rating (NR).

 It has been a 9-Time Inc. 500/5000 Honoree, named Top 50 of U.S. Direct Sales Company and No. 1 in Rochester Top 100 Companies in 2013.

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The  5linx Products

5linx products

5Linx offers products for personal and business purposes.

 As already mentioned, 5Linx offers utility and telecommunication services, health and nutrition, financial products and many more.

Here are some of the company’s products.

Personal

· Credit Improvement Related Products - These are products for proper credit management.

· Identity Guard Softwares - These offer identity protection services.

· Some internet, fiber video and cable TV services.

· Montavida Coffee and Tea - These are coffee and tea products with extra ingredients that give them a healthier twist.

· Platinum Discount Network - This is a membership product offering discounts for shopping, travel and other personal services.

· Residential Energy Program - This offers utility services for electricity and water that your home needs.

· Oxzgen CBD - This product brand is not listed in the corporate website but is mentioned in the company’s social media sites.

Business Products

· Commercial Energy Program - This refers to utility service management for business.

· Text Alerts - This is a text messaging service for your business needs.


How To Join 5linx

To join 5Linx, one needs to complete the representative agreement and pays $249. To be qualified for commissions, one needs to accumulate 6 customer points. Below is a screenshot of the company’s point system in early 2018.

5linx point system

There is also a need to subscribe to some of the products at $49.99 per month.


The  5linx Compensation Plan

There are several ways to earn from 5Linx. The compensation plan that we found is dated January 13, 2018 and is available here.

There are ranks to advance to as 5Linx business affiliates and these are summarized in the table below.

5linx compensation plan overview

The ways to earn from 5linx compensation plan are as follows:

· Quick Start Bonus - This is a bonus earned in the first 30 days and can make one earn from $25 to $1000 depending on the number of qualified IMRs sponsors and personal customer points.

· Advancing in ranks also qualifies affiliates to bonus and this bonus increases when the promotion is achieved in a shorter period of time.

· When an affiliate sponsors a new IMR and he/she becomes qualified, then Customer Acquisition Bonus (CABS) can be awarded. The amount paid depends on the affiliate’s rank.

· Open line bonus is paid to affiliates who sponsor affiliates and got promoted in the first 30 days.

· Customer milestone bonuses are paid every time an affiliate accumulates 25, 50, and 100 personally referred customers.

· There is residual commission on personal and team sales.

· Car bonus, annual vacations, stock options and platinum pool programs are also offered.

5linx compensation plan (1)

Can You Make Money With 5linx?

5linx income disclosure statement

There is an income disclosure statement posted on the corporate website for the year 2015

In my opinion, this is already obsolete and insignificant.

 However, since we only have this, let us give it some discussions anyway. When I looked at the chart, at first glance, I thought it really showed that representatives are really earning

. I thought this will be the first MLM opportunity that will negate my previous findings about MLM companies.

 But, I was wrong at second glance. The bad news in 5Linx’s income disclosure statement lies on the last column which shows the 2015 Annual Income Low of representatives.

The chart shows that for representatives with a position as low as trainer, the highest annual income can reach up to $36,281.80 but when you look at the annual income low it is only $22.

 As to how many representatives earning at a high level income of $30,000 and higher is still a mystery. What if only one representative was able to get that level of income at $30000 and the rest are at a level of $22, only 5Linx management knows.

 By not providing a mean or median income within positions, I really find this income disclosure statement misleading. I find 4 positions with acceptable high and low annual income ranges. These are Bronze Senior VP, Silver Senior VP, Gold Senior VP and DPSVP or Diamond.

 These positions surely have income ranges that are reasonable enough to replace other full-time income sources. But, the bad news is, the number of representatives on those positions accounts to less than 1% of all the representatives.

This alone shows that 5Linx opportunity is no special rather it just mirrors other MLM companies’ income charts. Yes, one can surely earn from a 5Linx business opportunity offering but the chances of earning a reasonable amount is too low and almost border to nothing.

Let's have a quick look at the Pros and Cons of 5linx.


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The Pros Of  5linx

  • Although the company faced several legal disputes in the past, it remains active since its founding in 2001 under a different management. 
  • It has been a recipient of several recognitions in the past.
  •  The company has a strong product portfolio with a mix of essential services to health and nutrition goods.

The Cons Of The 5linx Company

  • The company’s reputation has been affected in some ways by the founders’ indictment for charges of fraud and money laundering.
  •  5linx has been tagged as no longer in business in Better Business Bureau.
  • The Start-up fee is relatively high.
  • The company’s income chart is obsolete, showing data from 2015.
  •  The Income chart shows less than 1% of the representatives are earning a reasonable income range.

Conclusion - Is  5linx A Scam

Looking at 5Linx, I can say that it is not really a company that is too good to be real.

 In fact, it had faced several reality checks in the form of legal hurdles in the past which led to the imprisonment of its founders.

 It has been under a new management since 2015. With the current state of the company, it continues to thrive and continues to hold a strong product portfolio.

Obviously, the company is not a scam and is still standing high up to now.

 However, I find the company’s business opportunity offering falls short to be called a good or one of the better opportunities out there in the realm of MLM.

 Just like in most MLMs, at 5Linx you need to invest a start-up capital to join. You need to sell and recruit at the same time to achieve your income targets.

 The sad news however is that 5Linx has not shown yet a more updated version of its income disclosure statement.

 The one from 5 years ago is not even encouraging. It just confirms that one has very low chance of success in joining MLM companies just like in being a 5Linx’s affiliate.

 For a big company with its headquarters in New York, USA, knowing that less than 1% of its representatives received a reasonable full time income is not something worth investing the money, time and effort with.

 We can only hope that the recent income statements of 5Linx’s representative is better than what it was in 2015.

 However, with a similar system in place just like before, expecting for a better outcome now is simply illogical.

5Linx surely has been standing for almost 20 years and it is surely not a scam but is it an MLM company worth joining into? My answer would be in the negative in this respect.

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