What is 5Linx?

5Linx, a home based business opportunity and a telecommunications specialist has been on the internet scene for Network Marketing companies since 2001.  5Linx had a short lived phase where they grew extremely quickly, sponsoring thousands of distributors into their company in more than 20 countries.

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

Is 5Linx a good opportunity?

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

Before you leap through the computer screen, ranting and raving about how great the opportunity is - let me share with you my reasons why. 

Why I would never join 5Linx:

To be quick and simple, I just won't join a company that bases it's product solely on a technology base.  Now I can share quite a few reasons why that is, but let's briefly cover two of them that are most important:

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 this new product '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.  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.

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...

…Presto!  You're back from square one building a new MLM from scratch.  Which brings us to reason #2:

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.  Even though this is true, natural market forces collapsed Excel and swallowed it whole - collapsing the incomes of hundreds of thousands of distributors in the process.  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.

However…  If you do want to make money in 5Linx, realize that your ability to create a successful organization is completely independent of any company that you join. 

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.