A Skeptic’s Review Of The 5Linx Opportunity

5Linx Review

A short background on 5Linx:

Read the unedited5Linx Review

5Linx, a home based business opportunity and a telecommunications specialist has been on the internet scene for Network Marketing companies since 2001. 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.

Basically, 5Linx has several communications products built around VOIP technology, a rapidly expanding division of global 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 you leap through the computer screen, ranting and raving about how great the opportunity is – let me share with you my reasons why.

Here are the two reasons I can’t recommend 5Linx:

Simply put, I would spend any significant time or energy on any company that relied solely on technology products. Now I can share quite a few reasons why that is, but let’s briefly cover two of them that are most important:

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. 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 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.

One month, though, the growth just stops and goes backwards, because one of the third world planets without patent laws takes a look at your iGalaxy and decides to make a newer, better, cheaper phone called the iUniverse – it’s the same as your product, only it costs 95% less.

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. 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.

On a fundamental economical level – when costs of technology go down from increased technological ability and market competition – 5Linx has to pay you less money to stay in business. ACN is the closest company in the MLM profession that I’ve ran across that has a chance of long term success, and I don’t think that they’ll last, either.

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 want to make a fortune in 5linx or any other MLM for that matter – learn how to attract prospects and distributors into your business through internet marketing principles. 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.