Is 5Linx a Scam or a Great Business Opportunity?

What is 5Linx?

5Linx began with quite a lot of buzz when they first launched in 2001 with their innovative telecommunications products. Although the initial hype and growth spurt of 5Linx is mostly over, they still occasionally are on the horizon with a new product innovation, or they get written up in a home business magazine of one sort or another.

As a brief introduction to 5Linx and their product line - they offer wholesale pricing on VOIP technology as well as a short list of other internet based communications products.

Is 5Linx the answer to your financial problems?

Although I am a strong proponent of the MLM profession, I would not recommend getting involved with 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:

Simply put, I would spend any significant time or energy on any company that relied solely on technology products. There are a LOT of reasons for this, but let me share my top two:

First, technology based products are great for traditional business, but not good for network marketing because of the negative price pressure of the marketplace. For example - let's say your company develops the first phone capable of intergalactic instantaneous transmission. 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.

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:

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. You remember Excel, don't you? They had some people earning some of the biggest checks in MLM history. NOBODY thought that they would ever go out of business. 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 money with 5Linx or any other real Network Marketing company, learn how to create endless prospects and influence offline through the power of Attraction Marketing. 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.