subject: 5LINX - A Subjective MLM/Network Marketing Business Review [print this page] 5LINX - A Subjective MLM/Network Marketing Business Review
For that reason I am often asked my opinion about MLM companies in the industry. In this brief article I will be discussing the industry in general and 5LINX specifically.
THE INDUSTRY:
Everything in life and business is about "timing". In the early 1980's, the "timing" was right to get involved with the recently de-regulated industry. Consumers saved millions on telephone equipment and long distance service and entrepreneurs who saw the opportunity made fortunes. Today, however, is almost 30 years later and the potential savings to the consumer have been squeezed to the point that independent reps have little or no savings to offer and essentially have to ask family, friends and relatives to do them a favor. There is little or no room left for a middleman to make a profit.
THE COMPANY:
5LINX was founded in 2001 by 3 partners, all with considerable experience with telecommunications, in Rochester, NY. The company claims to be grossing about $50,000,000 per year and has roughly 50, 000 representatives. If you do the math, the potential income for an individual representative does not appear to be promising.
The core of the company's business appears to be from wholesaling voice over internet services through the parent company, Global Linx. The corporate website indicates that the parent company markets residential and commercial voice over internet service through a separate agent network, not connected with the MLM organization.
THE PRODUCT:
Like several of their competitors, they are an Authorized Re-Seller of cellular phones, cellular phone plans, satellite TV, security systems, and the company's own voice over internet service.
They also sell a residential video phone similar to the Iris 5000. On a very positive note. the company announce in January that they are entering the discounted energy market. The recent de-regulation of the gas and electric industries is a huge market and should provide an opportunity similar to the deregulation of telecommunications years ago.
TRAINING:
The company still subscribes to the old school MLM marketing paradigm - making a list, 3-way calling with a sponsor, holding home and hotel meetings, and talking with everyone within 3 feet. Unless things have changed, their back office training is mainly geared toward the products you would be selling and I saw no online training education that would equip you with Online marketing skills to reach the 1.7 billion people who are currently on the internet.
COST TO JOIN:
It cost $499.00 to join and $49.99 per month for promotional materials, a replicated website and access to your back office to run your business. This is a competitive entry fee with most MLM companies.
The main reasons that the vast majority of network marketers fail is lack of adequate marketing education and training and not having an experienced mentor/coach. Unless you have considerable, previous, successful marketing experience and online marketing skills, I would steer away from this company. There are plenty of companies offering products in less competitive industries with comprehensive training programs that will increase your chance of success. However, I encourage you to do your own due diligence and draw your own conclusions.
Bruce is a long time Consumer Advocate, and seasoned Sales/Marketing Executive who transitioned to being a full time Internet Marketing Educator,Trainer and Coach. He specializes in helping newbies, baby boomers, downsized executives and serious entrepreneurs who wish to earn 5 figures per month, at home, on their computers, without having to Sell. For more opportunity reviews, ideas, tips and marketing strategies, visit his Blog at http://www.babyboomersplanb.blogspot.com or to learn about his Online business, visit http://www.moretimefreedomandmoney.com
