Here’s a brief introduction to 5linx:
Read the unedited5Linx Review
5Linx began with quite a lot of buzz when they first launched in 2001 with their innovative telecommunications products. 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.
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 best opportunity in the world?
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.
Here’s why I won’t join 5Linx:
Basically, I simply will not ever recommend people get involved with the newest, latest technology based product. 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. For example – let’s say your company develops the first phone capable of intergalactic instantaneous transmission. Let’s call this new product ‘iGalaxy’.
Well, when you first launch iGalaxy – the response is phenomenal – not only do you have the only product that offers sub-space instantaneous communications, but you have a 75% profit margin because of lack of any real competition. 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.
To compete in the marketplace, your company reduces the cost of iGalaxy by 70%, causing a 95% reduction in your monthly commissions 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.
On a strictly basic level, when the cost of phone technology goes down from negative market price pressure – all the distributors checks go down along with it. 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. 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.
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.
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